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Hiring Your First Employee

Reviewed by Jack Forbush, DO · last verified 2026-09-22 · what this means

Quick Summary: Most DPC practices can operate solo for years. When you do hire, start small - a part-time medical assistant or office manager is usually the right first step. Don't rush this decision.


Do You Actually Need to Hire?

Before hiring, ask yourself:

Challenge your assumptions: - Can you handle 400-600 patients solo? Many DPC physicians do (rule of thumb; unsourced). - Is your time constraint real or perceived? - Would systems improvements or technology help more than an employee? - Could you outsource specific tasks instead of hiring?

Signs you might be ready: - Consistently working more hours than sustainable - Turning away patients due to capacity - Administrative tasks preventing patient care - Phone management becoming overwhelming - You want to take a real vacation

Signs you're NOT ready: - Panel under 300 patients (rule of thumb; unsourced) - Not yet profitable or barely breaking even - "It would be nice to have help" (not a business need) - Trying to grow faster than sustainable


First Hire Options

Medical Assistant (Part-Time)

Best for: Practices with 400+ patients wanting to increase efficiency (rule of thumb; unsourced)

Typical duties: - Room patients, vitals - Prepare for visits - Simple procedures assistance - Phone triage - Prescription refill coordination - Lab result follow-up

Typical cost: $17-29/hour, 15-25 hours/week ≈ $1,100-3,140/month (estimate; the wage range brackets the BLS May 2025 national median of $21.97/hour, 10th percentile about $17.33)

Office Manager / Administrative Assistant (Part-Time)

Best for: Physicians who want to focus purely on clinical work

Typical duties: - Phone management - Scheduling - Membership billing - New patient enrollment - Correspondence - Supply ordering

Typical cost: $18-30/hour, 10-20 hours/week ≈ $780-2,600/month (estimate; local rates vary)

Virtual Assistant (Remote)

Best for: Practices wanting minimal overhead and flexibility

Typical duties: - Phone answering - Scheduling - Insurance verification (for patients) - Prior authorizations - Administrative tasks

Typical cost: $15-35/hour, as-needed basis (estimate; unsourced)


The Hiring Process

1. Define the Role

Write a clear job description including: - Specific duties (be detailed) - Hours and schedule - Required skills and experience - Nice-to-have qualifications - Your practice culture

2. Determine Compensation

Research local rates for: - Medical assistants: $17-29/hour (BLS May 2025: median $21.97/hour, 10th percentile about $17.33) - Office managers: $18-35/hour (estimate; local rates vary) - Consider benefits (or not for part-time)

For part-time staff: No federal law requires a one-employee practice to offer health benefits at any hour count; the employer mandate in 26 USC 4980H applies only to employers with 50 or more full-time-equivalent employees. State paid-sick-leave laws (California, Washington, Arizona, Colorado, New York, Minnesota, Illinois and others) often cover part-time workers, so check your state.

3. Recruit Candidates

Sources: - Indeed, ZipRecruiter (broad reach) - Local medical assistant programs - Word of mouth (patients, colleagues) - Local healthcare job boards - Facebook local job groups

Your DPC advantage: Many healthcare workers are burned out. Emphasize: - Small, personal practice - Meaningful work - No insurance hassles - Better work-life balance

4. Interview Process

Phone screen (15 minutes): - Basic qualifications - Schedule compatibility - Salary expectations - Why interested in DPC

In-person interview (30-60 minutes): - Detailed experience discussion - Scenario questions - Culture fit assessment - Questions they have

Working interview (2-4 hours, paid): - Actual practice tasks - Interaction with you - See them in action - Best predictor of success

5. Background and References

  • Reference checks (at least 2)
  • Background check if required
  • Verify credentials/certifications
  • Drug screening if applicable

Employment Basics

Employment Type

W-2 Employee: - You withhold taxes - You pay employer taxes (FICA match) - You control schedule and methods - Most common for ongoing roles

1099 Independent Contractor: - They handle their own taxes - Limited control over methods - Risk of misclassification - Generally not appropriate for regular staff

What changed recently

The Department of Labor's 2024 independent-contractor rule is no longer being applied in enforcement; a rescission was proposed on 2026-02-26 and no final rule had issued as of 2026-09-22 (DOL 2026 rulemaking). For payroll taxes the IRS common-law control test governs regardless. A medical assistant who works your schedule under your supervision is an employee, not a contractor.

Required Documentation

  • W-4 (employee tax withholding)
  • I-9 (employment eligibility): you must complete Section 2 within three business days of the hire date (8 CFR 274a.2(b)(1)(ii)). E-Verify is voluntary under federal law but mandatory in some states
  • State tax forms (varies by state)
  • Direct deposit authorization
  • Employee handbook acknowledgment

Required Postings

Four federal posters (FLSA, OSHA, EPPA, USERRA) are required of every employer regardless of size; see the legal checklist below. Separately, check your state requirements for: - State minimum wage poster - Workers' compensation notice - Other state-specific postings

Insurance Considerations

Workers' compensation: Required in most states from the first employee, but Texas coverage is elective and several states set thresholds of two to five employees; see the legal checklist below

Employment practices liability: Optional but recommended

Update business insurance: Notify your carrier of employees


Federal rules that apply from the first employee, with thresholds as of 2026-09-22:

