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Schaumburg employment lawyerOwning your own business and being your own boss can be very rewarding, regardless of the field of work. In the United States, there are certain rules and regulations that control how a company should operate, and these guidelines may be different depending on the industry. All companies that operate under the Fair Labor Standards Act are required to keep specific records for a designated period of time for covered, non-exempt employees. Essential documentation may include an employee’s contact information, salary, work hours, and job duties. Record keeping might seem like a basic task, but if it is not done properly, this can lead to significant consequences. An experienced employment law attorney can help a business owner avoid any civil or criminal actions that they could face.

Important Employee Information

For the majority of business owners, their companies are their livelihood. In many cases, the foundation of their success lies in their employees. Therefore, they must make sure to take care of their workers by following standards and procedures that govern their industry. According to the United States Department of Labor, employee payroll information that contains important documents about each employee in your company should be kept for at least three years. Good record keeping practices can help a company maintain a strong reputation, allowing for future growth. Some of the main aspects of employment records should include:

  • The employee’s name, address, and Social Security number
  • The employee’s dates of employment
  • The employee’s regular pay rate (salary or hourly)
  • The amount of wages paid
  • The amount of taxes taken out of an employee’s paycheck
  • The amount of overtime paid
  • The employee’s job duties

Penalties for Negligent Records Management

A comprehensive records management process can help a company operate in an efficient and effective manner. Improper records management can lead to unorganized documentation, the loss of vital information, and stressed employees and employers. If company owners fail to maintain their employment records, they may face criminal charges or civil lawsuits, depending on the circumstances. Poor record keeping can also result in the following consequences:

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Schaumburg record keeping lawyerOwning a small business in the state of Illinois is both exciting and rewarding. Companies in Illinois have many advantages working in their favor, such as a large and diverse marketplace and a robust, skilled workforce. With these benefits comes the responsibility of maintaining a well-functioning workplace for your employees. An employer can build and sustain a better business by adopting proper record keeping practices. Without adequate data recording, vital information frequently becomes lost, resulting in errors that can impact the quality of the work environment and even result in citations and other penalties.

Why Are Records Important?

Record keeping is one of your most important duties as small business owner, regardless of what type of business you own. There are various methods for keeping track of necessary documents, ranging from file folders in a filing cabinet to an electronic or online system. You must compare all of your options and choose the one best suited for your needs.

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Illinois record keeping lawyerStress during tax season is a common issue for small businesses. More often than not, it is because of multiple internal failures. Poor or inadequate record keeping, failure to keep up with ever-changing tax laws, and difficulties in maintaining day-to-day operations are some of the most common of these issues. Thankfully, it is possible to manage the stress that often accompanies tax season. The following information explains further.

Understanding the Root Causes Before you can truly address your business’s tax issues, you must first understand why they exist in the first place. For example, if your record-keeping system leaves room for error, or fails to ensure you claim every credit and deduction, it may be time to rethink how you do the books. If your issue is more related to being overworked, which can cause you to fall behind in your record-keeping duties, it may be time to outsource your bookkeeping duties. Alternatively, you might hire another employee (even if only part-time) so that you can effectively balance day-to-day business operations and daily, weekly, and monthly record-keeping. Finding a System That Works If it turns out that bookkeeping issues are, in fact, the root cause of your tax issues, it may be time to bring in some outside help. For example, an attorney can help you set up a system that will hopefully meet your company’s needs without adding more work than you can reasonably handle. Further, the input from an outside source can help you understand how to file and record certain credits and deductions; this could potentially decrease your tax load at the end of the year, which could place more profits in your pocket. Managing Employee Documents If you hire employees, general contractors, or freelancers, you must submit all documents within the appropriate time period. Last year, businesses had until the end of February to submit 1099s and W-2 forms to the IRS. This year, they needed to be in by January 31. Failure to get them in prior to the deadline could result in a penalty. So, if you are still behind on your record-keeping and filing, contact an experienced lawyer for assistance immediately. Any further delays could potentially cost your small business even more money in the end.

Contact Our Illinois Record-Keeping Attorney

Whether you are starting a new business and simply want to ensure you start off on the right foot, or are struggling to deal with the impending tax season, Miller Law Firm, P.C. can help. Dedicated and experienced, our Schaumburg, IL record-keeping lawyer can assist you with all aspects of tax-related record-keeping issues. Learn more by calling 847-995-1205 today. Source:

http://www.dentonrc.com/business-tech/denton-business-headlines/20170128-taxes-often-a-headache-for-small-businesses.ece

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1051 Perimeter Drive, Suite 400
Schaumburg, IL 60173
Phone: (847) 995-1205

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