Here are the 8 steps a business will need to make when hiring their first employee in Wisconsin.

Step 1: Register as an Employer

Wisconsin employers will need to first get a Federal Employer Identification Number (FEIN) – Form SS-4 from the Internal Revenue Service (IRS), in addition to the Withholding Account Number from the Wisconsin Department of Revenue and Employer Registration with the Wisconsin Department of Workforce Development.

Step 2: Employee Eligibility Verification

Each new employee will need to fill out the I-9, Employment Eligibility Verification Form from U.S. Citizenship and Immigration Services. The I-9 Form is used to confirm citizenship and eligibility to work in the U.S.

The employee must complete Section 1 by their first day of work, and the employer will complete Section 2 by the end of the third business day after the employee starts.

Employers don’t submit the I-9 form but are required to keep the form on file for three years after the date of hire or one year after the employee’s termination, whichever is later.

Step 3: Employee Withholding Allowance Certificate

Each employee will provide their employer with a signed Withholding Allowance Certificate (Form W-4) on or before the date of employment. The W-4 Form determines how much federal income tax will be withheld from the employee’s paycheck.

The employer does not typically submit Form W-4 to the IRS but will keep a copy on file.

See IRS’s Publication 15 – Employer Tax Guide for more information on federal withholding.

Step 4: Submit the New Hire Reporting Form

Employers are required to report newly hired employees (and rehired employees) to the Wisconsin New Hire Reporting Center’s State Directory of New Hires within 20 days of their first day of employment or rehire date.

The New Hire Form can be submitted online, by mail to:
Wisconsin Department of Workforce Development
New Hire Reporting
PO Box 14431
Madison WI 53708‑0431

or fax to 800‑277‑8075

Employee Information that will be needed to fill out the new hire form includes the employee’s name, address, Social Security Number, date of birth, and the employee’s start date or the first day the employee begins work.

Employer Information includes Federal Employer Identification Number, employer’s name, address, and contact phone number.

The New Hire Reporting Form is required through the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). This information is recorded in the National Directory of New Hires (NDNH) and is matched against state and federal child support databases to locate parents who owe child support.

Step 5: Set Up Payroll Taxes

After hiring employees, payroll taxes will need to be paid. Payroll taxes include:

Federal Income Tax Withholding

Employers withhold money from each employee’s paycheck to pay the employee’s federal income taxes based on the information provided in their W-4. The employer pays no part of the withholding tax but is responsible for collecting and remitting the withheld taxes.

Federal income tax withholding reports are filed using Form W-2, Wage, and Tax Statement with the IRS. Additionally, IRS Form 941 is due quarterly, and IRS Form 940 is filed annually to report any unemployment taxes due.

State Income Tax Withholding

Similar to federal income tax withholding, taxes are withheld from an employee’s paycheck for state income taxes. Use Form WT-4, Employee’s Wisconsin Withholding Exemption Certificate.

Social Security & Medicare

Social Security and Medicare taxes are paid under the Federal Insurance Contributions Act (FICA). The employer pays half of FICA, and the other half is paid from the employee’s wages.

Unemployment Insurance

Employers pay state and federal unemployment taxes based on a percentage of each employee’s salary. This tax is known as State Unemployment Taxes (SUTA) and Federal Unemployment Taxes (FUTA).

Step 6: Obtain Workers’ Compensation Insurance

All businesses with employees (even a single part-time employee) are required to carry workers’ compensation insurance coverage to cover medical costs if employees are injured on the job. Worker’s Compensation Insurance is administered through the Wisconsin Department of Workforce Development.

Step 7: Display Labor Law Posters and Required Notices

Wisconsin businesses must display Federal and State of Wisconsin labor law posters where employees can easily view them. These posters inform employees of their rights and employer responsibilities under labor laws, such as federal minimum wage, anti-discrimination laws, and workers’ compensation rights.

Wisconsin labor law posters can be individually printed from the Wisconsin Department of Workforce Development’s website.

Step 8: Stay Up To Date

It is important to understand the differences between employees and independent contractors. Employers will sometimes improperly classify employees as independent contractors who have different rules on payroll taxes, minimum wage, overtime, and other labor laws. An individual’s status as an employee or an independent contractor may be determined by filing IRS Form SS-8, Determination of Employee Work Status for Purposes of Federal Employment Taxes, and Income Tax Withholding.

The process of hiring your first employee in Wisconsin can feel overwhelming and there is a lot to keep up with, but with a clear understanding of what’s required, you’re setting your business up for success. Labor laws are complex and ever-changing, so be sure to keep up-to-date with the Wisconsin Department of Workforce Development and the U.S. Department of Labor, and remember to seek professional advice if needed.

Here are the 8 steps a business will need to make when hiring their first employee in Wyoming.

Steps To Hiring Your First Employee In Wyoming

Step 1: Register as an Employer

Wyoming employers will first need a Federal Employer Identification Number (FEIN)—Form SS-4 from the Internal Revenue Service (IRS)—in addition to the Employer Registration with the Wyoming Department of Workforce Services.

Step 2: Employee Eligibility Verification

Each new employee will need to fill out the I-9, Employment Eligibility Verification Form from U.S. Citizenship and Immigration Services. The I-9 Form is used to confirm citizenship and eligibility to work in the U.S.

The employee must complete Section 1 by their first day of work, and the employer will complete Section 2 by the end of the third business day after the employee starts.

Employers don’t submit the I-9 form but are required to keep the form on file for three years after the date of hire or one year after the employee’s termination, whichever is later.

Step 3: Employee Withholding Allowance Certificate

Each employee will provide their employer with a signed Withholding Allowance Certificate (Form W-4) on or before the date of employment. The W-4 Form determines how much federal income tax will be withheld from the employee’s paycheck.

