Business policies and regulations are constantly changing. If you want to succeed in today’s competitive marketplace, you need to stay ahead of the game. Let’s see below some of the business policies and regulations.
All employees must be paid on time in full every pay period
(Employees should get their first paycheck no later than 5 days after they start work). Payroll is one of the best ways for businesses to ensure that all their employees receive all amounts owed to them at the end of each month. This can include payroll deductions such as withholding taxes or Social Security payments from employees’ checks. It also includes employee paychecks that contain a portion withheld as payment for benefits such as health insurance. When employers fail to make timely, regular and accurate payroll deductions – this can put you at risk of violating federal law.
Your worker’s compensation records have to be kept current
In California, an employer should keep his/her business record files for workers’ compensation coverage reasonably current. The state requires that within five years after the last day worked for an employer, a copy of any report, record, claim or document related to a worker’s injury or death shall be made available to the Department. These records include, but may not be limited to, medical reports of injuries received by injured workers, wage statements, and other personnel records, including employment applications and correspondence.
You must maintain your general liability policy
General Liability Insurance protects your business against lawsuits brought by customers and others who are injured due to negligence of your business. Without this type of business liability insurance, there would be no way of paying claims of those who were hurt because of your negligence. A good general liability policy will cover property damage and acts of third parties that are covered under Part One of your commercial auto policy. For example, if someone slips and falls at your store because it was wet outside, you probably do not want to exclude this situation from your general liability coverage. There are many types of companies that don’t require insurance and that’s fine – but even the ones that do insure themselves have different limits and deductibles so check to make sure yours covers what you need to protect yourself.
Record-keeping requirements for small businesses
Whether you have one employee or 100 if you earn $50,000 per year or more, you’re required to file and keep certain tax forms and records with IRS. Small Business Paperwork Simplified provides help with these and other paperwork needs
Employers are legally responsible for providing safe working conditions for their employees. To minimize risks to employees arising out of unsafe practices or hazardous environments, employers must comply with OSHA safety standards. OSHA plans, implements and enforces workplace safety standards for over 200 industries. Under its jurisdiction, OSHA issues citations, audits workplaces, carries out inspections, conducts education campaigns, and awards grants.
In conclusion, having a solid understanding of how payroll works is important so that you know where you stand about meeting your state’s payroll laws, and that when a crisis arises you’ll be able to effectively manage expenses and meet your payroll obligations.