Onboarding new employees can be a legal minefield when it comes to getting the paperwork right. Particularly now, with agency budgets shrinking across the country, levying fines is an attractive way to boost revenues. This presentation, based on our popular article, "The Hidden Costs of Non-Compliance in Hiring", presents in concise format the potential fines and where they might come from.
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The HIdden Costs of Hiring Compliance
1. Compliance Audits Risk Fines & Penalties Tax Form Errors Delinquent Reporting Immigration Violations How Will You AvoidThe Hidden Costs of Non-Compliance?
2. Non-Compliance in Hiring is Common New hires frequently make mistakes filling out forms HR doesn’t always catch errors and omissions Deadlines get accidentally missed Constantly changing laws make it hard to keep up Outdated forms are sometimes used Paperwork gets misplaced How Will You AvoidThe Hidden Costs of Non-Compliance?
15. Evidence that an organization is hiring unauthorized workersHow Will You AvoidThe Hidden Costs of Non-Compliance?
16. Potential Penalties For I9 Violations $110-1100 for every missing or incorrectly completed I9 form Additional fines for systematic failure to collect I9 information correctly $375-16,000 for every unauthorized worker found to be employed by the organization Criminal penalties including jail time for business owners, HR executives, and hiring managers How Will You AvoidThe Hidden Costs of Non-Compliance?
19. Selection of a flat $ amount or fixed % instead of the permissible allowances
20. Listing a withholding amount and claiming full exemptionCommon Violation: The Employer withholds at a rate other than Single/Zero allowances when an employee turns in an invalid W4 form How Will You AvoidThe Hidden Costs of Non-Compliance?
21. Potential Fines For W-4 Violations The IRS may hold the employer liable for any unpaid taxes that should have been withheld under the Single/0 rule for invalid W-4s EXAMPLE: Employee Jane Doe makes $50,000 per year. She turns in an invalid W-4 that has several items scratched out and rewritten. HR makes an assumption that she intended to list Married with 9 allowances. As a result, the employer withholds approximately $360 in taxes for the year. The withholding for Single/Zero would have been around $7,800. The IRS can require the employer to pay the balance of $7,440 Additional fines and penalties may be assessed at the auditor’s discretion for the employer’s failure to follow proper withholding procedures. How Will You AvoidThe Hidden Costs of Non-Compliance?
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23. HR not using a form for reporting that includes all relevant data as required by law
24. Not having a process in place to report data at all
25. Collusion with new hires to defraud the Child Support systemHow Will You AvoidThe Hidden Costs of Non-Compliance?
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27. A fine of up to $25 per month for each unreported new hire
28. A fine of up to $500 for each instance of collusion
29. Civil penalties such as suspension of an organization’s business license
30. Contempt of court charges for failure to pay fines in a timely manner Penalties and Fines Vary Greatly By State How Will You AvoidThe Hidden Costs of Non-Compliance?
31. SSA/IRS No Match Letters In addition to penalties for W-4 violations, the IRS may also fine employers $50 for each instance of a mismatch between information submitted on a W-2 and data in the SSA’s system. Failure to follow up appropriately upon receipt of an SSA no-match letter may also be used as evidence against an employer during an ICE audit. How Will You AvoidThe Hidden Costs of Non-Compliance?
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33. Consistently enforces all the federal/state business rules, eliminating errors
34. Uses "virtual forms" that cannot be altered or left incomplete
35. Automates the flow of documents to the hiring manager for final review
36. Integrates with E-Verify to speed I9 verification and ensure new-hires are eligible
37. Automates delivery of data to state new hire reporting systems in a timely manner
38. Eliminates re-keying of data from one system to another - reducing typosHow Will You AvoidThe Hidden Costs of Non-Compliance?
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40. If an audit occurs, your risk of civil penalties is reduced because all your documentation is in order
41. Taking proactive steps to increase compliance shows a good faith effort that works in your favor if any past errors are discoveredHow Will You AvoidThe Hidden Costs of Non-Compliance?
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43. "Instant" Implementations (Demographics, W4, I9, State Tax, etc.)
44. Federal Forms Included in Library: W4, I9, 8850, and more
45. State Forms Included in Library: All State W4s or equivalents
50. Post-forms submission Integration to User Definable Workflows (BPM) How Will You AvoidThe Hidden Costs of Non-Compliance?
51. Contact Us Today To Learn More About Universal Onboarding www.emeraldsoftwaregroup.com 3060 Royal Blvd South Alpharetta, GA 30022 Phone: 770.569.5122 Fax: 678.669.1516 How Will You AvoidThe Hidden Costs of Non-Compliance?
