Working with Employees

Employees help your business grow, but they cost your company money.  It is wise to plan before hiring an employee, to ensure that you have profitable employees.

If you have employees, then you are required to be compliant with many Federal and State laws. You need to take time to understand the various laws to ensure that you are following the laws.  Aaron Law Firm can help you quickly get up to speed on the laws so that you are educated about the rules that you and your employees are required to follow.

W2 Employee or Independent Contractor
Many small businesses used Contract Employees, but treat them as if they are W2 Employees.  What is the difference?  The Internal Revenue Service defines an employee as a person who performs a service for you and you “can control what will be done and how it will be done.” It is very important that you establish at the outset whether the employee will be treated as an employee or an independent contractor and that you properly document that relationship.

Many companies use staffing companies to hire their employees and to have a probation period before they hire the employee directly.  Small Businesses need to consider using staffing companies to run their employees through so that they do not have to worry about the taxes and the paperwork that goes along with it.

It is up to you and how you want to do things as to how you are going to hire your employees, but the important part of that decision is to make sure that you do the proper documentation to keep your business on the right side of the law.

 Handbook
With employees it is wise that you go ahead and setup policies and procedures for your company. Companies order generic policies and procedures for their employees and believe that they are covered. However, it is worth the investment of time to customize any standard policies to ensure that your company is covered; Here is a more in-depth discussion on Policies and Procedures.  As an employer you need to have a handbook that is available to your employees that sets out the rules that they are to follow and the policies and procedures that affect them.

A must has policy and the accompanying procedures are those that allow an employee to complain if they feel like they have been discriminated against.  Failure to have these rules can make you liable for any discriminating behavior of an employee.

Customer Relations
It is important that you have a guideline for your employees to follow as they work with your customers.  Employees become the face of your company to the public; customers, prospective customers, and vendors.  Make sure that your employees know what is expected of them as they engage the public.  And it is always a good idea to follow the rules that you set out for your employees with regards to dealing with the public.

Review and Evaluation Process
If you are going to have a review process for your employees it is best that you let them know when to expect it and what to expect.  If you say that the employee reviews are every 6 months they should be every six months.

There are many standard evaluation forms that are available on the internet, get a few and customize it to fit what your needs.  The important thing is to actually use it to provide feedback to your employees and also to allow your employees a vehicle to provide you information about their job and the company.

Hiring employees is a big step and should be taken only after you have educated yourself on the laws that you will be required to follow, have put together rules for the employees to follow in a handbook and made sure that the employee will grow your business more than your cost of employing them.