The employer does not typically submit Form W-4 to the IRS but will keep a copy on file.

See IRS’s Publication 15 – Employer Tax Guide for more information on federal withholding.

Step 4: Submit the New Hire Reporting Form

Employers are required to report newly hired (and re-hired) employees with the Wyoming New Hire Reporting Center. New hire information must be submitted within 20 days of the employee’s hire date or rehire.

Employee Information that will be needed to fill out the new hire form includes the employee’s name, employee’s address, Social Security Number, date of birth, and the employee’s start date or the first day the employee begins work.

Employer Information includes Federal Employer Identification Number, employer’s name, employer’s address, and contact phone number.

The New Hire Reporting Form is required through the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). The information from the Wyoming New Hire Reporting Form is recorded in the National Directory of New Hires (NDNH) and is matched against state and federal child support databases to locate parents who owe child support.

In addition to filing online, the form can be sent by mail to:
Wyoming New Hire Reporting Center
PO Box 1408
Cheyenne, WY 82003-1408

or by fax: 800-921-9651

Step 5: Set Up Payroll Taxes

After hiring employees, payroll taxes will need to be paid. Payroll taxes include:

Federal Income Tax Withholding

Employers withhold money from each employee’s paycheck to pay the employee’s federal income taxes based on the information provided in their W-4. The employer pays no part of the withholding tax but is responsible for collecting and remitting the withheld taxes.

Federal income tax withholding reports are filed using Form W-2, Wage, and Tax Statement with the IRS. Additionally, IRS Form 941 is due quarterly, and IRS Form 940 is filed annually to report any unemployment taxes due.

Social Security & Medicare

Social Security and Medicare taxes are paid under the Federal Insurance Contributions Act (FICA). The employer pays half of FICA, and the other half is paid from the employee’s wages.

Unemployment Insurance

Employers submit quarterly wage reports and pay state and federal unemployment taxes based on a percentage of each employee’s salary. This tax is known as State Unemployment Taxes (SUTA) and Federal Unemployment Taxes (FUTA).

Step 6: Obtain Workers’ Compensation Insurance

All businesses with employees (even a single part-time employee) are required to carry workers’ compensation insurance coverage to cover medical costs if employees are injured on the job. Worker’s Compensation Insurance is administered through the Wyoming Department of Workforce Services.

Step 7: Display Labor Law Posters and Required Notices

Wyoming businesses must display Federal and State of Wyoming labor law posters where employees can easily view them. These posters inform employees of their rights and employer responsibilities under labor laws, such as federal minimum wage, anti-discrimination laws, and workers’ compensation rights.

Wyoming labor law posters can be individually printed from the Wyoming Department of Workforce Service’s website.

Step 8: Stay Up-To-Date

It is important to understand the differences between employees and independent contractors. Employers will sometimes improperly classify employees as independent contractors who have different rules on payroll taxes, minimum wage, overtime, and other labor laws. An individual’s status as an employee or an independent contractor may be determined by filing IRS Form SS-8, Determination of Employee Work Status for Purposes of Federal Employment Taxes, and Income Tax Withholding.

The process of hiring your first employee in Wyoming can feel overwhelming, and there is a lot to keep up with, but with a clear understanding of what’s required, you’re setting your business up for success. Labor laws are complex and ever-changing, so be sure to keep up-to-date with the Wyoming Department of Workforce Services and the U.S. Department of Labor and remember to seek professional advice if needed.

Every state has different requirements when hiring an employee.  Click on your state below for more information.

What skills are you looking for?

While it would be great to find one person with the skills in various areas, it’s hard to find someone who can do varied tasks well.   

Instead of looking for that one perfect person, start out by making a list of all of the tasks you do on a daily basis or need help with in the workplace.  Group similar tasks together and identify the must have’s and like to have’s this new employee do.  This gives you a beginning for a job description, and you can more effectively search for talented people in the things you need done.  For example, an ad for a marketing person may bring lots of results as marketing can include graphic design, search engine optimization, print ads, radio ads, television ads, website advertising, and so on.  Each of these subcategories of marketing requires different skills, and ultimately, you want someone with specific experience to grow your business.

You may not be able to hire for all those positions immediately, but you now have an overview of what people you need to take the day-to-day responsibilities off of your shoulders so you can focus on the big-picture items or tasks you are uniquely qualified to do. 

You may find that, in some cases, you may not require a full-time person for certain positions and may be better off outsourcing them to a company or bringing on a freelancer.

Do employees know what they need to do?

A common complaint from small business owners is that they can’t find employees that “want to work” or “know what they are doing”.  Some of this frustration lies in attracting the wrong candidates, as mentioned in the point above, but the second problem is that many business owners have difficulty adequately explaining what they want done.  

This is generally tied to two primary issues.  One is the business owner did all of these tasks from the beginning of the business and has difficulty letting go.  In turn, the owner doesn’t allow the employee to do the job they were hired for and micromanages the process, eliminating any time savings.  The second is that the business owner has all of the details on how to do the job in their head.  They tell the employee how to do it once or maybe twice and expect the employee to do it flawlessly from then on.  The problem is that expecting someone to remember those details is unrealistic. The business owner is frustrated because the job isn’t done right, or the employee must keep asking the owner how to do things. 

In order to have an employee do the job the way you want them to is to document the processes and create an employee handbook.  Write the steps and in some cases make a video from start to finish.  This way the process is available anytime an employee is unsure of the steps.  Instead of them asking the business owner each time they have a question or guessing how it’s done, they have access to the right information. 

Many times, it wasn’t a bad employee; it was the lack of a defined process or clear instructions for what the owner wanted to do. 

