Well, it’s official.  I’ve hired an intern.  He is a great addition to Iconis Group, LLC and I love getting help with everything.  I know our readers have a wide-range of backgrounds, from those just starting out to those that are making millions!  Today, I wanted to share my experience with those of you that are looking to start hiring people soon.

There are a lot of steps to go through when hiring your first employee.  It’s crazy!  But, nothing is too difficult or confusing.  Here are the steps you need to be aware of:

1. Select a payroll provider – There are a lot of providers out there and all can help you get everything setup properly.  Check out ADP, Administaff, SurePayroll, Intuit Online Payroll (or sign-up with me!)  I use Intuit Online Payroll for myself and my clients.  It has been a little over-whelming, but I know that now that I’ve been through it for myself, I can better help my clients get all setup.
2. Get your Federal Employer Identification Number - You may already have one if you’ve filed taxes before.  This shouldn’t be your social security number, but a 9 digit ID from the IRS.  You can get one immediately by applying online.  You’ll need to know your legal structure (Sole proprietor, LLC, etc.) and the personal information of the owners.  Go here to get your EIN today.
3. Register with the State – This will get you setup with the state so you can submit your state withholdings.  Georgia uses an online system to submit all your withholdings and sales taxes called the Georgia Tax Center.  You’ll need to register your business by going here.  Again, it’s a pretty quick process, but make sure you have the business owner’s information again.  Register your business today.
4. Get a Georgia Department of Labor Account - Yep, once you get federal and state employer ID numbers, you’ll also need to get a Georgia Department of Labor number.  Now, you can run payroll without the number, but you need to apply for one ASAP. This is one of those fill-out a form, mail it in, and wait routines.   Get your GA DOL number here.
5. Have Your Employees Fill Out Their Forms – So, you’re at the point where someone has started.  Congrats!  On their first day, make sure they fill out these forms:  W-4, G-4, and I-9.  Read them thoroughly and make sure you collect any information requested on the forms.  You’ll also want to make sure you have these in an employee file so you can refer to them if you are ever audited in the future.
6. Register Your New Hires – Now that you’ve regsitered your business, you get to register your employees!  Federal and state law requires employers to report newly hired and re-hired employees through this system.  It’s quick and simple, but yet another step to make sure you’ve completed.  Register your new hires here.

These are all the necessary to-do’s when becoming an official employer.  But, there other things to be aware of:

1. Direct Deposit – Most payroll companies will prefer you to pay your employees through direct deposit.  Just know that it can take a few weeks to get everything setup.  I’m still waiting on my official status.  I had to submit my bank information and I’m waiting on verifying a few test withdrawals from my account.  You’ll also need to get a release from your employees and their bank information.  Your payroll provider can get you their forms.
2. Workers Compensation – In Georgia, you need to have Workers’ Compensation Insurance if you regularly employ 3 or more people in your business – they don’t have to be full-time either!  Most of the payroll providers will have associations with companies that can get you a quote and provide the insurance.  For example, Intuit Online Payroll has a broker that will get my clients a quote and then allow you to pay-as-you go rather than pay annually.  Here is some more information form the state on Workers’ Compensation.
3. Know the Laws – There are a lot of rules and laws to pay attention to as an employer.  Here is a link to the Georgia Department of Labor’s site that can help you stay on top of all the rules.  Remember too that you’ll need to post the required posters in your office as well.

Well, I hope this wasn’t too dry for you.  I know what it’s like to go through this process, since I’ve just done it!  It can be overwhelming at times, but the steps aren’t too hard, so just stick with it.  You’ll be so happy when you are done and be able to enjoy being a boss!

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