Employee Issue:

Hiring Your First Employee

When you hire your first employee, you must file documents and pay taxes to various government agencies. The following is a list of things you must do when you hire your first employee.

  • Obtain an employer identification number to use on tax returns
  • Register with your state’s labor department
  • Get workers compensation insurance
  • Set up a payroll system to withhold taxes
  • Have each employee fill out Form W-4
  • Fill out Form I-9 for each new employee
  • Report every new employee to your state’s new hire reporting agency
  • Post required notices from government agencies
  • File Form 940 every year
  • Create an employee handbook
  • Adopt workplace safety measures
  • Set up personnel files
  • Set up employee benefits, such as health insurance or a 401(k) plan