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May 2002 Compliance Letter

There are so many little things that can cost you a lot in government fines and penalties. It really is not fair how these things can sneak up on you. I have decided to declare each May “Compliance Month” to specially focus on these matters. I also know that you are busy. Please use the following check-off list to make sure you are in compliance with most government requirements. Of course I mean that you should be in compliance with all government requirements. The list below will cover many of the requirements.

Employee signature forms
____1. All employees should sign a new W-4 each year.
____2. You must have an I-9 on each employee.
____3. Remember that if your business is incorporated, you are an employee and must have your W-4 and your I-9.
____4. You should keep a confidential file on each employee. It should have his W-4, I-9, notes about any discipline problems, notes about any incidents, wage & salary information, date hired, date fired, and other information that you keep.
____5. You are required to carry Workman’s Comp insurance on all employees.
____6. If any individual whose business is not incorporated does work for you such as yard maintenance, repairs etc, you must have a current form W-9.

Insurance
____1. It is worth repeating that you are required to carry Workman’s Comp insurance.
____2. I suggest that you review your insurance coverage in a sit-down meeting with your insurance agent. Phone your insurance agent.
____3. Ask your insurance company for an informal safety checklist. Some insurance companies print these for their policyholders.

Posters and Licenses
____1. If I make a list of the required federal and state posters that you are required to have displayed, I will probably miss one. I suggest that you buy a laminated collection of required posters from a company that specializes in this sort of service. I suggest Poster Compliance Center at (800) 322-3636. They carry the posters for Louisiana, Mississippi, Georgia and other states as part of the package.
____2. Review the expiration dates on all your posted permits and licenses.
____3. In particular, check to see that you have your current Occupational License.

Minimum Wage, Overtime, and Salary
____1. Verify the current minimum wage at http://www.dol.gov/dol/topic/wages/minimumwage.htm.
____2. You must pay at least time-and-a-half on hours more than 40 in any calendar week.
____3. A written agreement between you and the employee to get around #2 is not legal.
____4. You must still keep records of hours worked for salaried employees. You must be able to prove that during each pay period, the salary is more than the employee would have gotten at minimum wage with the overtime hours. This is a surprise to many employers.

Tax Records
____1. You must keep tax records three years from the due date of the tax return. You can destroy your 2001 tax records on 15 March 2005 if your business is a corporation or on 15 April 2005 if your business is a partnership or sole proprietorship.
____2. “Tax records” includes cash register tapes. If you phone me and ask me ten to twenty times if you can throw cash register tapes out after a year, I will probably agree. However, remember that you are still required to keep cash register tapes for the same three-year period.
____3. This year you may throw out 1998 tax records. I strongly recommend that you keep your December 31, 1998 Profit and Loss statement and your 1998 tax return forever.
____4. You must keep payroll records, including time cards, for seven years.
____5. You must keep records of equipment purchased until three years after the property is fully depreciated. You should keep these records in a separate permanent file.

Beer and Tobacco Compliance
____1. If your business sells beer, check all employees to see that they have the necessary state permit if your business is in Louisiana.
____2. Review the requirements for selling beer and tobacco in your state with each employee. Make a record of the date and put it in your employee records file.

Gasoline Service Stations in Jefferson Parish, Louisiana
____1. You are required to file the old Louisiana “Tier Two” report with Jefferson Parish. This is only for Jefferson Parish. This does not apply for other parishes.

Electronic Filing
____1. By 2007 there will be no more mailing tax returns and paying taxes by check. Everything will have to be done by electronic means. In the next few years, IRS will require all business to enroll in the EFTPS program. During the remaining 2002 and 2003 we will systematically continue to convert our clients who still pay by check to the EFTPS programs.

Copyright © - 2002 Dutch Hawkins Mandeville, LA USA - All Rights Reserved