Trusted Blogs & Resources Trusted Brand Reviews brings you expert insights to guide your payroll processes and human resource management. Discover practical strategies to optimize these systems through HRIS and software automation, freeing up time and resources and boosting productivity. Compliance services Payroll Compliance Checklist: What You Need to Avoid Penalties in 2023 Payroll compliance is always an important topic for employers, as doing payroll accurately and adhering to all payroll legislation is not only beneficial but necessary for avoiding penalties and fines. In this article, we'll help you understand payroll compliance for 2023 and learn how to avoid potential financial penalties as an employer. Stick around to explore the specific requirements to ensure you're compliant with the latest payroll legislation.
1. Understand Payroll Legislation
Fully understanding payroll legislation is no easy task, as it requires investing a lot of time to ensure you're up-to-date with the latest changes. A good way to stay ahead of the curve and make sure you have a clear understanding of these laws is to attend webinars, seminars, and conferences, as well as follow professionals on social media.
Even though it may be tedious, having a clear grasp of payroll legislation is critical, as violating it can mean facing fines and penalties. Moreover, by managing payroll and taxes correctly, employers can reap all kinds of benefits, including the following:
Ensuring proper employee compensationFunding different programs like unemployment insuranceReducing the risk of penalties and lawsuitsBoosting employee morale to improve workplace culture
» Learn whether businesses are legally obligated to run payroll
2. Keep Payroll Records Up to Date
Manually processing payroll can cause a myriad of issues, such as inaccuracies, missed deadlines, and delays. To minimize potential issues, it’s essential to keep anything that affects payroll up-to-date. This includes employee information such as addresses, promotions, changes in hours worked, etc. In addition to this, it’s important to keep a record of all payroll activity and documents.
Although businesses are generally required to keep all payroll records for at least three years, it could even be longer depending on the local rules. Furthermore, documents that involve calculations, such as time cards and deduction information, should be kept for at least two years. By keeping the records up to date, businesses can ensure compliance and have documents to reference in the event of an audit or legal dispute.
» Payroll record retention: see what you should know for IRS compliance
3. Keep Track of Important Deadlines
Businesses often make the mistake of forgetting important deadlines when it comes to filing payroll taxes and other forms. To avoid this, it's crucial to keep a track of all deadlines where they can easily be found by those responsible for payroll. Moreover, ensure your whole team is up to date and that you don't miss a deadline, as this can trigger penalties that an efficient system will help you avoid.
4. Always Make Sure Your Employee Classification Is Compliant
Misclassifying employees as independent contractors is a serious mistake, as only full-time employees have taxes withheld from their paychecks. Independent contractors, on the other hand, file their taxes differently and must be kept separate from employee classification. Mistakes in this area can be quite costly for both workers and businesses, so it's important to correctly classify all employees according to the law to avoid any potential issues.
5. Implement Payroll Automation
As we previously mentioned, manual payroll processing can lead to a lot of errors, which is why it's beneficial to implement payroll automation. Automating the payroll process not only reduces the chances of mistakes but also helps employers by streamlining the process and making it more efficient. Additionally, automatically generated pay slips empower employees, as they receive a clear breakdown of their income, tax payments, pension contributions, etc. This encourages transparency and builds trust between employers and employees.
» Want to streamline your payroll? See the essential policies and procedures to follow
Avoid Penalties Through Streamlined Payroll
Payroll management is a complex task that involves more than just calculating wages. By following the steps outlined in this article, businesses can ensure compliance and reduce the chances of mistakes. From tracking important deadlines to implementing payroll software with all the right features, there are many ways employers can make their payroll processes more efficient and accurate.
» Need help streamlining your payroll? Read TBR's payroll software reviews and find the solution to get the job done. Compliance services Healthcare Compliance Auditing: 8 Business Tools for Effective Compliance If there's one industry that endures the most bureaucratic paperwork, it's got to be the healthcare sector. The healthcare industry needs to fill in a broad array of forms to comply with rules and regulations at the federal or state level. But the thankless tasks of healthcare compliance, whether to avoid fraud or to submit claims, can easily be accomplished using the best tools available for your specific needs.
» Ensure payroll compliance: see how to avoid penalties
Types of Healthcare Compliance Audits
Before we dive into the various tools healthcare professionals can use, here are two types of healthcare compliance audits that are regularly performed:
An internal audit is done through operational tasks, processes, resources, structures, and systems. Essentially, an internal audit is about assessing and improving the organization's quality management system.
An external audit refers to evaluating specific features of a healthcare firm that improves hospital compliance programs. This kind of audit, which can apply to government and commercial insurance health entities, provides the office with an outside perspective to assess the professional standards, workflows, and domestic processes.
