What should businesses do before hiring their first employee?

Steps for Nebraska Businesses Before Hiring Their First Employee

Before hiring your first employee in Nebraska, it is important to complete several operational tasks to ensure compliance and smooth onboarding.

Register Your Business and Obtain Necessary IDs

• Register with Nebraska Department of Revenue: Set up an employer account to handle state payroll taxes.
• Obtain a Federal Employer Identification Number (EIN): Required for tax reporting and payroll purposes from the IRS.

Understand Nebraska Employment Laws and Requirements

• Review Nebraska labor laws: Familiarize yourself with wage and hour rules, employee classification, and workplace safety standards.
• Set up workers’ compensation insurance: Nebraska requires employers to carry workers’ compensation for employee injuries.
• Prepare for unemployment insurance: Register with the Nebraska Department of Labor for unemployment tax contributions.

Plan Payroll and Recordkeeping Systems

• Choose a payroll system or service: Automate wage payments, tax withholdings, and reporting to federal and state agencies.
• Maintain accurate employee records: Keep employment applications, tax forms (W-4, I-9), and timekeeping data organized.

Prepare Employee Onboarding Documents

• Complete Form I-9: Verify employee eligibility to work in the U.S.
• Collect Form W-4: Determine federal income tax withholding.
• Provide Nebraska New Hire Reporting: Submit new hire information to the Nebraska New Hire Directory within 20 days of hiring.

Implement Workplace Policies and Compliance Measures

• Develop employee handbook or policies: Outline attendance, conduct, and safety procedures.
• Ensure compliance with safety and health regulations: Follow OSHA guidelines applicable to your industry.

As of 2026, staying updated on Nebraska-specific employment regulations and tax requirements will help maintain compliance and streamline operations when hiring your first employee.