What should businesses do before hiring their first employee?

Preparing to Hire Your First Employee in Oklahoma

Before hiring your first employee in Oklahoma, it is essential to complete several operational steps to ensure compliance and smooth onboarding.

Register Your Business and Obtain Required Identification

• Register with the Oklahoma Secretary of State: Ensure your business entity is properly registered to operate in Oklahoma.
• Apply for an Employer Identification Number (EIN): Obtain an EIN from the IRS to use for payroll and tax reporting.

Understand Oklahoma Employment Laws and Compliance

• Review state labor laws: Familiarize yourself with Oklahoma’s wage, hour, and workplace safety regulations.
• Classify employees correctly: Determine whether workers are employees or independent contractors to avoid misclassification issues.
• Prepare for workers’ compensation insurance: Oklahoma requires most employers to carry workers’ comp insurance once you hire employees.

Set Up Payroll and Tax Reporting Systems

• Register for Oklahoma employer taxes: Register with the Oklahoma Tax Commission for state withholding tax and unemployment insurance.
• Implement payroll processing: Choose a payroll system or service that handles federal and state tax withholdings, filings, and payments.
• Collect employee tax forms: Have new hires complete Form W-4 and Oklahoma state withholding forms.

Establish Hiring and Recordkeeping Procedures

• Create job descriptions and employment agreements: Clearly define roles, responsibilities, and terms of employment.
• Verify employee eligibility: Use the federal E-Verify system or complete Form I-9 to confirm work authorization.
• Maintain personnel records: Keep accurate employee records as required by federal and Oklahoma state regulations.

Plan for Employee Benefits and Workplace Policies

• Decide on benefits offerings: Consider health insurance, retirement plans, and other benefits suitable for your business size.
• Develop workplace policies: Establish policies on attendance, workplace safety, harassment prevention, and leave.

Completing these steps before hiring your first employee will help your Oklahoma business operate efficiently and stay compliant with applicable regulations.