Disagreements with employees, clients, and independent contractors can create risks for your small business. By having certain employee and contractor documents in place, you can help safeguard your company.
Here's a quick look at some of those key documents:
- Employment records: Organize your employee records (e.g. applications, performance reviews, W-2s, non-compete agreements) and keep them in a central location. Plus, confirm the records for each employee are complete and up-to-date.
- Employee handbook: This is an important document for your business and will help you avoid potential employee issues. It should lay out expectations for your employees in detail and include your mission statement along with your anti-discrimination and anti-harassment policies.
- Information security policy: Create a written policy that details how your company will maintain and protect employee, client and vendor data. I'm based in Massachusetts, which provides a checklist "to aid in the development of a written information security program for a small business or individual that handles 'personal information.'" (It's known as the Comprehensive Written Information Security Program, or WISP.) Your state may offer similar guidance.
But Wait, There's More
Creating these documents is the first step. The second step is to implement the policies and to make sure they're being followed correctly on an ongoing basis. An outsourced bookkeeping services company can verify you have the employee and independent contractor records you need to stay compliant and help protect your business.