Right Start Go
  • Automotive
  • Business
    • Manufacturing
    • Marketing
  • Finance
    • Loans
    • Insurance
    • Investment
    • Trading
  • Health
  • Home
  • News
    • Law
    • Learning
    • Property
    • Entertainment
    • Event
    • Travel
  • Shopping
  • Technology
    • Tech
    • Seo
No Result
View All Result
  • Automotive
  • Business
    • Manufacturing
    • Marketing
  • Finance
    • Loans
    • Insurance
    • Investment
    • Trading
  • Health
  • Home
  • News
    • Law
    • Learning
    • Property
    • Entertainment
    • Event
    • Travel
  • Shopping
  • Technology
    • Tech
    • Seo
No Result
View All Result
Right Start Go
No Result
View All Result
Home Finance

Hiring Alone Doesn’t Make You a Legally Recognized Employer

Acker Palma by Acker Palma
July 18, 2018
in Finance
0 0
0
Hiring Alone Doesn’t Make You a Legally Recognized Employer
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter
0
SHARES
ShareTweet

You are a small business owner who has just hired your first two employees. Let’s say you go to a company like Dallas-based BenefitMall to sign up for their payroll processing service. BenefitMall is going to ask for certain information to get you set up in their system. Without that information, they will not be able to help you. Why? Because you are not legally recognized as an employer until you complete both federal and state registration.

Federal and state laws require employers to register on a number of different fronts in order to be legally recognized as employers. Not registering means one of two things: you are an employer paying your employees under the table or you are an employer whose workers are deemed contractors under federal law.

Hiring only contractors eliminates the need for you to register as an employer. You also are not responsible for withholding, providing workers’ comp insurance, etc. If your new hires are employees rather than contractors though, paying them under the table could get you in big trouble.

Obtain an Employee Identification Number

Registering as an employer begins at the federal level by applying for an employee identification number (EIN). This number is the number the IRS uses to identify your company in its system. It is also used by the Social Security Administration and a handful of other federal agencies.

The good news about obtaining an EIN is that it is really simple. You can contact the IRS either by phone or online to request your number free of charge. Provided you have all the relevant information readily at hand, you will get your number immediately. The IRS will follow up with a paper document confirming the number issued to you.

If you have not yet established a business bank account, your bank will ask you to furnish your EIN before you can open an account. An account already established under your Social Security number should have the EIN added to it for tax purposes.

Register for State Unemployment Tax

Each of the individual states has an unemployment insurance program in place to protect employees. The programs are funded by employers and their employees through shared payroll taxes. In order for your registration to be legal at the state level, you have to register as an unemployment tax payer. How you go about this depends on your state system. You may have to register online or over the phone. When you do, the state will inform you as to the rate you and your employees will be paying.

Reporting New Hires

Every state requires employers to report all new hires. When you first register, you report all the employees currently on the books. You will have to separately report each additional hire thereafter. New hire reporting typically involves proffering information like the name of your business, your business address, your EIN, and the appropriate employee information.

Local Registration

Finally, you may have to register your business with local authorities as well. This should only be necessary if your municipality or county assesses additional payroll taxes on top of what the state and federal government collects. New York City is a good example. New employers in the Big Apple pay additional local taxes that don’t apply to employers in rest of the state. Employers have to register with the city in order to make sure those local taxes are collected and submitted.

Hiring employees alone doesn’t make you a legally recognized employer. To be recognized at the federal and state levels, you must register your business as a legitimate employer.

Previous Post

Liberty’s Extended Auto Warranty Services

Next Post

The Benefits Of Internet Consulting Services

Acker Palma

Acker Palma

Next Post

The Benefits Of Internet Consulting Services

  • Trending
  • Comments
  • Latest
Creating the Best and Reliable Sheep Shed Design 

Creating the Best and Reliable Sheep Shed Design 

February 12, 2018
Five Fine Features of Sliding Gates for Houses

Five Fine Features of Sliding Gates for Houses

August 29, 2018
Five ways to take your weed

Five ways to take your weed

May 17, 2019
Best Information on Kids Dance Class

Best Information on Kids Dance Class

February 12, 2018

Kickstart Your Idea With Private Label Manufacturing

0

Important Tips When Renting A Vehicle

0

What Personal Vehicle Leasing Is

0

The Intricacies Of Invoice Finance

0

Kickstart Your Idea With Private Label Manufacturing

March 23, 2023
Where to Take Your Kids for Fun When You Live in Baltimore

Where to Take Your Kids for Fun When You Live in Baltimore

March 21, 2023
How to Update Your Contact Details in Your Demat Account?

How to Update Your Contact Details in Your Demat Account?

March 11, 2023
A Beginner’s Guide to Making the Perfect Voice Over Reel

A Beginner’s Guide to Making the Perfect Voice Over Reel

February 21, 2023

Recent Posts

  • Kickstart Your Idea With Private Label Manufacturing March 23, 2023
  • Where to Take Your Kids for Fun When You Live in Baltimore March 21, 2023
  • How to Update Your Contact Details in Your Demat Account? March 11, 2023
  • A Beginner’s Guide to Making the Perfect Voice Over Reel February 21, 2023
  • All You Need to Know About Bakersfield CA: Highlights, Restaurants, Landmarks & More February 2, 2023
  • The Ultimate Guide to Understanding Lending Options for Your Small Business January 13, 2023

2023

  • – March (2)
    • Kickstart Your Idea With Private Label Manufacturing
    • Where to Take Your Kids for Fun When You Live in Baltimore
    • How to Update Your Contact Details in Your Demat Account?
  • + February (2)
  • + January (6)

2022

  • + December (3)
  • + November (8)
  • + October (3)
  • + September (1)
  • + August (3)
  • + July (3)
  • + June (1)
  • + May (7)
  • + April (3)
  • + March (2)
  • + February (5)
  • + January (6)

2021

  • + December (3)
  • + November (4)
  • + October (12)
  • + September (10)
  • + August (5)
  • + July (4)
  • + June (5)
  • + May (4)
  • + April (6)
  • + March (7)
  • + February (9)

2020

  • + December (1)
  • + April (1)
  • + March (2)
  • + February (1)
  • + January (1)

2019

  • + December (2)
  • + November (2)
  • + October (1)
  • + September (4)
  • + August (4)
  • + July (2)
  • + June (6)
  • + May (4)
  • + April (4)
  • + March (10)
  • + February (7)
  • + January (11)

2018

  • + December (15)
  • + November (26)
  • + October (20)
  • + September (16)
  • + August (29)
  • + July (31)
  • + June (24)
  • + May (19)
  • + April (13)
  • + March (16)
  • + February (24)
  • + January (37)

2017

  • + December (2)
  • + October (1)
  • + September (6)
  • + August (8)
  • + July (7)
  • + June (7)
  • + May (3)
  • + April (3)
  • + March (2)
  • + February (4)
  • + January (3)

2016

  • + December (5)
  • + November (3)
  • + October (1)
  • + September (8)
  • + August (2)
  • + July (5)
  • + June (4)
  • + May (6)
  • + April (1)
  • Write To Us

© 2020 Right Start Go- All Rights Reserved.

No Result
View All Result
  • Automotive
  • Business
    • Manufacturing
    • Marketing
  • Finance
    • Loans
    • Insurance
    • Investment
    • Trading
  • Health
  • Home
  • News
    • Law
    • Learning
    • Property
    • Entertainment
    • Event
    • Travel
  • Shopping
  • Technology
    • Tech
    • Seo

© 2020 Right Start Go- All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In