What should businesses do before hiring their first employee?

Preparing to Hire Your First Employee in Utah

Before hiring your first employee in Utah, it’s essential to complete several operational steps to ensure compliance and smooth workforce integration.

Register Your Business and Obtain Required Identifiers

• Business Registration: Confirm your business is properly registered with the Utah Division of Corporations and Commercial Code.
• Employer Identification Number (EIN): Obtain an EIN from the IRS for tax reporting and payroll purposes.
• State Tax Account: Register with the Utah State Tax Commission for withholding and unemployment insurance taxes.

Understand Utah Employment Laws and Compliance

• Employee Classification: Determine correct classification as employee versus independent contractor to avoid misclassification penalties.
• Wage and Hour Requirements: Comply with Utah minimum wage laws and federal overtime regulations.
• Workplace Posters: Display required Utah and federal labor law posters at your business location.

Set Up Payroll and Recordkeeping Systems

• Payroll Setup: Choose a payroll system or service that handles Utah state withholding, Social Security, Medicare, and unemployment insurance taxes.
• Recordkeeping: Maintain accurate employee records including hours worked, wages paid, and tax filings as required by Utah and federal law.

Prepare for Hiring and Onboarding

• Job Descriptions: Create clear job descriptions outlining duties and expectations.
• Employment Eligibility Verification: Complete Form I-9 for new hires and use E-Verify if applicable.
• Workers’ Compensation Insurance: Obtain workers’ compensation coverage as required for Utah employers.

As of 2026, staying current with Utah’s employment tax rates and workplace regulations is vital for ongoing compliance. Automating payroll and recordkeeping can improve accuracy and reduce administrative burden.