How do I hire my first employee?

How to Hire Your First Employee in Oregon

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

Step 1: Register Your Business and Obtain an EIN

Before hiring, confirm your business is properly registered with the Oregon Secretary of State. Obtain an Employer Identification Number (EIN) from the IRS, which is required for tax reporting and payroll purposes.

Step 2: Understand Oregon Employment Laws

Familiarize yourself with state-specific employment regulations, including minimum wage, overtime rules, and employee classification. Oregon has specific rules on paid sick leave and workplace safety that you must follow.

Step 3: Set Up Payroll and Tax Withholding

Register with the Oregon Department of Revenue and the Oregon Employment Department to handle state income tax withholding and unemployment insurance taxes. Establish a payroll system to manage wages, taxes, and deductions accurately.

Step 4: Obtain Required Insurance

Secure workers’ compensation insurance as required by Oregon law. This protects your employee and your business in case of workplace injuries. Consider additional insurance such as unemployment insurance and liability coverage.

Step 5: Prepare Employee Documentation

• Form I-9: Verify the employee’s eligibility to work in the U.S.
• W-4 Form: Collect federal tax withholding information.
• Oregon withholding forms: Ensure state tax withholding is set up.
• Employee handbook or policy documents: Outline workplace rules and benefits.

Step 6: Comply with Reporting and Recordkeeping

Maintain accurate records of hours worked, wages paid, and tax filings. Oregon requires employers to keep payroll and employment records for a minimum period. Stay up to date with quarterly and annual reporting requirements.

Step 7: Implement Onboarding and Training

Develop an onboarding process that covers job responsibilities, workplace safety, and company policies. Proper training helps ensure compliance and sets clear expectations.

As of 2026, these steps reflect Oregon’s operational requirements for hiring your first employee. Staying organized with licensing, payroll, insurance, and recordkeeping will support your business growth and compliance.