Human Resources

OnPay and Gusto are both great choices and highly regarded software by users, as they offer excellent payroll and HR features with good customer service. However, there are some differences in function that may make one the better choice for your business. OnPay may have the more affordable plan, but Gusto provides multiple payroll plans that can cater to various needs, including a low-cost contractor-only option. And unlike OnPay, Gusto has a wider suite of HR solutions that include hiring, time tracking, and performance review tools. Here are our recommendations to help you determine whether OnPay or Gusto is right for you. : Best for price-conscious companies looking for solid payroll tools to pay hourly workers : Best for small business owners wanting an all-in-one HR payroll software and employers with only contractors OnPay vs Gusto Compared *Some benefits plans cost extra or have participation fees When To Use OnPay & When To Use Gusto Best for Value: Gusto *While OnPay can print and mail the tax forms to your workers, W-2/1099s are also available through its self-service portal where employees can print the online forms for free. When comparing Gusto vs OnPay on pricing, both have similar starter monthly fees ($40 plus $6 per employee monthly); however, Gusto wins because, overall, it provides better value for money given the wealth of HR features it offers. You get time tracking and performance reviews, including HR advisory services in its higher tiers—functionalities that OnPay lacks. Gusto also beats OnPay with its low-cost contractor plan (OnPay doesn’t have this). Plus, you can add on other services to help you pay international contractors and manage the software access of your new hires. When To Consider OnPay If you have a limited budget and don’t need Gusto’s advanced HR tools, then OnPay is a great choice. In addition to paying both employees and contractors, it can help you file payroll tax forms, onboard new hires, manage benefits, and offer health plans that are available in all 50 states (Gusto covers only 39 states)—all for a monthly fee of only $40 plus $6 per employee. Best for Payroll: Gusto When it comes to straight payroll features, OnPay and Gusto are very close. However, Gusto’s Core plan, the closest price-wise to OnPay, allows pay runs on autopilot. (OnPay doesn’t have this, which may make it more appropriate for hourly workers.) Gusto, which is our top-recommended payroll service for small businesses, also processes direct deposits more quickly, even offering a next-day option if you subscribe to its higher tiers. In addition, it doesn’t conduct risk assessments to determine standard direct deposit timelines as OnPay does. With Gusto, you are automatically granted access to two- and four-day direct deposits. Apart from its low-cost payroll plan for contractors, Gusto can pay international contract workers. It can help you complete compliance documents and process cross-border payments in 80 countries (OnPay doesn’t have global contractor payroll services). When To Consider OnPay What OnPay offers that Gusto doesn’t is the capability to process salary payments and payroll taxes for agricultural workers, including employees on H-2A visas. It even files Form 943s for you. For businesses in non-agriculture industries, OnPay also handles payroll for hourly workers, salaried employees, and contractors. While it doesn’t have Gusto’s next-day direct deposits, you get two- and four-day direct deposits as standard processing timelines—provided you don’t mind going through OnPay’s risk assessment to determine eligibility for either of the two options. Best for HR & Employee Benefits: Gusto If you want to track applicants, capture employee attendance, and monitor staff performance, then Gusto is your best bet. Its platform is more feature-rich than OnPay, providing you with an HR solution suite that can handle hiring to retiring processes (OnPay only offers basic HR tools). Its new hire onboarding solution also comes with basic and advanced features like customizable onboarding checklists and a software provisioning tool for creating and removing employees’ access to systems that your business uses. And, unlike OnPay, it lets you track applicants and post open jobs. Although Gusto only provides shareable job posting links and it doesn’t post jobs to popular job boards—listings appear only in Google Jobs. Managing employee benefits may be challenging for new business owners, but Gusto makes this task easier to handle with its online benefits administration solution and access to a wide variety of benefits plans. It even provides non-standard benefits like a college savings plan and an option for employees to access a part of their earned wages between paydays. While its health insurance doesn’t cover all 50 US states like OnPay, we recommend Gusto if your business isn’t located in one of the 11 states that it has yet to expand to (Montana, Wyoming, North Dakota, South Dakota, Nebraska, Louisiana, Alabama, Mississippi, West Virginia, Alaska, and Hawaii). When To Consider OnPay Gusto may have a wider range of HR solutions than OnPay, but many of the HR features it offers are included in its more expensive tiers. You need to get at least the Plus plan ($80 plus $12 per employee monthly), which is pricier than OnPay. Plus, Gusto’s feature-rich platform may be more than you need especially if you’re only looking for an efficient way to manage employee information, documents, PTO, and new hire reporting. Using OnPay vs Gusto also makes better sense if you want to provide health plans that are available across the US. And although its non-standard benefits offerings are limited, it does provide assistance if you need to get car, liability, and business insurance. Best for Reporting: Tie In our evaluation of OnPay vs Gusto on reporting features, we found that both offer similar tools. Apart from letting you customize and download reports, you can build new ones directly in their systems. While both may have similar reporting capabilities, creating custom reports is easier with OnPay because you simply drag and drop columns that you need. With Gusto, you have to click “select columns” and choose the fields that you want to appear in your report. Best for Ease of Use & Customer Support: Gusto Gusto and OnPay have platforms that are easy to learn and use. You can easily get their software up and running with setup wizards. While both have intuitive interfaces, Gusto’s dashboard isn’t as customizable as OnPay—which lets you select how sections (like tasks and alerts) will appear on screen. Although, it does allow you to choose either to disable or enable specific functions, such as expense reporting and two-step verifications for system administrators. Online how-to guides and helpful FAQs—including unlimited phone, email, and chat support—are also available, although Gusto offers HR advisory services, provided you get at its Premium plan (OnPay charges $20 per month for this). This allows you to contact HR professionals if you need expert advice in handling payroll, tax, compliance, and employee issues. In addition, Gusto’s most premium plans (Concierge and Select) include access to a direct phone line for contacting a dedicated support team, something OnPay lacks. And if you need to integrate with other software, then Gusto is the clear choice, as it has more options in a variety of categories (such as accounting, learning management, legal, collaboration, and point-of-sale systems). When To Consider OnPay For business owners who don’t require robust integrations, OnPay is a good choice. It can even help you connect its platform with apps that most businesses use like Deputy, When I Work, Humanity, Mineral, PosterElite, Xero, QuickBooks Time, and QuickBooks Accounting. OnPay also offers more options to customize its main dashboard. You can shuffle the sections to fit your preferences, enabling you to immediately see items that are more important to you. While it doesn’t assign a dedicated account manager to its clients like Gusto (only for those on the Premium plan), it provides general HR, payroll, and compliance support. This makes it optimal for businesses with in-house HR professionals who are knowledgeable in managing payroll and handling employee-related issues (such as absenteeism and attendance concerns) since they don’t need constant HR support. However, if you need to talk to an HR expert, OnPay offers advisory services via Mineral for $20 monthly. Best for Popularity Among Users: Gusto To compare Gusto vs OnPay on user popularity, we looked at each providers’ average overall ratings and the number of reviews on third-party review sites like G2 and Capterra. For user ratings, OnPay’s average score is slightly higher than Gusto’s (4.85 out of 5 versus 4.5 out of 5 as of this writing). However, Gusto’s average number of reviews online is higher—it has more than 2,000 compared to OnPay’s nearly 300 reviews. However, many users commented that both have user-friendly platforms with features that are easy to navigate. They also said they appreciate the efficient and affordably-priced payroll tools that the providers offer. Although, many seem to prefer Gusto’s feature-rich HR system. On the flipside, some reviewers wished that Gusto and OnPay offered more customization options. A few others said that OnPay’s integration options are limited, while others noted that Gusto’s support team is slow to respond at times. How We Evaluated OnPay vs Gusto We compared OnPay vs Gusto by using a five-star scale designed to assess payroll solutions and services for small businesses. Aside from pricing, we looked at both providers’ features—from pay processing and tax filings services to HR tools and employee benefits options. We also checked other key criteria like ease of use and customer support, including whether users have access to expert professionals who can provide HR and payroll advice. In our evaluation, Gusto outscored OnPay—earning an overall rating of 4.48 out of 5 versus OnPay’s 4.39. Click through the tabs below for the detailed breakdown of our evaluation. Bottom Line When comparing Gusto vs OnPay, list your must-have features and those you are willing to pay a little more for, and then weigh them against your budget. Also, consider how you will grow and which payroll software will grow best with you. OnPay is best for businesses looking for an affordably priced solution to pay hourly workers. Its payroll plan includes efficient payroll tax filing services and basic HR tools. On the other hand, Gusto is great for small businesses that want full-service payroll and advanced HR solutions. It even offers dedicated HR support and a wider selection of software integrations, but its plans are more expensive. You May Also Like … Best Gusto Competitors Gusto vs Justworks Gusto vs Zenefits Gusto vs QuickBooks Payroll How to Choose the Right Payroll Service How to Switch Payroll Providers

