What are the steps of hiring your first employee?

Steps to Hiring your First Employee in Utah

Hiring your first employee as a new business owner is both an exciting and frightening experience.  Not only do you have a person relying on you to pay them so they can provide for their family while balancing the cash flow needs of your business, but there is also a lot of paperwork and laws to comply with.

Here are 8 steps a business will need to make when hiring their first employee in Utah

Step 1 – Register as an Employer

Employers will need to first get an Employer Identification Number (EIN) – Form SS-4 from the Internal Revenue Service (IRS) in addition to the Employer Registration with the Utah State Tax Commission and Utah Labor Commission.

Step 2 – Employee Eligibility Verification

Each new employee will need to fill out the I-9, Employment Eligibility Verification Form from U.S. Citizenship and Immigration Services. The I-9 Form is used to confirm citizenship and eligibility to work in the U.S. The employee must complete Section 1 by their first day of work, and the employer will complete Section 2 by the end of the third business day after the employee starts. Employers don’t submit the I-9 form but are required to keep the form on file for three years after the date of hire or one year after the employee’s termination, whichever is later.

Step 3 – Employee Withholding Allowance Certificate

Each employee will provide their employer with a signed Withholding Allowance Certificate (Form W-4) on or before the date of employment. The W-4 form determines how much federal income tax will be withheld from the employee’s paycheck.  

The employer does not typically submit Form W-4 to the IRS but will keep a copy on file. See IRS’s Publication 15 – Employer Tax Guide for more information on federal withholding.

Step 4 – New Hire Reporting

Employers are required to report newly hired employees and re-hired employees with the Utah Department of Workforce Services within 20 days of their hire or rehire date. This information is recorded in the National Directory of New Hires (NDNH) and is matched against state and federal child support databases to locate parents who owe child support.


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