Having employees adds a whole new piece to the business puzzle. From the cash needed each week or each two weeks to taxes and benefits and even legal issues, becoming an employer instead of self-employed can be demanding, but it is key to growth and to helping the national economy.
Beginning the hiring process may sound intimidating. The kind of business you're running will help you decide what kind of help you will hire. If you have a lot of contact with your customers, you will likely start with someone to handle your office duties so you can be out of the office, generating your contacts and making your sales. On the other hand, you may remain in the office, generating bids or quotes with little time needed away from the office. Until you have so much activity that you can't get it all done, you will be able to stave off the hiring process until you generate quite a bit of business. If you are a hands-on business owner, you may be out in the field hammering, digging, welding, cutting, etc. and get to where your projects take more than a single person, it will be time to get a helper so you can do more work in the same amount of time. The technicalities of interviewing and the legalities of what you can and cannot discuss, as well as hiring and firing issues are something to address via another source, like a book on the subject, a willing HR manager, possibly a placement service or maybe even an attorney.
To start the hiring process, you can get a pad of employment applications from the nearest business supply house, put an ad in the papers for the specifics you need and begin the interviewing process. The most difficult hiring will be for positions you are unfamiliar with. Knowing how to write proposals or repair engines may be your expertise, but how to hire an office helper may be out of your comfort zone. Begin by looking at what you aren't able or interested in handling and seek people with interests and experience in those areas. You may be good at working the numbers side of your business, but not too good at writing the letters and completing necessary forms. Measuring pistons and spark plugs to the thousandth of an inch might keep your interest, but filling out the invoices and filing tax forms is nothing but drudgery. Office help to take care of incoming customers will ease your work load and keep things running smooth.
When you have finally hired someone, you entered into the world of income taxes...and maybe unemployment taxes. In addition, you will be required to have workers' compensation insurance. More forms for your office help to fill out. Here are some you will need to have filled out: Starting with the Federal government, there is the 941, 940, 8109, and W-2. The state will have its own income tax and unemployment tax forms. Some states also allow their local municipalities to collect income tax, so there will be forms from them as well. What I have seen...only working in Pennsylvania...is quarterly reports throughout the year and then a summary or reconciliation at the end of the year for both state and local taxes. Both are similar to the Federal forms. The 941 is quarterly and the W-2 summarizes the activity throughout the year.
Have a great weekend. More to come on tax forms later.
Gary
