Today, let’s talk about common mistakes small businesses make when hiring employees or contractors. First, for contractors, always get a W-9 before paying them to avoid issues at tax time. Without it, you might struggle to issue a 1099, causing compliance problems.
For employees, make sure to report new hires to your state to ensure proper payroll taxes. Using payroll software like QuickBooks or Gusto can streamline this process. Lastly, don’t forget workers’ comp insurance if required by your state. Penalties for non-compliance can be steep, so know your state’s regulations. Avoid these pitfalls to keep your business compliant and avoid costly mistakes.
