On average, U.S. small businesses spend 200 hours and $11,700 per employee per year on compliance, according to the U.S. Chamber of Commerce. This does not include financial penalties, Fast Company reports.
Small businesses account for the majority of U.S. firms and need policymakers to help lighten their financial load.
Here are some ways Co-founder and Chief Product Officer of Gusto Tomer London says policymakers can help curb compliance inflation and better support entrepreneurship:
Simplify outdated requirements: Policymakers should make forms and processes easy to submit; required tasks should be accessible virtually so small business owners don’t have to go in-person to submit required paperwork.
Design new regulations with small businesses in mind: Policymakers need to consult with small business groups to get early feedback, so they can create simpler processes and increase compliance.
Explore models to support small business compliance: Policymakers should consider ways to reward and help small businesses instead of penalizing and fining them.
