When you’re ready to hire a new employee in VA, you’ll need to consider several key elements to ensure you get your hiring done right the first time.
Employee or Independent Contractor?
Determine whether you want an employee or an independent contractor. There are certain factors that define a worker as an independent contractor.
An independent contractor does not rely on the business as the sole source of income, works at his or her own pace as defined by an agreement, is not eligible for employer provided benefits and they have a degree of control and independence.
Hire A New Employee
1. Develop a job description for the position. What do you want this person to do? What are the clear expectations?
2. Develop a job posting and interview questions.
3. Get an Employer Identification Number (EIN)
4. Register with the Virginia Taxation department
5. Register with the Virginia Unemployment Commission
Forms For VA New Hires
Once you are ready to hire there are new hire forms you will need.
1. Ensure new employees return a completed W-4 form and VA-4 tax form
2. Have the employee complete the I9 form.
3. Have the new hire complete a Contact Information form and Direct Deposit
4. Work with a bookkeeper to do your payroll or learn the state and federal tax laws and
how to report and pay your taxes.
5. Schedule pay periods to coordinate tax withholding for IRS
6. Each employee should have an employee file. If you offer benefits there should be a
separate file for anything health related.
7. Develop an employee handbook
8. Create a compensation plan for holiday, vacation and leave
9. Decide who will manage your payroll system
10. Learn which records must stay on file and for how long
The IRS maintains the Employer’s Tax Guide, which provides guidance on all federal tax filing requirements that could apply to the obligations for your small business.
The State of VA Taxation department has a business checklist.
**Thanks to our SBDC Director, Christine Krize for these insight.