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.
Need for Legislative Compliance
Legislative 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 Compliance
It can be challenging for companies to keep up with the latest trends and developments in labor laws and human right laws. Leading companies today have realized the impact of global HR solutions on their bottom line.
Legislative compliance is one such section of HR, which if averted can cost companies relevant loss and penalties 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 compliance checks at the time of data entry, reporting of non-compliant items as and daily updates on legislative changes helps in the overall compliance. Today leading HR service providers have introduced innovative legislative compliance that includes the following:-
- Health and Benefits
Minimizes administrative issues that involve COBRA, ERISA and HIPAA compliance by allowing access to compliance education, human resource consultants, checklists and specialized legal counseling
- Tax Compliance
Being compliant with various taxation systems and laws across multiple states and diverse countries appears 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 assistance
Benefits of Legislative Compliance
Apart from the above mentioned facts, adherence to legislative compliance has other set of advantages too. 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 citizen