Compliance<br /> Audits	            Risk<br />Fines & Penalties<br />Tax Form Errors<br />Delinquent Reporting<br />    I...
Non-Compliance in Hiring is Common<br />New hires frequently make mistakes filling out forms<br />HR doesn’t always catch ...
A Few Of The Agencies That May Audit Your Organization Include:<br /><ul><li>  Immigration and Customs Enforcement (ICE)
  Federal Internal Revenue Service (IRS)
  Your State’s Revenue Service
  State Office of Child Support Enforcement (OCSE)</li></ul>How Will You AvoidThe Hidden Costs of Non-Compliance?<br />
What ICE May Find In An I9 Audit:<br /><ul><li>  Missing I9 forms (either not filled out in the first place or not kept   ...
  I9s completed incorrectly by new hire and/or employer
  Suspicious I9s that require further investigation
  HR’s failure to follow correct protocol in documenting worker ID
  I9s that list expired work authorization documents
  A pattern of technical/procedural errors in how I9 data is collected
  Lack of a specific process for handling tentative non-confirmations
  Discriminatory use of I9s and the E-Verify system
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The HIdden Costs of Hiring Compliance

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Onboarding new employees can be a legal minefield when it comes to getting the paperwork right. Particularly now, with agency budgets shrinking across the country, levying fines is an attractive way to boost revenues. This presentation, based on our popular article, "The Hidden Costs of Non-Compliance in Hiring", presents in concise format the potential fines and where they might come from.

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The HIdden Costs of Hiring Compliance