is a comprehensive PEO service with HR, payroll, benefits, training, and employee education packages, plus much more. It does not quote prices until it has a full HR team evaluate your business, but reviews and other sources indicate it may be pricier than other services. Nonetheless, it has high customer satisfaction and a lot to offer businesses needing to outsource their HR. What We Recommend Insperity For I’ve researched dozens of PEOs and payroll services, and Insperity impressed me with its customer service, focus on employee engagement and learning, and enterprise-level benefits. Its pricing is not posted on its site and the provider isn’t able to provide estimates on the phone as pricing is customized. The prices on third-party websites were on the high side, but the software got great reviews from employers and employees. Plus, it ranked in our top PEO services guide. In short, Insperity is best for: Midsize businesses focused on employee development: From employee rewards programs to self-paced courses, Insperity excels in engagement, productivity, and employee learning programs. Small businesses in high-margin industries: Based on user feedback, Insperity may be more expensive than other PEOs, but it offers a lot of benefits. Businesses with high profit margins and a small workforce, like tech companies, may find the solution cheaper than hiring an in-house HR professional and usually enjoy getting enterprise-level benefits packages regardless of their size. Businesses wanting qualified HR contacts and strong customer support: User reviews said employees found it easy to contact Insperity with questions. Managers with HR concerns have a direct line to their Insperity HR team, which may include a host of specialists (from benefits to payroll to recruiting). When Insperity Would Not Be a Good Fit Companies that want basic onboarding support and payroll processing: You’ll most likely spend more than necessary hiring a PEO for services you can get from simple software. If you want basic HR and payroll functions without benefits management, consider HR payroll software. Microbusinesses with only a few employees: Insperity only works with businesses that have five or more full-time employees. If you have fewer than that check out other options from our best online payroll services for small businesses. Insperity Alternatives At-a-Glance Insperity Pricing Paychex Review Insperity charges per employee and requires a one-year contract, although you may be able to cancel with 30 days’ notice if your business has fewer than 150 employees. It does not list its pricing online, but we found multiple reviews that describe its pricing as “expensive.” If you’re interested in using Insperity, you must contact its sales team to assess your needs and do a full custom pricing model. In addition to its standard set of HR features, you can add on other services such as pre-employment screening, expense management, and organizational planning. These cost extra. Insperity Features Insperity provides custom quotes only, so your first step is to call. The salesperson will take your information and then assign a team to assess your needs. You meet this team on Zoom to discuss your business and develop a specialized package with individual pricing. The sales representative I spoke to said that it can take a couple of weeks from initial contact to contract signature and then another month for implementation. Insperity Ease of Use Intuitive software Friendly, helpful staff Online guides and instructions hard to find How-to articles are illustrated Resource articles online Learning curve Insperity’s software is intuitive but has a lot of functions, so it can take longer to learn if you’re not familiar with PEO software or HR and payroll platforms. The online articles are not easily found; I resorted to Google. However, there is a phone number to call, and if you have the time, there are email contacts for specific departments. In addition, the online resources section is full of blogs and videos on important HR events such as the latest on COVID-19 regulations. What Users Think About Insperity The most common complaint about Insperity was cost—not simply the overall expense, but also the lack of transparency. One user said, “After four years, I’m still not exactly sure how [it calculates its] fees.” That said, Insperity got glowing praise as a service. Employees and employers both said that the representatives are friendly and helpful. The benefits also got kudos. ConsumerAffairs: 4.6 out of 5 based on 130+ reviews. G2: 3.9 out of 5 based on 20+ reviews. Bottom Line Based on user reviews, Insperity is not the cheapest PEO on the market—but for busy companies looking for a full-service PEO that can grow with them not only in size but in benefits offered, it’s a choice worth considering. Sign up for a free demo and quote today.

The most common way to pay employees, direct deposit, allows an employee’s pay to be deposited directly into their bank account, usually within days of processing. Setting up direct deposit is simple—you just need your employees’ bank account information, signed approval, and a service to help facilitate. We’ve outlined the steps you’ll need to take below. For payroll software that can handle your direct deposit payments for you, we recommend . Employees can fill out their account and routing number, sign a direct deposit authorization during onboarding, and be ready to receive direct deposits right away. Try it free for 30 days. 1. Choose a Direct Deposit Provider The two most common ways to set up direct deposit are through your bank and with your payroll software. Many payroll software applications have this function and are able to automatically process payrolls as direct deposit. In addition, some HR services or software with payroll capabilities can also provide direct deposit services. If you are paying for payroll services, it makes sense to let them handle the direct deposit work. No matter which option you choose, your bank is the one that transfers the funds. Thus, if you don’t work with your bank directly, you will need to share your bank account information with the software or service provider to have direct deposits setup. Direct Deposit Costs Banks usually charge a setup fee of up to $150. Some will charge monthly or transaction fees, which typically can run from $1.50 to $1.90 per individual transaction. If you work with a payroll service, like , it will handle direct deposits at no additional charge to you. It can verify your bank account automatically through its setup process and have you paying employees and payroll taxes in just a few days. 2. Set Up Direct Deposit Service Once you’ve decided on your direct deposit service, it should tell you the steps you need to take to set up your direct deposit. Remember that it can take a few days to even a week or so to have everything in place. It’s important to set realistic expectations with your team so your employees don’t expect direct deposit with their next paycheck if it’s not possible. Click the tabs below to learn how to set up direct deposit through your bank or with a payroll service provider: 3. Get Employee Authorization & Bank Information Although direct deposit is the most common way to pay your employees, your workers still must choose to be paid via direct deposit. Many states have their own regulations about how employees can be paid and whether or not you can mandate electronic payments for your team. Regardless, you need signed consent to access your employee’s bank account information. You’ll also need to collect a bit of information from your employees, in addition to consent, to have direct deposits set up properly. You likely will need the following information: Bank routing number Bank account number Bank account type (checking/savings) Bank name Social Security number Employee name and address on the account (for verification to avoid mix-ups in delivery) 4. Determine Pay Cycle While having your direct deposits set up, it’s important to determine a regular pay period that works best for your company and employees to make sure doing payroll runs smoothly. To help make that decision, consider the following: Determine required lead time: How much lead time does your bank or payroll service need to finish the deposit after you process payroll? Also, decide whether it needs a longer lead time for holidays or weekends. In general, you need to log payroll two to four days before the day your employees get their checks. Some businesses will move that back when payday falls on a weekend or holiday to get deposits out the business day before. Determine your own financial schedule: Funds must be available to transfer into your business account before paychecks can be distributed, so be sure your schedule works with anticipated cash flow. Determine payday frequency: The most common pay cycles are monthly, semimonthly (15th and 31st), or biweekly. Biweekly employees usually get 26 paychecks a year at a slightly smaller amount; semimonthly get 24 paychecks at a slightly higher amount. Set deadlines with employees for submitting hours or time cards: Give yourself enough time to review the data and submit the processed payroll for direct deposit. Inform employees of the paydays: Generally, funds are available by 9 a.m. local time at the receiving depository institution, but it’s not set in stone; employees should expect funds by midnight of payday. Your first pay run can take longer than usual, so allow extra time for set up to complete. It’s a good idea to run a test pay run of only a penny or other token amount. Ask employees to be on the lookout for this and to let you know if they have not received it by a specific date so you can track down any errors. Understanding Direct Deposit Errors One of the prime benefits of direct deposit is that it is generally timely and error-free, as long as you enter the correct payroll information. However, errors can occur. Here are some of the most common (though rare) problems people experience with direct deposit and how to handle them. Bottom Line With a little work upfront, direct deposit can save your business time, money, and headache. Direct deposit is generally error-free, but like anything else, errors are possible. By sending paychecks directly to your employees’ accounts, you don’t have to deal with paper checks, and employees have access to their money right away. Work with your bank or payroll solution to get direct deposit for employees set up accurately, and then test it out to ensure everything is working. After that, be sure to get payroll done in a timely manner, and direct deposit will handle the rest. If you’d prefer to use a payroll software that will set up and facilitate all of your direct deposit for your team, check out . Employees can authorize direct deposit payments during their onboarding process and Gusto will handle the rest. Try it free today for 30 days.

