The Risk of Poor Payroll Reporting
Tracking time, reporting overtime and ensuring proper payroll practices overall can be time consuming and burdensome for small businesses. However, did you know not following the letter of the law when it comes to wage and hour regulations can put you and your business at risk? Improper timekeeping practices can result in violations of federal overtime rules. Failing to follow wage and hour regulations can result in penalties, backpay, damages, fees and, in some cases, even criminal prosecution. If your timekeeping policies aren’t consistently meeting standards, your business can be at risk. Perhaps even more frightening is the fact that under the Fair Labor Standards Act (FLSA), employers, supervisors, executives and others who fall under the broad definition of “employer” can be held liable as well. Do your managers realize what is at stake if they don’t follow and enforce applicable laws?
Of course, it is important for employers to remember that states also have overtime laws, so following the FLSA isn’t enough. It is critical that your company complies with both federal and state laws related to overtime, minimum wage, benefits and salary regulations. Unfortunately, few business owners are experts when it comes to wage and hour regulations and proper timekeeping practices. However, hiring the necessary experts to ensure your company’s compliance with payroll and employment laws is not an option many small and medium-sized businesses can afford. The solution for employers like these is clear – outsourcing critical HR, payroll, benefits and risk management functions to Spirit HR is a cost-effective solution to take the burden off the employer while ensuring compliance and mitigating employment risk.
Spirit HR offers its clients expert guidance in everything from timekeeping and payroll tax compliance to personnel issues and employee benefits. In addition to delivering HR, employee benefits, payroll and payroll tax administration and more, Spirit Human Resources’ client-centric approach makes it the ideal partner to meet the needs of your business. The ideal combination of high-tech, cloud-based HRIS paired with highly educated, dedicated professionals, Spirit HR helps you navigate the tricky terrain of being an employer.