No matter how big, or small, your small business is, preparing for your first hire is a big deal. As exciting as hiring your first employee can be without the right preparations it can be very intimidating. Balancing your desire to make your new hire happy, your business successful, and avoid government penalties can be a hassle. Here’s what you need to get your small business ready for its first hire.
Get Your Small Business Ready for its First Hire
Employer Identification Number (EIN)
Before you hire your first employee your small business must obtain federal and state EINs. PayWow or your payroll provider will use these number to file employment tax returns on your behalf. Apply for a federal EIN on the official IRS website and get your state identification numbers from your state’s website.
Employee or Contractor
It is critical to your small business to fully understand the difference between an independent contractor and an employee. If an employee is mistakenly paid as a contractor, you will be held liable for back taxes and fines.
The main difference between a contractor vs. an employee is the responsibility of payment. If the individual is a contractor, they are responsible for performing a specific task for a set amount of time at a predetermined rate. As a small business owner, your only responsibility to contractors is to write a check once the task is completed.
If you are paying an employee you are responsible for withholding federal, state, and local income tax based on your business location. Additionally, you are required to withhold the employee portion of Medicare and social security. PayWow’s innovative software automatically withholds the correct amount of tax withholdings, Medicare, and social security.
Choose an Online Payroll Provider
When you choose an online payroll service like PayWow, you can onboard new employees and manage your payroll in just a matter of minutes. Look for these four things when you choose an online payroll provider:
Security: It is critical for you to protect your sensitive information. You need easy access to your account and payroll data without risking the safety of your data. Before choosing a payroll provider, you must feel confident and safe giving them your business information. How many years of IRS e-filing experience does the payroll company have?!
Integration: If you’re transitioning from another payroll provider you need the process to be quick and easy. Getting started with PayWow could not be easier. Simply set up your account, add company information, and employee/contractor details. You can then quickly and efficiently run your payroll and generate professional paystubs.
Support: Expert US-based payroll specialists are a must for any online payroll provider. You deserve excellent and well-trained customer service payroll specialists that you can contact at any time, for no additional fees. PayWow is available Monday through Friday 9 AM until 6 PM EST via live chat and phone. You can also email us 24/7.
Compliance:Filing payroll taxes can be one of the most challenging administrative duties; staying tax compliant takes business owners about 120 hours a year without payroll help. Say goodbye to the stress and anxiety of filing taxes directly with the IRS. PayWow will automatically file and submit your small businesses federal and state payroll tax forms and deposits for you, keeping your business tax compliant.
Welcome Your New Hire
While we can not help to train your first employee, we can make sure that your company is payroll tax compliant. PayWow is the only tool you need to welcome your new hire. New hire reporting, annual federal/state tax returns, quarterly tax returns, and so much more, are all handled from our easy-to-use dashboard! We allow you to focus on running your small business while we handle complicated IRS terminology and forms