How do I hire my first employee?

How to Hire Your First Employee in Missouri

Hiring your first employee in Missouri involves several important operational steps to ensure compliance and smooth onboarding. Follow this practical guide to get started efficiently.

Step 1: Register Your Business for Employment

• Obtain an Employer Identification Number (EIN) from the IRS if you haven’t already. This is required for payroll tax reporting.
• Register with the Missouri Department of Revenue for withholding tax purposes.
• Register with the Missouri Division of Employment Security to manage unemployment insurance taxes.

Step 2: Understand Employee Classification

Correctly classify your worker as an employee or independent contractor. This affects payroll taxes, benefits, and compliance. Missouri follows federal guidelines for classification.

Step 3: Set Up Payroll and Tax Withholding

• Implement a payroll system to handle wages, tax withholdings, and benefits deductions.
• Withhold Missouri state income tax and federal taxes from your employee’s paycheck.
• Submit payroll taxes regularly to the IRS and Missouri tax agencies.

Step 4: Obtain Required Insurance

• Purchase Missouri workers’ compensation insurance, mandatory for most employers.
• Consider unemployment insurance coverage through the state’s employment security division.

Step 5: Complete New Hire Reporting and Recordkeeping

• Report your new hire to the Missouri New Hire Reporting Program within 20 days of hiring.
• Maintain employee records such as Form W-4, I-9, and payroll documentation for compliance and audits.

Step 6: Comply with Employment Laws

• Follow Missouri labor laws on minimum wage, overtime, and workplace safety.
• Provide required notices to your employee regarding workplace rights and policies.

As of 2026, staying current with Missouri’s employment tax rates and reporting deadlines is essential. Using payroll automation tools can help reduce errors and save time.