Revenue: Finally, you’ll want to update your W-9 with your new business EIN and incorporation status. This tells your customers and partners who to pay and whether to send you a 1099. It also associates your revenue with the corporation for tax purposes. The IRS will applaud your lovely new corporate veil.
Fill out a new W-9 with the company name, your corporate status tax designation, and EIN. Sign it and save as a PDF.
If you have active contracts, you will need to submit the new W-9 to your customers and partners as soon as possible. If they’re paying you electronically, make sure they have your new bank account routing information. Thank them for their support in leveling up your business!
Hiring employees comes with the obligations of payroll, legal compliance, salary negotiations, and taxes, plus management and overhead.
Knowing what type of employees you’ll need will help you choose the right operations systems and partners.
Welcome to the team!
Hooray, you’re finally getting some full-time help.
Let’s start with the basics of how to consider different kinds of jobs and salaries. How do you decide if a job gets benefits and overtime?
An employee is considered full-time once they work an average of more than 30 hours per week under the Affordable Care Act. However, you can decide where the cutoff is if you’d like it to be higher or lower than 30 hours for everyone in your company.
In any case, you will give the job a title and a description of duties. That starts to determine how your employee will get paid. Based on duties and salary, jobs are classified in two ways: nonexempt and exempt.
– Jill James