# Bringing designers on as employees - how to?



## BSApparel (Nov 6, 2007)

I posted this as part of another thread, but I think it deserves a dedicated thread for this question.

What is the legal process for bringing on employees (laws, forms to fill out, agreements, etc.)? I'm hiring three designers that will also participate in marketing, production and shipping and will be paid as a percentage of the sales. How do I go about signing them up as employees, and what benefits am I supposed to provide to them? I know one option is to pay them as contractors, but they're going to be doing more than just designing. I'm in NY state if that helps.

Thanks,
Aaron


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## TripleT (Apr 29, 2007)

Google: 1099 and then W-2 (take a look at W-4 and the related forms as well.) You can then get everything you need off the IRS website. I don't know too much about NY labor laws, so maybe someone else can comment about agreements and benefits.


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## BSApparel (Nov 6, 2007)

Thanks, I'll check it out!


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## peteVA (Nov 11, 2007)

Aaron, I think we are chatting on a couple of forums.

Go to the IRS site and download Publication 16 (Circular E) Employer's Tax Guide.

You will need some W-4 forms for them to fill out, and an I-9 for the ICE people. Just get the form, or sign up for your Employer Indeification Number, it's a SSn for businesses. That will automatically get you on the mailing list. You'll get a welcome package with wll you need.

You can read the page 4 of the Pub 16 online to get an idea, or there are plenty of FAQ's as well.

There is no need to ask about this on forums, where you might get wrong answers (except from me, of course ). Go to the IRS site and get the straight answers.

You should also check with NY, if they have a withholding deal, you'll need to sign up for that, and you'll also need to sign up with the (un)Employment department for Unemployment taxes. You will also need to get Workers Compensation to cover them in case they burn their fingers.

Best to keep them as contract employees, but you can't do that if you set their hours. You can find out about that on the IRS site, also. Just search contract employees.


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## BSApparel (Nov 6, 2007)

Yes, we are talking on two forums, pretty weird coincidence.

Thanks alot for the help, I'll check out everything you mentioned tonight.

Aaron


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## gumbydave (Nov 3, 2007)

Maybe you should have them sign a contract that states that the designs they produce for your company become the property of your company, blah, blah .blah


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## peteVA (Nov 11, 2007)

Good idea. 

At the same time, you could have them each produce a "line" with their signature.

But do get control of their work if you are paying them a salary. 
.


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## MP (Nov 14, 2007)

BS, you also may want to consider/re-consider whether you want to bring folks on as "employees" or just as independent contractors. I obviously don't know the size and scope of your operation, but there are pros and cons to both. Lot of headaches involved with having legally-defined employees.


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