When you hire your first employee, you must file documents and pay taxes to various government agencies. The following is a list of things you must do when you hire your first employee.

• Obtain an employer identification number to use on tax returns
• Register with your state’s labor department
• Get workers compensation insurance
• Set up a payroll system to withhold taxes
• Have each employee fill out Form W-4
• Fill out Form I-9 for each new employee
• Report every new employee to your state’s new hire reporting agency
• Post required notices from government agencies
• File Form 940 every year
• Create an employee handbook
• Adopt workplace safety measures
• Set up personnel files
• Set up employee benefits, such as health insurance or a 401(k) plan