Employees

  1. How do I register to become an employer?
  2. How can I find and keep qualified employees?
  3. What other financial responsibilities do I have for employees?
  4. What is OSHA?
  5. How do I know if I should hire someone?
  6. How can I effectively interview applicants?

1. How do I register to become an employer?
To register as an employer, you need to obtain a federal Employer Identification Number (EIN) by filing IRS Form SS-4. You will also need to register for state income tax withholding and for unemployment contributions by filing the Pennsylvania Enterprise Registration Form (PA-100). Employees will need to complete, and you will need to maintain a file of, Employee's Withholding Allowance Certificate W-4 obtained from the IRS, and Employment Eligibility Verification Form I-9 obtained from U.S. Citizenship and Immigration Services. Obtain workers' compensation insurance from your business insurance carrier.

2. How can I find and keep qualified employees?
Two of the greatest challenges for any business are hiring the right people and keeping them. Employees, and, more important, their contributions, are a business's most important asset. So how do you go about finding, selecting, and retaining the best people?

Decide What You Want
Before you hire an employee, you need to know exactly what you want. List the skills, experience, and other attributes you are looking for in the categories of:

  • must-have-skills that you do not have the time, money, or desire to teach but that are absolutely necessary to do the job
  • should-have-sets of skills in which the candidate should have some degree of knowledge or skill
  • nice-to-have-what you'd love to have but can live without

Search in the Right Places
The harder it is for you to find the skills you need, the wider the net you must cast. You may choose from local media, the state's employment center, and using the Internet. View any employment ad as a marketing tool for your company, making it as appealing as possible. Put a headline on your ad that describes the best benefits you can offer. Be sure to add your must-have list of skills, experience, and education. To get qualified people without having to weed through a pile of applications, be specific about what you say and very selective about where you place the ad.

Don't underestimate the value of networking. You may choose to ask your best employees if they know someone who would fit into your organization and might be interested in joining, or to use your network in the community to find employees.

Conduct a Thorough Interview
Give the applicant a complete and accurate picture of your business. In today's tight job market, you have to sell both yourself and your company. Through your questions, cover the job's must-haves, should-haves, and nice-to-haves and be sure to obtain a clear picture of where the candidate is in relation to these attributes. Remember, good questions lead to good answers-the more you learn about each applicant's experience and skills, the better prepared you are to make your decision. If you find yourself talking as much or more than the candidate, stop-you learn about the candidate only when you are listening. Don't be afraid to press a candidate for more information-it is then that you may learn important information.

Hire the Right Person
Some tips for choosing whom to hire:

  • Go with your gut.
  • Accomplishments are what really matter.
  • Attitude counts.
  • Be objective.

Three critical elements in hiring the right people for the job are skills match, company fit, and job match. Be objective in determining which candidates have the best overall fit.

Hang On to Good Employees
Retention of employees is as important as the initial hire. An individual's suitability to a particular job is the single most important factor in job performance and retention. Be sure to provide people jobs that fit with their personality and then take the time for a proper orientation. Listen to them and continue to provide training and skills development opportunities. Set clear expectations, show concern for employees, and treat them fairly.

3. What other financial responsibilities do I have for employees?
You must withhold federal and state income taxes, contribute to unemployment and workers compensation systems, and match Social Security contributions. You may also wish to inquire about key employee life or disability insurance.

4. What is OSHA?
OSHA (Occupational Safety and Health Administration), a federal agency under the U.S. Department of Labor, oversees workplace safety. All employers are required to provide a safe and healthy workplace and are subject to no-notice safety and health inspections by OSHA. Employers with more than ten employees are required to maintain a record of injuries on the OSHA 200 form, which must be available for inspection for a period of five years.

5. How do I know if I should hire someone?
Consider these conditions:

  • Can you afford an employee?
  • Will you really save time?
  • With an extra employee, would you have more time to market your services and expand your business?
  • Would an extra employee allow you a chance to produce more products or serve more clients?
  • Would an extra employee allow you to give your customers more efficient service or quicker delivery, with the result that higher quality would lead to more customers?

6. How can I effectively interview applicants?
Use interviews along with background checks and references in order to help determine whether or not the applicant is suitable for your position. This way, you will have an idea of the applicant's personality as well as qualifications.

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Page last modified on Sunday, July 01, 2007