Eight steps to help you start your hiring process:
Step 1. Employer Identification Number (EIN)
Obtain an employment identification number (EIN) from the U.S. Internal Revenue Service prior to hiring employees. The EIN is often referred to as an Employer Tax ID or as Form SS-4. The EIN is necessary for reporting taxes and other documents to the IRS. Apply for EIN online or contact the IRS at 1-800-829-4933.
Step 2. Withholding Taxes
It is essential that a business set-up and maintain records for employment taxes. According to the IRS, you must keep employment tax records for at least four years. Maintaining good records will also help you when preparing financial statements, deductible expenses for tax returns.
Following are three types of withholding taxes need for a business:
Federal Income Tax Withholding
Every employee must provide an employer with a signed withholding exemption certificate (Form W-4) on or before the date of employment. The employer must then submit Form W-4 to the IRS. For more information, see the IRS' Employer's Tax Guide.
- Federal Wage and Tax Statement
Every year, employers must report to the federal government wages paid and taxes withheld for each employee. This report is filed using Form W-2, wage and tax statement. Employers must complete a W-2 form for each employee who they pay a salary, wage or other compensation.
- State Taxes
Depending on the state where your employees are located, you may be required to withhold state income taxes. Visit your state and local tax page websites for more information.
Step 3. Verify Employee Eligibility to Work in the U.S.
Federal law requires employers to verify an employee's eligibility to work in the United States. Within three days of hire, employers must complete Form I-9, employment eligibility verification, which requires employers to examine documents to confirm the employee's citizenship or eligibility to work in the U.S.
Employers can use information taken from the Form I-9 to electronically verify the employment eligibility of newly hired employees by registering with E-Verify.
Visit the U.S. Immigration and Customs Enforcement agency's I-9 website to download the form and find more information.
Step 4. Register New Hire Reporting Program
All employers are required to report newly hired and re-hired employees to a state directory within 20 days of their hire or rehire date. For California, Visit the New Hires Reporting Requirements to learn more and find links to your state's New Hire Reporting System.
Step 5. Obtain Workers' Compensation Insurance
All businesses with employees are required to carry workers' compensation insurance coverage through a commercial carrier, on a self-insured basis or through their state's Workers' Compensation Insurance program.
Step 6. Post Required Notices
Employers are required to display certain posters in the workplace that inform employees of their rights and employer responsibilities under labor laws. Visit the Workplace Posters page for specific federal and state posters you'll need for your business.
Step 7. File Your Taxes
Generally, employers who pay wages subject to income tax withholding, Social Security and Medicare taxes must file IRS Form 941,Employer's Quarterly Federal Tax Return. For more information, visit IRS.gov
New and existing employers should consult the IRS Employer's Tax Guide to understand all their federal tax filing requirements.
Step 8 - Other Requirements
Complying with standards for employee rights in regards to equal opportunity and fair labor standards is also a requirement. Following statutes and regulations for minimum wage, overtime, and child labor will help you avoid error and a lawsuit. See the Department of Labor's Employment Law Guide for up-to-date information on these statutes and regulations.
Also, visit the Equal Employment Opportunity Commission and Fair Labor Standards Act.
San Joaquin County WorkNet is able to help your business recruit, screen, and train employees. WorkNet offers assistance to employers by helping them find the skilled workers they need to start or expand their business. WorkNet also offers services designed to help job seekers access potential employers. There is no cost to the employer or the individual to access these services through WorkNet.
Outreach, Recruitment and Screening Service
WorkNet offers employee outreach, recruitment and screening services to employers. After determining a company's employment needs, WorkNet will help implement an outreach campaign to recruit and screen potential applicants who met the employer's needs.
WorkNet's Assessment Center can provide employers with valuable information about prospective employees. Candidates can be tested for interests, aptitudes and educational skill levels to determine their potential as employees and/or their need for job preparation services.
WorkNet may help cover a portion of the cost to train new employees through its On-the-Job Training program. Find out about the services WorkNet has to offer through their On-the-Job Training program.
Find links to other local economic development agencies such as the Chambers of Commerce, the Small Business Development Center and the San Joaquin Partnership as well as other local chambers and economic development associations, State and federal business resources from here.
Business Retention Service
The mission of the Business Team San Joaquin (BTSJ) is to provide assistance to businesses who are looking for resources to either continue to do business in San Joaquin County or who want to expand their businesses here.
WorkNet offers services for businesses facing the difficult task of layoffs and plant closures.
Also consider the employee recruitment services provided by the State of California through CalJOBS and through America's Job Exchange.
Temporary Staffing Agencies
Temporary staffing agencies may also be an option for businesses that are just getting started or a business that is moving into San Joaquin County. There are several temporary staffing agencies serving the area which can be found by searching "temporary staffing agencies" on the internet or contacting WorkNet at (888) 512-WORK (within California) | (209) 468-3500 (outside California).
Labor Market Information
Labor Market Information (LMI) and related resources are available through the State of California's Employment Development Department. These resources are useful in assisting employers to find the right employees for their business. Visit www.labormarketinfo.edd.ca.gov/ for more information.
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