Human resources (HR) professionals need to set strong goals to help effectively manage key tasks such as payroll, hiring, onboarding, compliance, and employee management. Taking the SMART (Specific, Measurable, Achievable, Relevant, Time-bound) approach enables you to divide these larger projects and ongoing tasks into digestible sprints, helping set your company’s key performance indicators (KPIs) or objectives and key results (OKRs). It also lets your HR team focus on their most important objectives. Read through the examples below for ideas on how you might use HR SMART goals in your small business. 1. Increase Retention Hiring employees is extremely challenging in today’s work environment, and it’s increasingly costly. You must ensure your company does everything possible to retain employees. Here’s one way you might do that. SMART Goal: Retain top employees and reduce our hiring costs by increasing our annual retention rate over the next year from 70% to 80%. Specific: Increase our annual retention rate Measurable: From 70% to 80% (10-point increase) Achievable: Will require the hiring of an additional HR team member to revamp the hiring process, conduct surveys on why employees leave, and adjust benefits and culture Relevant: Retain top employees and reduce hiring costs Time-bound: In the next year 2. Implement HRIS A human resources information system (HRIS) is HR software that retains and centralizes all of your employee-related information in one place. It can help keep your employee data confidential, let staff easily access their information, including pay stubs, and keep your business compliant by ensuring employee data is correctly maintained. While there is a cost for the best HRIS, it will save your company money by avoiding the need for multiple vendors, and save your employees time when they need to review information. SMART Goal: By the end of the next quarter, find and implement an HRIS within the company’s budget to reduce HR administration time from 75 minutes per week to 35 minutes, allowing HR staff the time to focus on company culture, benefits, and employee engagement initiatives. Specific: Find and implement an HRIS within the stated budget Measurable: Reduce HR staff administration time from 75 minutes to 35 minutes per week Achievable: HR staff needs time and resources to research HRIS systems and knowledge of the budget so they can ensure the cost for the software they consider aligns. When it comes to the next-quarter time constraint, they will need to consider how robust of a system they need (simpler ones can usually be set up within a month). And there will either need to be someone in-house who’s tech savvy enough to learn the system and conduct training, or the HRIS will need solid implementation support. Relevant: Allow HR employees to focus on company culture, benefits, and employee engagement initiatives Time-bound: Choose HRIS in the next 60 days and complete implementation and training within 180 days by the end of the next quarter 3. Increase Employee Engagement According to Gallup, when employees are engaged with your business, they’re more likely to stay, reducing your turnover rate and increasing productivity. Employee engagement is key to keeping your business churning. This is a crucial component of your HR team’s responsibilities and a great HR SMART goal. SMART Goal: Within the next 180 days, HR will boost employee engagement 20 points to 65% by adding company benefits and increasing employee recognition to achieve higher employee productivity. Specific: Boost employee engagement through additional benefits and employee recognition Measurable: Target 65% engagement, up from 45% Achievable: Will require hiring of one additional HR team member or an employee engagement consultant to determine the reason for low engagement and the steps needed to improve, including adding and upgrading benefits during the next open enrollment period Relevant: Achieve higher employee productivity Time-bound: Within the next 180 days 4. Reduce Payroll Errors Payroll errors may result in government fines and penalties and cause employees to leave your company and possibly sue. To avoid these costly mistakes, HR could implement payroll software, which ensures your HR team follows a structured process and completes payroll correctly every time—and if it doesn’t, the provider will typically cover any fees and penalties that result. SMART Goal: Within 90 days, reduce payroll errors to zero by sourcing and implementing payroll software that helps employees receive accurate pay (and therefore stay happy) and keeps the business compliant. Specific: Reduce payroll errors by sourcing and implementing payroll software Measurable: Zero payroll errors Achievable: Hire a payroll expert to join HR team to source and implement new payroll software; only consider software that can be set up and implemented within your time frame Relevant: Keep employees happy and the business compliant Time-bound: Within the next 90 days 5. Reduce Workers’ Compensation Costs With few exceptions, every business must carry workers’ compensation insurance. The rate you’ll pay depends on several factors, including your industry and how many claims you have against your company. Some companies will naturally deal with more safety issues than others—i.e., construction and manufacturing businesses. To keep your workers’ comp costs in check, there are steps your HR team can take to reduce the number of workplace injuries. SMART Goal: Within the next six months, lower workers’ compensation costs and keep employees productive by creating and implementing a safety training program that reduces worker injuries by half—to fewer than 10 per year. Specific: Reduce workers’ compensation costs by creating and implementing a safety training program Measurable: Reduce worker injuries to fewer than 10 per year, from 20 Achievable: Need to hire safety and training consultant or pay to have in-house staff OSHA certified; create a company-specific training program and train HR staff on the program and managing workers’ compensation claims Relevant: Help keep workers safe and productive while reducing company costs Time-bound: Within the next six months 6. Establish Flexible Working Arrangements Even before the COVID-19 pandemic, 94% of workers wanted flexible working arrangements. During the pandemic, many companies found this work setup had benefits for both the company and its employees. To ensure you provide the flexible work options your employees want and your company needs, HR should survey employees and develop a concrete plan. SMART Goal: In the next 60 days, HR will survey every employee to determine the flexible work options they want and compile the data to establish company policies and procedures for flexible working, ensuring that productivity and engagement remain high. Specific: Survey employees to figure out the flexible work options that are best for them Measurable: Develop and conduct survey; establish policies based on the results Achievable: Company can provide HR staff with survey software to engage employees and compile results Relevant: Keep employees happy, engaged, and productive Time-bound: Within 60 days 7. Reevaluate Employee Benefits Offering An attractive benefits package can help your business hire and retain high-quality employees. To ensure your company is offering highly competitive benefits, it’s important to have HR regularly review your benefits package, making changes when necessary. SMART Goal: In the next 30 days, survey every employee on whether the current benefits package fits their needs, and compile data to recommend possible changes to the benefits package. Specific: Determine if current benefits fit employee needs via a survey Measurable: Develop and conduct survey; review responses and determine the level of satisfaction with current benefits offerings Achievable: Company will provide survey software for HR staff to gather employee results, determine necessary benefits updates during the next open enrollment period, and recommend possible changes based on employee responses Relevant: Keep employees engaged and retained Time-bound: Within the next 30 days Tips for Effective Smart Goals for HR Professionals Engage with your HR team before setting goals. Whether your small business has an HR department of one or you have several HR employees, get them involved in goal setting. They know what’s bogging down their time and where they can make improvements. Work with them to set goals, ensuring they stay focused on their core HR duties. Create an action plan to achieve HR SMART goals. While the steps necessary to achieve a SMART goal might seem obvious to you, not everyone may agree. So, make sure your SMART goal statement is not the end of the conversation. Once you determine the goal, your team must create an action plan to ensure they meet the goal. Use a performance management system. Without a system to ensure milestones are met and each team member is on the right track, you could be left with goals that go unfulfilled. A performance management system can help you keep track of each SMART goal you set and the progress your team is making. Be flexible. Not every project, especially larger ones, goes according to plan; some may be delayed because of more pressing matters. Make sure you’re flexible enough to make changes to deadlines or targets. If the goal is important, find a way to make sure the objective is met, even if there’s a delay or setback. Bottom Line Your HR team needs goals just like every other department and employee in your organization. Without a plan, your team will wander and may fill their time doing work that doesn’t help move your company forward. Making your goals SMART ensures that you have effective and relevant objectives that help your company achieve success.

