As a startup CEO, your focus is on finding new customers and growing the business. However, HR compliance, which involves doing a lot of administrative “stuff” to meet various government regulations, is paramount in creating a sustainable business.
Here are four HR compliance concerns every startup CEO should consider.
1. Workplace discrimination. Race and sexual discrimination are the first and second most prevalent forms of workplace complaints. But few businesses provide training regarding racial and sexual harassment. Employer liability has been increasing in other areas too — pregnancy discrimination, disability discrimination and retaliation claims.
2. Benefits regulations not being followed. For startups offering retirement and other benefits, keeping up with regulations and changing laws can be daunting. Required tests must be conducted, plan provisions must be properly applied, required notices provided to employees, and government filings completed. Plus there’s the alphabet soup of HIPAA, COBRA, FMLA and the rest to consider.
3. Payroll (and paperwork) compliance. Payroll compliance requires that you stay on top of everything, including: tax deposits and filings, new hire reporting, benefit changes, and labor law postings. And with every new hire comes a mountain of paperwork.
4. HR functions not coordinated. HR processes tend to “live” in different parts of the organization, yet they’re utterly dependent upon one another. For example, for the correct benefit deductions to be taken out of an employee’s paycheck, accurate information must flow to and from payroll. Payroll data and benefits record keeping need to work in sync.
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