Hiring your first employee, the checklist
Before your first employee starts, get an EIN, register for state payroll and unemployment taxes, set up payroll software, collect a Form W-4 and Form I-9, report the new hire to your state and arrange workers' compensation where it's required. Then put the quarterly and year-end filing dates in your calendar.
Updated November 2026 · By Pankil Kumar, Managing Partner
Before the first day
On the first day
In the first weeks
Every quarter and year
What does an employee cost beyond wages?
About 7.65% for your share of Social Security and Medicare, federal and state unemployment tax, workers' comp, and any benefits. Our payroll cost calculator adds it up, and 1099 vs W-2 explains when someone must be an employee.
Can you run payroll for me?
Yes. Our payroll service sets up Gusto or ADP, registers your state accounts, runs every payroll and files the quarterly and year-end returns.
Sources
General information, not tax advice for your situation.
Do I need an EIN to hire an employee?
Yes. You need an EIN to report payroll taxes. It's free from the IRS.
When do I report a new hire?
Most states want new hires reported within 20 days of the start date. Some states are faster.
Do I need workers' comp for one employee?
In most states, yes. Texas is unusual in letting most private employers opt out, with conditions.
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