Guest Column | October 6, 2014

Your Small Business Is Compliant, Right? Probably Not.

By Robyn Porter, Human Resources Manager & Consultant, HTG Peer Groups

I can hear you saying, “Why yes, of course it is!  We’ve crossed all our T’s, dotted all our I’s, paid a lot of money to get it right, WE’VE GOT THIS!”  And I’m sure you do...when it comes to the IRS, OSHA, and whatever other agency we can think of with regard to your operational structure.  But what about your HR processes?  Can you honestly say you’ve got this?  I’m betting you can’t.  And here are some reasons why:

  • Did you know you need to provide all employees proper labor postings?  Even if they don’t work in your home office?  That they need to be state-specific for each employee?  And that it can cost you hundreds if not thousands of dollars in fines if you don’t do so per employee?
     
  • How about I-9s?  Were you aware that the forms themselves have different completion dates?  That they need to kept separate from your regular personnel files?  That there is a new guideline for destruction of those I-9s that requires your using a retention calculator?
     
  • What about updates to the PPACA (Patient Protection and Affordable Care Act)?  Is your company an “Applicable Large Employer?” (Hint:  If you have more than 50 employees, you should look at this.)  If so, you may be responsible for the “Employer Shared Responsibility” payments provision added in February. This is different than the $2,000 per eligible employee tax burden you will pay if you don’t carry health insurance. Did you know your business may qualify for the Small Business Health Care Tax Credit?

Now I can see the wheels spinning.  I’m not trying to scare, but rather educate so you can begin the dialogue with your leadership team around how your company will stay on top of all the changes that can impact your operation. It can seem virtually impossible, and with all the other responsibilities your team has, it can also seem overwhelming and one more bucket you simply don’t have time for. But I assure you, building into your operational plan a way to manage the HR bucket is just as important as managing any other aspect of your business. Proper compliance directly impacts your EBITDA (earnings before interest, taxes, depreciation, and amortization) and the cost of non-compliance far outweighs the effort it will take to ensure proper best practices. There are many resources available to help small businesses manage HR compliance ranging from free [the U.S. Small Business Administration (SBA)] to expensive labor attorneys.  Being audited by an HR professional can be an effective and affordable solution as well.

I’ll leave you with this:  A recent court of appeals assessed a $42,000 penalty to a company for not sending proper COBRA notification to an employee. All it takes is one complaint from a disgruntled employee to have a big impact on your operation. I did say I wasn’t trying to scare you, right?

Robyn Porter is a Human Resources Manager of 20+ years and Consultant with HTG Peer Groups.  Her background includes the IT, Hospitality, Distribution, Entertainment and Gaming industries, and from operations to ownership to corporate human resources.  Her passion lies in the SMB space helping businesses to maximize HR processes and successfully navigate the challenges.  You can reach her at rporter@htgpeergroups.com or find her on LinkedIn or Twitter at @RobynTheHRLady.

About HTG Peer Groups.  HTG Peer Groups is an international organization of leading IT solution providers with nearly 300 member companies.  In everything they do, whether running peer groups, coaching, or consulting with clients, the HTG team looks to make a positive difference in the lives and businesses of those they serve.  Visit www.htgpeergroups.com or call 712-794-7994 for more information.