Documenting processes is a lot of work. Mistakes will happen, but let them. The “price” of these minor mistakes will more than pay for themselves by taking some of the workload off your shoulders so you can focus on the important business tasks. Other benefits include the employee coming up with better ways of doing things, and should the employee leave, the training time for the next person is much shorter.

What is the real cost of an employee?

It’s easy enough to do the math to figure out the wages for a new employee.  If you hire someone at $15 an hour (be sure to look up minimum wage in your state) and they work 40 hours a week for 50 hours a year, that employee will cost you $30,000.  As an employer, you need to know that an employee costs more than their hourly wage or salary.   Additional employee costs include:

• Payroll taxes include federal income tax, state income tax withholding, and Social Security and Medicare taxes. The business withholds federal and state income tax withholding from the employee’s paycheck, and the employer has to pay into Social Security and Medicare, also known as FICA or the Federal Insurance Contributions Act. FICA is a mandatory tax paid by both the employer and the employee.  The employer and employee pay 6.2% to Social Security and 1.45% to Medicare.  For the $30,000 a year employee, this additional 7.65% means the employer pays an additional $2,295 annually on top of the employee’s wages.
• Workers’ Compensation Insurance (sometimes referred to as workman’s comp) is an insurance that provides medical expenses, lost wages, and rehabilitation expenses for employees who are injured on the job. Required in all states for most occupations, this is an added cost for an employer.  The cost of Worker’s Comp insurance varies depending on the amount of payroll paid by an employer, the risk factor of the work being performed, and the business’s industry. It’s a good idea to get a quote for Worker’s Comp insurance before hiring to get the true cost of the new hire. 
• Employee Benefits like health insurance, retirement, and other voluntary payroll deductions.
• Miscellaneous Costs like employee benefits, uniforms, training, supplies, etc. will add up. These costs should also be factored into the budget.  

All of these costs add up, and it’s better to figure them out now and seeing if the real cost of hiring someone is worth the investment over the long-term.  

What are your responsibilities as an employer?

When a business brings on employees, there are several new responsibilities the owner didn’t have before. When bringing on employees, the hiring process includes tax registrations, applying for an Employer Identification Number (EIN) with the IRS, filing reports such as the annual w-4s, filing Form I-9 (employment eligibility verification form) with the U.S. Citizenship and Immigration Services, hanging the right workplace posters and understanding regulations with usually no less than 5 state and federal agencies.   Not only is the owner now responsible for withholding income taxes, paying payroll taxes, and reporting to several state and federal agencies, but there are state and federal laws to comply with. 

Here are the 8 steps a business will need to make when hiring their first employee in West Virginia.

Steps To Hiring Your First Employee In West Virginia

Step 1: Register as an Employer

Employers will first need a Federal Employer Identification Number (FEIN) – Form SS-4 from the Internal Revenue Service (IRS) and the Business Registration with the West Virginia Department of Revenue and Employer Registration with the West Virginia Department of Commerce.

Step 2: Employee Eligibility Verification

Each new employee will need to fill out the I-9, Employment Eligibility Verification Form from U.S. Citizenship and Immigration Services. The I-9 Form is used to confirm citizenship and eligibility to work in the U.S.

The employee must complete Section 1 by their first day of work, and the employer will complete Section 2 by the end of the third business day after the employee starts.

Employers don’t submit the I-9 form but are required to keep the form on file for three years after the date of hire or one year after the employee’s termination, whichever is later.

Step 3: Employee Withholding Allowance Certificate

Each employee will provide their employer with a signed Withholding Allowance Certificate (Form W-4) on or before the date of employment. The W-4 Form determines how much federal income tax will be withheld from the employee’s paycheck.

The employer does not typically submit Form W-4 to the IRS but will keep a copy on file.

See IRS’s Publication 15 – Employer Tax Guide for more information on federal withholding.

Step 4: Submit the New Hire Reporting Form

Employers are required to report newly hired employees (and re-hired employees) with the West Virginia New Hire Reporting Center within 20 days of the employee’s hire date.

The New Hire Form can be filed online, by mail to
West Virginia New Hire Reporting Center
P.O. Box 640098
Atlanta, GA 30364

or fax 877-625-4675

Employee Information that will be needed to fill out the new hire form includes the employee’s first and last name, address, Social Security Number, date of birth, and the employee’s start date or the first day the employee begins work.

Employer Information includes Federal Employer Identification Number, business name, employer’s address, and contact phone number.

The New Hire Reporting Form is required through the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). This information is recorded in the National Directory of New Hires (NDNH) and is matched against state and federal child support databases to locate parents who owe child support.

Step 5: Set Up Payroll Taxes

After hiring employees, payroll taxes will need to be paid. Payroll taxes include:

Federal Income Tax Withholding

Employers withhold money from each employee’s paycheck to pay the employee’s federal income taxes based on the information provided in their W-4. The employer pays no part of the withholding tax but is responsible for collecting and remitting the withheld taxes.

Federal income tax withholding reports are filed using Form W-2, Wage, and Tax Statement with the IRS. Additionally, IRS Form 941 is due quarterly, and IRS Form 940 is filed annually to report any unemployment taxes due.

State Income Tax Withholding

Similar to federal income tax withholding, taxes are withheld from an employee’s paycheck for state income taxes. Use Form IT-104, Employee’s Withholding Exemption Certificate.

Social Security & Medicare

Social Security and Medicare taxes are paid under the Federal Insurance Contributions Act (FICA). The employer pays half of FICA, and the other half is paid from the employee’s wages.

Unemployment Insurance

Employers pay state and federal unemployment taxes based on a percentage of each employee’s salary. This tax is known as State Unemployment Taxes (SUTA) and Federal Unemployment Taxes (FUTA).

