Self-employment and business

Employing your first worker

Prepare employer registration and payroll before starting.

3 minutes to read Last checked: 20.10.2026
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Important to know

Tachles Israel is an independent information service, not a government authority. Check binding conditions, eligibility and deadlines with the official source.

Before you start

Withholding registration is only part of your duties.

Who is this guide for?

Businesses hiring a first employee in Israel.

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Conditions and exceptions

The example concerns an Israeli resident; foreign and household workers have different routes.

Step by step

The checklist

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Your progress0 of 5 Steps
01

Define the relationship

Record role, start date, hours, pay and conditions; seek advice if status is unclear.
What should you prepare?

Employment terms.

Please note

Calling someone freelance does not settle their status.

02

Open withholding registration

Follow income-tax registration and confirm transfer/opening of the National Insurance employer file.
What should you prepare?

Business details.

Please note

An application is not a registration confirmation.

Official informationThis link opens an external website↗
04

Arrange pay and rights

Check written terms, hours, payslips, pension and applicable duties with payroll support.
What should you prepare?

Employment/payroll records.

Please note

This is not every sector’s complete duty list.

05

Check first reporting

Complete the insurance questionnaire and retain filings/payments; reconcile payroll and later issue 106 as required.
What should you prepare?

Payroll confirmations.

Please note

A payslip does not prove benefits were transferred.

Official informationThis link opens an external website↗

Official sources

These links let you check with the responsible authority. The website's verification date does not guarantee that every detail has remained up to date since then.

Frequently asked questions

Does opening withholding fulfil all duties?

No. Arrange employment terms, payroll, reporting, payments and applicable rights.

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