BlogNews & UpdatesNavigating Compliance Challenges in the Remote Work Era

Navigating Compliance Challenges in the Remote Work Era

Compliance Challenges in remote work

The COVID-19 pandemic has catalyzed a paradigm shift in the way businesses operate, with a significant number of companies embracing remote work as their new normal. While this dramatic transition has numerous benefits, it also presents a set of unique compliance challenges related to human resources and tax compliance. Navigating these complexities requires a deep understanding of the relevant laws, regulations, and best practices.

The Compliance Challenges in Work

Today, many businesses are choosing to maintain their remote job policies even three years after the advent of the pandemic. This shift has far-reaching implications on HR compliance and taxes.

#1 The Increasing Litigation Claims

Despite not having employees in a physical office, a business’s liability does not decrease. In fact, it can increase due to the unique challenges posed by remote work. Consequently, claims against businesses are on the rise.

#2 The HR Compliance Checklist for Remote Work

The following are the most common HR compliance issues businesses may face with remote workers and how they can safeguard themselves.

2.1 Wage and Hour Compliance Issues

Wage and hour laws vary significantly across different states and even cities. Tracking employee locations and wage requirements can become more difficult with remote workers.

What can HR do?

  • Implement a payroll platform that includes timekeeping technology
  • Ensure proper employee classification
  • Maintain records of remote workers’ addresses

2.2 Workplace Safety Issues

Employers are liable to provide workers’ compensation for an employee’s injury while working from home.

What Can HR Do?

  • Regularly update job descriptions and expectations
  • Educate employees about creating a safe work environment
  • Consider providing stipends for workspace setup

2.3 Harassment and Discrimination Issues

Harassment and discrimination are not confined to physical offices. They can occur in virtual environments as well.

What Can HR Do?

  • Avoid discriminatory criteria in employment terms
  • Implement harassment prevention training
  • Clearly define the role of each stakeholder in preventing harassment and discrimination

#3 The Multi-State HR Compliance Complexities

Allowing workers to live in different states can double the legal obligations of a business.

What Can HR Do?

  • Follow the Department of Labor’s “Localization of Work Provisions”
  • Choose a health insurance provider with a multi-state plan
  • Research and comply with local and state labor laws

#4 The Family and Medical Leave Act (FMLA)

Remote workers are eligible for FMLA on the same basis as in-office workers, as per the Department of Labor.

What Can HR Do?

  • Keep a comprehensive account of all employee information
  • Understand the intersection of FMLA eligibility and the ADA

#5 The Future of Remote Work

The demand for remote job options existed before the pandemic and will likely continue to grow after the pandemic.

Remote Employee Taxes: Understanding Your Workforce

Leaders need to understand the different types of employees and the tax implications each brings.

Steps for Remote Work Compliance

  • Connect with stakeholders
  • Gather data
  • Analyze the compliance, operational, and cost change
  • Identify your red lines
  • Develop your tax policy
  • Develop your compliance response

5.2 Expense Consideration for Remote Work

Expenses are an important factor in remote and hybrid work. Employers should be clear about what expenses they are reimbursing.

6. Conclusion

Remote work compliance requires more than just digital tools. It requires a thorough understanding of your workforce and a meticulous compliance operation. By taking the right steps, businesses can successfully navigate the complexities of HR and tax compliance in the age of remote job.

Cellbunq Systems AB, Stockholm, Sweden based Know Your Business (KYB) identity orchestrator.



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