Doing payroll in New York can be more tedious and costly than in other states. The state’s minimum wage rate is steadily increasing, so you’ll likely find yourself required to pay employees a minimum of $15 an hour, more than twice as much as the federal requirement. In addition to paying regular federal payroll taxes, unemployment insurance, and possibly, the Metropolitan Commuter Transportation Mobility Tax, you have to withhold federal, state, and local income taxes from employee paychecks. Step-by-Step Guide To Doing Payroll in New York Below are the basic steps and specific instructions on how to do payroll in New York. If your total payroll tax withheld in the previous year was over $100,000, the state will enroll you in the PrompTax program and give you a six-digit code for filing electronically. If you use a payroll service, you will need this number. Step 1: Set up your business as an employer: At the federal level, you need your Employer Identification Number (EIN) and an account in the Electronic Federal Tax Payment System (EFTPS). Step 2: Register with the state of New York: If you are a new business or household employer, you need to register for unemployment insurance (UI), wage reporting, and withholding tax through NYBE. To register an agricultural business, nonprofit organization, or an Indian tribe, go to the New York Department of Labor's website. Your New York State Identification Number is for state income tax withholding; use your Federal EIN followed by a location code (if applicable to your business). Your UI employer registration number will be assigned to you separately. Create an online services account to file electronically. Step 3: Set up your payroll process. Established businesses may already have a payroll process in place, but a new company will need to begin with considerations such as how often employees will be paid, when they will be paid, and how hourly employees’ work time will be calculated. You can elect to do payroll yourself, set up an Excel payroll template, or use a payroll service. Step 4: Collect employee payroll forms: This is easiest if you do it during onboarding. Forms include W-4, I-9 Verification, and direct deposit information. Employees also need to fill out Form IT-2104, the NY State Withholding Allowances Certificate. Step 5: Collect, review, and approve time sheets: Whether using paper time sheets or time and attendance software, tracking employee hours is essential for ensuring accurate payroll. This step is repeated when doing payroll each period. Given the complexities of NYC tax law, inaccuracies could cost you, so review time sheets carefully. Make sure to discuss any issues with employees right away and consider having employees sign their time sheets. Step 6: Calculate payroll and pay employees: Use a standard process to calculate payroll. A payroll software will reduce errors. Don’t forget to calculate withholdings for non-residents unless you have a bona fide business location in their state. Step 7. File payroll taxes with the federal and state governments: You must pay withholdings within three or five days of exceeding $700, depending on the filer type. However, many businesses find it more convenient to simply pay this with each payroll. Follow the IRS instructions for federal taxes, including unemployment. New York withholding, wage reporting, and UI returns must be filed electronically and balances due paid via ACH debit on the New York Tax Department’s website. The NYS-1 and your withholding payments are usually filed after each payroll. If your withholdings are less than $700 for a calendar quarter, then you can remit payment with the NYS-45 instead. New York tax filings NYS-45 and MTA-35 are all done quarterly. You may file on the next business day if any of these dates fall on a Saturday or Sunday. For New York Income Tax Withholdings: Use the withholding allowance from the employee’s Form IT-210 to determine how much you should withhold in income taxes from each employee’s paycheck each period. If the employee did not file one, use zero as the number of allowances. You can find withholding amounts on the following tax tables. NYS-50-T-NYS, New York State Withholding Tax Tables and Methods NYS-50-T-NYC, New York City Withholding Tax Tables and Methods NYS-50-T-Y, Yonkers Withholding Tax Tables and Methods Unemployment taxes: When you register your business and apply for an EIN, the state will send you your UI tax rate for you for the year. If you don’t receive it, you may be able to look it up on your Business Express account or Department of Labor (DOL) account. You can also call the employer hotline at 888-899-8810 between 8 a.m. and 5 p.m. Monday through Friday. State unemployment taxes (SUTA) is recorded on the NYS-45 and paid quarterly. Metropolitan Commuter Transportation Mobility Tax (MCTMT): These are due each calendar quarter. The MCTMT is your payroll expense for all covered employees for each calendar quarter multiplied by the applicable MCTMT rate from the table below. File them using Form MTA-305 online through the online services account or by mail. These must be paid on time. Step 8: Document and store your payroll records: It’s important to keep records for all employees, even those terminated, for several years. Learn more about recordkeeping requirements in our article on retaining payroll records. In New York, you must keep all records of employment taxes for at least four years. If you withhold state and city taxes, you need to keep all records of these tax filing reports and information returns available for review by the New York Tax Department. Step 9: Do year-end payroll tax reports. These are the federal Forms W-2 (for employees) and 1099 (for contractors.) Employees and contractors must have these by Jan. 31 of the following year. New York does not require you to file W-2s or 1099s with them. New York Payroll Laws, Taxes & Regulations Unlike some states, New York doesn’t have a regular payment schedule for tax withholdings, like semimonthly or quarterly. Form NYS-1 must be filed and the total tax withheld paid after each payroll that caused the total accumulated withholding tax to equal or exceed $700. If you withhold less than $700 during a calendar quarter, remit the taxes withheld with your quarterly return, Form NYS-45. If you have more than one payroll within a week (Sunday through Saturday), you are not required to file until after the last payroll in the week. If the calendar quarter ends between payrolls paid within a week, any accumulated tax required to be withheld of at least $700 must be remitted with Form NYS-1 after the last payroll in the quarter. The state will inform you of changes, and new businesses have five days to file after being notified by the NY Tax Department. New York Taxes New York has state and some local taxes, state unemployment taxes (SUTA), and the MCTMT. You are also responsible for paid family leave, sick leave, workers’ compensation, and state disability insurance. At the federal level, you need to pay FICA taxes (Social Security and Medicare) and withhold a matching amount from your employees’ paycheck. Both you and your employees will pay 6.2% of their paycheck to the Social Security fund and 1.45% to the Medicare fund. The Form NYS-50, Employer’s Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax, has all the details you need for doing taxes in New York, including NYC and Yonkers. Most employers are required to file it electronically on the site; if you opt to mail in a paper copy, you could be charged penalties. New York State Unemployment Insurance Taxes New York charges SUTA in the amount of 2.025% to 9.825% on the first $11,800 of an employee’s wages. It also charges a reemployment tax of 0.075% on the first $11,800 of an employee’s wages. Please note: You must pay SUTA (and federal unemployment taxes, FUTA) out of your business funds; cost shouldn’t be passed to the employees. You must pay tax for all employees except the following: Members of an LLC, LLIC, or LLTC Students in regular attendance in the educational