If you’re thinking about bringing on a new RDN or CNS, here are considerations for making a new hire – think about your growth goals, budget, whether to hire someone full or part-time, and how to find a good match for your private practice.
Once you’ve decided to bring someone on board, there are tax and government implications to address. Spend some time reviewing tax and legal requirements so that you are compliant with state, local and federal regulations. While Healthy Bytes is not the expert in human resources, we are experts getting your new hire set up to accept insurance (more on this in a future post). Should you need HR support, reach out to your local Small Business Administration (SBA) or contact the Society for Human Resource Management (SHRM) for advice from certified human resource professionals.
From the SBA and SHRM websites, we gathered a few suggestions for onboarding your new employee:
Verify Employee Eligibility
The U.S. Citizenship and Immigration Services requires employers verify a new hire’s eligibility to work in this country by completing an IRS form I-9. Your new hire will need to present appropriate documentation to you as outlined on the last page of the I-9 form.
Meet Federal and State Tax Reporting Rules
You'll need to consider a few aspects of the nature of your relationship with your new hire in order to accurately classify him or her as an employee or an independent contractor. This is an important distinction, and the IRS clarifies the rules and the points for a business owner to consider in order to determine the status of your workers.
If, based on those IRS guidelines, the worker you hire is brought on as a contractor, you'll need to report income paid to that individual to the federal government (see Form 1099). You may have similar state reporting requirements.
If you hire a full-time or part-time employee, the employee must fill out IRS Form W-4 to indicate the number of allowances he or she is claiming on his/her tax return. You are responsible for withholding taxes from your employee’s paycheck and for reporting wages paid and taxes withheld using form W-2. Consult your attorney or accountant if you need support!
Report New Hires to Your State
Employers must report new hire information to their state within 20 days after the date of hire. See the SBA’s website for a list of New Hire Reporting Centers in your state.
Have you hired a new RDN or CNS? What items would you add to this list that would be resourceful for other RDNs or CNSs?
Disclaimer: We're not lawyers here at Healthy Bytes, so please keep in mind this isn't legal advice! We do hope it serves as a helpful resource for you, however. Do consult your attorney and accountant for sound legal and tax guidance.