Step 6: Obtain Workers’ Compensation Insurance

All businesses with employees (even a single part-time employee) are required to carry workers’ compensation insurance coverage to cover medical costs if employees are injured on the job. Worker’s Compensation Insurance is administered through the West Virginia Offices of the Insurance Commissioner.

Step 7: Display Labor Law Posters and Required Notices

West Virginia businesses must display Federal and State of West Virginia labor law posters where employees can easily view them. These posters inform employees of their rights and employer responsibilities under labor laws, such as federal minimum wage, anti-discrimination laws, and workers’ compensation rights.

West Virginia labor law posters can be individually printed from WorkForce West Virginia’s website.

Step 8: Stay Up To Date

It is important to understand the differences between employees and independent contractors. Employers will sometimes improperly classify employees as independent contractors who have different rules on payroll taxes, minimum wage, overtime, and other labor laws. An individual’s status as an employee or an independent contractor may be determined by filing IRS Form SS-8, Determination of Employee Work Status for Purposes of Federal Employment Taxes, and Income Tax Withholding.

The process of hiring your first employee in West Virginia can feel overwhelming, and there is a lot to keep up with, but with a clear understanding of what’s required, you’re setting your business up for success. Labor laws are complex and ever-changing, so be sure to keep up-to-date with the West Virginia Division of Labor and the U.S. Department of Labor, and remember to seek professional advice if needed.

Here are the 8 steps a business will need to make when hiring their first employee in Virginia.

Steps To Hiring Your First Employee In Virginia

Step 1: Register as an Employer

Employers will first need a Federal Employer Identification Number (FEIN) – Form SS-4 from the Internal Revenue Service (IRS) in addition to the Business Registration with the Virginia Department of Taxation and the Employer Registration from the Virginia Employment Commission.

Step 2: Employee Eligibility Verification

Each new employee must complete the I-9, Employment Eligibility Verification Form from U.S. Citizenship and Immigration Services. The I-9 Form confirms citizenship and eligibility to work in the U.S.

The employee must complete Section 1 by their first day of work, and the employer will complete Section 2 by the end of the third business day after the employee starts.

Employers don’t submit the I-9 Form but are required to keep the form on file for three years after the date of hire or one year after the employee’s termination, whichever is later.

Step 3: Employee Withholding Allowance Certificate

Each employee will provide their employer with a signed Withholding Allowance Certificate (Form W-4) on or before the date of employment. The W-4 Form determines how much federal income tax will be withheld from the employee’s paycheck.

The employer does not typically submit Form W-4 to the IRS but will keep a copy on file.

See IRS’s Publication 15 – Employer Tax Guide for more information on federal withholding.

Step 4: Submit the New Hire Reporting Form

Virginia employers are required to report newly hired employees (and re-hired employees) to the Virginia New Hire Reporting Center within 20 days of their hire or rehire date.

Effective July 1st, 2020, the Virginia New Hire Reporting Center now requires that Independent Contractors be reported as new hires. Independent contractors also need to be reported within 20 days of the start of their contract.

The New Hire Reporting form can be completed online or by mail:
Virginia New Hire Reporting Center
PO Box 25309
Richmond VA 23260-5309

or by fax: (800) 688‐2680

Employee Information that will be needed on the new hire form includes the employee’s first and last name, address, employee’s Social Security Number, date of birth, and the employee’s start date or the first day the employee begins work.

Employer Information includes Federal Employer Identification Number, employer’s name, address, and contact phone number.

The New Hire Reporting Form is required through the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA).

This information is recorded in the National Directory of New Hires (NDNH) and is matched against state and federal child support databases to locate parents who owe child support.

Step 5: Set Up Payroll Taxes

After hiring employees, payroll taxes will need to be paid. Payroll taxes include:

Federal Income Tax Withholding

Employers withhold money from each employee’s paycheck to pay the employee’s federal income taxes based on the information provided in their W-4. The employer pays no part of the withholding tax but is responsible for collecting and remitting the withheld taxes.

Federal income tax-withheld reports are filed using Form W-2, Wage, and Tax Statement with the IRS. Additionally, IRS Form 941 is due quarterly, and IRS Form 940 is filed annually to report any unemployment taxes due.

State Income Tax Withholding

Similar to federal income tax withholding, taxes are withheld from an employee’s paycheck for state income taxes. Use Form VA-4, Employee’s Withholding Exemption Certificate.

Social Security & Medicare

Social Security and Medicare taxes are paid under the Federal Insurance Contributions Act (FICA). The employer pays half of FICA, and the other half is paid from the employee’s wages.

Unemployment Insurance

Employers pay state and federal unemployment taxes based on a percentage of each employee’s salary. This tax is known as State Unemployment Taxes (SUTA) and Federal Unemployment Taxes (FUTA).

Step 6: Obtain Workers’ Compensation Insurance

All businesses with employees (even a single part-time employee) are required to carry workers’ compensation insurance coverage to cover medical costs if employees are injured on the job. Worker’s Compensation Insurance is administered through the Virginia Workers’ Compensation Commission.

Step 7: Display Labor Law Posters and Required Notices

Virginia businesses must display Federal and State of Virginia labor law posters where employees can easily view them. These posters inform employees of their rights and employer responsibilities under labor laws, such as federal minimum wage, anti-discrimination laws, and workers’ compensation rights.

Virginia labor law posters can be individually printed from the Virginia Employment Commission’s website.

Step 8: Stay Up To Date

It is important to understand the differences between employees and independent contractors. Employers will sometimes improperly classify employees as independent contractors who have different rules on payroll taxes, minimum wage, overtime, and other labor laws. An individual’s status as an employee or an independent contractor may be determined by filing IRS Form SS-8, Determination of Employee Work Status for Purposes of Federal Employment Taxes, and Income Tax Withholding.

