Start typing and press Enter to search

Payroll & Tax Regulations for Small Businesses

Payroll & Tax Regulations for Small Businesses

Hiring staff? Good for you! It means your business is thriving. Now is the time to get up to speed or reacquaint yourself with any labor laws you’ll need to be compliant with. Labor laws were created to protect employees’ rights. If you’re vigilant, you can avoid financial headaches. Here’s some advice to stay on track with labor law requirements:

  • What state and federal labor laws apply to your business? While federal laws apply across the country, there are variations based on your specific situation—work with qualified experts. For example, you will have to post notice requirements for the Age Discrimination in Employment Act if you employ 20 or more workers. In addition, each state has its own rules.
  • Create a compliance checklist. You’ll likely be required to place both state and federal labor law posters in prominent places in your workplace.
  • Compile an employee handbook. Give your employees helpful information about their rights and benefits while helping reduce misunderstandings. Update it as laws and policies change, and make sure every employee has acknowledged in writing receiving the handbook and updates.
  • Perform a job discrimination self-audit. Discriminatory practices can open you up to potentially costly employee grievances. A periodic labor law compliance audit keeps noncompliance from wrecking your company’s future.
  • What anti-discrimination rules and regulations should you be on top of? For example, Title VII of the Civil Rights Act, a federal law, prohibits both race and gender discrimination in businesses. Again, review your local state rules too.
  • Use an employment agreement. Always use one to legally solidify your employment relationships. It protects your rights as well as those of your employees. You can use a customized employment agreement template or hire an attorney to draft one for you. This is one business document you should never dispense with.

The major federal laws

These are the major places small businesses can make mistakes, often inadvertently. Be sure you’re on top of these:

Be proactive to reduce potential consequences of noncompliance. Keeping up with federal labor laws as well as state and local regulations helps you build a sustainable long-lasting business. You can decide to work with a payroll service provider or a professional employer organization that can help conduct a labor law compliance audit to identify potential violations so you can continue running your business without a hitch.

Looking for more HR help? Work with a certified HR Consultant today.


Reply a Comment



This blog is for informational and educational purposes only. It does not constitute legal advice, and cannot constitute legal advice, because the authors are not licensed attorneys. Readers should not rely or act upon any information presented on this blog without seeking professional legal counsel. The views expressed in each post are those of the author, and the author alone; they are not the views of Ahola. The information provided in this blog is general, and based on information available as of the date of publishing. Information herein is provided on an “as is” or “as available” basis; we make no warranty of any kind to you regarding the information provided and disclaim any liability for damages from use of the blog or its content. Please consult an attorney to obtain advice with respect to any particular question or issue.