About one-third of medium-sized companies in the United States incurred expenses due to HR compliance errors during the past year, according to a report.
Mid-size businesses may be caught in a particularly challenging situation, in some respects, as they have administrative requirements comparable to those of a larger company, but lack the resources of one. The ADP Research Institute found in a recent survey that most mid-size companies which are subjected to fines or penalties receive an average of 6.4 different ones, not just a single violation.
This financial burden can add to the many challenges companies face in the current economy. The report also determined that those businesses which conducted their payroll processing internally received more penalties on average than those which contracted outside expertise. This suggests that mid-size businesses should investigate their options for external assistance. It may be worth seeking similar help on other HR matters, such as employee benefit services.
The percentage of companies which manage payroll internally has declined over the past seven years, according to researchers, as organizations seek to avoid compliance issues and maximize their efficiency.
