Myth: I don’t have enough
money to hire full-time
Reality: Start small by hiring
or using independent
contractors for specific
Myth: I must offer employees
a whole range of costly
Reality: Legally, the number
of benefits you’re
required to offer is
small; offer benefits to
attract and retain the
Truth and myths about having employees
Myth: I’ll have to pay payroll
taxes as well as sala-ries or wages.
Reality: True. So budget for
payroll taxes when
You’ll have no payroll
taxes if you can
legally use independent contractors.
By Rhonda Abrams
YOUR BUSINESS NEEDS to grow, and you know
you need help. Sitting around the coffee shop, you
confide to your friends that you’re about to hire your
first employee, and they warn you about all the terrible things that are going to happen to you once
you’re an employer. Can this all be true?
No, not really. There are lots of myths about hiring and getting help for your small business. Let’s
take a look at some of them.
One of the biggest misconceptions is that hiring
means a full-time employee. Let’s clear that up. You
can put your toe in the hiring waters with a part-time
employee or even a contractor for specific projects or
independent tasks. My first employee worked 10
hours a week at $10 an hour. But, boy, did that help
me expand my business.
That leads to another myth: that employees are
just too expensive. Of course, hiring people does cost
you, but, like every investment in your business, it
should help you make more money. I’m guessing that
you currently spend a lot of your time on tasks that
don’t produce income, or that you don’t have enough
time to spend finding new clients or customers. A
time-to-hire light bulb went off for me when I realized I was spending my valuable time on routine
administrative tasks or waiting in line at the post
The Costco Connection
Costco offers online payroll services to Costco
members, through Intuit. For information, visit
Costco.com and click on “Services.”
office instead of working on billable client projects.
Many people are reluctant to hire their first
employees because they’re afraid they’ll have to
spend their time either managing their employees
or dealing with paperwork and taxes. Neither needs
to be true. Sure, at the start, you’ll have to spend
some time training and, if you’re a first-time
employer, setting up routine operations and systems. But with the right person or people, you’ll
have more time to do the things that make you
As for the paperwork? New services, such as
online payroll, make it easier and less expensive than
ever to deal with the red tape of having employees.
What about space? One common myth that
stops many businesspeople, especially consultants,
independent sales reps and sole practitioners, from
hiring is that they work from home or don’t have a
large enough office to accommodate employees.
My first employee worked at my kitchen table!
Nowadays, many employees can work remotely,
from their home, much of the time.
If you want to grow your business, you can’t do
it alone. Hiring an employee, even a part-timer or a
contractor, can lead to financial and personal
growth. I’ve grown my business through hiring, and
you can too! C
Rhonda Abrams has started four successful compa-
nies. Currently, she heads The Planning Shop
www.planningshop.com), a publisher specializing
in entrepreneurship and small business.
Myth: I don’t have space for
Reality: Many businesses have
employees who tele-commute at least part
of the time.
Myth: Managing other people
will take up too much
of my time.
Reality: You should have more
time for doing work
that you’re best at—
work that makes you
COSTCO AND INTUIT have
teamed up to make Rhonda’s
book, Hire Your First Employee:
The Entrepreneur’s Guide to
Finding, Choosing and Leading
Great People, free to Costco
You’ll get this
free. Just go
DECEMBER 2011 ;e Costco Connection 19