  1. 1. Compliance<br /> Audits Risk<br />Fines & Penalties<br />Tax Form Errors<br />Delinquent Reporting<br /> Immigration Violations<br />How Will You AvoidThe Hidden Costs of Non-Compliance?<br />
  2. 2. Non-Compliance in Hiring is Common<br />New hires frequently make mistakes filling out forms<br />HR doesn’t always catch errors and omissions<br />Deadlines get accidentally missed<br />Constantly changing laws make it hard to keep up<br />Outdated forms are sometimes used<br />Paperwork gets misplaced <br />How Will You AvoidThe Hidden Costs of Non-Compliance?<br />
  3. 3. A Few Of The Agencies That May Audit Your Organization Include:<br /><ul><li> Immigration and Customs Enforcement (ICE)
  4. 4. Federal Internal Revenue Service (IRS)
  5. 5. Your State’s Revenue Service
  6. 6. State Office of Child Support Enforcement (OCSE)</li></ul>How Will You AvoidThe Hidden Costs of Non-Compliance?<br />
  7. 7. What ICE May Find In An I9 Audit:<br /><ul><li> Missing I9 forms (either not filled out in the first place or not kept for the required length of time)
  8. 8. I9s completed incorrectly by new hire and/or employer
  9. 9. Suspicious I9s that require further investigation
  10. 10. HR’s failure to follow correct protocol in documenting worker ID
  11. 11. I9s that list expired work authorization documents
  12. 12. A pattern of technical/procedural errors in how I9 data is collected
  13. 13. Lack of a specific process for handling tentative non-confirmations
  14. 14. Discriminatory use of I9s and the E-Verify system
  15. 15. Evidence that an organization is hiring unauthorized workers</li></ul>How Will You AvoidThe Hidden Costs of Non-Compliance?<br />
  16. 16. Potential Penalties For I9 Violations<br />$110-1100 for every missing or incorrectly completed I9 form<br />Additional fines for systematic failure to collect I9 information correctly<br />$375-16,000 for every unauthorized worker found to be employed by the organization<br />Criminal penalties including jail time for business owners, HR executives, and hiring managers <br />How Will You AvoidThe Hidden Costs of Non-Compliance?<br />
  17. 17. What The IRS May Find In A W-4 Audit:<br />Invalid W-4 forms<br />Examples of invalid forms include:<br /><ul><li> Multiple selections of filing status
  18. 18. Alterations to the W-4 form
  19. 19. Selection of a flat $ amount or fixed % instead of the permissible allowances
  20. 20. Listing a withholding amount and claiming full exemption</li></ul>Common Violation: The Employer withholds at a rate other than Single/Zero allowances when an employee turns in an invalid W4 form<br />How Will You AvoidThe Hidden Costs of Non-Compliance?<br />
  21. 21. Potential Fines For W-4 Violations<br />The IRS may hold the employer liable for any unpaid taxes that should have been withheld under the Single/0 rule for invalid W-4s<br />EXAMPLE: Employee Jane Doe makes $50,000 per year. She turns in an invalid W-4 that has several items scratched out and rewritten. HR makes an assumption that she intended to list Married with 9 allowances. <br />As a result, the employer withholds approximately $360 in taxes for the year. The withholding for Single/Zero would have been around $7,800. The IRS can require the employer to pay the balance of $7,440 <br />Additional fines and penalties may be assessed at the auditor’s discretion for the employer’s failure <br />to follow proper withholding procedures.<br />How Will You AvoidThe Hidden Costs of Non-Compliance?<br />
  22. 22. What The OCSE May Find In A <br />New Hire Reporting Audit:<br /><ul><li> Failure to report new hires to the appropriate agency within the time frame (20 days or less) specified by the state
  23. 23. HR not using a form for reporting that includes all relevant data as required by law
  24. 24. Not having a process in place to report data at all
  25. 25. Collusion with new hires to defraud the Child Support system</li></ul>How Will You AvoidThe Hidden Costs of Non-Compliance?<br />
  26. 26. Potential Consequences For OCSE Violations<br /><ul><li> A fine of up to $25 for each late-reported new hire
  27. 27. A fine of up to $25 per month for each unreported new hire
  28. 28. A fine of up to $500 for each instance of collusion
  29. 29. Civil penalties such as suspension of an organization’s business license
  30. 30. Contempt of court charges for failure to pay fines in a timely manner </li></ul>Penalties and Fines Vary Greatly By State<br />How Will You AvoidThe Hidden Costs of Non-Compliance?<br />
  31. 31. SSA/IRS No Match Letters<br />In addition to penalties for W-4 violations, the IRS may also fine employers $50 for each instance of a mismatch between information submitted on a W-2 and data in the SSA’s system.<br />Failure to follow up appropriately upon receipt of an SSA no-match letter may also be used as evidence against an employer during an ICE audit.<br />How Will You AvoidThe Hidden Costs of Non-Compliance?<br />
  32. 32. How To Reduce Your Risk<br />Implement HRIS Technology That:<br /><ul><li> Always presents the most current version of each form during onboarding
  33. 33. Consistently enforces all the federal/state business rules, eliminating errors
  34. 34. Uses "virtual forms" that cannot be altered or left incomplete
  35. 35. Automates the flow of documents to the hiring manager for final review
  36. 36. Integrates with E-Verify to speed I9 verification and ensure new-hires are eligible
  37. 37. Automates delivery of data to state new hire reporting systems in a timely manner
  38. 38. Eliminates re-keying of data from one system to another - reducing typos</li></ul>How Will You AvoidThe Hidden Costs of Non-Compliance?<br />
  39. 39. Benefits Of Better Compliance <br /><ul><li> Your organization sends up fewer “red flags” that may trigger an audit
  40. 40. If an audit occurs, your risk of civil penalties is reduced because all your documentation is in order
  41. 41. Taking proactive steps to increase compliance shows a good faith effort that works in your favor if any past errors are discovered</li></ul>How Will You AvoidThe Hidden Costs of Non-Compliance?<br />
  42. 42. Universal Onboarding from Emerald Software Increases Hiring Compliance<br />Here are just a few of the features that will boost your compliance level<br /><ul><li> Onboarding - Forms Automation
  43. 43. "Instant" Implementations (Demographics, W4, I9, State Tax, etc.)
  44. 44. Federal Forms Included in Library: W4, I9, 8850, and more
  45. 45. State Forms Included in Library: All State W4s or equivalents
  46. 46. Electronic Signature Images (including signature images)
  47. 47. E-Verify interface (Department of Homeland Security)
  48. 48. State New Hire Reporting
  49. 49. User-definable Business Rules on Data Panels
  50. 50. Post-forms submission Integration to User Definable Workflows (BPM) </li></ul>How Will You AvoidThe Hidden Costs of Non-Compliance?<br />
  51. 51. Contact Us Today To Learn More About Universal Onboarding<br />www.emeraldsoftwaregroup.com<br />3060 Royal Blvd South<br />Alpharetta, GA 30022<br />Phone: 770.569.5122 Fax: 678.669.1516<br />How Will You AvoidThe Hidden Costs of Non-Compliance?<br />

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