The Must-Haves and Nice-to-Haves Before You Start Hiring in the U.S., According to the Experts at ADP

The Must Haves

Workers Compensation:

What it is - A type of insurance that provides medical and wage benefits to employees who become injured or ill on the job.  Examples include manual labor employees who are more prone to injuries, overexertion, slips/falls, and workplace violence.  

Why you need it - Workers compensation is mandated by every U.S. state. Texas and Florida are exempt for businesses under four employees. For employees traveling outside of the U.S., you may need FVWC (foreign voluntary workers compensation) coverage.

How to set it up - Work through an outside broker or use the plans your state provides.

Employer Taxes:

What it is: Taxes a business owner must pay in addition to paying their employees.

Why you need it - By paying employer taxes,, a business owner is keeping their business compliant with the IRS. They’re deducted from every payroll processed. Consequences for not complying with the IRS can result in extreme fines.

How to set them up - Run your payroll through a third-party provider or CPA (certified public accountant).

State Unemployment Insurance Management:

What it is : It pays stipends to past employees who lost their job through no fault of their own and are searching for employment. Employers pay quarterly through payroll taxes.

Why you need it - It is required in every U.S. state for any business with employees.

How to set it up - Applications can be filled out either online or faxed into the state.

The Nice to Haves

Retirement Plan Solutions:

What they are - An employee benefit that allows employees to contribute a portion of their pre-tax paycheck to tax-deferred investments. This not only reduces the amount of income the employee will pay on their taxes that year but also creates a type of savings for their future.

Employee Handbook:

What it is - A customizable employee manual that provides a basic outline on company policies, culture, and standards for current and future employees.  

Why it’s useful – Having an employee handbook protects business owners in case of potential termination lawsuits and keeps a blueprint in place for business owners to hold their employees accountable.

Sexual Harassment Trainings:

What they are - These trainings are a current growing trend in the U.S. small business marketplace. They certify/educate employees along with keeping the business compliant.

Why they’re useful - It’s now becoming a requirement for small businesses to have all paid employees certified. Doing so keeps employees updated with the latest industry trends. This will make employees more aware and potentially prevent future lawsuits from taking place.

Learn more about how ADP can help you set create your Employee Handbook, set up in-person and virtual sexual harassment trainings and more through Labs exclusive ADP discount for members.

Learn more about people operations.

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