Checklistsstart-up employees

If you are starting a business, you will probably have employees. This checklist discusses several issues for emerging growth companies to consider when hiring employees. If you are hiring that first employee, consider these issues:

Does your company use an offer letter to offer employment?
          o Position/title
          o Pay
          o Part-time/full time
          o Reporting responsibility
          o Responsibilities
          o Conditions for employment (forms, references, etc.)
          o At-will employee versus term and severance

Complete the Federal tax forms:

          o Obtain a Federal Employer Identification Number, known as an EIN. You can do this at www.irs.gov.
          o Have new employees complete a W-4
Check state requirements.
Have new employees complete the Federal I-9 (an employee eligibility verification form).
Check with your insurance provider about unemployment insurance and workers compensation insurance. (Check your state, as state requirements may vary for disability and other insurance coverages that are required or required to be made available.)
Is the relationship “at will” employment?
Consider whether the Company will document the relationship. Will an employee contract be written?
Does the employee need to assign intellectual property rights to the Company?
Will the employee receive an equity grant (options, restricted stock, etc.)?
                  o Amount
                  o Vesting Schedule/Restriction Schedule
                  o Value
Hiring employees can be a challenging process, which starts with the interview. Know the questions, avoid liability, and hire the talent you need. Then, get the employees started with a good “first day” experience.

Our Disclaimer.  As a law firm, we have to be careful that we do not inadvertently create an attorney-client relationship. So, to be clear, the information provided in this checklist is not intended to and does not constitute legal advice, recommendations, or legal counseling. This information is for your general review and consideration. Your visit to our website or your use of this checklist does not create an attorney-client relationship. We do not guarantee or warrant the completeness, accurateness or usefulness of this checklist.  You use the information in this checklist at your own risk. You should not rely upon the information without seeking the advice of a competent attorney licensed in your jurisdiction.
Using Our Documents.  The documents, like this checklist, that we make available on our website are provided on a non-exclusive license basis. In other words, they are intended for your personal use – not for commercial purposes. You do not have the right to re-license, subsidence, distribute, assign or transfer such limited license. We make no representations about the documents we provide regarding their suitability, legal effect, completeness, accuracy, appropriateness or reflectiveness of current law or business practices. The documents are provided “AS IS” and we expressly disclaim any other warranties actually made or implied. The documents may not work for your purposes or for your particular circumstances. You should consult your own attorney, as the documents we provide are only samples.
Contact Us.  If you would like to discuss the information in this checklist, please contact us at (540)443-9272 or jeff@mitchell-firm.com.

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