Hiring Your First Employee: The Complete Checklist

Before you post the job

Decide whether the role is an employee or contractor. The difference affects taxes and paperwork, and misclassifying workers can be costly. The IRS and your state labor department publish guidance on the distinction.

Employer setup checklist

• Get an EIN
• Register with your state for withholding and unemployment insurance
• Check workers' compensation insurance requirements in your state
• Decide on a pay schedule
• Choose how you will run payroll

Offer and paperwork

Send a written offer with pay, start date, and role. On or before day one, collect Form I-9 and Form W-4, plus any state forms. Many states also require new-hire reporting within a set number of days.

Onboarding that sticks

A simple first-week plan, clear expectations, and having equipment and accounts ready make a strong first impression. Digital onboarding tools let new hires complete paperwork before they start.

Where software helps

Platforms like Gusto combine onboarding, payroll, and employee records, which can reduce how many separate tools you manage. Review features and eligibility directly with Gusto.