Compliance Tips to Keep In Mind Throughout The Year
Communication is the first word that comes to mind when discussing compliance. Without communication, employees may not meet the requirements for compliance. Such misdirection is problematic and invites the prying eyes of legal branches ranging from State Governments to the IRS. With that in mind, the following tips will be of great use to small businesses trying to stay in compliance throughout the year.
- Stay proactive in policy and procedure
Every company small or large has a manual. With that, keep the state and local government’s latest mandates implemented in company policy and procedure manuals. Policy is ever changing and there are more forms in the realm of harassment and discrimination than ever. To stay in compliance, it is imperative to stay proactive in the latest laws and changes. If your business operates across multiple States, make sure each division in compliant with State laws and local governments, as laws vary from State to State.
- Every worker is involved with compliance procedures
It’s not just the people who work in payroll or the employees with ‘compliance’ in their title. Everybody that works for the company, especially in a small business, should not only remain in compliance but help with company compliance. When employees are mindful of the practices and procedures of their employers, they can lead their fellow workers to follow suit. For a small business, keeping all workers in the loop is essential to maintaining compliance. If a form is missing or a license has not been filed, a fellow worker may be able to provide their coworker, who is responsible, with a friendly reminder to do so in a timely manner.
- Keep payroll up to date
When your payroll is not in compliance, it can attract the attention of local governments. It will bring unwanted attention and can lead to deeper inspection in the company. Authorities may find additional, more costly, aspects of the company not in compliance, such as licensing and permit renewals, which can lead to additional legal trouble.
- Archive all files related to compliance
All files should be archived and backed up. Any signed contracts, employee records, expenses, and tax filings should be archived with easy access for retention. Even with cloud services, files are not immune to getting lost so backups are important.
When a company is out of compliance, the fines that accumulate mean lost revenue. With constant communication and diligence, a company can easily stay in compliance, and prevent the burden of fulfilling last minute obligations. Any business, big or small, should seek legal advice and maintain regular contact with attorneys to manage laws and regulations specific to that business. Do not turn a blind eye in regard to compliance issues as the consequences are severe. For further reference, check the websites of Department of Labor, Equal Employment Opportunity, Occupation Safety and Health Administration, and Internal Revenue Service.
Porasah White is the Compliance and Billing Director at Consultants 2 Go.