institution that employs them if their employment is incidental to their course of study Student’s spouse employed by student’s educational institution if advised at time of hire that the employee is under a program of financial assistance to the student Students enrolled in nonprofit or public educational institutions in certain work-study programs Students enrolled full-time in an educational institution who are employed at certain camps Sole proprietor, their spouse, or child under the age of 21 Persons whose employment is subject to the Federal Railroad Unemployment Insurance Act Freelance shorthand reporters under certain conditions Licensed real estate brokers or sales associates under certain conditions Licensed insurance agents or brokers under certain conditions Some employees of nonprofit and religious organizations Clergy and religious Please note that although unusual for some businesses, if you hire delivery drivers, traveling salespersons under certain conditions, musicians and other performers, professional models, and fellow, resident, and intern physicians, you must purchase unemployment insurance for them. Most construction workers are also included under the New York State Construction Industry Fair Pay Act. Agricultural employers and farm crew leaders under certain conditions must provide unemployment insurance coverage for their employees. H-2A foreign guest workers are exempt. In addition to New York state unemployment taxes, you’re also responsible for paying federal unemployment taxes. The standard rate is 6% on the first $7,000 of each employee’s taxable wages. The maximum tax you’ll pay per employee is $420 ($7,000 x 6%). State and Local Income Taxes New York uses the same rules for income tax withholdings as for SUTA when it comes to qualifying employment, determining liable employers, and calculating gross wages. You even file according to the same schedule using the same form, the NYS-45. If you are an out-of-state employer withholding taxes for an in-state employee, you are subject to all the withholding requirements. In general, NY follows the same rules as the federal government for classifying taxable income. You’ll use the information on Form IT-2104 along with the New York tax tables that are updated each year to determine withholdings. NYC and Yonkers Taxes New York City and Yonkers also tax employees living in their areas. If in doubt as to whether or not an employee resides in a specific jurisdiction, you can look up an employee’s address to see if they are considered as residing in NYC or Yonkers. Non-resident employees sometimes pay taxes. If you have employees who do not live in New York state but they earned money from work done in New York State, you still need to withhold New York state and local taxes unless you have a bona fide office in their state. These employees use Form IT-2104.1 to determine withholdings. To learn more about residency vs non-residency tax requirements, visit the New York State government website. Workers’ Compensation Insurance Employers are required to purchase workers’ compensation insurance if they operate in New York. On average, this costs about $1.41 per $100 in wages you pay but can vary significantly depending on the line of work your business is in. Metropolitan Commuter Transportation Mobility Tax (MCTMT) If you have payroll expenses within the Metropolitan Commuter Transportation District (MCTD), you are liable for the MCTMT for a calendar quarter if: You are required to withhold New York State income tax. Your payroll expense for all covered employees is more than $312,500 for that calendar quarter. Find more information in NY Publication 420. To see if the MCTMT tax applies to your business, confirm whether or not you’re located in one of the following areas (within the MCTD): New York City – Manhattan, Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island) Rockland County Nassau County Suffolk County Orange County Putnam County Dutchess County Westchester County If you are located in one of the areas above, check the table below to find out your MCTMT tax rate. MCTMT Tax Rates Minimum Wage Rules in New York The state of New York is gradually increasing the minimum wage to $15 per hour, with $10 per hour for tipped wages. Current rates depend on which city your business operates from. In New York City and for large fast food companies throughout the state, the minimum wage has already reached its $15.00 maximum. As of December 2021, Nassau, Suffolk, and Westchester counties joined New York City and large fast food companies with a minimum wage of $15.00 per hour, which is an increase from $14.00 per hour. For companies upstate (outside of fast food), the minimum wage increased to $13.20, up from $12.50 per hour. The minimum wage does not apply to the following: Executives and administrators Certain professionals Outside salespersons Taxicab drivers Part-time babysitters Ministers and members of religious orders Volunteers, learners, apprentices, and students working in nonprofit institutions Students obtaining vocational experience Please note: When you hire a new employee and set their pay rate, you’ll need to provide them with a written pay notice that details the amount (hourly, salary, commission, etc.) along with the schedule on which they’ll be paid, their designated payday or pay date, the address and phone number of your business location, and any deductions you may take for tips, meals, or lodging. New York Overtime Regulations New York follows the federal rules for exemptions concerning overtime, payable at 1.5 times regular wages for all hours worked over 40 in a workweek. For everyone else, it sets these rules: Different Ways To Pay Employees You can pay employees in a variety of ways, including direct deposit, paper check, cash, and payroll card. Per New York law, you cannot base an employment decision on whether or not they consent to being paid via direct deposit or payroll card—some employees don’t have bank accounts, and any policy that targets them would be discriminatory in nature. Pay Stub Laws When you run payroll for your employees, you’ll need to prepare a pay statement, i.e., a pay stub, so they have a record of their earnings. Federal law doesn’t require it, but New York State does. It should include basic information, such as: Your company name The employee’s name Pay rate Pay period covered Hours worked Overtime pay Minimum Pay Frequency If you employ manual laborers, New York requires you to pay them at least weekly. If you’d like to process their payroll less often, you’ll have to apply for permission first. For all other employees, you can pay weekly, biweekly, or semimonthly, at the minimum. Federal law doesn’t dictate how often you pay your workers; it only states that you must pay consistently. Paycheck Deduction Rules Although some states are lenient on payroll deductions as long as they don’t drop an employee’s pay below the minimum wage amount, New York has some strict rules. You are not allowed to deduct money from an employee’s paycheck for any of the following: Cash shortages Inventory shortages Loss of or damage to property Uniforms that you require Tools and other equipment required for the job You can only deduct money from employee paychecks if it’s legal, both federal and state-wise, and the employee authorizes you to do so. Please note: You must get the authorization in writing or you could be penalized. Some common deductions employees request are insurance premiums, healthcare contributions, donations to charity, repayment of salary advances, and repayment of prior overpayments. Final Paycheck Laws If you ever find yourself terminating an employee in New York, you should move swiftly when sending them their last paycheck. Legally, you have until the nearest payday after the termination went into effect to distribute without facing legal issues. And if you were managing benefits for them, you’re required to notify them within five days of their termination date of the exact date their benefits will be terminated. If the employee quits, you