Crash Course to

Hiring, Taxes, and

More!

STEVE JOHNSENHead of Compliance

ERIN COLBERTSmall Business Advocate

Questions?

Twitter @ZenPayroll #FirstHire

or

Use GoToWebinar

Are they qualified?

Will they fit our company culture?

How about employee benefits?

Or payroll taxes?

Or just plain ol’ compensation?

In this webinar we’ll cover:

● 4 steps to preparing for your first hire

● The best payroll schedule for your business

● Differences between a contractor and an employee

● Critical legal & regulatory documents needed for

employee #1

● Employee tax, benefit, and health insurance basics

What to Do Before You Make

the First Hire

What kind of corporation are you?

S Corp

An S Corporation (“S Corp”) is a popular choice for

many businesses. They are generally more complicated

legally but can provide significant tax savings.

C Corp

A C Corporation (“C Corp”) is an alternative choice to

the S Corp. Unlike the S Corp, C Corps can be subject

to “double taxation,” which may make them unpopular

with small businesses.

LLC

A Limited Liability Corporation (“LLC”) is a lightweight

alternative to incorporate your business. It does not

have the typical tax savings as the other options, but it is

less complicated legally.

The 4 steps to preparing for your

first hire:

1. Apply for a Federal Employer Identification Number (FEIN)

2. Become Compliant with Your Relevant State Departments

3. Purchase Workers’ Compensation Insurance

4. Make Sure Workers are Properly Classified

Apply for a FEIN(Federal Employment Identification Number)

Get compliant with your state

Arizona Dept. of Economic Security

Arizona Dept. of Revenue

California Dept. of Industrial Relations

California Employment Development Dept.

California Franchise Tax Board

Colorado Dept. of Labor & Employment

Colorado Dept. of Revenue

Connecticut Dept. of Labor

Connecticut Dept. of Revenue Services

Florida Dept. of Economic Opportunity

Florida Dept. of Revenue

Georgia Dept. of Labor

Georgia Dept. of Revenue

Illinois Dept. of Employment Security

Illinois Dept. of Revenue

Massachusetts Dept. of Revenue

Massachusetts Labor & Workforce Dev.

Nevada Dept. of Employment, Training & Rehabilitation

Nevada Dept. of Taxation

New York Dept. of Labor

New York Dept. of Taxation & Finance

North Carolina Dept. of Labor

North Carolina Dept. of Revenue

Tennessee Labor and Workforce Dev.

Texas Workforce Commission

Utah Dept. of Workforce Services

Utah State Tax Commission

Washington Dept. of Labor & Industries

ZenPayroll automatically

manages your state

payroll-related tax

payments and filings.

Purchase Workers’

Compensation Insurance

What to Do On

Your Employee’s

First Day

Celebrate!

Create a memorable first day

Throw a welcome party

Prepare a desk gift

Make a warm introduction

Have dinner together

Pull some office pranks

What about the legal stuff?

Form I-9

Verifies eligibility to work in the US.

You don’t need to submit the form, but must keep it on file (digital is ok) as

long as they are employed, a minimum of 3 years from the hire date or 1

year from the term date, whichever is longer.

Form W-4

Form to determine an employee’s tax withholding.

Must be completed by the employee and does not need to be submitted.

Keep on file a minimum of 4 years. Best practice to update annually.

State Reporting

Each state has a department to report your new hire name, address, and

social security number. Depending on the state, you may have a few to 90

days to submit this information.

Important Taxes, Legal, and

Regulatory Issues

for Your First Hire

Do you know the taxes and obligations

for your first hire?

Calculated according to:

1. Marital status

2. Number of allowances

claimed on Form W-4

3. CompensationWithhold Taxes

Deposit Taxes and File Returns

Determine if employees are subject to

overtime laws.

What about benefits?

Pre-Tax Health Benefits

Under section 125, employees can deduct

insurance premiums pre-tax and set aside

pre-tax funds for healthcare and medical

expenses. Employers can also see a

significant decrease in company payroll

tax.

Retirement Benefits

There are some advantages to starting a

retirement plan for your employees

including tax-deductible contributions,

access to various tax credits or incentives

for starting a plan, and attracting and

retaining employees.

Fringe benefits could be tax-free:

● Commuter benefits

● Employer-provided cell phones

● Meals

● Athletic facilities

What To look For in

Your First Hire

What are you looking for in your #FirstHire?

CHARLOTTE GENEVIER (CEO/Founder, The Cotery)

A startup’s first hire needs to have three things: self-motivation, alignment of vision,

and resilience.

JONATHAN JUNKER (Co-Founder, Graypants)

For us, personality is everything. My advice is to find someone you really enjoy being

around. And find people you really look up to. I look up to the people I work with more

than anybody.

ALEX LIPSCOMB (President, ALL MAVEN)

The best kind of person you can hire is someone who’s not only passionate about your

company, but who wants to grow with your business.

Questions?

zenpayroll.com

hello@zenpayroll.com

800-936-0383