What to do Before Hiring Your First Employee

Hiring Your First Employee

It is an exciting experience to finally have a company that can support an employee on the payroll! As you make this change within your business, it is essential to talk with your accountant and bookkeeper before the employee starts working. By setting the right systems in place, you will be prepared for all of the extra tasks that need to be handled when there is an employee that needs to be paid.

Employee Classification

First of all, make sure that the individual is classified right. In some situations, small business owners might mistakenly classify an employee as a contractor. Or, there might be a mistake regarding whether the person should be paid on an hourly or salary basis.

The best way to choose the right classification is by talking with an experienced financial professional. You can explain the tasks that the employee will be completing. Your accountant or bookkeeper can make recommendations to help you choose the right employment category.

Setup Payroll Services

Payroll management can be a bigger burden than you might initially anticipate. Don’t waste your precious time trying to sort through an online payroll system. Instead, it is much better to hire a payroll service to help out.

Even if you only have one or two employees, it is beneficial to have a payroll service so that you are ready for future growth. This service reduces your stress regarding employee management. You can have the peace of mind to know that paychecks are always sent on time, helping to improve employee morale.

Organize Employee Information

You are required to keep copies of the employee’s information on file. Put together a location where you have everything filed, including their tax paperwork, contact information, training documentation, and any other notes about employee management that occurred during employment. This file is a great place to consolidate all of the information about each person so that you can quickly reference your notes if questions arise.

Hire a Bookkeeping Team

It is frustrating for employees to work for a company that struggles with disorganization. Create the right environment for your employees by having good systems in place. A bookkeeping team will help with the management of your ongoing organizational needs, including digital payments and records.

Here at Easier Bookkeeping, we want to help you avoid some of the common pitfalls that occur when small businesses hire new employees. Contact us today to learn about the best systems and onboarding practices to improve your company: (888) 620-0770

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