Every business owner has one primary goal: growth. But, growth comes with tricky consequences. More than half of senior executives at mid-market companies consider risk and compliance as their two most significant barriers. The larger your business grows, the more legal compliance issues you face.
As you add new employees and expand into new markets, you start to attract more regulatory bodies. Unfortunately, many businesses are unprepared. Let's look at how legal compliance varies by company size, and why growth can put you at a regulatory disadvantage without the right help.
These are requirements that every small business must meet. Whether you have one employee or 5,000 employees, these regulatory requirements apply to all organizations.
In addition to the acts covered above, there is one new requirement for employees with more than 10 yet fewer than 15 employees.
Once you hit 15 employees, you're required to follow additional compliance requirements.
At 20 employees, you must follow both ADEA and COBRA.
In some industries, the low end of this benchmark means yours is no longer a small business. However, that can vary based on several different factors. At this point, you're required to follow almost all regulatory requirements outside of WARN and EEO-1.
At 100 employees, you'll deal with WARN and EEO-1 requirements, in addition to others listed previously.
In addition to the regulatory requirements listed above, federal contractors must comply with unique labor standards. In addition, federal contractors may have to deal with some of the legislation above regardless of their size (or via different sizing standards). Some federal contract compliance requirements include the Davis-Bacon Act, SCA, the Walsh-Healy Act, the Copeland Act, and Executive Order 11246 among others.
Whether you have 1 employee or 100, your business has compliance needs. As your business grows, those needs multiply. Here's the scary part: fines and rulings on these regulatory requirements can cost you hundreds of thousands of dollars and jail time. Between focusing on marketing and sales, dealing with HR duties, and growing your brand, putting time aside to ensure that you adhere to your compliance needs can be headache-inducing.
Outsourced HR partners like PEOs can help you manage your compliance needs across all of these regulatory bodies. Not only will PEOs handle payroll, workers' compensation, and benefits, but they keep you compliant so you can focus on what really matters — growing your business. To learn more about how PEOs can help with compliance, visit our blog.