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Hiring Your First Employee: A Step-by-step Guide, by Fred S. Steingold
Ebook Hiring Your First Employee: A Step-by-step Guide, by Fred S. Steingold
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The only book that addresses the specific needs of anyone hiring an employee for the first time
Hiring anyone can be intimidating – but this is especially true if you're considering hiring your first employee. A new level of laws and regulations kick in, not to mention all the costs involved.
Fortunately, Hiring Your First Employee provides a complete, easy-to-read overview of hiring an employee, as well as legal and practical advice at every step.
Written by bestselling business author and attorney Fredrick Steingold, this tightly focused book will help you:
- figure out if it's the right to time to hire determine the salary or wage consider benefits to offer obtain an employee identification number write a job description find and screen applicants prepare the necessary paperwork maintain employee files deal with health and safety issues deposit payroll taxes deduct employment expenses troubleshoot employee problems
Hiring Your First Employee
- Sales Rank: #643907 in Books
- Published on: 2008-06-15
- Ingredients: Example Ingredients
- Original language: English
- Number of items: 1
- Dimensions: 8.96" h x .56" w x 7.08" l, .91 pounds
- Binding: Paperback
- 250 pages
From the Publisher
Everything you need to hire Employee No.!
About the Author
Attorney Fred S. Steingold practices law in Ann Arbor, Michigan. An expert on small business law, he represents and advises many small businesses. He is the author of Legal Guide for Starting & Running a Small Business and The Employer's Legal Handbook. His monthly column, "The Legal Advisor," is carried by trade publications across the country.
Excerpt. © Reprinted by permission. All rights reserved.
Excerpt From Chapter 1
Options Other Than Hiring an Employee
If you're feeling frazzled or you're losing out on possible profits because you lack needed help in running your business, you may be able to address the problem--at least partially--by taking steps other than hiring an employee.
Adding a Co-Owner
If you're the sole owner of the business, you can bring in another person as a partner to share the work and the business concerns. And if you already have a co-owner or two, you can invite another one to join you. The downside of having co-owners is that you'll have to share the profits, so that you and any current co-owners will each receive a smaller share of the pie. And the more owners you have, the greater the chances that you won't see eye-to-eye on some issues--and management disputes can be draining.
Advantages of adding a co-owner:
* You don't have to worry about having enough money in the till to cover periodic paychecks.
* You're not likely to get stuck with half-hearted help. A co-owner has a stake in how well the business does, and almost certainly will work harder than an employee would.
* You'll have fewer cash worries, since a co-owner will usually bring an infusion of cash as the price of owning a piece of owning the business.
Leasing a Worker
Many employment agencies have a roster of employees you can lease. Technically, a worker hired through such an agency won't be an employee of your business, but an employee of the agency.
The agency handles all the necessary paperwork--including cutting the checks to pay the worker's wages and cover employment taxes. If the worker turns out to be a bad fit for your business, you're usually free to terminate the lease at any time, which can feel easier than firing an employee you have personally sought out and hired. If the worker is a stellar match for your business, you'll probably be able to hire him or her after a time. But there's no free lunch. The employment agency needs to make some money for its efforts, which usually involve advertising for qualified workers, screening them, and handling paychecks for you, so it will tack on a hefty charge. You'll typically pay more for leasing help than if you hired a worker directly, though this might not be true if your alternative is to pay for a protracted search for the right employee. And another possible drawback is that a leased worker is less likely to form bonds of loyalty with your business than an employee you search out and mentor. Advantages of leasing an employee:
* You avoid the time, effort and expense of a prolonged search for the right employee.
* You don't have to deal with pay checks and employment taxes.
* You can easily end the relationship if the leased employee is a dud.
Most helpful customer reviews
5 of 5 people found the following review helpful.
Very helpful book for small business's hiring their first employee!
By randomartco
I have a small business that I started about 2 years ago, and I have considered some whether to hire an employee or not: at this time, I plan to wait a bit more & continue doing the work myself, but I will end up hiring someone in the not-too-distant-future, and I found this book to be quite helpful in making the decision to either hire my first employee now, or wait (as I have chosen to do): it explains the pros & cons of hiring employees, also bringing up other alternatives like independent contractors, leasing an employee, adding a co-owner, etc.
