As a business owner or management figure, you know compliance with things like labor laws, tax reporting, and other regulations is important – but you may not have time to focus constantly on it. Many businesses look to outsource these HR compliance support needs to third parties, and one of the top examples is the use of a PEO.
At WTA Inc., we’re proud to serve as a top PEO organization in Salt Lake City, helping businesses with a huge range of HR solutions – including handling regulatory and government compliance areas on your behalf so you can focus on growth and other day-to-day areas of your business. Here are some ways PEO compliance support will help business owners and managers shift their focus to internal growth and related topics, and how our services aid in both compliance and several related business areas.
Common Compliance Burdens for Businesses
Here are some of the common burdens that businesses face when it comes to regulatory and government compliance:
- Labor laws: Businesses must ensure they are complying with all labor laws and regulations, which can include minimum wage requirements, overtime pay, employee classification, and more.
- Tax compliance: Businesses must file taxes accurately and on time to avoid penalties or audits from the IRS.
- Workplace safety: Employers are responsible for providing a safe working environment for their employees and complying with Occupational Safety and Health Administration (OSHA) standards.
- ACA requirements: The Affordable Care Act (ACA) mandates that businesses with a certain number of employees must provide health insurance options to their employees.
- Non-discrimination laws: Employers must adhere to federal and state laws prohibiting discrimination in hiring, pay, promotions, and other employment decisions based on factors such as race, gender, religion, or disability.
In addition to these specific legal requirements, businesses also have a responsibility to maintain ethical standards in the workplace. This can include fostering a culture of inclusivity and diversity, promoting work-life balance for employees, and treating all employees fairly and respectfully.
How Compliance Mistakes Can Hurt Business Growth
There are a few ways in which compliance mistakes can hurt business growth. These include:
- Legal consequences: Failure to comply with employment laws and regulations can lead to costly legal consequences, including fines and lawsuits. This not only affects the company’s finances but also its reputation in the industry.
- Loss of talented employees: Non-compliance with ethical standards can create a toxic work environment that drives away talented employees. This can hinder business growth as finding and retaining skilled workers is crucial for success.
- Negative impact on brand image: In today’s digital age, news about non-compliance or unethical practices spreads quickly, potentially damaging a company’s reputation. This can lead to loss of customers and clients, hindering business growth.
Value of a PEO to Manage Compliance
PEOs often play a central role in managing regulatory and government compliance needs for businesses, and they offer value in several ways:
Saving Business Owners Time
One of the biggest benefits of partnering with a PEO is that it saves business owners time. Instead of spending hours researching and understanding various regulations, business owners can rely on their PEO to handle compliance issues. This frees up valuable time for business owners to focus on other important tasks like growing their business, scaling operations, and building relationships with clients and employees.
Access to Expertise
PEOs have a team of experts who specialize in managing compliance needs. These professionals have a deep understanding of various regulations and laws that businesses need to adhere to, including tax codes, labor laws, and health insurance regulations. This expertise is invaluable for small business owners who may not have the resources or knowledge to navigate complex compliance requirements on their own.
Reducing Risk
Compliance violations can result in hefty fines and penalties for businesses. By partnering with a PEO, businesses can reduce their risk of non-compliance. PEOs stay up-to-date on changing regulations and ensure that their client companies are following all necessary protocols. This can save small businesses from costly penalties and legal repercussions.
A PEO can provide guidance on best practices for risk management. They can help businesses implement safety protocols, train employees on proper procedures, and conduct regular audits to identify potential areas of risk. By proactively addressing these risks, businesses can prevent accidents and minimize the chances of facing expensive lawsuits.
Guidance Across Multiple States
When it comes to employment laws, each state has its own unique regulations and requirements. This can be overwhelming for small businesses that operate in multiple states or plan on expanding their operations to other states. A PEO can help navigate the complexities of employment laws by providing guidance on compliance with state-specific regulations.
A PEO can assist with managing payroll taxes, workers’ compensation insurance, unemployment insurance, and other important administrative tasks related to hiring and retaining employees across different states.
As you can see, PEOs can play a massive role in helping businesses focus on growth while managing compliance on your behalf. At WTA Inc., we’re here to do just that – contact us today to learn about our PEO compliance support or other services for SLC businesses!