Why Payroll Compliance Is a Must for Your Hawaiian Business

As we enter the New Year, one of the things every small business must be aware of is compensation compliance. 2016 in Hawaiian payroll processing may be much different than it is now in 2015. There will likely more people who operate as independent contractors and freelancers. Some businesses may grow to the 50-100 employee level, which means a new set of rules and regulations. The state and federal governments may pass new regulations that businesses must follow. Finally, emerging technology could make payroll processing more affordable and efficient.

Making sure you are compliant with all state and federal regulations in regard to new trends, technology, and company status is crucial for your employees and company's bottom line and reputation. If there is one resolution you make in 2016 for your business, paying attention to payroll and HR compliance must be on top of the list. Here are several reasons why you should make Hawaii compliance in payroll a mandatory part of your strategy planning:

You Could Get Penalized: If you are found to be non-compliant with federal and state regulations on employment classification or payroll processing, you could be subject to levied penalties. If you are the owner of a small or medium-sized business, this could put a major hole in your budgeting. It could also be bad PR for attracting talent who can help your business grow. Speaking of growing…

You Have a Desire to Grow: If you are doing payroll processing in-house, you know the amount of time and paperwork it takes to comply with state and federal regulations. These issues only compound when you grow. Businesses with more than 50 employees are subject to more regulations and complicated compliance issues. If you want to grow, your investment in effective payment processing may have to grow with it.

You Want to Ensure Your Employees Get Paid:  Errors in your payroll processing (whether it is classification issues, time tracking issues, or paperwork issues) could affect whether or not your employees get paid and taxed correctly. In the long run, this could hurt employee retention or you may even be the subject of a lawsuit – whether it was an accident or not.

You Want the Best Applicants for a Position: Payroll processing extends to applicant tracking as well. You want the best for your team, right? A lost applicant due to a paper error or some other issue could hurt your brand's reputation and forfeit your opportunity to find the best out there.

As we go into 2016, make sure to invest in payroll processing to ensure you are compliant with all state and federal regulations to avoid penalties, sustain growth, and find the best people for your company.