  • EIN and unemployment tax. Get an Employer Identification Number before the first payroll. Federal unemployment tax (FUTA) applies once you pay $1,500 or more in wages in any calendar quarter, or have an employee on any day in each of 20 different weeks of the year (26 USC 3306(a)(1)); file Form 940 annually. Register with your state unemployment-insurance agency as well.
  • New-hire reporting. Report the employee's name, address, Social Security number and hire date, plus your name, address and EIN, to your state's new-hire directory within 20 days of hire (42 USC 653a(b)(1)).
  • Form I-9. Complete Section 2 within three business days of the hire date (8 CFR 274a.2(b)(1)(ii)). E-Verify is voluntary federally and mandatory in some states.
  • Minimum wage and overtime. The federal minimum wage is $7.25/hour (29 USC 206(a)(1)(C)); most states set a higher one. Both roles described above are non-exempt: pay overtime at one and a half times the regular rate for hours over 40 in a workweek. An employee is exempt only if paid a salary of at least $684/week ($35,568/year) and performing exempt duties (29 CFR 541.600). The 2024 rule raising that threshold was vacated in Texas v. DOL on 2024-11-15, and DOL restored the 2019 text effective 2026-05-15 (DOL release). California, New York, Washington and Colorado set higher salary thresholds.
  • Federal posters. Every employer must display the FLSA minimum wage poster (29 CFR 516.4), the OSHA "Job Safety and Health" poster (29 CFR 1903.2), the Employee Polygraph Protection Act notice (29 CFR 801.6) and the USERRA notice (38 USC 4334). The EEOC poster applies at 15 employees and the FMLA poster at 50. State posters are separate; the DOL elaws Poster Advisor lists the federal set.
  • Workers' compensation. Required in most states from the first employee, but thresholds vary: Texas coverage is elective (Tex. Labor Code § 406.002); Florida requires it at four or more non-construction employees (Fla. Stat. § 440.02(17)(b)2); Alabama, Georgia, Missouri, Mississippi, New Mexico, South Carolina, Tennessee, Virginia, Arkansas, Michigan and Wisconsin set thresholds of two to five employees. Check your state before assuming you are exempt.

OSHA bloodborne pathogens for a clinical hire

A medical assistant who could be exposed to blood is covered by 29 CFR 1910.1030 from the first day. You need a written Exposure Control Plan, personal protective equipment at no cost to the employee, the hepatitis B vaccine offered within 10 working days of assignment at no cost, and annual training. The small-employer exemption for practices with 10 or fewer employees (29 CFR 1904.1) covers only injury and illness recordkeeping, not the bloodborne pathogens standard.


Payroll Options

DIY Options

Gusto: about $49/month + $6/person (as of 2026-03-01, from secondary sources; Gusto's pricing page blocks automated checks, so confirm current pricing on gusto.com) - Easy to use - Handles all filings - Good for small practices

QuickBooks Payroll: bundled accounting-plus-payroll plans at $88, $125 or $203/month plus $6.50-$10 per employee per month (Intuit pricing page, September 2026; promotional pricing changes often) - Integrates with QB accounting - Full service available

Full-Service Payroll

ADP, Paychex: More expensive but handle everything - Better for multiple employees - Include HR resources

Accountant-Handled

Many small practice accountants will handle payroll - Usually included in monthly fee - Convenient if you already have a relationship


Training Your First Hire

Week 1: Orientation

  • Practice overview and DPC philosophy
  • EMR training
  • Phone protocols
  • HIPAA training
  • Basic procedures

Weeks 2-4: Supervised Practice

  • Shadow you during patient encounters
  • Gradual independence on tasks
  • Regular feedback
  • Adjust training as needed

Ongoing

  • Weekly check-ins initially
  • Clear communication channels
  • Performance feedback
  • Continued education

Common Mistakes to Avoid

  1. Hiring too soon - Wait until truly needed
  2. Hiring a friend/family member - Professional boundaries matter
  3. Not checking references - Always verify
  4. Unclear expectations - Document everything
  5. Skipping the working interview - Best predictor of fit
  6. Overpaying or underpaying - Research local rates
  7. No written policies - Create simple employee handbook

When It's Not Working

If your hire isn't working out:

  1. Address issues early - Don't let problems fester
  2. Document concerns - Written warnings if needed
  3. Set clear improvement timeline - 30-60 days
  4. Know your state laws - Termination requirements vary
  5. Consult attorney if unsure - Employment law is complex

Alternatives to Hiring

Before hiring, consider:

  • Outsourced answering service: $100-300/month (estimate; unsourced)
  • Virtual scribes: Per-visit or monthly
  • Billing service: If you do any fee-for-service
  • Cleaning service: Don't clean your own office
  • Technology automation: Reduce administrative burden

Resources

Sources checked against primary law and agency guidance on 2026-09-22.


Note

Employment law varies significantly by state. Consult with an employment attorney or HR professional for state-specific requirements.

Educational Content Only

This is educational content, not legal or financial advice.

  • Regulations vary by state and change over time
  • Always consult a healthcare attorney for legal matters
  • Always consult an accountant for tax and financial matters
  • Verify current requirements with official sources

Most successful DPC practices operated solo for years before hiring. There's no rush - hire when you truly need it, not because you think you should.