ROCHESTER, N.Y. - The start of the New Year ushers in a series of new regulatory, compliance, and legislative changes that affect every small business. According to Paychex, Inc., a leading provider of payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses, 11 issues top the list of business regulations in 2011, reported by Business Wire.
7. State budgetary challenges - Many states are facing critical budget shortfalls, and as such may contemplate impromptu tax/fee increases or filing changes to raise badly needed revenue. Additionally, many state agencies are reducing staff, which could result in processing delays for businesses requiring licensing or other state services.
8. Federal Trade Commission requirements - With the dramatic increase in the use of social media such as blogs, Facebook, and Twitter, the Federal Trade Commission has issued further regulatory guidance around the use of this media in advertising, especially regarding endorsements and misleading or dishonest product reviews. The agency has also recently proposed the creation of a "Do Not Track" tool for the Internet (similar to the telemarketing "Do Not Call" registry). 9. IRS enforcement - To help collect more tax revenue in this era of budget deficits, the IRS is ramping up its enforcement efforts in several areas. In 2010, the IRS kicked off an employment-tax audit program that will carry into 2011. These audits are focusing on employee misclassification, executive compensation, fringe benefits, and adherence to general employment tax filing requirements. Further, the IRS is accelerating efforts to increase tax compliance among employees who collect tips. 10. Privacy - Most states have instituted laws requiring businesses to notify customers (and, in some states, governmental authorities) when sensitive data is breached. Some states have enacted laws requiring that businesses have processes to adequately safeguard sensitive client data. Businesses handling protected health information are subject to additional requirements governing the protection of that data. 11. Employment verification/immigration - U.S. Immigration and Customs Enforcement (ICE) continues to crack down on companies knowingly hiring undocumented aliens. Several different Congressional immigration reform proposals, which may present further employment verification obligations, are expected to get attention in 2011.“One of the great values in working with a national provider such as Paychex, is that our regulatory experts are constantly monitoring compliance-related issues that impact our 536,000 clients across the country,” said Martin Mucci, Paychex president and CEO. “With 2011 already shaping up to be another year of sweeping changes for businesses, Paychex clients can rest assured that we’re on top of these issues, and we will be there to help them navigate the new regulatory environment.”
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