First Hire

Discussion in 'Business Operations' started by cutman2000, Aug 14, 2012.

  1. cutman2000

    cutman2000 LawnSite Member
    Posts: 202

    I'm looking to hire someone part time to help me out. Are these all a must?

    #1. Obtain a Federal Employer Identification Number (FEIN)
    #2. Register with your State Labor or Employer Division
    #3. Obtain Worker’s Compensation Insurance (if required)
    #4. Post an "Employee Poster" as required by Federal and most State Governments

    I'm looking for someone to help me part time, but I'm wondering if I should pay "under the table" until I get more established. What am I looking at, as far as fees($) for the list above(#1, #2, #3 and #4).
    At the moment, my business name is registered(LLC) with the state. I'm insured(liability 1 million). No worker ins.
     
  2. GreenI.A.

    GreenI.A. LawnSite Silver Member
    Posts: 2,132

    1 -YES, the IRS says any company with employees must have an EIN $FREE

    2 - I Don't Know about your state, $FREE

    3 - Again depends on the State. Here in MA, a company must carry WC on all employees. Having WC on the business owners is optional, but most contractors will require it of subs as well as most commercial properties and HOA's will require it as well $ varies from state to state, insurer to insurer, and by type of work you do. WC is also based off of the amount you pay your employees/the hours they work

    4 - Answered your own question didn't you? The signs need to be in a spot that is regularly seen by employees. For our industry, hanging signs in the shop should suffice, particularly if their is a spot where the employees go in the shop regularly. $50+-, a lot cheaper than the fines if you are caught without these.
     
  3. krzys555

    krzys555 LawnSite Member
    Posts: 109

    the ein number is free if you do it online.
    the state labor registration is free
    the employee posters will not cost you more then $50
    workmans comp is based off payroll

    the main thing you will have to think about is getting a service to cut you your payroll checks.
    you need to withhold a certain amount for taxes, social security ect.
    you will have you own taxes to pay based on how much you pay him.
     
  4. cutman2000

    cutman2000 LawnSite Member
    Posts: 202

    I don't have a shop. Home office, but no shop. What would I do in this situation?
     
  5. cutman2000

    cutman2000 LawnSite Member
    Posts: 202

    Employee poster, is this the poster listing their rights? And where do I get this poster?

    I am thinking of using Bank of America for payroll. Any opinions on this?

    Workmans comp is based of payroll? So for someone working part time for me, workmans will not exceed what I'm paying the employee?
     
  6. krzys555

    krzys555 LawnSite Member
    Posts: 109

    the signs i would put up were you keep the equipment.
    inside a garage.
    the signs need to be were the employes can see them, and have access to that area.
    if you do not have a garage hen you can put them in your office
     
  7. krzys555

    krzys555 LawnSite Member
    Posts: 109

    bank of america is great. i do use them for payroll and credit card acceptance.
    for credit cards they charge 1.99% with authorize.net gateway. they have no monthly charges, or monthly minimums.

    workman's comp will not exceed payroll at least for full time people. not sure about part time people.
    i would hop around for the best rates.
     
  8. cutman2000

    cutman2000 LawnSite Member
    Posts: 202

    In my home? But my part time help would not see it...
     
  9. cutman2000

    cutman2000 LawnSite Member
    Posts: 202

    I use PayPal for credit card payers.
     
  10. cutman2000

    cutman2000 LawnSite Member
    Posts: 202

    Will doing all of this(workmans comp,payroll legally-rather than under the table) correctly help or hurt me with my income tax return?
     

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