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When you’re running a business, it can be difficult to know if you’re following all the necessary laws and regulations governing your business. However, the consequences of non-compliance with the relevant rules can be devastating. After all, even Al Capone couldn’t escape from the IRS.
If you’re running a small business, it can be difficult to keep up with all the necessary federal and state requirements. Professional employer organizations (PEOs) offer one solution to companies just like yours. When you trust a PEO to handle your HR needs, you have the power to ensure your legal compliance.
Finding the right PEO to handle your business can be difficult. At NetPEO, we offer a simple solution: let us find the PEO for you. Our practice of analyzing your business needs means you get recommendations for PEOs that specialize in helping companies just like yours. When you’re ready to learn more, call (678) 376-1212 to speak with one of our PEO brokers.
Related: Does Your Company’s HR Department Need a Policies and Procedures Manual?
Consequences of Non-Compliance
There are many major laws affecting small businesses, both at the federal and state level. As such, there are varying consequences for non-compliance. These variations occur because of differing laws, how extensive the violation was, and how much foreknowledge was involved in the violation.
Fines
Fines are a common punishment for instances of non-compliance. They often entail paying back any withheld money along with an additional punitive amount. For example, the IRS might require you to pay back the taxes you filed to declare properly along with an additional fee based on what you earned from the withheld taxes.
Prison
Prison sentences can be issued for individuals found to be in non-compliance with certain laws. These prison sentences will depend on the relevant jurisdiction of the offense and can range from several months to years in prison.
Damaged Reputation
While a damaged reputation might not seem as bad as hefty fines or a prison sentence, it can be potentially fatal for your business. Businesses known for non-compliance can have trouble attracting vendors and clients alike.
Business Closure
While the aforementioned consequences can eventually lead to the demise of your business, certain violations could result in the immediate closure of your company. Business can be closed for non-compliance, either but federal, state, or local officials.
Related: How PEOs Help With Taxes
Areas Where Non-Compliance Can Creep Up
There can be many areas where non-compliance can hurt your business. It’s important that you’re able to identify areas where your company is likely at risk for non-compliance.
Worker Safety
State authorities and OSHA at the federal level monitor businesses to ensure that workers can do their jobs in a safe environment. Even if no one is hurt at your job, these agencies can penalize your business for unsafe working conditions.
Employee Compensation
Federal and state laws have certain compensation requirements that must be met for employees. Employees must be paid no less than the relevant minimum wage, as determined by state or federal law. Likewise, some or all your employees may be eligible for health insurance benefits.
Discriminatory Employment Practices
While the laws vary across states, there are many areas in which discrimination will negatively impact your business. Hiring and firing decisions, even in right to work states, cannot be made on the basis of certain prohibited characteristics.
Related: Does a PEO Arrangement Impact a Collective Bargaining Agreement?
How a PEO Can Help You with Legal Compliance
When your business decides to sign a co-employment agreement with a PEO, you are giving the organization the responsibility to handle certain HR functions. Depending on the sort of agreement you sign, this can mean a large portion of the responsibility for your legal compliance can shift to the PEO. Your PEO can be responsible for making wages are paid properly (including garnishments), taxes are paid on time, and even handling workers’ compensation claims.
NetPEO wants to help you find the right PEO for your business. We understand that there are nearly 1,000 PEOs operating in the U.S. today and finding one that understands your business needs can seem daunting.
Fortunately, our PEO brokers are ready to help you. We specialize in understanding small businesses just like yours and working with you to determine what PEO services best suit your unique needs. We provide you with a curated list of PEOs from our national network of trusted partners and we help you negotiate an agreement that puts your business interests first.
Call (678) 376-1212 or connect with us using the forms on the right to arrange your consultation today!
