Original Source : https://uberant.com/article/598689-understanding-compliance-staffing/
Many companies in the US depend on staffing companies for quality workforce. The compliance staffing company needs to offer services to job seekers and customers. It should also consider its own business requirements. The staffing companies should comply with the affordable care act.
Healthcare for firms with over 50 employees
The companies with an employee count of over 50 need to provide healthcare to all of its employees. However, some companies are overcoming this requirement by sourcing the workforce from staffing companies. IRS is conducting audits on such companies to unearth unethical practices. If they are caught, both the hiring company and staffing company shall be liable for penalties and other actions. Therefore, the staffing company must ensure that its client strictly adheres to the local and federal laws.
How to prevent IRS scrutiny?
An independent contractor should desist from filing workers compensation benefits or unemployment benefits. They must report income taxes without any variation. The companies should avoid misreporting and miscalculations.
We at Conselium staffing companies are familiar with IRS directives. www.conselium.com/about-us/ adequately apply the guidelines to the workforce being recruited. The employer should comply with state and federal laws.
The software helps to track the staffing process and effectively manages the scenario. It ensures that all the workers are paid as per the applicable hourly rates for the completed work hours.
Both the staffing company and the employer are equally responsible for any lapses in making payments and complying statutory requirements. The staffing company will have to pay fines for the failure of its client in complying with the regulatory and minimum wages requirements.
The state laws vary from state to state. Therefore, staffing companies should be familiar with the concerned state laws to comply and prevent fines. If an employer misclassifies any worker to deny permanent position, the staffing company is liable to pay the penalty.
The role of the chief compliance officer
The companies can hire the services of a chief compliance officer (CCO) to ensure strict compliance with the state and federal laws. CCO reports to the Chief Executive Officer of a company.
The COO is responsible for ensuring that all the federal and state laws are implemented and complied. It is the responsibility of COO to report the facts to the CEO and the board of the company.
The COO ensures that each employee is paid minimum wages as per the national minimum wages act. The workers will receive the payment for the actual work hours subject to not less than minimum wages. COO understands the locality specific laws and state laws and ensures compliance.
COO revised the compliance plan according to the changing laws and needs. The compliance teams receive timely guidance to improve productivity professionally.
COO is responsible for educating the compliance teams through organizing regular training programs. He or she monitors the working of the compliance teams in the organization. Interact with the regulators to solve compliance issues. COO also coordinates with external review teams.
COO investigates any wrongful doing in the company and informs the management for corrective action.