should still strive to pay them by their next regular pay day. However, New York doesn’t have any specific laws governing this. Accrued Paid Time Off Neither federal nor New York State law has stringent rules on how you should handle paid time off (PTO). When an employee leaves your company, you can opt to pay it out or take it back. The caveat to this rule is that you need to have your process outlined in a policy that the employee receives at the time of hire. If you don’t lay down the ground rules regarding how you will handle paying accrued time off, you will be obligated to pay it out should they have a balance when they leave the company. New York HR Laws That Affect Payroll New York New Hire Reporting When you make a new hire, and preferably before you process their first paycheck, you’ll need to report them to the state. New York requires you submit the new hire report within 20 days of their hire date. If you fail to do so, you can be fined $20 per employee or $450 per employee if conspiring with the employee to withhold the information. Use Form NYS-209 to report the information electronically. Workers’ Compensation Businesses in New York are required to have workers’ compensation coverage for all of their employees, including part-time employees and family employees. New York employers can come from private insurance carriers, the New York State Insurance Fund, or self-insurance (though self-insurance is very rare). Businesses may be exempt under very narrow circumstances. New York employers are not allowed to deduct the cost of their workers’ comp policy from their employees pay. Estimated employer rates in New York are about 7 cents per $100 of payroll for low risk businesses and $29.93 per $100 of payroll for high risk businesses. This cost is based on a number of factors, including: Payroll Location Industry Risk factors Number of employees Lunch & Other Break Time Requirements Employees with shifts of more than six hours that start before 11 a.m. and continue to 2 p.m. must take an uninterrupted lunch break of at least 30 minutes between that time frame. This does not have to be a paid break. There is no other break requirement, but if you provide breaks of up to 20 minutes, you must pay it as work time. You’ll need to ensure their work and break time are properly documented using a time sheet or time clock. Vacation & Leave New York has no set laws for vacation or holiday PTO. Employers can set these rules however they wish. Just remember that if you state that you allow a certain number of PTO hours for the year, you are legally obligated to honor it. Sick Leave As an employer, you are required to provide sick leave per New York labor law. If you have four or fewer employees in a calendar year, you must provide each one up to 40 hours of unpaid sick leave per calendar year, and if your income was over $1 million the previous tax year, you must provide 40 hours of paid sick leave. If you employ 5 to 99 employees in a calendar year, you must provide each one up to 40 hours of paid sick leave per calendar year. If you employ 100 or more employees in a calendar year, you must provide each one up to 56 hours of paid sick leave per calendar year. It’s important that you track each employee’s leave—especially sick leave—so that you can prove compliance in the event of an audit. It will also make it more convenient for you to manage the employee’s accrued sick time so that you can better anticipate the timing of potential future expenses. Paid Family Leave Paid family leave is time taken to bond with a newborn, care for a close relative with a serious health condition, or assist when a family member is deployed in the military. If you employ more than one person, you must get a paid family leave policy. Full-time employees (working regularly at least 20 hours per week) are eligible after 26 consecutive weeks of employment. Part-time employees are eligible after 175 days, which need not be consecutive. Paid Family Leave is paid at 67% of average weekly wage, up to a cap of the current Statewide Average Weekly Wage (SAWW). The weekly PFL benefit is capped at $1,068.36 for 2022. State Disability Insurance If you employ one or more employees at least 30 days in a calendar year, you must provide temporary disability insurance. You can do this through private policy or the state insurance fund. Tip Earnings: Tips must be reported as income. Child labor There are child labor laws governing how you can employ minors in New York. Overall, a minor is considered anyone under the age 18, but the rules vary for different age ranges. Some state-specific child labor laws you should know when doing business in New York are: Children 14–17 need working papers to hold a job in New York. Children 14 and 15 cannot be employed during school hours. Minors cannot do factory work. Minors aged 16 and 17 may work full time if not attending school. Payroll Forms New York has its own form for calculating state income tax withholdings, as well as for reporting other taxes. However, it uses the same form for filing income tax withholdings and SUTA. New York Form IT-2104 New York uses a Form IT-2104, Employee’s Withholding Allowance Certificate. Like the IRS Form W-4, it sets withholdings for income taxes depending on your employee’s choices. Use this for calculating withholdings for NY state taxes, which differ from federal withholdings. Every employee should fill this out. There are different versions of the form for exemption requests for Native Americans, military members, those in the START-UP NY program, and other situations. Make sure your HR department is familiar with these to offer them to qualified employees. Other New York Withholding Forms Form NYS-45, Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return: You must fill this out completely each quarter. Form NYS-45-ATT, Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return-Attachment: You must fill this out completely each quarter. Form MTA-305, Employer's Quarterly Metropolitan Commuter Transportation Mobility Tax Return: This is only required if you’re filing MCTM taxes. NYS-100, New York State Employer Registration for Unemployment Insurance, Withholding, and Wage Reporting: There are different forms for agricultural workers, government entities, Indian tribes, and nonprofits. Form NYS-209, Instructions for Electronic Media Reporting of Employees Hired or Rehired Federal Payroll Forms W-4 Form: To help employers calculate taxes to withhold from employee paychecks W-2 Form: To report total annual wages earned (one per employee) W-3 Form: To report total wages and taxes for all employees Form 940: To report and calculate unemployment taxes due to the IRS Form 941: To file quarterly income and FICA taxes withheld from paychecks Form 944: To report annual income and FICA taxes withheld from paychecks 1099-NEC: To provide non-employee pay information that helps the IRS collect taxes on contract work New York State Payroll Tax Resources & Sources Employer’s Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax: This booklet contains just about everything you need to know about your rights, responsibilities, and filing requirements for payroll, withholdings, and unemployment insurance. New York Business Express website (NYBE): This is where you register as a new employer. Also, get information on licensing, regulations, incentives, and other business needs. Department of Taxation and Finance: The website has multiple menus for finding information on any aspect of taxes, including demo videos, articles, and forms. The search bar works pretty well for finding topics quickly. Bottom Line There’s a lot to consider when doing payroll in New York because of the complexity of the taxes. Not only does it have state income taxes and SUTA, but it also has some local income taxes. Even non-resident employees must pay taxes, which means you need to calculate withholdings differently based on where employees live and where your business is located. We touched on the basics in this article, but the Form NYS-50 gives complete details.