The process of hiring your first employee in Virginia can feel overwhelming, and there is a lot to keep up with, but with a clear understanding of what’s required, you’re setting your business up for success. Labor laws are complex and ever-changing, so be sure to keep up-to-date with the Virginia Department of Labor & Industry and the U.S. Department of Labor, and remember to seek professional advice if needed.

Here are the 8 steps a business will need to make when hiring their first employee in Washington.

Steps To Hiring Your First Employee In Washington

Step 1: Register as an Employer

Employers will first need a Federal Employer Identification Number (FEIN) – Form SS-4 from the Internal Revenue Service (IRS) and the Employer Registration with the Washington Department of Labor.

Step 2: Employee Eligibility Verification

Each new employee must complete the I-9, Employment Eligibility Verification Form from U.S. Citizenship and Immigration Services. The I-9 Form confirms citizenship and eligibility to work in the U.S.

The employee must complete Section 1 by their first day of work, and the employer will complete Section 2 by the end of the third business day after the employee starts.

Employers don’t submit the I-9 form but are required to keep the form on file for three years after the date of hire or one year after the employee’s termination, whichever is later.

Step 3: Employee Withholding Allowance Certificate

Each employee will provide their employer with a signed Withholding Allowance Certificate (Form W-4) on or before the date of employment. The W-4 Form determines how much federal income tax will be withheld from the employee’s paycheck.

The employer does not typically submit Form W-4 to the IRS but will keep a copy on file.

See IRS’s Publication 15 – Employer Tax Guide for more information on federal withholding.

Step 4: Submit the New Hire Reporting Form

Employers are required to report newly hired employees (and re-hired employees) to the Washington State Department of Social and Health Services (DSHS), Division of Child Support (DCS) within 20 days of the employee’s hire date. Rehired employees are considered as not working for the current employer for at least 60 consecutive days.

The New Hire Reporting Form can be filed online or by mail:
New Hire Reporting Center
PO Box 9023
Olympia, WA 98507-9023

Or fax – 800-782-0624

Employee Information that will be needed includes the employee’s name, address, Social Security Number, date of birth, and the employee’s date they will begin work.

Employer Information includes Federal Employer Identification Number, employer’s name, address, and contact telephone number.

The New Hire Reporting Form is required through the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). This information is recorded in the National Directory of New Hires (NDNH) and is matched against state and federal child support databases to locate parents who owe child support.

Step 5: Set Up Payroll Taxes

After hiring employees, payroll taxes will need to be paid. Payroll taxes include:

Federal Income Tax Withholding

Employers withhold money from each employee’s paycheck to pay the employee’s federal income taxes based on the information provided in their W-4. The employer pays no part of the withholding tax but is responsible for collecting and remitting the withheld taxes.

Federal income tax-withheld reports are filed using Form W-2, Wage, and Tax Statement with the IRS. Additionally, IRS Form 941 is due quarterly, and IRS Form 940 is filed annually to report any unemployment taxes due.

Social Security & Medicare

Social Security and Medicare taxes are paid under the Federal Insurance Contributions Act (FICA). The employer pays half of FICA, and the other half is paid from the employee’s wages.

Unemployment Insurance

Employers pay state and federal unemployment taxes based on a percentage of each employee’s salary. This tax is known as State Unemployment Taxes (SUTA) and Federal Unemployment Taxes (FUTA).

Step 6: Obtain Workers’ Compensation Insurance

All businesses with employees (even a single part-time employee) are required to carry workers’ compensation insurance coverage to cover medical costs if employees are injured on the job.   Worker’s Compensation Insurance is administered through the Washington State Department of Labor & Industries.

Step 7: Display Labor Law Posters and Required Notices

Washington businesses must display Federal and State of Washington labor law posters where employees can easily view them.  These posters inform employees of their rights and employer responsibilities under labor laws, such as federal minimum wage, anti-discrimination laws, and workers’ compensation rights.

Washington labor law posters can be individually printed from the Washington State Department of Labor & Industry’s website.

Step 8: Stay Up To Date

It is important to understand the differences between employees and independent contractors. Employers will sometimes improperly classify employees as independent contractors who have different rules on payroll taxes, minimum wage, overtime, and other labor laws. An individual’s status as an employee or an independent contractor may be determined by filing IRS Form SS-8, Determination of Employee Work Status for Purposes of Federal Employment Taxes, and Income Tax Withholding.

The process of hiring your first employee in Washington can feel overwhelming, and there is a lot to keep up with, but with a clear understanding of what’s required, you’re setting your business up for success. Labor laws are complex and ever-changing, so be sure to keep up-to-date with the Washington Department of Labor & Industries and the U.S. Department of Labor, and remember to seek professional advice if needed.

Here are the 8 steps a business will need to make when hiring their first employee in Texas.

Steps To Hiring Your First Employee In Texas

Step 1: Register as an Employer

Employers will first need a Federal Employer Identification Number (FEIN) – Form SS-4 from the Internal Revenue Service (IRS) in addition to the Unemployment Tax Number from the Texas Workforce Commission.

Step 2: Employee Eligibility Verification

Each new employee must complete the I-9, Employment Eligibility Verification Form from U.S. Citizenship and Immigration Services. The I-9 Form confirms citizenship and eligibility to work in the U.S.

The employee must complete Section 1 by their first day of work, and the employer will complete Section 2 by the end of the third business day after the employee starts.

Employers don’t submit the I-9 form but are required to keep the form on file for three years after the date of hire or one year after the employee’s termination, whichever is later.

Step 3: Employee Withholding Allowance Certificate

Each employee will provide their employer with a signed Withholding Allowance Certificate (Form W-4) on or before the date of employment. The W-4 Form determines how much federal income tax will be withheld from the employee’s paycheck.

