Looking Ahead to 2021
December 30, 2020
Signal 88 Security Case Study: Saving Small Business Resources
January 15, 2021
At Next Level Solutions, we understand the complexity of managing HR compliance and the risks of getting it wrong. Avoiding catastrophic HR mistakes starts with implementing clear policies and following essential legal guidelines. Here are some of the most critical areas to address in your business.
Employee Classification
One of the most common HR mistakes is misclassifying workers as employees or independent contractors. Employees work under your direction, while independent contractors decide how and when to perform their tasks. Misclassification can lead to payroll tax issues and legal penalties.
I-9 Compliance
Every new hire must complete an I-9 form within three days of starting work. Employers must verify original documentation to confirm employment eligibility. Failing to comply can result in significant fines.
Workers’ Compensation
Workers’ compensation is required for all employees. Independent contractors, however, should provide proof of their own coverage. This protects your business from liability for work-related injuries or illnesses.
Payroll Taxes and Overtime
Payroll taxes must be deducted and remitted accurately. Understanding overtime eligibility is equally important. Non-exempt employees must be paid 1.5 times their hourly rate for all hours over 40 in a workweek. Mismanagement of overtime can lead to legal and financial consequences.
Final Pay and PTO
When employees leave, they must be paid all earned wages by the next regular payday. This may include unused vacation or paid time off, depending on your policy.
Proactive HR Solutions
Prevent HR disasters by maintaining updated employee handbooks, legal employment applications, and accurate job descriptions. At Next Level Solutions, we also assist with background checks, performance documentation, and harassment or discrimination investigations.
Stay Current and Cautious
Online templates and outdated documents can create inconsistencies. Always review HR materials with a trained professional to ensure compliance and relevance.
Let Next Level Solutions help you manage your workforce and avoid costly HR mistakes. Together, we’ll create a foundation of compliance and success. Contact us to get started!