KPSG: Solution for Your HR Statutory Compliance
Do you want to ensure that your employment and work practices show a complete awareness of the relevant laws and regulations? HR compliance is the process of developing policies and procedures accordingly.
As the number of employment laws and regulations increase and the possibility of penalties for non-compliance rises, businesses of all sizes must deal with growing HR complexity. Business owners should be aware of the following, for example, when creating HR policies and procedures:
- Employers are required to abide by all applicable statutory, state, and municipal laws pertaining to employment.
- An enforcing agency that has the authority to impose fine and penalties for non-compliance may audit a business.
- It is not a valid legal defense not to be aware of or comprehend your compliance requirements.
Organizations must adhere to the constantly evolving regulatory requirements because government agencies are expanding the frequency and extent of their audits. If you don't pay attention to it, you risk suffering the negative effects of non-compliance.
The compliance factor has an impact on processes like hiring, employee development, and retention —and it is one of the primary duties of HR departments to keep it on track. A properly defined set of goals may be the first step in finding the right balance between strategy and compliance.
The foundation for a better knowledge of various scenarios and how compliance issues may influence decisions is laid out by understanding the company's strategic priorities. HR objectives should be created to complement business strategy, but they also need to take into account potential outcomes and compliance issues.
Employee-related issues, such as when and how to pay overtime, employee paperwork requirements, benefit administration, hiring practices, and separation policies, are at the focus of HR-related compliance.
Business owners may multitask during their daily operational activities, and too often, they aren't aware of the need to comply with human resource-related requirements until an enforcement agency contacts them.
It's crucial for payroll, HR, legal, and other departments at your business to collaborate in order to achieve and maintain compliance with applicable wage and hour requirements. It can be difficult to ensure compliance in HR, however the following two suggestions can help:
- Analyze the strengths and weaknesses of the current compliance levels. If you're unsure about where to start, consult to an expert or look up the requirements on the website of the government body that will be enforcing the law.
- Make sure that anybody in the organization who is responsible for compliance has received the necessary training.
You can start setting priorities and creating a plan to strengthen your processes once you have a good grasp of your current procedures and have found any gaps that can result in compliance problems. To assist avoid these potentially expensive HR issues, many organizations opt to outsource specific HR functions. By doing this, you may have access to knowledgeable individuals who can act as HR compliance resources and who possess in-depth knowledge of local, state, and federal rules and regulations.
In this case, KPSG can assist your employee registration & administration to the third party statutory such as to BP Jamsostek, BPJS Kesehatan, and tax. Contact us for more information!
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