Hiring Your First Employee

Once your shop is established, you'll consider hiring. To employ legally, you need a few basics in place.

Hiring basics

• Have an EIN (employer identification number)
• Complete I-9 (work eligibility) and W-4 (withholding)
• Withhold and report payroll taxes (federal and state)
• Carry workers' compensation insurance
• Comply with labor law: minimum wage, overtime, etc.

Using a payroll service like Gusto or ADP automates tax filing and is convenient. Rules differ by state, so consult a CPA or HR professional before your first hire.