Hiring Your First Employee: When (and How) to Do It Right

Taking the leap from solopreneur to employer is exciting—but it can also feel overwhelming. The good news is, with the right timing and systems in place, you can hire confidently and set your business up for sustainable growth.

When to Know You’re Ready to Hire

You’re ready to bring on help when:

• You’re consistently turning down opportunities because there’s not enough time in your day.

• You’re working 60+ hours per week for months on end and still can’t keep up.

• Your finances show you can afford to pay someone for at least six months, even if business slows down.

What to Delegate First

Focus on freeing yourself from tasks someone else can handle. Great starting points include:

• Administrative work

• Customer service

• Routine operations

Avoid hiring for work only you can do. Instead, free up your time for high-value activities that directly grow the business. Not ready for a full employee yet? Consider outsourcing to freelancers or contractors for flexibility without the full payroll commitment.

Payroll Made Simple

Once you hire, payroll becomes part of your reality—but it doesn’t have to be stressful. Payroll software can make it seamless:

• Gusto: Excellent for small businesses. Handles tax calculations, payroll tax filing, benefits management, and offers strong customer support.

• QuickBooks Payroll: A great option if you already use QuickBooks. Payroll integrates with your accounting, making tracking effortless.

Remember: you’ll also need workers’ comp insurance, unemployment insurance, and to comply with state-specific labor requirements.

Set Clear Payroll Systems

• Pick a payroll schedule (bi-weekly or twice monthly are most common).

• Stay consistent so employees know when they’ll be paid.

• Keep detailed records of hours, overtime, sick days, and vacation time—these are essential for both tax compliance and protecting your business.

Building a Foundation for Growth

Hiring your first employee is a big milestone—and the start of scaling your business. Take your time finding the right fit, put strong systems in place, and lean on professionals for guidance when needed.

Got payroll or bookkeeping questions? Schedule a call—we’ll help you set things up right.