There are many rules and regulations that businesses have to follow. These rules help keep things fair for businesses, employees, and consumers. Businesses that don’t follow the rules and regulations meant to govern them face penalties. One such penalty includes getting hit by regulatory fines. No one wants to pay those, so what should you do to avoid that?

    Keep Your Books Clean

    Fraud, which is defined as wrongful or criminal deception intended to result in personal or financial gain, isn’t something that is simply looked down on. It’s something that is heavily penalized. 

    Penalties for business fraud include fines, restitution, and potentially jail time. Avoid this by looking for the right qualities in your bookkeeper. Have your accounts reviewed regularly to catch any mistakes.

    Improve Safety Protocols

    Businesses are required to create a reasonably safe working environment for their employees. Failing to do so could result in your business being reported to OSHA. OSHA can and will levy fines against you for being out of compliance with industry safety standards. Avoid that by staying up to date on industry safety protocols and enforcing them. 

    All companies dealing with hazardous chemicals are required to add labels to them. Any business that is required to have records of safety training must also have those ready to present in the event of an inspection.

    Classify and Compensate Employees Correctly

    Most businesses rely on employees to handle the day-to-day operations at every level. Others outsource work to independent contractors. Some work with a blend of both. Whatever the case is for your business, make sure you are correctly classifying those you work with. Incorrectly classifying employees as independent contractors can land you in a lot of trouble.

    On a similar note, make sure payroll is done accurately. Employees will appreciate being paid correctly and on time. The IRS will appreciate you making sure that taxes are also paid correctly and on time. Failing to do so will result in dissatisfied employees and penalties from the IRS.

    No business wants to see more money going out than necessary. Virtually all instances in which a business could be fined can be avoided. Save your business money by taking the steps needed to avoid being hit by regulatory fines. Those steps may require some money upfront, but the payoff you get in avoiding fines and keeping your employees and customers happy makes paying that money worth it.

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