How to Hire Your First Employee (Compliance Checklist)
Hiring your first employee triggers ~12 federal and state compliance obligations. Miss one and the penalties compound.
Going from contractor to employer is a regulatory threshold. The cleanest path is to complete every registration BEFORE the first day worked, not after the first paycheck cuts.
Checklist
- EIN active and verified
- Payroll provider selected (Gusto, ADP, OnPay, Rippling)
- State employer registration (income tax + unemployment)
- Workers' compensation policy bound
- I-9 form completed within 3 business days of start
- W-4 form completed by employee
- State new-hire reporting filed within 20 days
- Posted federal + state labor law notices
- Written offer letter + at-will acknowledgment
- Employee handbook (PTO, harassment policy, complaint procedure)
Frequently Asked Questions
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