Things every small business should know before hiring.
Small businesses usually start as solopreneurs, but with time, most businesses want to grow. With growth, they often need to hire employees. If you are a business in McDonough, there are some federal, state, county, and local employer requirements you should know about before hiring your first employee.
Federal Employer Requirements for US Employers
As a responsible business owner with employees, it's imperative to remember the legal requirements of your organization. It's important to ensure you comply with all relevant laws and regulations, including labor and employment. These requirements include:
- Employer Identification Number (EIN): All businesses with employees must have an EIN and can apply for an EIN online or by mail.
- Payroll taxes: As an employer, it is your duty to ensure that federal income, Social Security, and Medicare taxes are deducted from your employees' paychecks. Additionally, you are responsible for remitting these taxes to the federal government.
- Employment eligibility verification: Employers must verify all new hires' identity and employment eligibility using the I-9 form.
- Fair Labor Standards Act (FLSA): FLSA sets the standards for minimum wage, overtime pay, recordkeeping, and child labor for most employees in the United States.
- Americans with Disabilities Act (ADA): they make it illegal to discriminate against individuals who are qualified for a job but have disabilities. This law applies to all employment-related matters, including job applications, hiring, training, promotions, compensation, and termination.
- Equal Pay Act (EPA): The EPA prohibits employers from discriminating based on sex in paying wages to employees performing equal work in similar jobs.
Small businesses usually start as solopreneurs, but with time, most businesses want to grow. With growth, they often need to hire employees. If you are a business in McDonough, there are some federal, state, county, and local requirements you should know about before hiring your first employee.
State Requirements for Georgia Employers
There are also state requirements that Georgia employers must follow. These requirements are essential for creating a safe and fair work environment for your employees. As such, you must orient yourself to these rules and ensure your workplace complies with them. These requirements include:
- Georgia Department of Labor (GDOL): The GDOL enforces state labor laws. All businesses that have employees in Georgia are required to register with the GDOL.
- Georgia Unemployment Insurance (UI): Employers in Georgia are required to pay unemployment insurance taxes. These taxes provide benefits to unemployed workers.
- Georgia Workers' Compensation: Employers in Georgia must provide workers' compensation insurance to their employees. This insurance covers employees' medical expenses and lost wages if injured on the job.
Noncompliance with these requirements could result in penalties and legal consequences for your business, so taking them seriously and prioritizing compliance is essential.
Local Requirements for McDonough, GA Employers (County and City)
Depending on the state and city, you may be subject to additional requirements mandated by local and state laws. Such is the case for McDonough businesses. Two requirements include:
- Henry County Occupational Tax: Employers in Henry County are required to pay an occupational tax. This tax funds various county services.
- McDonough City Occupational Tax: Employers in McDonough are required to pay an occupational tax. This tax sources various city services.
- Henry County Occupational Tax: Employers in Henry County are required to pay an occupational tax. This tax funds various county services.
- McDonough City Occupational Tax: Employers in McDonough are required to pay an occupational tax. This tax sources various city services.
In addition to these requirements, small businesses in McDonough may also need to comply with other local laws, such as zoning ordinances and building codes. As such, employers must stay current with these legal obligations to ensure compliance and avoid potential legal consequences.
Jowanna Daley Empowers McDonough Small Businesses
If you are considering hiring employees, Jowanna Daley can help guide you about what you should know and what questions to ask your payroll provider, bookkeeper, or accountant. Schedule a consultation today.