No matter how big or small, or how long you have been in business, making sure you’re on top of compliance requirements is important. Software, like the kind from Reciprocity Labs, can help you keep everything organized, but what if you’re a brand-new business and you’re trying to get the whole compliance thing figured out for the first time?
There are a few things that are helpful to know when you’re entering the world of compliance. Here are a few concepts that will provide you with a great start.
Overtime
When it was just you, overtime wasn’t a problem. You probably put in countless hours of blood, sweat, and tears to get your business off the ground. But now that you have a few employees, overtime can become a real problem.
Obama-era regulations would have doubled the salary threshold for overtime eligibility. The rule was invalidated in August of 2017, but a more modest rule is predicted in the future. And that’s in addition to the overtime rules that are already in place.
Take a close look at local regulations to make sure your employees are being paid fairly for the time they work.
Paid Sick Leave and Vacation Time
Paid sick leave isn’t required according to the law in some states, but in others, it is. It is important to figure out if these laws are in place where you live.
Employers do not have to offer vacation time in order to be in compliance. However, there are other types of time off that must be provided to employees that include:
- Time off to vote
- Jury duty leave
- Family leave
- Medical leave
- Pregnancy and maternity leave
- Military leave
Sexual Harassment
Sexual harassment is a big deal, especially in today’s cultural climate. A single incident can cause huge problems for any business, but it can be enough to put a small business under water. The trick is to develop a policy that prevents it from happening in the first place.
Make sure you develop a sexual harassment policy that complies with all local, state, and national laws. That will likely mean including signed acknowledgement forms, reporting guidelines, and formal training to your employees.
Taxes
It doesn’t matter what kind of taxes you’re dealing with, they’re always a pain, but learning how taxes work with a new business can be especially nerve-racking.
An end-of-the-year tax strategy might include deferring income, making purchases for your businesses, or running an inventory check. However, there’s a lot more to your tax strategy than figuring out what to do at the end of the year.
The structure of your business will determine your tax strategy throughout the year. For example, LLCs require separate tax forms for businesses and owners, while others don’t. And don’t forget to apply for an employer identification number (EIN)! That way you don’t have to give out your Social Security number to customers, clients, or employees.
This is just a beginning, but it’s a good start. These tips will help you get started on your compliance strategy so something seemingly insignificant doesn’t destroy your business.
