TIME TO THINK ABOUT THE SMALL BUSINESS OWNER - AUDITS AND RESULTS….
We were selected by the State of Indiana for an audit that took place this week. A state auditor, a pleasant woman, came to our office early in the morning and went through two years of our financials for 10 hours. The result; the major infraction found was the ‘employment’ of my own children and a few of their friends for a total of 30 hours in a year to label the OSA Newsletter, WHAT’S NEW. According to the State of Indiana, these teenagers should have been hired as employees instead of contractors.
We will be fined. The amount with penalties are estimated to be around $200.00.
I am a big advocate of maintain rules, regulations and paying my fair share. OSA is also a very small business with a few people wearing many different hats administering the business. Sound familiar? Like most of those we serve, small business is at a decided disadvantage. Few have the ability to employ accounting departments or human resources or marketing, etc…. When the phones go down, people are out sick or simply do not show up, when the computer system comes down with an ailment, usually the Grand Puba of any like-sized organization is deeply involved up to one of their more prominent extremities…..
For my part, when the findings are so insignificant, I would favor a system that provided for a ‘warning to cure’ and an education fee rather than a fine. Frankly I don;t care if the fee is as much or more as long as it provides for education for the over-burdened entrepreneur so they can gain from such a review.
So here is my suggestion; if the proposed penalties are below $500.00 for any year audited (in today’s dollars), then a warning is issued with suggestion and direction to cure any issues found in the audit procedure.
Sometimes a bit of help will be more profitable for all.
Jon Levin