Many of today’s entrepreneurs find themselves in a constant battle against the corrosive realities of bureaucracy and red tape. While they try to focus on their strategic plans, new startup business managers often spend precious time struggling to keep up to date with ever-shifting regulatory requirements.
What follows is an examination of some of the many red-tape barriers that new business owners will sooner or later face and how to prepare for them.
Employee Pay
In recent years, the U.S. Department of Labor has proposed updates to salary thresholds for certain white-collar workers. For many employers, the implementation of new thresholds could raise salary expectations of potential new hires. New business managers need to be prepared to take action in the event that they find themselves at a competitive disadvantage in the labor marketplace cause by changes to salary thresholds. One way to stay on top of payroll, taxes, and related issues is to use an online time-clock solution to track employee hours, integrate with payroll processors, and run detailed reports.Worker Classification
With respect to the above-mentioned Department of Labor, new business operators are urged to be aware that new guidelines have been issued that expand the definition of what an employee actually is. Gone are the days when an employer could automatically designate new hires as independent contractors in order to minimize payroll expenditures. Today’s employers need to carefully examine their third-party relationships while paying close attention to new developments within the offices of state and federal labor regulators. It is important to avoid running afoul of any new laws or regulations related to the classification of workers.
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