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It always helps to avoid business fines for the bottom line and the reputation of your company. Keeping on top of things can be tricky, but there are various departments to help. So, from respecting online privacy to keeping up with compliance, here are some handy suggestions.
Don’t Delay Your Taxes
Taxes are the big one because they are so easy to forget about, are often confusing, and carry harsh penalties. And this includes prison in most countries. Each April, we are asked to submit honest and accurate tax returns, and this is vital. You need a tax number such as an EIN, whether it’s the UK’s HMRC or the US’s IRS. Fortunately, the cost of obtaining an EIN number or something similar is zero. So the only excuse you have is one of ignorance or laziness.
Value Customer Privacy
Most people are aware of online privacy as citizens. But what about as a business? As an online service provider, even if you run a blog, you are beholden to various privacy laws depending on where you operate. For example, Europe uses the General Data Protection Regulation (GDPR) set of rules to govern online privacy. You can be fined a lot of money for using data in ways such as sending unwanted emails, cold calling, and selling personal data.
Avoid Business Fines for Payroll
Departments such as payroll are heavily linked to other areas where you can be fined. This includes data protection, but mainly submissions to national offices. For example, the UK’s HMRC has harsh penalties relating to PAYE income tax submissions, expenses and benefits and not paying workers the national minimum wage. This carries one of the largest penalties, which currently stands at 200% of pay arrears and up to £20,000 per underpaid worker.
Make Sure You Are Compliant
One of the most vital parts of staying in business is compliance. There is compliance for just about everything, and it is critical for some sectors. For example, you need to be compliant with GDPR rules, as mentioned. However, there are other compliance standards, such as the Health Insurance Portability and Accountability Act of 1996 (HIPAA). HIPAA violations can see you paying up to $1.5 million in fines. Anti-money laundering non-compliance can land you in prison.
Pay Attention to What You Say
Making false statements and claims about a business or product can be very serious. This is why you must be careful when creating ad copy. Misleading advertising is a surefire way to end up in some very hot water. Even joking about something can cost you. Take a look at Red Bull’s lawsuit. The energy drinks company was taken to court in a class action because, as it turns out, Red Bull does not give you wings. This cost Red Bull a whopping $13 million to settle.
Summary
Getting your tax returns in on time and accurately will help avoid business fines this year. It also helps to ensure everything is on order concerning payroll departments. And be very careful about claims you make about services and products, as even jokes can end up costing.
