Checklist for Hiring New Employees
If you are starting a small business in DuPage County or are thinking about expanding your current business to include employees beyond yourself, you are likely to have many questions about the steps you need to take in order to hire new employees. For instance, what kind of information do you need to obtain from the Internal Revenue Service (IRS) before you can hire new employees? What information will you need to obtain from your new employees in order to hire them legally and to withhold federal income taxes from their paychecks? What kinds of information are you required by law to provide to new employees?
At Farooqi & Husain Law Office, we are committed to helping members of the Muslim community in DuPage County create and expand their small businesses, and a DuPage County business law attorney at our firm can answer all of your questions about hiring new employees. In the meantime, the U.S. Small Business Administration (SBA) provides helpful tips for creating a checklist for any small business owner who is planning to hire new employees.
Helpful Checklist for Small Business Owners Who Are Hiring New Employees
Are you just starting your business or expanding it? The following is a helpful checklist to ensure that you follow all necessary steps to hire new employees lawfully:
- Contact the IRS to obtain an Employee Identification Number (EIN). Your EIN is also known as your Employer Tax ID or your Form SS-4. You must have an EIN to report taxes to the IRS, as well as to report employee information to Illinois state agencies.
- Develop a system for keeping employment tax records. The IRS requires business owners to maintain employment tax records for at least four years. You should know that there are three different types of withholding taxes that are required: federal income tax withholding (which occurs after an employee provides you with a W-4 form, which you will then submit to the IRS), federal wage and tax statements (which are filed by an employer through a W-2 for), and state taxes (Illinois requires you to withhold state income taxes).
- Verify your new employees’ eligibility to be employed in the United States. You have three days from the date of hiring a new employee to obtain a Form I-9, which is for employment eligibility verification. You do not have to submit this form anywhere, but you do have to keep it on file for three years after hiring the employee or one year after terminating the employee (whichever is later).
- Register with the Illinois New Hire Reporting System. You are required to report all new employees and rehired employees within 20 days of hiring them.
- Obtain workers’ compensation insurance. There are many ways to obtain workers’ compensation insurance, and a DuPage County business lawyer can discuss your options with you.
- Post all required notices for employees. There are many different notices that must be posted in a workplace that inform employees about their rights under U.S. labor laws, as well as your responsibilities as an employer. For example, certain OSHA notices must be posted. A business law attorney in DuPage County can also discuss these requirements with you.
Work with a Business Lawyer in DuPage County
If you have questions about hiring new employees, an experienced Oakbrook Terrace business law attorney can speak with you about your situation. We regularly assist small business owners who are members of the Muslim community in DuPage County. Contact Farooqi & Husain Law Office today.