| You've finally made it. Your home based business | | | | to the Social Security Administration before the |
| is booming and you are having trouble keeping up. | | | | last of February. The W-2 Form needs to be to |
| You are making a steady profit and are hoping to | | | | your employees by January 31rst the year after |
| expand your business in the upcoming year. Now | | | | they have completed work. |
| it is the time to hire your first employee. | | | | You will also need a Form I-9 for employer |
| Finding the right person to bring into your | | | | eligibility verification. You will need to verify that |
| successful home based business can be difficult. | | | | your employee is legally able to work in the United |
| You will need write up a good job description and | | | | States. You will need to complete an Employment |
| post is on job boards to get the word out. Once | | | | Eligibility Verification Form within three days of |
| you get responses you will need to do some | | | | hire. There is also a Personal Responsibility and |
| preliminary screening and interviewing. These | | | | Work Opportunity Reconciliation Act of 1996 that |
| things can be tedious and take up some time. | | | | requires you to report all newly hired and rehired |
| However, it is vital that you take your time and | | | | employees within 20 days of them starting to |
| go through all of these steps. The person that | | | | work. |
| you bring aboard needs to be want you are | | | | You will need to get worker's compensation |
| looking for or else you will find yourself caught up | | | | insurance no matter what state you live in. |
| in the hiring process for a long time to come. | | | | Commercial carriers have worker's compensation |
| You will need to get an employer identification | | | | insurance and you can be insured on a self-insured |
| number before you hire anyone. This can be | | | | basis. There are also Worker's Compensation |
| obtained form the U.S. Internal Revenue Service | | | | Insurance programs through different states that |
| and it will be used for the Employer Tax ID when | | | | you can get. |
| you fill out your taxes later on in the year. Next | | | | Some businesses are required to pay |
| you will need to set up records for withholding | | | | unemployment insurance taxes. You will need to |
| taxes. | | | | contact your state agency to find out if you need |
| Federal income tax withholding is completed on | | | | to do that. If you are, you will need to register |
| Form W-4. Your employee and any others that | | | | your business with your states workforce agency. |
| you hire will need to sign a copy and give it back | | | | Some states require employers to get disability |
| to you before they can begin employment. You | | | | insurance while others do not. If you need to get |
| will need to submit Form W-4 to the IRS. Form | | | | some type of partial wage replacement insurance |
| W-2 is designated for Federal Wage and Tax | | | | coverage do so. At this time there are only a |
| Statement. Employers have to report this to the | | | | few states that you are required to purchase |
| federal government for wages paid and taxes | | | | disability insurance and they are California, Hawaii, |
| withheld from employees. You will need to | | | | New Jersey, New York, Puerto Rico and Rhode |
| complete a Form W-2 for all of your employees. | | | | Island. |
| You will also need to send Copy A or Forms W-2 | | | | |