Starting your own business from the ground up can be one of the most valuable and rewarding experiences of your life. From financial independence to be your own boss, the benefits of owning your own business are numerous. However, starting up a business can prove to be very difficult most times, says Astro Strategist cum Business Astrologer Hirav Shah.
Shah adds, “In fact, many people who intended to start up profitable trades have been scared off by the various challenges involved, while others who managed to start could not get through these early challenges. A significant challenge that new businesses often present to new and aspiring entrepreneurs is that it is very demanding. It usually requires a lot of big decisions, financial risks, and time commitments, among others.”
Hirav Shah continues, “Nevertheless, entrepreneurs can find solace knowing that most of these challenges can only be encountered at the early stages. Another task that can prove difficult to you as a business owner is hiring your first employee. Many business owners often find that employing an assistant is more complicated than they imagined, while others don’t even know how to go about it.”
In this blog, Hirav Shah will provide you with professional tips on hiring your first employee and how to go about it financially.
Why do you need to hire?
As your business continues to grow, the responsibilities may become even more overwhelming. At times like this, the need to find an assistant to share these responsibilities with becomes magnified. The fundamental reasons why you need to hire employees for your business include:
– To expand your business
– For a greater workforce
– To share responsibilities
– To ensure better work efficiency
– Time management
Essential financial tips for recruiting your first staff member
Hiring an employee can go a long way to make your work easier. However, it would be best if you went about it the right way to avoid breaking legal employment rules. Failure to go about your hiring process the right way may lead to financial troubles, which can lead to bankruptcy in worse cases. Here are some professional tips to help you hire your first employee the correct way.
1. Get an employee identification number (EIN): One of the first steps you must take when hiring is to obtain employee ID numbers for your employees. Hence, as soon as you hire your first employee, you must get them an EIN in case of tax returns and other related issues.
2. Register with a labor unit: As soon as you hire an employee, you become an employer of labor. Hence, you become obligated and subjected to employer rules. Identifying with a labor union will help your course significantly. Therefore, you are advised to register with your state’s labor department promptly.
3. Issue employment contracts: Before employment, you must introduce employment contracts that employees must agree to before hiring. This is in the form of either a written or verbal contractual agreement. All employment contracts should clearly outline the terms of work, coupled with the proposed wages, work hours, payment method, increment rates, and annual holidays.
4. Set up and administer a payroll system: Hiring employees demands that you set up and maintain a payroll system. The system is expected to calculate the employee salary, including the necessary deductions for necessary expenses such as staff insurance, student loans, and pensions. Any miscalculations concerning payroll can be very expensive and demand a significant amount of time to correct, so such tasks are often best left to an accounting professional.
Hirav Shah concludes by saying, “Getting an employee to help your business is a good movie, and the steps involved are not too difficult. However, you must assess your business-level first to make sure you are stable enough to start employing. This assessment is necessary to avoid undue expenses for your business.“