As the competition for hiring top candidates gets stiffer, employers are increasingly focusing on the hiring process now more than ever. Hiring workers is not as simple as sifting through job applications and interviewing candidates. There are legal considerations to take on board.
A hiring employee checklist acts as a guide, helping you identify the necessary steps needed when hiring your first employee. This article pores through the nitty-gritty of the hiring checklist for your small business.
Ensure you have an Employer Identification Number (EIN), as per labor laws requirements. An EIN is simply a social security number but for businesses. This is the number employees will use when filling in their employment tax details.
Several states use an Employer Account Number for taxes. To determine the specifics for state income tax, consult a tax professional. Additionally, you’ll need to register the business with the state labor department and the state revenue department.
Employees will need to calculate their tax withholdings by filling out form W-4. It helps to invest in an automated payroll system to smoothen the tax filing process.
Further, invest in employee benefits such as worker’s compensation and health insurance. These will help when they sustain injuries or fall sick.
Determine what kind of worker you need. Have a list of the tasks they will tackle. Next, please think of the responsibilities you’d want this employee to take on in the future and determine their salary.
Post the job description and vacancy on job boards and job-centric social media like LinkedIn. If possible, mention that you are an Equal Opportunity Employer. This shows that qualified candidates are welcome to apply despite their genders, races, sexual orientations, and ethnicities.
Instead of using external interviewers, have human resources form an interview panel from current employees. This technique allows them to feel like they’re part of the process. In addition, your employees can assess the interviewees’ specific skills with targeted interview questions.
Once you’ve identified a suitable candidate and made a job offer, run a background check. Pre-employment screening is necessary to protect your business, employees, and clients. That said, you cannot perform a background check without the candidate’s authorization.
Because of the legal requirements needed to conduct a background check, it is best to use an independent contractor that understands state laws.
After sending the offer letter, prospects must fill in form I-9. This form helps employers identify whether a new employee has employment eligibility in the US. The form includes candidates’ contact information, eligibility, and social security number.
Submit these forms for new hires before they start working for you. Moreover, this applies to both US and non-US citizens. Certain states may require your business to enroll in the e-verify program, which helps simplify the verification process.
The period between the new hire accepting the job offer and their first day is crucial in creating a good rapport with the company culture, as is the actual onboarding process. Furthermore, this period aids in ensuring the new hires stay for the formal hiring process.
You must conduct new hire reporting to the state’s labor agency, including rehired employees. These reporting requirements may vary from state to state. Additionally, you can check with the state agency to determine those requirements.
The onboarding checklist includes filling in new hire paperwork, adding the employee to the internal systems, and sharing the employee handbook. You must also provide the necessary tools and training. Lastly, start a shadow program to ensure the new employee properly acquaints themselves with the business.
After hiring, you’ll need to set up a method to pay them and sort out their payroll taxes. Choose a payroll software service that takes care of payments, taxes, and even insurance to save yourself the hassle. You need to know the three basics of payroll, including employee payment, payroll taxes to the IRS, and filing tax forms.
The Department of Labor states that employers must post notices around the workplace informing employees of their responsibilities and rights. You can utilize digital boards to display dynamic posters. Alternatively, use digital signage to educate the new hires about the company, such as the corporate culture.
Using a hiring employee checklist ensures you do not miss out on any crucial step during the hiring process. That includes filing legal forms, determining employee eligibility, and the employee onboarding process. Doing so ensures new hires quickly acquaint themselves with the business and have a smooth transition.