is a scheduling and time tracking software that is great for small businesses and restaurants that experience seasonal highs and lows, or those that need a scheduler that works with other calendars. Starting at $2.50 per active employee, per month, it’s economical—especially for those with only a few staff but multiple locations. What We Recommend ZoomShift For We’ve spent hundreds of hours researching and writing about scheduling software, and we believe ZoomShift has a lot to offer small businesses. Its flexible by-employee pricing is competitive with similar software while providing a mobile time clock and great tools for payroll and shift scheduling. In short, ZoomShift is best for: Restaurants that experience seasonal highs and lows: ZoomShift earned a spot in our best restaurant scheduling software based on our evaluation. It lets you place a plan on hold during off-peak season, making it a good match for restaurants that have predictable busy and very slow/closed periods. Agricultural, construction, and tourist industries: Not every business has a stable labor force. ZoomShift accommodates staffing highs and lows by not charging for inactive employees and letting you put the software on hold for a time without charge while retaining the information. Businesses with few staff but multiple locations: If you have more than one location with fewer than 15 employees in each, on average, you will find ZoomShift’s per-employee pricing makes it more cost-effective than plans like Homebase or 7shifts that charge by location. When ZoomShift Would Not Be a Good Fit Businesses with a large number of staff: While per-employee pricing works great for a small number of staff, it can get expensive if you have a large number of employees, even with multiple locations. If you have a staff of over 30 and at least two locations, consider doing a price comparison with software that has per-location pricing, such as Homebase or 7shifts. Businesses with strict certification or compliance laws: While ZoomShift has some schedule rules for keeping track of labor laws, other scheduling software can track certifications and offer checklists to help ensure employees meet industry regulations. We recommend you consider SocialSchedules if you need a platform that monitors compliance. ZoomShift Alternatives ZoomShift Pricing ZoomShift’s pricing is per-active employee. That makes it cost-effective if you have multiple locations with a few staff members in each and because it offers a discount or refund if a worker is deactivated. It also lets you put your plan on hold if you shut down for a month or season. Even its Premium plan is priced comparable to competitors. There’s a discount on the annual plan and a free 14-day trial. *Get a 20% discount when you opt for annual billing. ZoomShift Features Getting started with ZoomShift isn’t difficult and goes quickly if you set up a CSV file with the employees’ information. If you have Square, Xero, or QuickBooks, you can upload employee data. You will need to set roles and permissions and shift error rules. Once you do all that, you invite employees by email or public registration page and have them download the mobile app and join. ZoomShift Ease of Use Intuitive interface Good customer service Illustrated guides Schedule creation by day, week, or month Although there were no training videos and live support, ZoomShift does well with ease of use. The how-to articles are helpful, thorough, and illustrated. The templates and copy-and-paste functions make it easy to create schedules. The interface is intuitive, and real-world users say it’s easy to use. Users say that the customer service is excellent—pleasant in answering questions, offering tips, and responding within a few hours. What Users Think About ZoomShift Many small businesses said the program gave them exactly what they needed without too many extras to complicate matters. Those with more complex needs, like reporting compliances, wished for additional functions. Several users praised the customer service as well. Capterra: 4.5 out of 5 based on 90+ reviews. G2: 4.9 out of 5 based on 14 reviews. Bottom Line scheduling management solution is good for any business, but especially those with seasonal highs and lows. It offers strong PTO management and timesheet tools to help make payroll easier. The mobile app gets average ratings, but users say the software is easy to use and great for a small business. Sign up for a free trial of ZoomShift and see if it’s right for you.

Employer branding is a marketing strategy that helps businesses represent their identity as an employer to current and prospective employees and job seekers as a whole. It involves creating a unique brand that encompasses the entire employment experience, from mission and culture to salary and benefits. Strong employer branding can help attract top candidates, boost employee productivity, and increase employee retention. No matter the size of your small business, your goal is to create an association between the company and positive feelings in employees’ minds. Since brands are interpreted by how they make people feel, it is important to develop and cultivate a best-in-class brand that is relatable to as many people as possible. 4 Steps to Building & Implementing Your Employer Brand There are several steps that a small business can take to build a strong brand, including determining what your brand is or should be, communicating that, and evaluating your brand’s effectiveness. Start, though, by understanding the elements that go into an employer brand. Step 1: Understand What Defines an Employer Brand Current and future employees are trading their time and effort in exchange not only for pay but also for the experience of working for your organization. So, it’s helpful to think about your employer brand in terms of an employee value proposition (EVP). An EVP is your company's overall value to potential and current employees relative to what other employers are doing. It is a combination of the company mission, culture, benefits, and compensation and is part of a broader employer branding strategy. Company Mission & Culture Company mission statements give employers a voice and a purpose and can help create a sense of culture and community within the organization. In today's competitive job market, it's more important than ever for employers to foster a positive workplace culture and identity. By doing so, employees will feel appreciated and motivated to stay with the organization, which can help the business achieve its goals. Companies can brand themselves using their missions in a number of ways, including slogans, marketing material, and employee communications. By branding with a company mission, they can create a unified message that resonates with their employees and potential customers. Total Compensation Package Companies should craft a total compensation package that reflects their personality, and total compensation can include salary, bonuses, stock options, and other benefits. They should also understand how employees value these types of benefits—the more cohesive their benefits, the better their EVP and branding campaigns will be. Here are some benefits you can focus on: Charitable involvement/volunteer work Health benefits and wellness classes Work–life balance Retirement Company culture, including dress code and food or beverages offered Vacation and paid time off Step 2: Determine What Your Employer Brand Is—Or What You Want It To Be When it comes to developing a brand, there are a few things you should consider: What does your company stand for? What is your message? What are your products/services? How do you value your employees? How do you measure your success? Your employer brand should connect your company, what it stands for, and the products you sell with customers, current employees, and potential employees. The best way to do this is to conduct a competitive analysis showing what your competitors are doing compared to your business. Once you have completed your analysis and identified what makes your company unique, you can use these as the pillars of your employer brand. Some common attributes that make a company stand out from its competitors are its culture, leadership, values, and mission. By focusing on these key elements, you can build an employer brand that is memorable and attractive to employees. Have Leadership Team Weigh In A successful employer branding strategy depends on everyone’s input, particularly your managers and other company leaders. Having buy-in from them will allow you to see an objective picture of your EVP and foster a more concrete plan of how to move forward. There are a number of ways to foster buy-in, but making your employer brand part of performance standards is one of the most effective. This allows leaders to objectively measure their own performance against established goals, which helps them determine where they need to improve and motivates them to do so. Step 3: Get the Word Out Internally & Externally Once you have defined your branding goals, you need to plan how to get the word out to current employees and potential hires (for when you’re ready to grow your team). Engaging your team, soliciting ideas and input, and getting everyone (e.g., marketing, operations, and customer service) involved and on the same page is essential for long-term success. Inform Current Employees It’s important that your employees are aware of the company’s employer branding. This may be illustrated through everything from your business’s logo and color scheme to the vision and values that the company espouses. You can send a memo to announce any changes in employer branding and follow through with initiatives that reinforce the brand (for example, hold events for Women’s Day and Pride Month if you want to emphasize inclusion and diversity). Employees who are aware of the employer brand can put their best foot forward when interacting with customers, other employees, and potential employees. Market to Potential Hires If you’re ready to scale and make new hires, then you will want to showcase your employer brand to attract talent. Ensure potential hires see why it’s great to work for your company. You can achieve this by discussing causes that are important to your brand or even including photos of company events that highlight how you implement the brand you’ve established in your website or other marketing materials.   Additionally, you can market your employer branding through job postings, company websites, and social media profiles. Employers can also communicate the company’s goals and objectives to new hires during the interview process. Each small business is going to have different channels to get the message in front of the right people, but here are some common ones. Step 4: Measure & Evaluate the Effectiveness of Your Employer Brand There are two main elements you’ll want to look at related to your employer branding strategy: how effective you are at delivering on your perceived brand (internal) and how well you are at getting the word out (external). Your long-term plan should include periodic reviews and adjustments to ensure your small business is effective over time. Tips on Using Your Employer Branding Strategy for Retention & Attraction A well-developed branding strategy can help you reduce turnover and attract new talent by creating a unique identity for your company. We cover some tips to help you achieve that. Employer Brand vs Company Brand While your employer brand relates to how people perceive you as an employer, your company brand is broader. It includes traditional sales-related branding efforts and how the public perceives all aspects of your company. However, there is often overlap between your employer brand and sales marketing efforts. The main differences between company branding and employer branding are the focus and the channels utilized. For employer branding purposes, the highlight is on employee engagement, inclusivity, growth opportunities, and key benefits. Messaging should zero in on internal, employee-focused attributes. And, you’re going to use channels that put that message in front of employees and potential employees, not necessarily customers. Meanwhile, company branding efforts focus more on outward directing channels, customers, leads, and society as a whole. Corporate branding refers to the practice of promoting your company’s brand name and its entire entity, including corporate social responsibility efforts, how your products and/or services make humanity better, and so on. Bottom Line Employer branding for small businesses is important to attract top talent to your company and retain the best employees that you already have. By creating a strong employer brand, you can show potential employees what it’s like to work for you and convince current employees that your company is the best place for them to grow their careers. This improves your company's image and increases its competitiveness.

