Businesses face increasing regulations, from human resources (HR) to payroll, taxes, benefits, and so much more. Compliance with HR rules is time-consuming and risky; it seems like the rules change every year—because they do. Large companies have teams of HR experts, accountants, and payroll resources to handle all of these tricky rules. But this does nothing for the small to medium-sized business (SMB) who is playing Russian roulette with HR and compliance fines. If you are an SMB struggling with HR and compliance, we have expertise that can fit your budget and your goals.
Small companies usually handle payroll themselves. They may still handwrite checks and figure out the numbers on an Excel spreadsheet. Or, they may use one of the big national players like ADP or Paychex to handle their payroll. Both of these options are not an ideal fit for the SMB.
Manually handling payroll is not only time-consuming, but the risk of human error is unacceptably high. So, too, is the risk of getting taxes wrong or otherwise making a mistake on this critical business function. The risk accelerates when you have employees in different geographic territories. Every state has different tax rules that must know if you’re handling payroll. It’s a complicated snarl that can grow highly problematic.
Using a large payroll company has a lot of benefits and one major drawback: The cost. Companies pay thousands every month for these vendors, and most SMBs can barely afford it.
It’s hard to stay competitive with benefits options if you’re an SMB. Benefits are a top request from new employees, and if your company has health insurance that has high deductibles or outrageous premiums, you’ll have a harder time attracting top talent. You can work with a health insurance broker to help you shop for a carrier. But the rates you’ll receive are probably very similar to what you were able to get on your own.
Workers’ Compensation Insurance
If you’re in business, you have to deal with work comp. Workers’ compensation is mandated in all states. The program covers lost wages and medical treatment that stem from an employee injury that occurs at work. Employers work through the program to clear their employees back to work. Each time an on-the-job injury occurs, you can expect an increase in premiums for this program. You can use an insurance carrier to remain compliant with this program or the state insurance fund for workers’ compensation where you live. Both are fairly expensive if you are an SMB and not in a shared pool or with a high number of workers.
HR is critical to your company. HR is the backbone of your company, from hiring, training, and employee retention to setting policies and procedures. But suppose you run afoul of the dozens of state and federal laws that govern the worker/employer relationship today. In that case, you can expect seriously costly fines and reputational damage that can last a long time. If you’re using an in-house employee to handle HR and they are not trained in this field, you run the risk of non-compliance.
FoxHire—HR and Compliance Expertise on a Budget
As an Employer of Record, FoxHire can handle your payroll, benefits, workers’ compensation, and HR. We also handle hiring and sourcing candidates, and employee management. We offer a full service of HR-related tools for our SMB clients, freeing them up to work on more important things like building their business. Our fees will surprise you, along with our clear ROI. If you’re struggling with HR and compliance issues, FoxHire can help. Call on us today.