Payroll Pitfalls
Small business owners / franchisees, are you sitting on a ticking time bomb? Getting your business up and running is a plenty heavy lift. Financing the dream. Securing a site and then stocking your store. Finding and hiring good employees. Setting up systems. Making sure shifts are covered and your people get paid. Working out the kinks. Long hours and hard work. In the middle of all of that you may not have the time or the inclination to think much about the California Labor Code and how running afoul of it could crush your business.
Take payroll for example. Maybe a fellow SBO recommended the latest payroll product with a cool name and a snazzy app. It's super user-friendly and is a great fit for your Gen Z employees. In your mind, payroll is taken care of, on to solving the next issue. But is it? Do you have that payroll product set up to comply with California law? Does that product include all of the information California requires on a paystub? What if it doesn't and you've been out of compliance for months? How much could this end up costing you? You'll start to find out when the letter from an unfriendly attorney arrives.
But wait, there's more. What about wages? Are you sure that your payroll product is set up to pay your employees correctly, in compliance with California law? If your payroll product offers "Tip Makeup" and you're using it in your payroll configuration, do you understand the implications under California law? Getting wages wrong in California can quickly become very expensive for employers.
Last, and perhaps most seriously, tips. Unsurprisingly, California law is in the room every time your employees flip the tablet around to ask your customers "a few questions." Every tip a customer leaves for your employees creates legal obligations for you as the employer. Again, understandable that reviewing your payroll product's configuration and outputs for compliance with California law may not have been on your radar as you were launching your business. But getting tips wrong as a California employer can actually expose you to criminal liability, including jail time.
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The devil is in the details for small business owners / franchisees and in the run up to launch it's easy to miss issues that can come back to take a chunk out of your bottom line. Harvey Legal Consulting can help you recognize these shortfalls and will work with you to ensure they are addressed--all for a fixed monthly fee that respects the business you continue to build.
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Absolutely, navigating the California Labor Code can feel like navigating through a thick fog for small business owners! As Steve Jobs once said, “The only way to do great work is to love what you do.” By embracing the challenge, you're already one step closer to achieving greatness. ???? By the way, if your business is passionate about making a positive impact, check out our upcoming sponsorship opportunity for the Guinness World Record of Tree Planting: https://bit.ly/TreeGuinnessWorldRecord. A great way to leave a lasting legacy! ????