It’s February, and in the world of human resources, payroll, and taxes, it’s time to take a breath. W2s are mailed (and possibly online), forms are filed, and fees are paid.
If your company is structured with HR and payroll functions in-house, you’ve seen the burning of the midnight oil. For some small businesses, having this infrastructure gives them peace of mind. The person or people who handle the day-to-day tasks and employee-related issues have been putting off those tasks and issues, and have been struggling through regulations and forms. It’s not uncommon for long work hours throughout January, as missed deadlines can cost your company. In fact, more than 18% of small business owners in a NFIB Small Business Time Management survey responded that dealing with regulations was one of the biggest sources of work-related stress.
Some companies use a combination of vendors for their HR, payroll and tax needs. This can work well until you realize you are now spending your time managing two or more companies. Keeping track of who does what can be a burden. And when you find yourself waiting on one company to give you information, so you can pass it to another company, you soon realize that although you have alleviated administrative tasks, you have become a project manager. This scenario may not leave you with enough time to truly focus on your core business.
A third choice, and one growing in popularity, is to use a Professional Employer Organization (PEO). By partnering with a team of experts in human resources, payroll, taxes, benefits, and risk management, you don’t have to worry so much about complying with regulations. You also don’t have to spend your time managing multiple vendors. A full-service PEO provides complete HR solutions, payroll and payroll tax services, workers’ compensation insurance and claims management, benefits administration, workplace safety, retirement management, and more, all under one roof.
Read the Complete Guide to Human Resources to see which option is right for your business—single vendor, multi-vendor or in-house.