Earlier this week, we began a discussion on the important considerations for a small business owner who is ready to hire his or her first employee. As we previously stated, this is no small feat, and new business owners who have progressed to this step should be very proud. That also means that there is more at stake, and small business owners need to be sure that they make the transition to employer with great care and planning.

First, small business owners should ensure that they have fulfilled the necessary government requirements for employment. For example, the owner will need to file tax forms and pay employment taxes, and employees will need to complete I-9 forms and submit the correct employment documentation. In addition, there may be other applicable federal or California state laws.

The good news is that small business owners do not need to go about this alone. A business attorney can be of great help in ensuring proper government compliance. In addition, the Small Business Administration runs several Small Business Development Centers across the U.S., which are available to offer advice and assistance to small business owners.

Next, owners should figure out the business details of employment, such as vacation time, sick time, health insurance benefits, dress code, and the like. It is important to make decisions on these offerings before hiring employees. It is essential to include all of these factors into an employee handbook (sample policies and handbooks are available online).

Finally, small business owners need to determine their expectations, both for themselves and for their future employees. After a year of devoting your life to your new business, it may be disheartening to realize that, even for the best employees, coming to work for your company will only be that - coming to work. Employees are unlikely to be as devoted as the owner, and for the most part, that is okay. If owners ensure that they hire talented, passionate people, their business will continue to grow.

Source: Minneapolis Star Tribune, "First-time employers may find they have a lot to learn - before they make their first hire", Joyce M. Rosenberg, 22 April 2011