Most businesses will require hiring of employees unless the business can be a one-man show all throughout where every function can be performed by the owner.  Some can be operated alone only up to a certain point since continuing to do so will prove detrimental to the business operation.  However, there are certain requirements that have to be fulfilled in order to hire employees successfully and legally.

Businesses will be able to hire with confidence once they are able to comply with fundamental federal and state regulations including obtaining an Employer Identification Number (EIN), setting up withholding tax records, verification of employee eligibility to work in the US, registration with the New Hire Reporting Program, obtaining workers’ compensation insurance, registration for unemployment insurance tax, obtaining disability insurance when required, and posting of required notices under labor laws.  Employers are required to keep themselves informed of new laws pertaining to hiring employees.  It is also their duty to maintain a healthy work environment for their workforce.

Before prospective employers proceed with their hiring, they should first consider if outsourcing or getting the services of freelancers will be more suitable in relation to the nature of the business.  Not all start-up businesses can afford to hire at once.   It is also entirely useless to hire someone whose abilities will not be fully utilized.

Small business will fare better in hiring employees who are more flexible with regards to job description since everyone is bound to do their share in everything.  Employees who are entrepreneurial-minded can be of big assistance to developing businesses.  An interview with prospective employees should focus on understanding how a candidate’s skills and knowledge can contribute to the company.

Originally posted on February 18, 2012 @ 1:41 pm


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