Good employees are business assets
Hiring the right employees at the right time can support your business success. As you begin to think about taking on the responsibility of being an employer, the following points are among many that you will want to seriously consider:
- Can you afford to hire someone? Your profits need to be large enough that after adding someone else to your team you are still making the profit you need to stay in business.
- What type of employee do you need to hire? There are different types of employees such as full-time salaried employees and part-time seasonal employees. The type of employee you seek may depend on important legal considerations based on employee classifications.
- What are the tax implications? For example, if you hire a full-time, salaried employee, you will need to withhold different types of tax from your employee's checks.
Given the complex financial, legal and taxation responsibilities of becoming an employer, it is always a good idea to consult with an accountant, employment attorney, and/or a qualified tax advisor to help guide your decisions.
Your local Small Business Development Center can provide you with resources to help you navigate legal implications, and can also provide you with a checklist for what to do when you hire a contractor or employee.
The U.S. Small Business Administration has a collection of articles on managing employees.