Bob Gauvreau walks through what happens when you hire your first employee: get an employer number, set up tax withholding, choose salary or hourly pay, pick how often you pay them, and figure out when you send taxes to the government.
All right, let's talk about your business and hiring employees and setting up a payroll system, because it's very different than just operating as a sole proprietor. Once we start bringing in employees, a few things have to be put in place. We've got getting access to our number, making sure we're registered. That gives us the opportunity to withhold taxes from our employees, which is a requirement. We then have to understand the frequency of pay, whether or not they're on salary or hourly. What the frequency is. Is it weekly, biweekly, bi, monthly, monthly, quarterly, and then we have to understand what the remitting requirements are related to those payments. So when we're withholding, when do we have to pay that? So then we need to understand how we're actually going to calculate these things. So there's a lot going on when we continue to bring on new employees. But it's very valuable if we're looking to scale our business and continue to build our team and build something that's bigger than us.
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