Tips for small businesses overloaded with regulations

Dear Professor Bruce: As a small business owner, I'm constantly concerned with following federal regulations. How do I guarantee that I'm meeting every requirement?Answer: Small business faces regulatory compliance costs that are 45 percent more than their larger counterparts, according to research conducted by the Small Business Administration. The study also finds the cost of regulation for a small business has grown to $7,647 per employee, an expense that can be devastating - even in the best of economic times. The Immigration Reform and Control Act legally mandates that U.S. employers verify the employment eligibility status of newly hired employees and make it unlawful for employers to knowingly hire or continue to employ unauthorized workers. According to David Colburn, CEO of Smart online, "Many small business owners will need to first consider whether to address human resource issues manually or via an electronic solution". Small business owners who know how to operate a computer should consider an electronic solution such as one found at www.onebiz.com. This human resource management application assists in streamlining the HR process by enabling small businesses to:- Instantly access employees' files and information - Track employee attendance/vacations and company policies - Manage employees' daily timesheets and projects - Manage HR documentation (i.e. insurance forms, W-2 forms, etc.) securely and electronicallyThe National Federation of Independent Business, a small business advocacy group, notes businesses with fewer than 50 employees struggle the most with compliance due to a limited or a lack of human resources, accounting and legal capabilities. The most important resource for any small business is employees. And proper HR management is critical to ensure the company stays in proper compliance during the various federal, state and local governments. An HR application should also be designed to allow companies to streamline their human resource tasks and manage their employees efficiently.Beyond the applications small business owners should also talk with a human resource consultant to ensure they are keeping up with the latest regulatory and compliance issues. How do you find a good human resource consultant to assist you? Ask around for referrals as well as research organizations such as The Society for Human Resource Management, SCORE, SBA to see if they can help.For further information, visit www.smartonline.com.Bruce Freeman, The Small Business Professor, is president of ProLine Communications, a marketing and public relations firm in Livingston, N.J., and co-author of "Birthing the Elephant" (Ten Speed Press). E-mail questions to Bruce(at)SmallBusinessProf.com.