Compliance means adherence to or obeying a specific set of laws and regulations. Compliance in a corporate sector or business means that the company is obeying all legal rules and laws required to manage the business, consumers, and employees. Compliance is an indicator of how responsible a company is.
Compliance regulations are categorized into two types:
- The government imposes internal compliance regulations on individual entities.
- State authorities
- impose external compliance requirements.
Internal compliance requires that records of business dealings, transactions, sales, profits, inventory, loans, investors, and lenders are well maintained, transparent, and updated.
External compliance requirements include annual reports and franchise tax.
Importance of compliance in a business:
- The compliance of a business depicts that it is corruption-free and well integrated.
- Legal problems and penalties are prevented.
- Operations and processes are improved.
- Better image and public relations.
- Less employee turnover.
Compliance and QuickBooks:
Regarding payroll, there are a few legal requirements. The first is withholding payroll taxes from employees’ paychecks. Second is that the business owner must pay half of the FICA taxes of employees. Third, and lastly, severance pay is also included in taxable FICA wages according to recent affirmations of the supreme court.
With a paycheck calculator, paycheck withholdings can be estimated with great ease and in a simple way, using QuickBooks.
Classification of employees is one of the most critical compliance regulations. In July 2015, the Department of Labor issued an interpretation of an administrator. In this interpretation, it was explained that most workers are categorized as employees and should not be considered as independent contractors.
A high degree of adherence, compliance, and regulations is required for employees. Withholding of taxes from employee paychecks is needed. And they are entitled to benefits.
In contrast, contractors are not entitled to any employee benefits. No withholding from their paychecks is required. Less regulation is implemented on them.
Wrong classification of employees can result in steep fines, but QuickBooks is the perfect remedy.
Credit card Fraud:
The complete guide to QuickBooks’ EMW regulations is used to replace old structures with new ones, i.e., EMW. EMW chips are implemented to impose more responsibility on business owners for fraud prevention. This EMW chip system is implemented by the authorities who issue credit cards and process payments. Suppose the equipment is not upgraded to scan EMW chips, your liability to prevent fraud on credit cards increases. QuickBooks is perfectly equipped with this innovation.
Regulations of every state are different. Every business owner must be well aware of their particular state’s rules to avoid fines and penalties. Few examples of regulations are:
- Many states have increased the minimum employee wages.
- Paid sick leave is granted in some states.
- Few states require to file employee paperwork early. This paperwork should match federal regulations and requirements.
QuickBooks is a great tool to handle these accounting regulations.
QuickBooks helps in compliance with overtime regulations. Overtime regulations differ with each state. Just enter information on the QuickBooks app and calculate employee overtime and track employees’ working hours.
Stay tax ready:
Various types of taxes are required to be paid by the business owners. All expenses are categorized in QuickBooks and easily converted to taxable sheets. Just take pictures of receipts or scan them and attached them with expenses via the QuickBooks mobile app. By using QuickBooks, your data is well organized and well prepared to file for taxes. Tax savings can be increased due to better compliance.
Affordable care Act:
Affordable care act states that a business with more than fifty full-time workers must grant health benefits. A full-time employee is one who works thirty or more hours a week. QuickBooks is used to track the working hours of an employee. By accurate calculation of working hours, you can follow government regulations effectively.
QuickBooks has apps and software which are used to calculate and maintain the data required for perfect compliance.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.