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Crash Course to
Hiring, Taxes, and
More!
STEVE JOHNSENHead of Compliance
ERIN COLBERTSmall Business Advocate
Questions?
Twitter @ZenPayroll #FirstHire
or
Use GoToWebinar
Are they qualified?
Will they fit our company culture?
How about employee benefits?
Or payroll taxes?
Or just plain ol’ compensation?
In this webinar we’ll cover:
● 4 steps to preparing for your first hire
● The best payroll schedule for your business
● Differences between a contractor and an employee
● Critical legal & regulatory documents needed for
employee #1
● Employee tax, benefit, and health insurance basics
What to Do Before You Make
the First Hire
What kind of corporation are you?
S Corp
An S Corporation (“S Corp”) is a popular choice for
many businesses. They are generally more complicated
legally but can provide significant tax savings.
C Corp
A C Corporation (“C Corp”) is an alternative choice to
the S Corp. Unlike the S Corp, C Corps can be subject
to “double taxation,” which may make them unpopular
with small businesses.
LLC
A Limited Liability Corporation (“LLC”) is a lightweight
alternative to incorporate your business. It does not
have the typical tax savings as the other options, but it is
less complicated legally.
The 4 steps to preparing for your
first hire:
1. Apply for a Federal Employer Identification Number (FEIN)
2. Become Compliant with Your Relevant State Departments
3. Purchase Workers’ Compensation Insurance
4. Make Sure Workers are Properly Classified
Apply for a FEIN(Federal Employment Identification Number)
Get compliant with your state
Arizona Dept. of Economic Security
Arizona Dept. of Revenue
California Dept. of Industrial Relations
California Employment Development Dept.
California Franchise Tax Board
Colorado Dept. of Labor & Employment
Colorado Dept. of Revenue
Connecticut Dept. of Labor
Connecticut Dept. of Revenue Services
Florida Dept. of Economic Opportunity
Florida Dept. of Revenue
Georgia Dept. of Labor
Georgia Dept. of Revenue
Illinois Dept. of Employment Security
Illinois Dept. of Revenue
Massachusetts Dept. of Revenue
Massachusetts Labor & Workforce Dev.
Nevada Dept. of Employment, Training & Rehabilitation
Nevada Dept. of Taxation
New York Dept. of Labor
New York Dept. of Taxation & Finance
North Carolina Dept. of Labor
North Carolina Dept. of Revenue
Tennessee Labor and Workforce Dev.
Texas Workforce Commission
Utah Dept. of Workforce Services
Utah State Tax Commission
Washington Dept. of Labor & Industries
ZenPayroll automatically
manages your state
payroll-related tax
payments and filings.
Purchase Workers’
Compensation Insurance
What to Do On
Your Employee’s
First Day
Celebrate!
Create a memorable first day
Throw a welcome party
Prepare a desk gift
Make a warm introduction
Have dinner together
Pull some office pranks
What about the legal stuff?
Form I-9
Verifies eligibility to work in the US.
You don’t need to submit the form, but must keep it on file (digital is ok) as
long as they are employed, a minimum of 3 years from the hire date or 1
year from the term date, whichever is longer.
Form W-4
Form to determine an employee’s tax withholding.
Must be completed by the employee and does not need to be submitted.
Keep on file a minimum of 4 years. Best practice to update annually.
State Reporting
Each state has a department to report your new hire name, address, and
social security number. Depending on the state, you may have a few to 90
days to submit this information.
Important Taxes, Legal, and
Regulatory Issues
for Your First Hire
Do you know the taxes and obligations
for your first hire?
Calculated according to:
1. Marital status
2. Number of allowances
claimed on Form W-4
3. CompensationWithhold Taxes
Deposit Taxes and File Returns
Determine if employees are subject to
overtime laws.
What about benefits?
Pre-Tax Health Benefits
Under section 125, employees can deduct
insurance premiums pre-tax and set aside
pre-tax funds for healthcare and medical
expenses. Employers can also see a
significant decrease in company payroll
tax.
Retirement Benefits
There are some advantages to starting a
retirement plan for your employees
including tax-deductible contributions,
access to various tax credits or incentives
for starting a plan, and attracting and
retaining employees.
Fringe benefits could be tax-free:
● Commuter benefits
● Employer-provided cell phones
● Meals
● Athletic facilities
What To look For in
Your First Hire
What are you looking for in your #FirstHire?
CHARLOTTE GENEVIER (CEO/Founder, The Cotery)
A startup’s first hire needs to have three things: self-motivation, alignment of vision,
and resilience.
JONATHAN JUNKER (Co-Founder, Graypants)
For us, personality is everything. My advice is to find someone you really enjoy being
around. And find people you really look up to. I look up to the people I work with more
than anybody.
ALEX LIPSCOMB (President, ALL MAVEN)
The best kind of person you can hire is someone who’s not only passionate about your
company, but who wants to grow with your business.