Madison, Wis. (PRWEB) June 13, 2012
According to a recent PNC Bank study, more than 60 percent of small business owners are currently projecting that their sales will increase over the next six months. Accordingly, a third of small business owners expect that because of increasing sales, they will hire at least one full-time employee over the next six months. BizFilings, a leader in online incorporation and a supporter of small businesses, wants small business owners to be fully prepared to embark on the hiring process and is offering tips to prepare a small business for hiring.
According to BizFilings, hiring an employee can impact the bottom line of a business, its important to make sure that a business is fully ready for hiring new employees. To assist entrepreneurs during this time of growth, BizFilings presents three important things small businesses should be aware of before hiring employees that will position them for a successful future.
Apply and obtain all necessary licenses, permits and insurance before hiring. Different small businesses require different paperwork, and theres no better time to get that squared away before bringing another person onboard. Additionally, some businesses will require employees to have licenses (often that are separate from the business itself). Insurance is also crucial for small businesses workers compensation insurance is mandatory for any small business, while disability insurance (which covers eligible employees for non-work-related sickness or injury) is required for small business in only certain states.
Be prepared for payroll taxes. When an employee is hired at a small business, various types of new tax obligations, as well as payroll tax deductions, arise. For example, federal and state taxes generally are withheld from employees wages, along with half of FICA taxes. Small business owners typically must pay the matching half of FICA taxes as well as federal and state unemployment taxes. Payroll taxes can become even more complex if there are different forms of employee compensation such as tips, expense reimbursements or retirement contributions. For more help with payroll taxes, refer to IRS Publication 15, the Employers Tax Guide, to understand tax obligations as an employer.
Consider incorporation to protect your business. According to BizFilings, there are many tax breaks that can come from incorporating a small business. Incorporation provides liability protection giving a layer of protection between employers personal assets and business debts. Hiring employees is an important next step for small businesses but incorporation is a crucial step to help mitigate risk for the next phase of a business.
Entrepreneurs are making this country better by providing an increasing number of jobs, and its no surprise that the second half of 2012 is projected to continue that trend, says Karen Kobelski, member of the executive leadership team at BizFilings. Its important for small business owners to make sure that theyre covered in case of the worst case scenario because by adding an employee youre not only growing your company but growing your level of risk as well.
For more information about small business hiring and the benefits of incorporation, visit the BizFilings Online Learning Center.
BizFilings is a full-service, online incorporation service provider, offering small-business owners a fast, easy and economical way to form a corporation, limited liability company (LLC) or other business structure online or by phone. BizFilings also offers a full range of business filing and compliance products, including nationwide Registered Agent Service, helping keep businesses in compliance with state regulations. BizFilings can be found online at http://www.BizFilings.com. BizFilings is part of Wolters Kluwer Corporate Legal Services, the leader in legal process and business performance management. It delivers the people, products and processes to drive transparency, ensure accountability and provide organized, accurate and actionable information for legal, financial and insurance professionals. CLSs business brands CT Corporation, NRAI, BizFilings, Corsearch, CT Lien Solutions and TyMetrix empower organizations to make better business decisions and be more efficient in todays highly transparent business environment.
About Wolters Kluwer
Wolters Kluwer is a market-leading global information services company. Professionals in the areas of legal, business, tax, accounting, finance, audit, risk, compliance, and healthcare rely on Wolters Kluwers leading information-enabled tools and software solutions to manage their business efficiently, deliver results to their clients, and succeed in an ever more dynamic world.
Wolters Kluwer had 2011 annual revenues of 3.4 billion, employs approximately 19,000 people worldwide, and maintains operations across Europe, North America, Asia Pacific, and Latin America. Wolters Kluwer is headquartered in Alphen aan den Rijn, the Netherlands. Its shares are quoted on Euronext Amsterdam and are included in the AEX and Euronext 100 indices.
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