No matter where and how the organization operates, noncompliance to the law is a major concern as it should be. Payroll departments are well aware of the importance of staying compliant with complex payroll rules. And always stay updated with the new rules and laws enforced.
International organizations that expand their business to new jurisdictions must make sure to follow the payroll laws of the jurisdiction they are operating in. Sadly, more often with the ever-changing laws, the lack of importance given is noticed in such departments. Your payroll department might not be familiar with payroll laws and the same can be with your legal team.
By the time your company realizes the non-compliant errors made in the payroll record keeping, it might already have caused your company a great deal and might be too late. To help you avoid such situations, here are some signs of a non-compliance payroll department:
1. Employees are not aware of the payroll policies
Organizations might already have compliant payroll policies in place, but the lack of properly communicating of those policies with the employees is where the trouble starts. Sometimes, noncompliance happens only because the employees in the company were not updated with the rules and policies. This can potentially lead to mistakes and unlawful behaviors.
Therefore, to avoid this situation, it’s important to make sure your employees are well aware of the payroll policies and laws. And always be sure to communicate the frequent updates brought to the company and more specifically to the payroll policies.
2. Late policy updates
The updates in payroll laws are quite frequent and require organizations to bring policy updates that are compliant with the laws. Some organizations are due to bring these changes in policies for even years. That itself suggests the non-compliance of the department to the laws.
This is considered noncompliance with the policies of the organization itself. Well, the quick solution to these could be to make sure you have good knowledge of the new laws and update your company policies as soon as possible. Also, make sure your current payroll submissions are corrected and submitted according to the new policies. Otherwise, the penalties might come your way or even greater unavoidable charges that could harm your company.
3. Spending files and audits
Another indication of a noncompliance payroll department is the pending payroll files for submission and audits for analysis of monthly and quarterly calculations.
IRS demands timely payroll applications and submissions, failure to do so means costly fines and penalties.
Final Words
Non-compliance to payroll laws and policies is a punishable crime. While the organization might be in compliance with the current laws, a non-compliant payroll department to the policies of the organization and payroll laws can harm the organization significantly.
If you have seen or noticed the above-mentioned points, and know that your payroll department lacks in any of these mentioned points, make sure you take the necessary steps and actions to avoid any consequences.
