Types, Taxes, Regulations, And Insurance

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Forms, Taxes, Regulations, and Insurance Employer Identification Number (EIN) – Before your business can hire a single employee it will need an Employer Identification Number (EIN). This number acts like a “social security number” of sorts for the business for tax purposes. For more information on Employer Identification Numbers or to apply for one, go to the IRS: Guide to Employer Identification Numbers Online Application (irs.gov) Employee regulations – Before you hire an employee, be sure you know and understand the expectations and regulations associated with being an employer. A list of Federal Regulations can be found here (dol.gov), but don’t stop there: Depending on your industry, state, and local laws, there may be a number of additional regulations regarding employee’s and/or the workplace. Safety protocols/regulations, employee posters, and other workplace regulations. You don’t necessarily need to be an attorney to understand them, but for some industries, you may need to hire a consultant to ensure full compliance. Insurance – There are a number of insurance requirements for employers that can vary widely depending on the industry or state of employment. There are 3 major types of insurance that are typically required of employers. Be sure to research and comply with each before you hire your first employee. Workers Compensation requirements (by state) – Depending on the state, employers are usually required to carry workers compensation insurance either through a commercial carrier, self insurance, or state program. Unemployment Insurance – Under certain conditions, businesses with employees must register with state agencies and pay unemployment insurance. The link provides resources by state for both requiremen... ... middle of paper ... ...ight Things you must do AFTER you hire an employee Report hire to proper agencies According to the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 all employers must report new employees to the proper state agency within 20 days of the hire date. A list of the reporting agencies can be found here. File taxes Filing W-4 for each employee, W-2 yearly to report all wages, as well as distribute appropriate tax records to employees for the calendar year (for declaration of personal taxes). Organization, record keeping, and continued compliance Not only should employees keep comprehensive records for all employees, including all financial records (even after an employee is terminated) but employers have a responsibility to keep up to date with the latest laws and regulations that can affect compliance on a federal, state, or industry level.

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