Many great topics are discussed (some in more detail than others), like: anti-discrimination laws, responsibilities of a business owner when they hire an employee (insurance, taxes, etc), employment at will, hiring & firing and much, much more:
It also highlights things like: have you formed your business correctly for employees (should you now incorporate, form an LLC, etc.), and payroll: minimum wage & overtimes rules...how to decide how much to pay an employee, wheter to hire a young or experiences worker, types of benefits & leave to offer, health care coverage, etc.
One of the things I liked is that it really seems to help you as a business owner clarify what it really is you need to hire someone to do, and how to find a person to fill those needs & craft a good job description. There is a sample job application in the book, as well as others like sample job offer letter, etc. There are tips for where to find employees, and it delves into how to conduct interviews & actually make the decision, and then helps you prepare for their start (goes into the necessary paperwork, how to keep proper files, dealing with safety concerns, as well as paying your employee and how to take care of the taxes.
I think this book had a very good overall view what is is like to hire your first employee, how to decide when to do it, and what the process is: with a little additional advice from other business owners & possibly a lawyer (if you feel it's needed), you can hire your business's first employee!
3 of 3 people found the following review helpful.
Useful, could be more useful
By poltroon
As a small business owner, this Nolo title seemed like a book I should have on my shelf. I found it useful, but I also wished it had been more comprehensive on some of the legal and tax issues.
One of the most useful sections of the book is the first section, which gives a handy chart and discussion about whether to hire an employee at all, and what other options you have: bringing on a partner, referring business out, using a temp, or bringing on an independent contractor. (Another choice might be outsourcing to another firm.)
One of the problems with this book is that it seems a bit disjointed in terms of the intended audience. In some places, they assume a fairly sophisticated reader, and in others, fairly straightforward issues (to me) are broken out step by step.
There is a section on health insurance that is just two pages, talking about the difference between PPO and HMO, but that's probably one of the least important things to know about health insurance as an employer. If I had written this section, I would have included a discussion about the employer's obligations to offer it in a uniform fashion to all employees and some of the tax and regulatory advantages to employer-purchased group insurance.
One area that the book misses is that there are payroll service companies that can make hiring the first employee much easier in terms of the regulatory issues - for a fee, of course. These payroll companies also sometimes have set up health insurance arrangements, giving a small business the advantage of being able to choose from more plans. Payroll services can be especially helpful, both in terms of meeting regulations and in making benefits available, if you wish to be employ people in different states - a situation becoming more common with internet-based businesses.
There are many good tips in the book, and it's worth reading if you're new to hiring an employee. However, I was hoping for a more comprehensive reference on the legal and regulatory side.
1 of 1 people found the following review helpful.
I thought I was getting a different type of book.
By Detra Fitch
If you are working for a company and get promoted to a new position requiring you to hire and fire the employees below you, as I was, this book does not target you as its audience. However, you can still use many sections of this "how to" book. The target audience for this book is a person who has his/her own business and has reached the point of having to hire someone to help with the work load.
Others have already told what the chapter titles are, so I will not bother listing them. I will say that the beginning is irritating due to the fact that it gives a long-winded talk on why you would need an employee. (Duh, I would not considering hiring someone for my company if I did not already believe that I needed help to keep up with demand.) I did not want small talk. I wanted answers to my many questions of how to do certain things. Well, this book does deliver when it came to answering most of my questions.
When hiring your first employee, for YOUR company, you are sure to have dozens of questions about the legal sides. What benefits must you have for the new employee? Is there anything special to know about paid holidays, sick time, vacation time, over time, etc? What about extra insurance in case of an on-the-job injury? What about having a lawyer on the side for any possible law suits? How do you set up the taxes and other deductions? The questions seem endless.
I have never read anything by NOLO before, but this is a pretty good "how to" reference guide. While it will not answer all of your questions, it will answer most.
Reviewed by Detra Fitch of Huntress Reviews.
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