1. Procedural Checklists
Procedural checklists are an essential tool for healthcare compliance auditing. The checklist is used to ensure the healthcare organization follows the rules and regulations in place, and it should include a list of all items that need to be audited, along with the procedure for each of those items. The procedural checklist should be tailored to the organization's needs and based on the audited areas. Procedural checklists for healthcare organizations are different from those of a retail store or consumer organization and should include all key elements, such as medical documentation, patient health records, and healthcare billing.
A procedural checklist is useful because it helps ensure all necessary items are being audited. It can also be used as a training tool for new auditors and future audits. Checklists ensure important things aren't forgotten and that everything is accounted for.
2. Proper Compliance Planning
As compliance is an integral part of healthcare, a properly prepared compliance plan is an essential tool for effective healthcare compliance. The compliance plan should be designed to ensure the safety of both patients and healthcare workers while adhering to the governmental regulations in place for healthcare.
Ideally, a comprehensive compliance plan should include the following:
Written standards, procedures, and policies of conductRisk management assessmentsEmployee training planCommunication strategiesInternal monitoringKeeping abreast of regulatory changes.
3. Process Automation and Data Management
As patient volumes in healthcare are increasing at a dramatic pace, there's an increased focus on data security, patient data management, and patient privacy. To ensure healthcare organizations are prepared, it's vital to automate critical tasks related to data management and ensure any data management strategies and tools in use are highly secure. Patient data is highly sensitive, and it's imperative that healthcare organizations have a system that ensures data safety and security. Any violation of patient privacy can complicate things for the organization.
This step can help healthcare organizations minimize the risk of data leaks and breaches by ensuring effective data management strategies are in place.
4. Computer Assisted Audit Techniques (CAATs)
Computer-assisted audit techniques (CAAT) are critical for healthcare. CAAT is a method of gathering electronic records and simplifying and automating large volumes of data to ensure improved adapt analysis. CAATs make the audit process less disruptive for healthcare organizations and can reduce the time required to complete the audit. In addition, they improve accuracy and compliance, reducing the chance of error.
5. Detailed Records and Patient Information
Healthcare organizations are required to maintain detailed records and comprehensive patient information. As a result, they need effective record-keeping tools to collect and analyze this data for informed decision-making. Most healthcare organizations today are required to maintain electronic health records. Still, whichever method is in place, the important thing is to organize this information in a manner that is useful for clinicians to evaluate and refer to, much like you would when you are creating records to manage your workforce.
This might be a tedious step, but patient data is extremely valuable and critical for improving the efficiency of both clinicians and the healthcare organization itself.
» Automated payroll improves efficiency as well: see why you should ditch manual payroll
6. Risk Evaluation
Risk assessment is a very useful tool for analyzing, assessing, and setting priorities in healthcare. Risk evaluation allows healthcare organizations to identify potential hazards, risks, and threats. Once the risk assessment and identification process are complete, a healthcare organization can estimate the level of risk and identify actions that will minimize important risks.
It's important to remember that healthcare organizations are high-risk and complex, with multiple factors at play (professional, technological, and organizational). Risk evaluation is essential for patients and healthcare workers, as well as ensuring a good reputation for the healthcare organization.
7. Procedure Reviews
A procedural review is a formal, structured assessment of a system or process within a healthcare unit. The goal of this review is to identify problems and implement change to ensure continuous improvement, as well as implement an effective governance program. In healthcare, any procedure that affects patients, workers, managers, and support staff needs to be evaluated to ensure there are no safety and quality issues or security breaches.
For example, reviews of adverse patient outcomes or workplace grievances can ensure a healthcare organization delivers quality care and guarantees workforce safety and satisfaction.
This may be one of those circumstances where you can take advantage of one of the many types of PEOs (professional employer organizations).
8. Compliance Training
Healthcare is a highly regulated sector. Medical facilities generally can't operate legally without proper, in-depth healthcare compliance training. This should be an ongoing process to educate healthcare employees about their responsibilities and legal and government regulations. Such training should form an important part of the workplace culture.
In addition, healthcare compliance training is critical to ensure appropriate policies and processes are set and effectively communicated to all relevant parties. Adherence to regulations, policies, and producers is a priority in healthcare and a chief component of workers' compensation, so it's important to train the healthcare staff accordingly.
From better payroll compliance to improved office efficiencies, there are many compliance audit measures healthcare offices can enjoy to enhance their compliance efforts. Whether it's better compliance training or adopting computer-assisted audit techniques, there are many steps you can take to ensure your operations are in compliance.
» Want your payroll to function without a hitch too? Read TBR's payroll software reviews and make an informed decision.