We have the checklist to keep you out of trouble
Don’t let the term “compliance” scare you. While regulatory areas can get a little rocky, our experts have compiled a helpful checklist to get you started down the path of compliance harmony.
Please note, this list isn’t comprehensive, but it does cover some areas of compliance that many startups may overlook during rapid growth. Want to stay informed but focused on other areas of your business? Growthwright’s team of professionals work with startups and small businesses to manage business compliance. Find out more information here.
Employment Compliance Issues
There are numerous regulations that apply to the way businesses manage employees. These regulations typically fall under the responsibility of HR. In recent years, legislation has greatly changed employment regulations.
Ensure that your startup or small business doesn’t overlook the following external compliance areas that have seen recent changes.
- Minimum Wage and Overtime Rule: While no changes have been made at a Federal level, many states and cities have updated their regulations regarding wage. Changes to the Overtime Rule have been paused, but your business should monitor this area carefully.
- Medical Coverage: Ensure your business complies with legislation put in place by the Affordable Care Act that concerns medical coverage for your employees. Businesses must file reports about medical coverage with the IRS when they hit 50 employees.
- Wellness Programs: Final rules were issued by the EEOC last year that affect workplace wellness programs. Read up and ensure that you are compliant with the new policies.
Other HR Compliance Issues
In addition to employment regulations, be mindful of other areas that affect HR compliance, such as:
- Data Accuracy
- Employee Classification
- Non-Discrimination Policies and Training
- Intellectual Property and Trade Secret Protection / Non-Disclosure Agreements: In particular, SaaS providers should be proactive in the protection of their intellectual property. Assess if it’s in your company’s best interest to have employees sign a non-disclosure agreement.
It’s imperative for companies to file all Federal and state taxes, as well as record accurate financial records. SaaS businesses should be particularly mindful of individual state tax laws that may affect them.
Corporate Law Compliance
Your business type dictates internal regulations regarding business operations. For example, corporations are subject to clear and documented requirements (Corporate Documentation Management) that are meant to create ethical business practices. Read a helpful list of specific corporate law compliance areas here.
Be sure to cover the following compliance areas that pertain to corporate law:
- Business Licenses
- Business Insurance
- Legal Structure and Investor Compliance Coordination: Establish the legal structure of your business from the start. Certain business entities, such as an LLC, protect the personal assets of owners.
Data Security and HIPAA Compliance
Cybersecurity and consumer/patient privacy are important liability issues for businesses. Healthcare companies should fully understand HIPAA compliance and need to not only secure patient information but also provide electronic health record access to patients.
Delving into HIPAA compliance can be useful to even non-healthcare companies who are looking to protect themselves from legal liability regarding data security. SaaS businesses may look to SOC reporting to establish compliance and address liability concerns.
One final tip: Don’t forget to consult the professionals when it comes to business compliance. Legal counsel can help small businesses identify risk so as to avoid the costly mistake of non-compliance. Outsourcing business compliance management – especially for small businesses and startups – may help mitigate the risks by ensuring compliance is not overlooked.
Amy Wilson is the Director of Business Compliance at Growthwright.