Governments at the federal and some state levels have recently stepped up random checks on small business for paperwork compliance. The most common areas are posters that notify workers of their rights, and personnel file forms.

OHSA (Occupational Health & Safety Administration) has conducted spot checks of facilities for years, which often include looking for the required posters that are issued by various other agencies (not by OHSA). OHSA's favorite fine is $7,000 per incident (or poster) per visit. An increasing number of state Employment Security Commission (i.e. state unemployment agency) auditors are routinely looking for employment posters as well. The government auditors and inspectors view this as easy money from small businesses.

Likewise, we are hearing of increasing efforts by the US Immigration & Naturalization Service to check small businesses for I-9 forms on all personnel (including owner/officers).

You are now required to collect new hire data from all employers. You must send in the form that your state has developed to this new state agency within 20 days of hiring each and every employee. There are no exceptions for the small size of your company. Fines vary from state to state, but several state regulators tell us that they expect the fines to gradually get more severe as time goes on. This requirement has been in place for several years now, but many of the small business owners we chat with are unaware of this requirement ... or find out the hard way.

Don't get caught on these paperwork issues. Your CPA or most state Employment Security Commission auditors can give you a list of federal and state work rights posters that you are required to hang in your shop, and where to obtain them. Alternately, many office supply stores sell employment poster kits for each state's requirements. Also, check to see that you have completed I-9 forms and New Hire forms for every employee (including yourself if you are incorporated).