Milestone 02
Making your first hire
Your first employee turns you into an employer, with payroll taxes, insurance and paperwork that can’t be skipped. The good news: one payroll service handles most of it.
Your growth path
Each step has a guide
What you need now
- A payroll service. It withholds and files federal and state taxes for you, which is where most first-time employers get into trouble.
- State tax accounts. Register for state withholding (if your state has an income tax) and state unemployment insurance.
- Workers’ comp insurance. Almost every state requires it once you have employees.
- New-hire paperwork. Form I-9 for work eligibility, Form W-4 for withholding, and your state’s new-hire report.
- Required workplace posters. Federal and state notices, posted where employees can see them, or shared digitally for remote staff.
What can wait
- A PEO. Usually not worth the fees for one or two employees, unless you want to offer health benefits right away.
- A full employee handbook. A few clear written policies are enough for now.
- HR software. Most payroll services include basic onboarding.
Coming next: Around 10 employees, benefits start to matter for hiring, and HR admin starts eating real time.
Guides and tools for this stage
Do I need a PEO? Take the 2-minute quiz
Six questions. We'll tell you whether a PEO makes sense yet, or what to look at instead.
Get matched with a provider
Tell us about your company. A person reviews it and suggests one or two providers that fit.
How we get paid. GetAStart is free for you. When a business we introduce signs up with a provider, that provider may pay us a referral fee. It never changes the price you pay.
Not sure where to start?
Answer six quick questions and we’ll tell you whether a PEO makes sense for your company yet, or what to look at instead.