Turning down projects because you can’t handle the workload?
Hiring your first employee is exciting but can feel overwhelming.
Let’s break down when it’s the right time and how to handle payroll without losing your sanity.
When You’re Ready to Hire:
- You’re ready to hire when you’re consistently turning down good work because you don’t have time.
- If you’re working 60+ hour weeks for months and still can’t keep up with demand, it’s time to get help.
- Look at your finances too. Can you afford to pay someone for at least 6 months, even if business slows down?
What to Delegate:
- Start by identifying what tasks eat up most of your time that someone else could handle.
- Administrative work, customer service, or routine tasks are often good starting points.
- Don’t hire someone to do the work only you can do. Hire them to free you up for high-value activities.
- Also consider: could you outsource specific tasks to freelancers or contractors? This gives you flexibility without the commitment of payroll, benefits, and employment law compliance.
Setting Up Payroll
Once you’ve decided to hire, payroll becomes your new reality. Payroll software makes this manageable.
ADP is my preferred partner for small business payroll.
Through our partnership, I can get you really good rates that make professional payroll services affordable.
ADP handles all tax calculations, files your payroll taxes automatically, and helps with benefits if you want to offer them.
Their system is reliable and their support team knows what they’re doing.
What You’ll Need:
- You’ll need to set up workers’ compensation insurance, unemployment insurance, and potentially offer benefits.
- Each state has different requirements, so check with your local Department of Labor or consult with an accountant.
Set up a payroll schedule and stick to it.
Most small businesses pay bi-weekly or twice monthly. Whatever you choose, consistency is key.
Your employees need to know when they’re getting paid, and you need to plan your cash flow accordingly.
Keep Detailed Records:
- Document everything:
- Hours worked
- Overtime
- Sick days
- Vacation time
This protects both you and your employees, and you’ll need these records for tax purposes.
Your first employee is a big step, but it’s also the foundation for growth.
Take your time to find the right person, set up proper systems, and don’t be afraid to ask for help when you need it.
Got questions about managing your books? Or want to learn more about getting set up with ADP at preferred rates? Book a call and we’ll walk you through it.