Why do we need legislative compliance

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Many companies question the need for compliance policies in their organizations. However, it has been observed that a proactive management of legislative compliance risks is an imperative for good governance for both public as well as commercial sector enterprises.

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Why do we need legislative compliance

  1. 1. Why Do We Need Legislative Compliance?Many companies question the need for compliance policies in their organizations. However, it hasbeen observed that a proactive management of legislative compliance risks is an imperative for goodgovernance for both public as well as commercial sector enterprises.Need for Legislative ComplianceLegislative compliance is known as good governance owing to the following reasons:- ● In case of public sector organizations, if the head authority expects citizens to adhere to the laws then it has to actively manage its own compliance by following similar regulations. ● In case of commercial entities, shareholder value is pointlessly at a risk when legal issues are not well managed. ● There are audit committees and board of directors who are no longer content with “exception reporting” of non-compliance. They often demand regular “active reporting” on important compliance obligations.Industry Solutions for Legislative ComplianceIt can be challenging for companies to keep up with the latest trends and developments in labor lawsand human right laws. Leading companies today have realized the impact of global HR solutions on theirbottom line.Legislative compliance is one such section of HR, which if averted can cost companies relevant loss andpenalties that arises from defaults. Hence, it is imperative that companies ensure that their policies,practices and programs are legislatively compliant. Statutory and in-built mandatory compliancechecks at the time of data entry, reporting of non-compliant items as and daily updates on legislativechanges helps in the overall compliance. Today leading HR service providers have introduced innovativelegislative compliance that includes the following:-
  2. 2. ● Health and BenefitsMinimizes administrative issues that involve COBRA, ERISA and HIPAA compliance by allowing access tocompliance education, human resource consultants, checklists and specialized legal counseling ● Tax ComplianceBeing compliant with various taxation systems and laws across multiple states and diverse countriesappears difficult. Legislative compliance solutions help organizations to fulfill their tax obligations by:- 1. Filing tax returns 2. Processing checks and through remittance of forms and payments 3. Health and welfare form 5500 preparation and assistanceBenefits of Legislative ComplianceApart from the above mentioned facts, adherence to legislative compliance has other set of advantagestoo. They are:- ● Active compliance monitoring offers important data that assists the management to locate problems and manage before they become huge concerns. ● Enhanced customer service through well informed managers and staff. ● Better stakeholder and customer relations as the entity gets identified as acting as a proper corporate citizenRead Also On: Employee Benefits Consultants

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