All businesses face a number of issues at all times. One of the biggest issues that all organizations need to be aware of are any and all regulatory issues. For 2016, there are a number of issues that will be affecting all companies.
Issues
According to Paychex, there are a total of ten (10) regulatory issues that businesses face this calendar year. The issues are:
1) Affordable Care Act
Often referred to as Obamacare, the Affordable Care Act has several upcoming deadlines for employers. Companies need to manually file 2015 Tax Forms 1094-C and 1095-C by May 31, 2016 with the IRS and electronically file both of these documents with the IRS by June 30, 2016. Organizations who offer insurance to their employees and fail to file these documents by the deadlines may face penalties.
2) Overtime Regulations
A proposed rule by the United States Department of Labor would revise salary thresholds for federal overtime regulations relating to workers in the Executive, Professional and Administrative work forces. This ruling is due later in 2016.
3) Employee Pay
Throughout the nation, companies will need to adjust their payment methods to accommodate equal pay laws, increases in the minimum wage, and sick time. For example, in California employees who work full time are entitled to a minimum of three (3) sick days per year. In addition, California will begin raising its minimum wage up to $15.00.
4) Worker Classification
Organizations are oftentimes having difficulty classifying their employees. For example, is a worker an employee or an independent contractor such as with Uber? Businesses will need to evaluate how they treat their employees to ensure that they are complying with all applicable laws.
5) Privacy
With a number of high-profile security breaches over the last couple of years, companies need to be aware more than ever of any potential security breaches to customer privacy. Some of the efforts to protect client data include encryption and security controls and establishing stricter notifications when there is a breach.
6) Earlier Annual Reconciliation and W-2 Employer Deadlines to Combat Fraud
At the present time, all businesses are required to furbish their workers with a W-2 form by January 31 of the current year. However, most states do not require these forms to be filed electronically until the end of February or March. In 2017, the federal government will require all 2016 tax year W-2 forms to be filed by January 31, 2017. Most states are considering electronic filing by January 31 as well.
7) Retirement
Retirement is an issue that is in the news with Baby Boomers retiring or getting close to retirement. A current study is due later this year that could potentially result in companies monitoring the organizations that they chose for their retirement services as well as providing more scrutiny of the choices that are made.
8) EMV
A number of credit card companies are beginning to issue cards with chips. These cards that are equipped with chips and the technology needed to approve these chip transactions are known as EMV. EMV is designed to be a better way to prevent fraud compared to traditional magnetic stripes on credit cards. Companies will need to install devices to recognize card chips and could face higher fees for fraud-related activity when it does occur.
9) Online Sales Tax
Currently, only certain states charged sales tax for purchases made online. Sales tax is usually applied only when a specific company has a significant presence in a certain state, such as in California. However, there may be pressure from the federal government in the remainder of the year to push for online sales tax nationwide, regardless of any business presence in the state in question.
10) Workers’ Compensation and OSHA
A number of businesses have expressed concerns regarding the high cost of workers’ compensation insurance. As a result, several states are considering weakening regulations regarding this type of compensation. In addition, in 2015 OSHA implemented new rules regarding reporting and recordkeeping of injuries and illness.
Conclusion
There are a wide range of issues that business owners and companies are facing for the duration of 2016. If an organization is unsure as to what the challenges are that they are facing, it can be beneficial to speak with a business attorney. Not only can the lawyer explain what the issues are, they can also provide insight as to the best methods for implementing all necessary strategies. At the same time, an attorney can explain any current issues that the business has with their current strategy and how to rectify any issues as quickly as possible.