Congrats! Hiring your first employees is an awesome milestone. When you do it, it’s important that you carefully navigate tax law and other regulations. First, you need to be clear on whether you’re hiring employees (who get a W-2) or contractors (who might get a 1099). For full-time employees, you’ll have to pay FICA taxes (Social Security and Medicare) and depending on your state and industry, you might have to get workers comp insurance. After you have found the perfect candidate, you’ll issue a formal Offer of Employment with their salary, benefits, start date, and other important details. All employees will need to fill out a Form 1-9 to verify their eligibility to work, and then a Form W-4 for income tax withholding. You’ll need to report all new full-time hires to your state’s reporting agency, typically within 20 days. After that, be sure that bring your new hire up to speed on all internal processes and software.