One of the most significant steps in starting a new business is hiring employees. A new business starting out must make sure it has an accounting system in place to handle payroll taxes and payroll records for employees. One of the leading causes of business failure is failing to maintain payroll records and making proper payroll tax payments. Arrangements should also be made to have proper workers’ compensation insurance and unemployment insurance.
Another issue to consider when hiring employees is employee policies and procedures. Terms of employment are usually set forth in an employee handbook. Employee handbooks cover issues, such as sick days, vacation days, benefits, and termination. Laws governing employees change frequently, so a lawyer or other professional should be hired to prepare and maintain an employee handbook and employee policies.