Do you remember when “Human Resources” was called “Personnel”? Maybe you didn’t even know this little bit of workplace trivia history.   If you are a business owner you may have a Human Resources Department. If you are a “solo-preneur” YOU may BE the Human Resources Department.   Whether you are employed as the HR Department Head or whether you an employee of any business, you want sound Human Resources practices to implement and follow.   I am experienced with tax audits by the Internal Revenue Service. I am dedicated to helping you both prevent and defend an IRS tax audit.  I didn’t realize that we could also be audited because of vulnerable Human Resources policies.   Human Resources is directly involved in the hiring, training, development and management of their people, their personnel, their human resources.   The TOP TEN most common pitfalls are really easy to understand once you think about them.   1. Company managers represent the company to the employees. Train your managers on the basics of your business: Hire, discipline, and deliver the difficult messages when they are necessary.   2. A poor or inconsistent selection process can be costly. Who is your BEST choice for YOUR business? Can you fill your positions with the best at the start?   3. The poor or inconsistent orientation of new hires can cause confusion and misunderstandings. Have a standard method of sharing the duties and expectations with each of your employees.   4. Inconsistent compensation practices can result in negative feelings among workers. Give equal pay for equal work.   5. Employee misclassification is another common mistake. According to the Fair Labor Standards Act (FLSA) certain employees receive overtime pay for overtime work. Just like in the tax field, you must be careful in determining whether your new hire is an employee or an independent contractor. The laws in this area are so deep you are encouraged to seek local counsel.   6. Insufficient documentation of poor performance issues can be very costly.   7. Failure to have a performance management system is a mistake. You need a system that improves communication, that rewards and pays employees based on what they deliver. Be sure to document your decisions.   8. Have job descriptions that are accurate and complete. Do not underestimate the importance of job descriptions that cover not only essential work but also any other work the job requires.   9. Management that fails to follow published policies invites trouble. Create, implement and evaluate your workplace policies.   10. Failure to train your management team on dealing with and preventing harassment puts your company at risk. Every two years conduct and document your training. Whether attended online or in person, DOCUMENT participant names, dates and location of trainings.   BONUS: PROTECT yourself from risk. Here are three tips you need to help you avoid lawsuits, audits and fines.   1. Develop a training plan for legal compliance. This includes necessary training on dealing with sexual harassment, discrimination and a hostile work environment.   2. Choose the most effective way to deliver this training.   3. Conduct an effective training session.   Finally, when creating your employee manual, be aware of your state’s laws. Make your manual a policy and not a contract. Train your supervisors in the use of your employee manual. Coordinate the employee manual with other company manuals. And lastly, KEEP the manual UP TO DATE.   Always to your lowest legal tax, Nellie T. Williams, EA