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What legal steps do I need to take to hire employees for my small business in Ohio?

Picture of Chris Battis By   ·  1 minute read

If you are planning to hire employees for your small business in Ohio, you need to follow several legal steps, including the following:

  1. Obtain an Employer Identification Number (EIN): You need an EIN, also known as a federal tax ID number, to hire employees. You can apply for an EIN online via the IRS website or by mail.
  2. Register with the Ohio Department of Job and Family Services (ODJFS): Before you hire employees, you need to register with the ODJFS to report and pay unemployment compensation taxes. You can register online via the Ohio Business Gateway.
  3. Verify the eligibility of employees to work in the United States: You must verify that your employees are eligible to work in the US by completing Form I-9 and keeping it on file for each employee.
  4. Withhold and pay taxes: You must withhold federal, state, and local taxes from your employees' wages and pay them to the appropriate authorities. You also need to pay Social Security and Medicare taxes and file quarterly tax returns.
  5. Comply with labor laws: You must comply with various federal and state labor laws, including minimum wage laws, overtime laws, and child labor laws. Ohio's minimum wage is currently $8.80 per hour, but it will increase to $9.00 per hour on January 1, 2021.
  6. Obtain workers' compensation insurance: Ohio law requires most employers to carry workers' compensation insurance to cover employees' work-related injuries and illnesses.
  7. Create an employee handbook: You should create an employee handbook that outlines your company's policies and procedures. This can help minimize disputes and create a clear understanding of what is expected of employees.
  8. Protect your business with insurance: You should consider obtaining general liability insurance and other types of insurance to protect your business from employee-related claims and other risks.

It is important to note that this is a general overview, and there may be additional legal steps and requirements depending on your specific business and industry. It is recommended that you consult with a licensed attorney to ensure compliance with all applicable laws and regulations.