Today, we're going to
be covering an exciting topic
for many business owners,
and that is hiring employees.
Hey, I'm Morgan from finepoints.biz
and my goal is to help business
owners and bookkeepers get organized.
And I actually have a whole YouTube
channel all about that.
It will be linked
in the description box below,
if you're interested.
Today, I'm partnering
with QuickBooks
to do an awesome video
series on all things
running your small business.
All right, this might sound familiar.
You've been building your business
from the ground up,
but at some point
you realize there's only so much scaling
you can do as one person.
So you realize it's time to hire someone,
but hiring an employee
is more than just
finding the right person.
So today, I'm going to walk you
through all the steps you need.
All right
And before we continue,
don't forget to give this video
a thumbs up and hit the red subscribe
button to get more videos just like this
And if you're more of a reader,
there's also an article linked
in the description box below
you can check out.
The first step in the hiring
process is to make sure
that you have all
the legal requirements in place.
So not always the most interesting thing,
but it's important
that you have the right documents
and you jump through the right hoops
to hire your first employee.
Here are seven legal requirements
that you need to do
before you hire your employee.
Number one, you need to get an employer
identification number or an EIN
and you may already have this
if you've used it to apply
for a bank account
or get a business license
or do your taxes
but if not, go to IRS.gov
to apply for that
and it's actually really quick and easy.
Number two, register
with your State Revenue Department.
So you need to get a state tax ID
and you can do this either
by visiting your state's revenue
or tax department.
And you can also consult with
a tax professional if you prefer.
Number three, register
with your state, Labor Department.
So in order to hire
employees, you need to make sure
you're registered
as an employer with the state.
Number four, calculate withholding tax.
So as an employer,
you need to take out both federal
and state taxes from your employee's
paycheck as the year progresses.
Calculating how much to pay,
who to pay, and when to pay
can be really daunting.
But don't feel like you necessarily
have to keep it all in your brain.
What I love is an automated
payroll software.
So this is what I do as as a bookkeeper
and what I recommend to all my clients.
Number five, purchase worker's
compensation insurance.
And not every single
business in every single industry
is going to have this as a requirement
but we do have a really helpful guide,
and it's linked in this
description box below
you can check out to see
if your business needs it.
Number six, issue
an I9 form to each new hire.
So this is a form that verifies
they are able to legally work
in the United States.
So make sure you have this verification
before they start.
Number seven, a workplace poster.
So I'm sure you've seen the large posters
in different workplaces.
But you need both a federal and state
workplace poster
as soon as you have one employee.
This needs to be invisible
for both applicants and employees to see.
You can stay up to date
with those labor posters
with QuickBooks subscription service.
So they'll send you a new
one anytime you need it.
Now, that all
the legal boxes are checked,
it's going to be time to start
writing those job descriptions.
So I want you to think about
what are the pain points
within your business?
What problems do you need solved?
And then that's going
to start translating
into your job descriptions.
So think about what
skills or what activities
will help solve those problems.
Then you want to start to translate
some of those answers
into job descriptions.
So make sure you are
as specific as possible
and really define
those roles that you're looking for.
Next, you're going to want to conduct
some market research
on salaries in your area.
So kind of see what the going rate
is for businesses in your area
and for your industry.
And you want to make sure you set
realistic expectations for salary.
Potential employees are everywhere.
On social media,
trade shows, on career sites.
So I'm going to go through three
different options for you.
Number one, job boards and career sites.
Candidates are actively seeking
employment on these types of sites,
so it is a great place to find someone.
Number two, your professional network.
So this might be one of the best places
to find potential candidates.
It's people you already know
and you already respect
and you already like.
And this is how I actually found
my marketing manager for my business.
She was part of a networking group
I was in and then we did a zoom call
and then almost a year later,
I was looking to hire
and she has proved to be
an invaluable resource to my business.
Number three is LinkedIn.
You probably already
heard about LinkedIn.
It has over seven hundred
and fifty million members.
Users are actively seeking
networking opportunities
and career opportunities
in industries that they're passionate
about and interested in.
You want to be strategic
with your interview process
as you were with
selecting your candidates
and writing those job descriptions.
So come up with some great questions
to ask during interviews.
I'm going to give you a few examples now.
Number one,
what are three skills
you have that uniquely qualify
you for this position?
Number two, how can you help
grow this business?
Number three,
what's something you can improve
or change within the business?
When it comes to selecting
the right candidate,
education and qualifications
are important,
but so are character and core values.
You'll also want to ask
some specific questions
based on the role that you're filling.
And then ask the candidate
what their salary expectations are
and decide what is reasonable for you
to pay based on their experience,
education and skill level.
It's also a good idea
to ask for employment references
before you decide to make an offer.
When you're ready to extend a job offer,
be excited and congratulatory.
This is great news.
You're about to add
someone else to your team
and ask them what
their preferred start date is.
In the job offer letter,
you also want to outline the employees
compensation package.
And if that does differ a bit
from what they were expecting,
make sure to outline
all of your company's perks and benefits.
Whether you are hiring
your first employee
or improving your hiring process,
these are some of the
most important decisions
that you can make within your business.
So make sure that you come up
with a great plan
and be really strategic.
Whatever stage at,
QuickBooks can help you pay your team,
access H.R. benefits and stay compliant.
There is a few videos linked
in the description box below
if you want to know more.
QuickBooks is genuinely
the only accounting software
that I use personally as a bookkeeper
and it's the only one I recommend
to clients and bookkeepers
I'm mentoring.
I've used it for over eight years now,
and I'm always amazed
by all the new additions
they're making that help improve it.
Alright, If you like this video,
give it a thumbs up
and then subscribe to the QuickBooks
channel for more videos like this.