The employer does not typically submit Form W-4 to the IRS but will keep a copy on file.

See IRS’s Publication 15 – Employer Tax Guide for more information on federal withholding.

Step 4: Submit the New Hire Reporting Form

Employers are required to report newly hired employees (and re-hired employees) to the Texas Workforce Commission (TWC) within 20 calendar days of the employee’s date of hire.

The Texas Employer New Hire Reporting Form can be submitted online or by mail:
ENHR Operations Center
P.O. Box 149224
Austin, TX 78714-9224

Telephone: 800-850-6442
Fax: 800-732-5015

Required information includes:

Employee Information that will be needed on the new hire form includes the employee’s first and last name, employee home address, Social Security Number, date of birth, wages, salary frequency, and the employee’s start date or the first day the employee begins work.

Employer Information includes Federal Employer Identification Number, business name, employer’s name, employer’s address, new hire contact person, and phone number.

The new hire information is required through the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). This information is recorded in the State Directory of New Hires and the National Directory of New Hires (NDNH) and is matched against state and federal child support databases to locate parents who owe child support.

Step 5: Set Up Payroll Taxes

After hiring employees, monthly and quarterly wage reports will need to be filed and payroll taxes paid. Payroll taxes include:

Federal Income Tax Withholding

Employers withhold money from each employee’s paycheck to pay the employee’s federal income taxes based on the information provided in their W-4. The employer pays no part of the withholding tax but is responsible for collecting and remitting the withheld taxes.

Federal income tax withholding reports are filed using Form W-2, Wage, and Tax Statement with the IRS. Additionally, IRS Form 941 is due quarterly, and IRS Form 940 is filed annually to report any unemployment taxes due.

Social Security & Medicare

Social Security and Medicare taxes are paid under the Federal Insurance Contributions Act (FICA). The employer pays half of FICA, and the other half is paid from the employee’s wages.

Unemployment Insurance

Employers pay state and federal unemployment taxes based on a percentage of each employee’s salary. This tax is known as State Unemployment Taxes (SUTA) and Federal Unemployment Taxes (FUTA).

Step 6: Obtain Workers’ Compensation Insurance

All businesses with employees (even a single part-time employee) are required to carry workers’ compensation insurance coverage to cover medical costs if employees are injured on the job. Worker’s Compensation Insurance is administered through the Texas Department of Insurance.

Step 7: Display Labor Law Posters and Required Notices

Texas businesses must display Federal and State of Texas labor law posters where employees can easily view them. These posters inform employees of their rights and employer responsibilities under labor laws, such as federal minimum wage, anti-discrimination laws, and workers’ compensation rights.

Texas labor law posters can be individually printed from the Texas Workforce Commission’s website.

Step 8: Stay Up To Date

It is important to understand the differences between employees and independent contractors. Employers will sometimes improperly classify employees as independent contractors who have different rules on payroll taxes, minimum wage, overtime, and other labor laws. An individual’s status as an employee or an independent contractor may be determined by filing IRS Form SS-8, Determination of Employee Work Status for Purposes of Federal Employment Taxes, and Income Tax Withholding.

The process of hiring your first employee in Texas can feel overwhelming, and there is a lot to keep up with, but with a clear understanding of what’s required, you’re setting your business up for success. Labor laws are complex and ever-changing, so be sure to keep up-to-date with the Texas Workforce Commission and the U.S. Department of Labor, and remember to seek professional advice if needed.

Here are 8 steps a business will need to take when hiring their first employee in Utah.

Steps To Hiring Your First Employee In Utah

Step 1: Register as an Employer

Employers will first need a Federal Employer Identification Number (EIN) – Form SS-4 from the Internal Revenue Service (IRS) in addition to the Employer Registration on the Utah Department of Workforce Services website.

Step 2: Employee Eligibility Verification

Each new employee must complete the I-9, Employment Eligibility Verification Form from U.S. Citizenship and Immigration Services. The I-9 Form confirms citizenship and eligibility to work in the U.S.

The employee must complete Section 1 by their first day of work, and the employer will complete Section 2 by the end of the third business day after the employee starts.

Employers don’t submit the I-9 form but are required to keep the form on file for three years after the date of hire or one year after the employee’s termination, whichever is later.

Step 3: Employee Withholding Allowance Certificate

Each employee will provide their employer with a signed Withholding Allowance Certificate (Form W-4) on or before the date of employment. The W-4 Form determines how much federal income tax will be withheld from the employee’s paycheck.  

The employer does not typically submit Form W-4 to the IRS but will keep a copy on file.

See IRS’s Publication 15 – Employer Tax Guide for more information on federal withholding.

Step 4: Submit the New Hire Reporting Form

Employers are required to report newly hired employees (and re-hired employees) to the Utah Department of Workforce Services within 20 days of the employee’s hire date.

Employee Information that will be needed on the new hire form includes the employee’s name, address, Social Security Number, date of birth, and the employee’s start date or the first day the employee begins work.

Employer Information includes Federal Employer Identification Number, employer name, payroll address, and contact phone number.

This information is recorded in the National Directory of New Hires (NDNH) and is matched against state and federal child support databases to locate parents who owe child support.

Step 5: Set Up Payroll Taxes

After hiring employees, payroll taxes will need to be paid.  Payroll taxes include:

Federal Income Tax Withholding

Employers withhold money from each employee’s paycheck to pay the employee’s federal income taxes based on the information provided in their W-4. The employer pays no part of the withholding tax but is responsible for collecting and remitting the withheld taxes.

Federal income tax withholding reports are filed using Form W-2, Wage, and Tax Statement with the IRS.  Additionally, IRS Form 941 is due quarterly, and IRS Form 940 is filed annually to report any unemployment taxes due.

