Hiring a new employee is by no means a piece of cake. A proper systematic approach should be undergone, in order to hire the right candidates. Here are some useful tips, to hire a new employee for your company.
Job Description: A clear job description will help you to filter out the right candidates for your requirements. A clear picture must be given for the type of person that you are looking for, skills requirement, the salary range in which they will be paid and finally their experience and knowledge about the particular field of requirement.
Hiring Process: Once the hiring process begins, an accurate record of candidates should be maintained systematically, such as their pros and cons, interview notes and expectations. So that it will be easy for your reference in the future.
Recruiter: The recruiter acts as the catalyst in hiring new employees. Recruiters must have clear knowledge in creating the job description, job advertising on both online and offline, proper communication skills towards prospective candidates, providing clear answers about the job profile and your business, proper interviewing and screening of the applicants and a diplomatic communication skill towards unsuccessful candidates.
Identification Number of the employee: A proper EIN ( Employer Identification Number )must be obtained from IRS ( Internal Revenue Service ). This is clearly called as SS-4 or an Employer Tax ID. This is vital for the tax payment and to send other important documents to IRS. These days, you can apply for an EIN, through online. This number is the tax number provided for you as an employer who runs the business. But this process is not important for each and every employee, other than some crucial people required for your business.
Tax Records Maintenance: Tax records must be maintained legally, for a span of four years. These records should be kept secure, safe and in an easy to access mode. A proper accounting software will take care of this process and will make it simple for you.
Withholding of taxes: The IRS must be informed about the yearly income for each and every employee, working in your company. The company must withhold money from each and every employee’s salary, to make sure that the employees can pay their taxes at the end of every financial year.
W-4 Form: Before the start of work, each and every employee should fill the W-4 form. This helps the employer to understand the tax withholding process for the employees.
W-2 Form: The employer should give a detailed report about the employee’s income, to both the IRS and the employees. W-2 form takes care of this important process. This includes retirement contributions, taxable income, and benefits.
Systematic Approach Towards Key Dates and Tasks:
By 31st January: A W-2 Form should be sent to each and every employee.
By February End: A W-2 Form copy must be sent to Social Security Administration.
Within Three Days of Hiring a New Candidate: I-9 Form ( Employee Eligibility Verification Form ), must be completed by the employer.
Within Twenty Days of Hiring a New Candidate: New Hire Reporting Program of the State must be contacted.
During the Calendar Year: IRS Form 940 must be filed. This is generally known as FUTA ( Employer’s Annual Federal Unemployment ) tax return.
Employees rights: Each and every employee must be educated about their rights in the company.
Compensation Insurance for the workers: All businesses must have compensation insurance for all the workers. This can be obtained by self-insurance, through a private provider or OWCP ( Office of Worker’s Compensation Program ).
Payroll System: A clear cut payroll system must be implemented, so that the employees can be paid, without any delay.
These are the important processes, that must be executed, when you hire new employees for your small scale business. Also, the employees must be given a clear cut picture of the expectations and goals of the company.