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What legal steps should a small business in Ohio take before hiring their first employee?

Picture of Chris Battis By   ·  1 minute read

Legal Steps for Hiring Employees in Ohio

Before hiring their first employee, a small business in Ohio should take the following legal steps:

  1. Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). An EIN is used to identify your business for tax purposes and is required to open a business bank account and file tax returns. You can obtain an EIN through the IRS website or by submitting Form SS-4.

  2. Register with the Ohio Department of Job and Family Services (ODJFS). As an employer, you are required to pay unemployment taxes, and registering with the ODJFS is necessary for you to comply with this requirement. You can register online through the Ohio Business Gateway or by completing and submitting the required forms.

  3. Verify employment eligibility. Employers are required by federal law to verify that employees are legally authorized to work in the United States. This can be done by completing Form I-9 and keeping it on file for each employee.

  4. Obtain workers' compensation insurance. Ohio law requires that all employers have workers' compensation insurance coverage for their employees. You can obtain coverage through the Ohio Bureau of Workers' Compensation.

  5. Review and comply with all employment laws. As an employer, it is important to be familiar with state and federal employment laws to ensure compliance. This includes laws related to minimum wage, overtime, discrimination, and other areas of employment.

By taking these steps, a small business in Ohio can ensure that they are in compliance with all applicable laws and regulations related to hiring employees. It is important to consult with an attorney or other qualified professional to ensure that all legal requirements are met.