Running Your Business 2 min read
Hiring Your First Employee: A Practical Checklist
The paperwork, pay and onboarding basics for going from solo owner to employer, step by step.
Make Sure You Are Ready
Hire when you are turning away work, when you are spending your time on tasks someone else could do for less, or when burnout is hurting quality. Use the hourly rate and break-even calculators to check that the extra cost fits your budget.
Set Up as an Employer
- Get an Employer Identification Number (EIN) from the IRS if you do not have one.
- Register with your state for payroll taxes and unemployment insurance.
- Get workers' compensation insurance if your state requires it.
- Choose a payroll service to handle withholding, filings and pay stubs.
- Learn your state and local minimum wage and overtime rules.
Write a Clear Job Post
- Job title, pay range, schedule and location.
- Three to five main duties, in plain words.
- Must-have skills, and nice-to-haves listed separately.
- What makes your business a good place to work.
- How to apply.
Interview Fairly
Ask every candidate the same core questions, about real situations they would face. Avoid questions about age, family plans, religion, health or other protected traits. Check references before you make an offer.
Paperwork on Day One
- Form I-9 to verify they can work in the U.S.
- Form W-4 for federal tax withholding, plus any state form.
- State new hire report (usually within about 20 days).
- Required workplace posters.
- A written offer with pay, schedule and start date.
Onboard Them Well
A good first week sets the tone. Plan their first days, pair them with you or a trusted team member, and check in at the end of week one and month one. Use the new hire checklist so nothing gets missed.