Starting a business? Hiring your first employee? Make sure you do these things!

Starting a business? Hiring your first employee? Make sure you do these things:

  • Application for the employee to fill out
  • Background check to confirm their information
  • Find out if your rate of pay is comparable to the industry average

Think about offering benefits when the second employee is hired then consider whether I pay more than the competition or do I offer the benefits to compete with the competition i.e. the corporate giants. The issue is you are not big enough to offer the comparable benefits. So what do you do? Maybe you offer shares of the start up or maybe you offer phantom stock. This is based on your exit strategy and what the long-term plans are for your company. But aside from that let’s go back to the first hire of your company. The first employee who will in essence be working side by side with the owner, CEO, founder, entrepreneur etc and he or she will see and experience the highs and lows that you will go through as the founder. So they will be on the proverbial roller coaster of being an entrepreneur just like you. That is a challenge so choose wisely on your first hire. So that is the theory side of it the “nuts and bolts” of it will be this;

You now need workers’ compensation in most states to operate without it being punishable by prison yes prison fucking n crazy. So get that shit asap… next you need to pay this person and take taxes out and you now get to match the taxes and help our government out. If you don’t do this, guess what the IRS will come down on you like a hammer and you may not ever get up from that experience. So don’t fuck with it and hire a company to process your payroll for you it is not expensive. Now if you cannot put him/her on payroll then guess what? You are not ready to start a business, go back and work for somebody and save your dollars. Sorry but if you cannot afford workers comp or paying payroll taxes you ain’t ready… Now that is out of the way get your persons info and please please please make sure they are legal citizens. If not you will get a visit from ICE and they will find you and deport that person. Again don’t fuck around. One more thing on why it is important to have employees on payroll remember during the pandemic the PPP loan the extended unemployment. You don’t do the above, you are royally screwed on both. Let me tell you that. It will save a lot of business asses… keep that in mind when the first employee asks you to not take out taxes…Don’t because the first time that person goes to collect unemployment he or she will roll you under the bus and then you will have a nice visit from the DOL department of labor and they are like the legion of doom they do not let up until justice is served for your employee not you. Oh and most times that employee is not exempt from OT so make sure you pay the OT those audits are painstaking like having toothpicks shoved up your fingernails. No joke..

So jeez that is the first employee we will talk about employee number 2 on the next short and sweet blog. Stay frosty… Joey C