Staying compliant is an important part of any business, no matter the size. Because your HR department deals with a variety of issues on a daily basis, staying compliant becomes a bigger responsibility for them in particular. Being aware of the most common compliance issues allows your HR department to prevent any problems if your company were to get audited. There are specific guidelines and regulations that your HR staff should follow in order to stay compliant such as the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act, the Uniform Services Employment and Reemployment Rights Act, Federal Civil Rights, and so on. Make sure your HR staff is aware of all these and are following them correctly. There are many compliance issues that your HR staff might have to face at some point and I would like to address 3 of them in this blog that you might find helpful, regardless of whether you are new to HR or experienced.
The Affordable Care Act (ACA)
ACA, also known as Obamacare, is the health care reform law enacted in March of 2010. It requires that employers with 50 or more full-time employees provide health insurance to full-time employees and their dependents. This law has 3 primary goals:
- Make affordable health insurance available to more people.
- Expand the Medicaid program to cover all adults with income below 138% of the federal poverty level. (Not all states have expanded their Medicaid programs.)
- Support innovative medical care delivery methods designed to lower the costs of healthcare generally.
Employers who fail to offer affordable health insurance options are subject to penalties. The ACA is one of the major issues of compliance for HR departments because the requirements were phased in over a period of several years. Are you worried about staying compliant with ACA? A great ACA reporting software will allow you to stay compliant with regulations because it will lay out which employees should be offered coverage, eliminating the need to manually calculate this. Each month the software shows you how many full-time employees you have, how many full-time equivalents you have, and what the total number of Full-Time Equivalents (FTEs) equates to. You can track all your information and even detect errors in the software so you can fix them before it is time to file. Another great advantage of using software to track your ACA reporting is at the end of the year, your software provider will file your 1095 and 1094 Forms for you. With so much change happening surrounding the ACA regulations, it is good to have a software that receives continual updates with each change. Not sure if you are required to file? This quick guide can help you our, or you can speak with an ACA expert today!
Payroll is one of the most regulated functions in an organization that must meet federal, state, and local law requirements such as tax withholding and reporting, paying employees in a timely manner, withholding child support and garnishments, and ensuring new employees are eligible to work in the United States. The legislation surrounding payroll can be confusing, so it is critical for employers and their HR department to be aware of current and changing regulations. Some of the most common payroll mistakes are the following:
- Tax Agency Requirements
- Social Security
- Garnishments and Child Support
- Sick Pay
- Employee Vs. Contractor
- Overtime Rules
- Exempt vs. Non-exempt
Did you know that having a good payroll software can keep you stay compliant with payroll? In a payroll software, taxes are calculated and filed for you with no extra work on your part. All you have to do is run your payroll and once everything looks good and you hit that ‘Accept’ button, your local, federal, and state tax payments are automatically sent. Having a good payroll software provider can also offer support every step of the way. Using a Software as a Service solution for your payroll gives you a certified payroll professional at your fingertips. If you’re in the middle of payroll and have a question about an adjustment or how to calculate a deduction, simply call or email your software provider. It could mean the difference between getting your payroll right the first time and having to rerun it later on and incur the extra cost of doing so. You can learn more about how a payroll software can help you stay compliant here.
Wage and Hours Compliance
Time tracking is at the core of compliance. Wage and hour laws include requirements for minimum wage, overtime, hours worked, child labor, and meal and break time. The FLSA is a federal law that establishes the minimum wage and overtime requirements, but it is important to keep in mind that some states have opted to have their own laws. If a company does not accurately track their employees’ time and attendance, then it results in inaccurate wages. Making sure that all employees are fairly compensated is a requirement of any business. Businesses that still rely on manual entry of payroll information are more likely to experience errors. Does this describe your company? If so, I encourage you to take these simple steps to help you process a paperless payroll. The truth is that there are many benefits for a company to go paperless. You can save money and time, it is more convenient and all the information is easily accessible, and obviously, you are helping the environment!
Finding a software solution that has both a payroll component and a time and attendance component will make the lives of your HR staff much easier - they will thank you in the end, trust me. After researching your software options, make sure that the one you decide to go with has all the features and solutions you need. For wage and hour compliance, your software solution should have all time and attendance data seamlessly connected. In other words, the software should allow information to flow back and forth between the two, eliminating the need for dual entry.
At the end of the day, the best way to stay compliant is to invest in a software that tracks your employee hours. If at any point your business is audited, you can easily pull all records from your software. Without this sort of documentation, it would be hard to prove your case in the event of an audit.
Dominion’s payroll, time and attendance, and HR management software offers a solution that can ensure your business stays compliant every year. If you are interested to see what Dominion can do for your business, request a personalized demo below!