Contracts & employment attorneys

Working with an attorney for your hiring and employment process is wise, and can help protect your firm. The laws surrounding employment are constantly changing, and an attorney can help you navigate this.

For example, an attorney can draft the right employment contract for your needs, rather than using a boilerplate document. This can save a lot of time and confusion when bringing on new hires.

Non-disclosure agreements are very useful tools that ensure confidentiality, as well as protect against the solicitation of your employees by other firms. Check out our resource on Attorneys & Legal Services for Independent Consultants.

Payroll

There are a number of documents that need to be filled out by the employee on their first day. These might include:

• W9 form in the United States (or similar tax ID forms in other countries)
• I9 form if you need to establish the individual’s ability to work in the U.S.
• Payroll direct deposit forms
• Non-disclosure agreement

When you have employees, it’s advisable to use an HR/payroll provider. These services make sure that the proper withholding for payroll taxes and other items are properly administered. Some bookkeeping firms or accountants offer this, as well as popular payroll processing companies such as Gusto. 

Benefits

When you bring on employees you’ll need to think about what benefits you are able to offer them. These can include:

• Paid time off
• Health insurance (or HSA, etc.)
• Life and/or disability insurance
• Parental leave
• Sick leave

Be clear about your policies surrounding sick leave and paid vacation, whether it accrues, and the details of when it can be used. 

Worker’s Compensation

This insurance is required in the U.S. and can be obtained through an insurance company or broker. Other countries have similar requirements. Many consulting firms, especially larger or growing firms with employees, utilize the services of an insurance broker to assist with employment insurance needs.

Check out our Insurance Resource sections on:

• Using an Insurance Broker
• Directory of Insurance Brokers

Unemployment insurance

This is required in most states in the U.S. (and many other countries as well) to provide payments to people who have lost their jobs or been terminated through no fault of their own.

You should research the unemployment requirements for your country and state, province, or territory. Your payroll provider or accountant can help with this. 

Employment Practices Liability Insurance (EPLI)

This policy is separate from your general business or professional liability insurance, and protects you from defense costs and damages related to various employment-related claims including allegations of wrongful termination, discrimination, workplace harassment, and retaliation.

We recommend you consider obtaining a EPLI policy — refer to our Business Insurance Resource for more information.

Employee handbook

Alexei Leonard. the attorney from Golenblock, suggests considering the creation of an employee handbook, especially if you bring on several hires.

This document can include all of the policies that will be helpful to you and your employee, such as vacation policy. The handbook should state if these days accrue and what happens to paid vacation once an employee leaves the company.

Your payroll firm may be able to provide you with a sample employee handbook you can edit. Gusto, for example, offers a guide and template for creating an employee handbook.