State Income Tax Withholding

Similar to federal income tax withholding, taxes are withheld from an employee’s paycheck for state income taxes.

Social Security & Medicare

Social Security and Medicare taxes are paid under the Federal Insurance Contributions Act (FICA).  The employer pays half of FICA, and the other half is paid from the employee’s wages. 

Unemployment Insurance

Employers pay state and federal unemployment taxes based on a percentage of each employee’s salary. This tax is known as State Unemployment Taxes (SUTA) and Federal Unemployment Taxes (FUTA). 

Step 6: Obtain Workers’ Compensation Insurance

All businesses with employees (even a single part-time employee) are required to carry workers’ compensation insurance coverage to cover medical costs if employees are injured on the job.   Worker’s Compensation Insurance is administered through the Utah Labor Commission.

Related: What is Worker’s Compensation Insurance?

Step 7: Display Labor Law Posters and Required Notices

Utah businesses must display Federal and State of Utah labor law posters where employees can easily view them.  These posters inform employees of their rights and employer responsibilities under labor laws, such as federal minimum wage, anti-discrimination laws, and workers’ compensation rights.

Utah labor law posters can be individually printed from the Utah Labor Commission’s website.

Step 8: Stay Up-To-Date

It is important to understand the differences between employees and independent contractors. Employers will sometimes improperly classify employees as independent contractors who have different rules on payroll taxes, minimum wage, overtime, and other labor laws. An individual’s status as an employee or an independent contractor may be determined by filing IRS Form SS-8, Determination of Employee Work Status for Purposes of Federal Employment Taxes, and Income Tax Withholding.

The process of hiring your first employee in Utah can feel overwhelming, and there is a lot to keep up with, but with a clear understanding of what’s required, you’re setting your business up for success.  Labor laws are complex and ever-changing, so be sure to keep up-to-date with the Utah Labor Commission and the U.S. Department of Labor, and remember to seek professional advice if needed.

It is also important to understand labor laws for different types of workers, including employees, independent contractors, and volunteers. Employers will sometimes improperly classify employees as independent contractors who have different rules on payroll taxes, minimum wage, overtime, and other labor laws. Make sure you follow the Vermont Department of Labor Guidelines.

Here are the 8 steps a business will need to make when hiring their first employee in Vermont.

Steps To Hiring Your First Employee In Vermont

Step 1: Register as an Employer

Employers will first need a Federal Employer Identification Number (FEIN) – Form SS-4 from the Internal Revenue Service (IRS) and the Withholding Account Number from the Vermont Department of Taxes the Employer Registration with the Vermont Department of Labor.

Step 2: Employee Eligibility Verification

Each new employee must complete the I-9, Employment Eligibility Verification Form from U.S. Citizenship and Immigration Services. The I-9 Form confirms citizenship and eligibility to work in the U.S.

The employee must complete Section 1 by their first day of work, and the employer will complete Section 2 by the end of the third business day after the employee starts.

Employers don’t submit the I-9 form but are required to keep the form on file for three years after the date of hire or one year after the employee’s termination, whichever is later.

Step 3: Employee Withholding Allowance Certificate

Each employee will provide their employer with a signed Withholding Allowance Certificate (Form W-4) on or before the date of employment. The W-4 Form determines how much federal income tax will be withheld from the employee’s paycheck.

The employer does not typically submit Form W-4 to the IRS but will keep a copy on file.

See IRS’s Publication 15 – Employer Tax Guide for more information on federal withholding.

Step 4: Submit the New Hire Reporting Form

Employers are required to report newly hired employees (and re-hired employees who have been separated from the employer for at least 60 consecutive days) with the Vermont Department of Labor. Reports of a new hire are required within 10 days from the first date of employment or rehire.

The form can be submitted online or by mail:
Vermont Department of Labor New Hire Reporting
5 Green Mountain Drive
P.O. Box 488
Montpelier, VT 05601-0488

or fax: 802-828-4286

Employee Information that will be needed on the new hire form includes the employee’s name, address, Social Security Number, date of birth, and the employee’s start date or the first day the employee begins work.

Employer Information includes the Federal Employer Identification Number, name of the business, employer’s address, and contact phone number.

The new hire information is required through the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). This information is recorded in the State Directory of New Hires and the National Directory of New Hires (NDNH) and is matched against state and federal child support databases to locate parents who owe child support.

Step 5: Set Up Payroll Taxes

After hiring employees, payroll taxes will need to be paid. Payroll taxes include:

Federal Income Tax Withholding

Employers withhold money from each employee’s paycheck to pay the employee’s federal income taxes based on the information provided in their W-4. The employer pays no part of the withholding tax but is responsible for collecting and remitting the withheld taxes.

Federal income tax withholding reports are filed using Form W-2, Wage, and Tax Statement with the IRS. Additionally, IRS Form 941 is due quarterly, and IRS Form 940 is filed annually to report any unemployment taxes due.

State Income Tax Withholding

Similar to federal income tax withholding, taxes are withheld from an employee’s paycheck for state income taxes. Use Form W-4VT, Employee’s Withholding Allowance Certificate.

Social Security & Medicare

Social Security and Medicare taxes are paid under the Federal Insurance Contributions Act (FICA). The employer pays half of FICA, and the other half is paid from the employee’s wages.

Unemployment Insurance

Employers pay state and federal unemployment taxes based on a percentage of each employee’s salary. This tax is known as State Unemployment Taxes (SUTA) and Federal Unemployment Taxes (FUTA).

Step 6: Obtain Workers’ Compensation Insurance

All businesses with employees (even a single part-time employee) are required to carry workers’ compensation insurance coverage to cover medical costs if employees are injured on the job. Worker’s Compensation Insurance is administered through the Vermont Department of Labor.

