You must comply with your state’s workers’ compensation laws. These provide compensation for employees who are injured on the job. Each state’s laws are different, but the laws are compulsory for employers in every state except New Jersey and Texas. In those two states, employers can reject coverage, but they’ll lose certain defenses if they opt out and an employee is injured on the job. Workers’ compensation insurance is purchased through private insurance agents, not the government.

There is an alphabet soup of federal employment laws that may apply to your business: FLSA, OHSA, ERISA, ADA, COBRA and FMLA, to name just a few. Which ones apply to you depends on your number of employees. Note, however, that all employers, regardless of size, are subject to federal or state OSHA requirements to maintain a safe workplace.

Employers are required to provide time off for employees to vote, serve on a jury or perform military service; comply with the state’s workers’ compensation requirements; withhold and pay FICA and pay FUTA taxes; and contribute to state short-term disability programs where they exist.

Employers are not required to provide employees with retirement plans, health or life insurance or paid vacations, holidays or sick leave. “However, this usually becomes a competitive issue,” says Hubbartt, “since it’s hard to attract and retain good employees without offering at least a minimal benefits package.”

There is flexibility in determining pay periods for your employee: You may pay daily, weekly, biweekly, semi-monthly, quarterly, semi-annually or annually. Weekly and bi-weekly pay periods are the most common. Employees may be paid an hourly wage (these are known as non-exempt employees) or salary (exempt employees). Non-exempt employees must be paid time and one-half their regular rate of pay for overtime (any time worked beyond 40 hours).