China has a fast-growing economy and hundreds of millions of highly skilled workers, which can help your organization grow at a fraction of the cost you’d pay your domestic workers. This makes it appealing for US employers needing to hire employees; the issue is that it's illegal for foreign employers to hire in China. To comply with local laws, you’ll need to go through an employer of record or local Chinese staffing agency. If you’re still interested in hiring an employee or freelancer (which is a legal gray area), we’ll cover some things you need to consider and provide more detail on legality. Factors to Consider When Hiring From China The biggest reason US small businesses hire Chinese workers is the reduced overhead. Some major cities in China rival major US cities in cost of living but, overall, China’s cost of living is about 60% less. While you may save money by paying a lower salary, there is a downside to hiring an international employee in China, as we’ve already discussed—government regulations. Writing the Job Description & Determining Salary and Benefits Job descriptions need to be clear and include the skills and prerequisites necessary to perform the job well—even on freelance websites. Whether you’re hiring an employee, you need to make clear the expectations you have for the person doing the job. Note that the average annual salary in China is just under $15,000. Ensure Payroll & Employment Law Compliance There is no requirement of how frequently you make payments, but most Chinese workers are used to being paid at least monthly. If you’re partnering with a freelancer, make sure you have a completed IRS Form W-8BEN-E from them to verify you’re paying them correctly; otherwise, there aren’t any other rules you’ll need to adhere to. Freelancers are ultimately responsible for ensuring they’re complying with Chinese law, paying taxes, etc. Chinese labor law sets the workday at eight hours and the workweek at no more than 44 hours. Most workplaces operate 8 a.m. to 6 p.m., allowing for a full workday and a two-hour lunch. There are, however, some special laws you need to know: Minimum Wage: There is no national minimum wage. Instead, provinces, municipalities, and local governments may set their own minimum wage. Rural areas usually have lower minimum wages and the cities have higher. Beijing, for example, has the highest minimum wage, at $25 yuan per hour, or $3.94 per hour. Overtime: Employees receive 1.5 times their base pay for any hours worked over eight in one day. 13th Month Pay: While not required, it is expected that companies give an annual bonus to their employees in China. Bonuses receive preferential tax treatment in China, which can lessen the burden on employees, allowing them to take more money home. Social Insurance: These are mandatory deductions from an employee’s paycheck. The rates vary depending on where your employees live. Here are the most recent rates for Beijing: Paid Time Off (PTO): Any employee working for at least one year with a company is entitled to receive PTO, based on years of service: One to 10 years of service: five days 10–20 years of services: 10 days 20+ years of service: 15 days Sick Leave: There is no requirement to provide Chinese workers with sick leave, but many companies do to attract high-quality workers. Parental Leave: Both parents are entitled to take up to 10 days of parental leave each year until a child reaches the age of six, along with the following leave: Maternity: 98 days of 100% paid maternity leave Paternity: Seven days of 100% paid paternity leave Beijing and Shanghai: Mothers living in Beijing are given an additional 60 days of leave for a new birth paid at the higher rate of either the company’s average monthly salary or the mother’s wage the month of delivery. In Beijing only, if agreed by both employer and mother, the additional 60 days of maternity leave may be shared with the father. Holiday Leave: Chinese workers are entitled to seven paid holidays each year (confusingly, two of these holidays are actually three days long). If an employee works any of these holidays, they are to be paid three times their hourly rate: Lunar New Year (three days) National Day (three days) New Year’s Day Qingming Festival Labor Day Dragon Boat Festival Mid-Autumn Festival Hiring international employees requires compliance with laws in two countries. That can be overwhelming for small businesses, and that’s why we recommend using a compliance partner like . Its services can help you pay your Chinese workers correctly and ensure compliance with both China and US laws. Posting the Job Ad Your job ad needs to be posted on job boards Chinese workers will see. Some of the most used job sites include: 51job Zhaopin ChinaHR Your job ad needs to clearly describe not only the role’s duties and responsibilities but also the work hours. Whether you decide to have your Chinese employees work their local hours or your hours, leave no ambiguity here and make it clear what you expect. This will help you narrow applicants down quickly, reducing the amount of time you need to spend reviewing resumes and interviewing candidates. Reviewing Candidates & Conducting Interviews You may receive applicants quickly. For lower-level jobs that don’t require as much skill, expect an influx of candidates in the first few days. To help you screen applicants quickly and effectively, we recommend you make a must-haves list for the position. No candidate will match up perfectly, but the best ones should match with your handful of must-haves. Conducting interviews with global workers will present some time zone challenges. But this is good practice for you to see how the individual candidates communicate given these obstacles, especially if you need them to work your hours. Set up a video interview with the half dozen most qualified candidates. Doing a video interview instead of a voice call will ensure you can trust their internet connection. Be aware that China has an internet firewall that may not allow the applicant to access certain websites. We also recommend having a list of structured interview questions for each applicant. As a result, you will be able to rate candidates based on their answers to the same questions, allowing you to narrow the candidates down to just one. Note: If you’re working with a Chinese EOR, you can let your representative know who your chosen candidate is so that the EOR can then establish a relationship with that worker and place them with your business. Essentially, you can do the legwork to find the employee you want, and then partner with a Chinese EOR to lease the worker. Checking References After the interviews are complete and you have targeted the candidate you want to hire, ask for references. You want to make sure you speak with at least two supervisory references. This will give you a good idea of the candidate’s work ethic and the skills they possess. A supervisory reference will also help you understand what it’s like to manage this individual. Checking references outside the US can be difficult. While we usually recommend all reference checks be completed over the phone, it might be too cumbersome to do so. Only if necessary, it would be acceptable to communicate with a reference via email. Ask them direct questions, as well as follow-up questions, to gauge whether the candidate is capable of doing the job. Note: Freelancer websites, like Upwork, have a place where you can see reviews from a freelancer’s previous customers. This can serve as a reference check if there are enough to make you comfortable. Making a Job Offer Completing all of the above steps will lead you to a successful conclusion of your hiring process: making a job offer. We recommend connecting with the chosen candidate to discuss the offer and any remaining details. Once you’ve agreed on all the terms, present the candidate with a formal employment contract—a requirement in China—which includes: Salary and pay frequency Job title Start date Specific working hours Benefits Also include the job description for the candidate to sign off on. This will allow you to hold the person accountable should they not meet your expectations. Give the candidate at least a week to review the proposed employment contract and return it to you. Freelance websites will facilitate this for you (there won’t be benefits or specific working hours, but you’ll enter the necessary details, and they will be communicated to the worker.) EORs and international PEOs with recruiting services (many don’t offer this) may also handle this part for you. You’ll still need to specify the details, i.e., start date, salary, etc., but they will handle the documentation process. Bottom Line Employing someone in China or partnering with a global independent contractor will present international challenges, especially for small businesses. If you can, we recommend choosing other countries to recruit from. If you’re still set on hiring there, you can streamline the process considering the information we discussed above. Seek advice from an international employment lawyer to ensure your company remains compliant.