They say it’s lonely at the top. But maybe you’ve already climbed up to the top, and now you need help. Hiring an employee is a big step in your business, not to mention a huge responsibility.
You’ll need to get yourself ready to take on bigger projects, while also making sure your new hire has all the support they need. Whether you’re just starting out or scaling up, here are 6 tips for hiring (and paying) your first employee.
1. Issuing Paychecks for Your Employee
Issuing a paycheck to your employee isn’t complicated, it’s simply a matter of recording all the right information. A pay stub should reflect your employee’s pay for the work they’ve done for you, but also things like deductions, tax withholdings, and any number of other things that can be worked out before you hire someone.
You’ll need to make sure you keep accurate records of all of that, including a payroll tax sheet. For issuing pay stubs, you can use an online paystub maker with customizable templates. You’ll be able to attach your own company’s logo, among other things.
2. Know what type of benefits you can offer
A small business can only afford so many benefits, and while these are important, you need to know what your new hire needs the most. Are they looking for a flexible schedule? Do they need things like tuition reimbursement? Is a healthcare plan important to them?
Knowing what perks your business can offer your employee will help you better tailor your benefits. It’s also important that your employee is aware of labor laws and their own rights.
3. Decide on an hourly rate or salary
There’s a reason that every hiring manager talks about an hourly rate: hourly is how you can pay people what they’re worth. With the benefits we’ve covered so far, you’ve laid out your expectations, and you’ve offered them a salary if they meet the expectations.
But when you’ve both reached an agreement, it’s time to go for the win. It’s important that you agree on your pay rate so that you can offer them both flexibility and equity in their new position.
4. Find out what deductions will be taken from their paycheck before you hire them
One of the biggest arguments you’ll hear between employers and employees is a battle over deductions from paychecks. Employers will claim deductions for things like uniforms, equipment, and training, while employees can argue that they don’t need those things.
While the arguments might seem petty, both sides have a valid argument, and if you want to hire well and get paid well, you’ll need to work it out in advance.
5. Do not forget about taxes!
As an employer, you have the ability to put things like health and dental insurance on your employee’s paychecks. That means they’ll get paid well for their work, but they’ll also be paying you for it.
Taxes must be taken out before payment is given out, and you don’t want your employee making too many different payments for you to have to collect taxes. So make sure your new hire knows that taxes must be paid before payment is given out.
6. Finally, make sure you have a contract in place!
While an employee can potentially come in and not know a thing about their job duties, a contract is a must for employees. Even if you’re hiring a contractor, having a contract is an important piece of the puzzle.
Your employee needs to know that if they don’t meet the expectations, there will be a price to pay. It goes both ways – a contract will hold you accountable as well, so remember to sign your new hire’s paychecks!