Payroll Pros: Watch Out For These Non-Compliance Warning Signs!
Payroll professionals know better than most that compliance is a complex endeavour with ever changing rules to abide by. If you’ve chosen a Human Capital Management software such as UltiPro, then you’re definitely ahead of the game. The functionalities you have on hand can save you from hefty fines and more.
Here we review some of the key warning signs that your company may be lagging when it comes to compliance.
You’re Not Integrated
Tracking time and attendance accurately is key to wage and hour compliance. After all without proper records of absences, overtime, leave, sick days etc. it is highly unlikely that you will have an accurate payroll that is compliant with both internal and regulatory guidelines. As such your payroll,time and attendance, and other systems should be talking to one another.
It is through this integration that you attain a seamless automation process by which you reduce the chances of errors and enhance your payroll accuracy and compliance. The ability to automatically get time and attendance data for payroll processing is a key feature in your HCM software. Without it it is much more likely that payroll errors and non-compliance will happen.
Luckily with UltiPro you can quite effortlessly do this within the software, processing payroll from start to finish and retrieving time and attendance information easily. If you haven’t activated this capability get in touch with a knowledgeable HCM consulting firm such as Covalence Consulting Inc. to make sure you are using all features effectively for compliance.
You’re Not Doing Regular Data Checks
Rarely checking your data increases your chances of non-compliance. With significantly more information to comb through and review it is more likely that an important issue may be missed. Beyond this laws and legislation have likely changed and data from a year ago will need to be looked at through the lens of old legislation. If your company has offices across the United States, this gets more cumbersome as state law and state-specific legislation will come into play. To avoid this track and review your data annually to catch any issues right away and to have time to correct them. Remember, don’t wait for looming annual deadlines when workload is increased.
You Haven’t Done a ‘Health Audit’
You have a large, diverse workforce. When some are full-time employees, while others may be contractors and all are located in different states or maybe even countries, it is more than likely that come element of compliance may be lagging. Beyond this legislation, state (or even international) laws change, new regulations come in and so on and so forth. Having a ‘set it and forget it’ mindset can result in hefty fines for your organization. At the same time trying to tackle the mammoth job of ‘compliance’ all at once can seem daunting.
To address this do a regular ‘health audit’. To do this take account of all locations where you have workforce. Then make a list of current laws you must stay compliant within each state or country. Breakdown your staff by location and look at your current compliance standards and settings for staff by location. Through looking at your compliance in comparison to current laws by location you make checking organization wide compliance levels are a more doable task. Do this ‘health audit’ every 6 months or so.
Your ‘health audit’ should also look at your organization internally. Look for updates to company policy and internal rules as well as changes to union policy.
Also remember with a team of HCM consultants and the right HCM software such as UltiPro, you can streamline the process of getting compliant. For example, UltiPro provides U.S. federal, state and local tax updates automatically every quarter. With this tax management system activated you can easily handle all elements of taxation processing from within your system.
Contact Covalence Consulting Inc. regarding how we can help you address both governmental and internal compliance concerns.We can work with your Compliance, Human Resources, and Legal teams to optimize your current deployment and also address any compliance concerns.