Forums: Discussions for entrepreneurs and small business.

I am getting really busy and it`s going to just get more and more so. I have decided it`s time to hire someone at least part time. My husband helps me when he can and I have a friend who helps in a pinch but I think I need some "official" help at this point. The idea of being responsible for someones income is kind of scary, but I`m also kind of clueless about things like worker`s comp, taxes, etc. I have a friend who is going to work as my bookkeeper, but she said I should also hire a payroll processing company. (I was under the impression that a bookkeeper handled paychecks?? I guess I am even more clueless than I thought. )

I guess this post is just a little vent of my frustrations and fear over this subject. Thanks for listening!

Although I haven`t yet hired any employees, I have done some
research to prepare myself for the moment I do. The following
has helped me tremendously in gaining a greater
understanding:

1. The "State Guide" from Entrepeneur magazine. I ordered
the binder on "Selling Your Products" ($69) and then the
California State guide ($10). Both have been well worth the
investment!
http://www.smallbizbooks.com/cgi-bin/SmallBizBooks/
index.html

2. the SBA
http://www.sba.gov/managing/growth/employees.html
"Employees" section @ :
http://www.sba.gov/starting_business/index.html

Hope this helps and good luck!
Jay

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A turtle never gets anywhere without first sticking its neck out.

It didn`t even occur to me to visit the SBA site and I consult with them often! Thanks for the reminder. I`ll check out the E. Magazine book as well. Thanks!

Christine,

I owned and operated a Pizzeria a few years ago. I hired an accountant who did all my books and payroll needs for 75$ a month at the time.  I worried about nothing which is the way I wanted it.

I  always thought it would be pretty easy to do it myself after taking the accountant classes for my Business degree, but I just didn`t  want the worry.  To many danm laws  now a  days.

My suggestion would be to sit down with an accountant and discuss all of your options,  make that acouple of them to make sure you get the proper view on the issue.

Mike

Hiring your first employee can be scary... After consulting with my father who has been a CPA/Acccountant for over 30 years told me in a nutshell what I needed to do. Now from what I understand you are in a different industry as mine. I am a web designer and Web hosting company. My in the end was not to hire directly but instead as a subcontract (free-lancer). I also made the free-lancer sign paper and forms to protect my company. So far so good.
But this is from my personal experience only. It may or may not work for you.

-------------------------

Edgar Monroy
Web Developer / Owner / Consultant
When starting your own business the need to "know-how" is greater than money!
http://www.nuevolution.net

You can get a lot of great resources from previous forums and articles on this site.

 You can always ask others what their expirereince was like hiring their first employee.

 A new hire is always a 50/50 gamble because you can have a person who has a great academic backgroud and tons of knowledge a not live up to his capabilities, Then again you may run across someone who just is an ordinary person who will put in an extraordinary effort and out perform others.

 Once again there are plenty of resources on this site alone that can answer your questions. 

 

 

Christine,

If you need any help with interviewing do`s and don`ts, I have some articles and forms on my website that may help.  Also if you would like assistance with specific questions to ask for the position you are filling, I`d be glad to help you out. 

Janet

Thanks for the great advice everyone! Janet - I`ll check out your site. Thanks!

Christine,

I don`t believe you need a payroll processing company at this early stage. Your bookkeeper or accounting (I would think you could find one in the same in your area) should be able to handle your payroll for you. Is this employee to be full or part-time?

Stay current on your taxes - many a small business falls behind on taxes early and if you do, if will come back to haunt you. In my state (GA), filing tax reports can be done online, too. Look into this. And even though you may have someone doing your books, keep an eye on them and the books - once again, this relationship can get you into trouble, too, if the person is not on the up and up - stay vigilant.

I hope you are paying yourself, too. Always pay yourself first. And look into the many different plans where you can divert pre-tax money into a retirement fund. You may not think this is important right now, but every little bit helps - set this up in the beginning - even if it is only $10 a month - it adds up as your company grows - and the less you give Uncle Sam, the better - IMHO. Talk to your accountant. And these plans have rules - such as all employees (full time) have to be treated the same in the plans - you usually can`t have a better one for owners versus employees.

Glad to hear you are growing. How did you make out with your exclusive contracts with your distributors?

Take care - R@

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Richard Arnold · Key Concept Writers · Business Communication: The "Key" To Success· Law of Attraction Blog · Life Ain`t Brain Surgery Blog

Thanks Richard. I need to start paying myself at least bi-weekly - especially now that I`ve incorporated. I need to be more official. So far I`ve only payed myself here and there if I happened to have a few more sales than normal. A couple of weeks ago I paid myself $500. I didn`t get to enjoy it though because it went right into our personal checking and was put toward the mortgage.  I was happy to at least be contributing monetarily. I also contribute by caring for our kids. We save about $550 a week by not having them in day care, so I figure if I can bring in a few bucks on top of that - great!

My bookkeeper is very trustworthy. I have known her for about 7 years now. She has become a good friend of ours (she is my son`s godmother) and she is very good at what she does. She did a chart for me last night showing my sales versus my costs and we were both excited to see that the numbers looked great! The green bar is getting bigger and bigger each month. Until now I really didn`t know where my company stood as far as spending. It feels great to get everything in order.

Oh, I haven`t figured out what to do about the exclusivity yet. I have a bunch of orders I`m trying to get out and just haven`t had time to revisit that. It`s not a top priority right now. Maybe next week.