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

Next step: Benefits and HR tools as you grow toward 10

See the 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.

Read the full details

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.