Your first U.S. hire — payroll tax, workers' comp and benefits

This article is general information, not legal or tax advice. It requires review by U.S. accounting and legal professionals before publication.

Hiring your first U.S. employee starts more than a paycheck. Most of the duties below need to be in place before the hire.

Before the hire

• State registrations: a withholding account and an unemployment insurance (SUI) account in the state where the employee works
• Workers' compensation: required in most states
• Hiring paperwork: Form W-4 for withholding and Form I-9 for work eligibility
• New hire reporting: filed with the state within its deadline

Every payroll

• Federal income tax withholding and FICA (Social Security, Medicare)
• State and local income tax withholding
• Federal and state unemployment taxes (FUTA / SUTA)
• Quarterly payroll filings and year-end W-2s

Benefits

Whether health insurance or retirement plans are mandatory depends on company size and state, but they directly affect your ability to hire. Budget for them early.

In short

An employee working remotely from another state can create registration duties there too. Hiring plans are settled under Hiring & Payroll in the Blueprint.