What legal steps should I take as a Georgia business owner when hiring employees?
As a Georgia business owner, there are several legal steps you should take when hiring employees:
- Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS): An EIN is a unique identification number assigned to businesses for tax purposes. You will need an EIN before you can hire employees.
- Verify work eligibility: Before hiring an employee, you must verify their work eligibility through Form I-9, which is used to establish an employee's identity and authorization to work in the United States. You can download Form I-9 from the website of the U.S. Citizenship and Immigration Services (USCIS).
- Verify that the employee is not excluded from working: Ensure that the employee is not excluded from working due to a prior criminal record or other disqualifying circumstances.
- Set up payroll systems: You need to ensure that you have appropriate payroll systems in place to handle the payment of employee salaries, withhold taxes, and pay any required benefits.
- Determine what benefits you will offer: Georgia law requires that employers provide certain benefits to their employees. These benefits include workers' compensation and unemployment insurance. You should also consider offering other benefits, such as health insurance or retirement plans.
- Create an employment contract or agreement: It's important to define the terms of employment between you and your employee. An employment contract or agreement should include the job description, compensation, benefits, and a description of any non-compete or confidentiality obligations.
- Develop an employee handbook: An employee handbook should detail the company policies and procedures that an employee must follow. It should include information on benefits, leave policies, and disciplinary procedures.
It's important to note that there may be additional steps that are specific to your industry or employee classification. Additionally, some benefits, such as health insurance, may be subject to federal or state laws.
If you have any questions or concerns about hiring employees, it's best to consult with a licensed attorney who can provide you with particularized advice based on your individual circumstances.