Step 7: Display Labor Law Posters and Required Notices

Vermont businesses must display Federal and State of Vermont labor law posters where they can be easily viewed by employees. These posters inform employees of their rights and employer responsibilities under labor laws, such as federal minimum wage, anti-discrimination laws, and workers’ compensation rights.

Vermont labor law posters can be individually printed from the Vermont Department of Labor’s website.

Step 8: Stay Up To Date

It is important to understand the differences between employees and independent contractors. Employers will sometimes improperly classify employees as independent contractors who have different rules on payroll taxes, minimum wage, overtime, and other labor laws. An individual’s status as an employee or an independent contractor may be determined by filing IRS Form SS-8, Determination of Employee Work Status for Purposes of Federal Employment Taxes, and Income Tax Withholding.

The process of hiring your first employee in Vermont can feel overwhelming, and there is a lot to keep up with, but with a clear understanding of what’s required, you’re setting your business up for success. Labor laws are complex and ever-changing, so be sure to keep up-to-date with the Vermont Department of Labor and the U.S. Department of Labor, and remember to seek professional advice if needed.

Here are the 8 steps a business will need to make when hiring their first employee in South Carolina.

Steps To Hiring Your First Employee In South Carolina

Step 1: Register as an Employer

Employers will first need a Federal Employer Identification Number (FEIN) – Form SS-4 from the Internal Revenue Service (IRS) in addition to the Withholding Account Number from the South Carolina Department of Revenue and Unemployment Account Number from the South Carolina Department of Employment and Workforce.

Step 2: Employee Eligibility Verification

Each new employee must complete the I-9 Employment Eligibility Verification Form from U.S. Citizenship and Immigration Services. The form confirms citizenship and eligibility to work in the U.S.

The employee must complete Section 1 by their first day of work, and the employer will complete Section 2 by the end of the third business day after the employee starts.

Employers don’t submit the I-9 form but are required to keep the form on file for three years after the date of hire or one year after the employee’s termination, whichever is later.

Step 3: Employee Withholding Allowance Certificate

Each employee will provide their employer with a signed Withholding Allowance Certificate (Form W-4) on or before the date of employment. The W-4 form determines how much federal income tax will be withheld from the employee’s paycheck.

The employer does not typically submit Form W-4 to the IRS but will keep a copy on file.

See IRS’s Publication 15 – Employer Tax Guide for more information on federal withholding.

Step 4: Submit the New Hire Reporting Form

South Carolina employers are required to report newly hired employees (and re-hired employees) to the South Carolina Department of Social Services within 20 calendar days from the employee’s hire date.

The South Carolina New Hire Reporting Form can be submitted online or by mail:
South Carolina Department of Social Services
Child Support Services Division, Attn: New Hire Reporting Program
PO Box 1469
Columbia, SC 29202-1469

or by fax: (803) 898-9100

Employee information that will be needed includes the employee’s name, address, social security number, date of birth, start date, or the first day the employee begins work.

Employer Information includes Federal Employer Identification Number, employer’s name, address, and contact phone number.

The South Carolina new hire reporting program is required through the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). This information is recorded in the State Directory of New Hires and the National Directory of New Hires (NDNH) and is matched against state and federal child support databases to locate parents who owe child support.

Step 5: Set Up Payroll Taxes

After hiring employees, payroll taxes will need to be paid. Payroll taxes include:

Federal Income Tax Withholding

Employers withhold money from each employee’s paycheck to pay the employee’s federal income taxes based on the information provided in their W-4. The employer pays no part of the withholding tax but is responsible for collecting and remitting the withheld taxes.

Federal income tax withholding reports are filed using Form W-2, Wage, and Tax Statement with the IRS. Additionally, IRS Form 941 is due quarterly, and IRS Form 940 is filed annually to report any unemployment taxes due.

State Income Tax Withholding

Similar to federal income tax withholding, taxes are withheld from an employee’s paycheck for state income taxes.

Social Security & Medicare

Social Security and Medicare taxes are paid under the Federal Insurance Contributions Act (FICA). The employer pays half of FICA, and the other half is paid from the employee’s wages.

Unemployment Insurance

Employers pay state and federal unemployment taxes based on a percentage of each employee’s salary. This tax is known as State Unemployment Taxes (SUTA) and Federal Unemployment Taxes (FUTA).

Step 6: Obtain Workers’ Compensation Insurance

All businesses with employees (even a single part-time employee) are required to carry workers’ compensation insurance coverage to cover medical costs if employees are injured on the job. Worker’s Compensation Insurance is administered through the South Carolina Worker’s Compensation Commission.

Step 7: Display Labor Law Posters and Required Notices

South Carolina businesses must display Federal and State of South Carolina labor law posters where they can be easily viewed by employees. These posters inform employees of their rights and employer responsibilities under labor laws, such as federal minimum wage, anti-discrimination laws, and workers’ compensation rights.

South Carolina labor law posters can be individually printed from the South Carolina Department of Labor, Licensing & Regulation’s website.

Step 8: Stay Up To Date

It is important to understand the differences between employees and independent contractors. Employers will sometimes improperly classify employees as independent contractors who have different rules on payroll taxes, minimum wage, overtime, and other labor laws. An individual’s status as an employee or an independent contractor may be determined by filing IRS Form SS-8, Determination of Employee Work Status for Purposes of Federal Employment Taxes, and Income Tax Withholding.

The process of hiring your first employee in South Carolina can feel overwhelming, and there is a lot to keep up with, but with a clear understanding of what’s required, you’re setting your business up for success. Labor laws are complex and ever-changing, so be sure to keep up-to-date with the South Carolina Department of Labor, Licensing & Regulation, and the U.S. Department of Labor, and remember to seek professional advice if needed.