As a small or mid-sized business owner, you're focused on expanding your market and offerings and improving operational efficiencies. But as your business grows, so does the complexity of HR compliance. Staying compliant can be time-consuming and challenging, but with the right support, it doesn’t have to slow you down.
When you partner with a professional employer organization (PEO) for your HR outsourcing needs, you gain access to a team of experts who keep you updated on the latest compliance requirements. They offer the guidance you need to implement the necessary processes and stay compliant, allowing you to focus on growth.
Compliance Challenges for Growing Businesses
Labor laws such as the Fair Labor Standards Act (FLSA) and the Equal Pay Act apply to your business as soon as you hire your first employee. But that’s just the beginning. As you hit certain headcount milestones, you will need to comply with additional laws that impact wages, hours, benefits, safety, and more. For example, the Americans with Disabilities Act (ADA) kicks in when you reach 15 or more employees, and the Affordable Care Act (ACA) applies when you have at least 50 employees.
This isn’t the only complexity. Labor laws and regulations have differing methods for determining your headcount, and federal, state, and local employment laws are subject to change at any time. In fact, thousands of labor laws are passed or altered every year. As a result, it can be difficult to stay up to date and avoid noncompliance – especially if you have workers in multiple locations that fall under different requirements.
To maintain compliance, it’s important to understand the laws and regulations that apply to your business. Why? Because noncompliance with labor laws can result in serious consequences such as fines, lawsuits, reputational damage, or even restrictive government oversight. It can also damage your company culture by making employees feel undervalued or unsafe.
How can a PEO support growing businesses?
A PEO is an HR outsourcing company that provides HR administration support and expertise. As part of a PEO’s comprehensive HR services, they provide HR compliance guidance and also handle HR functions such as payroll, benefits, payroll tax filings, and more.
Related to compliance, a PEO can help you understand and stay updated on all the labor laws that impact your business, develop policies and processes for ensuring compliance, provide access to online training on compliance issues, and prepare for any audits or investigations that may occur.
How PEOs Help Ensure HR Compliance
- Expert Knowledge of Employment Laws
The regulatory landscape for HR is constantly changing. In recent years, federal laws and regulations have evolved to provide employees more protections, while several states have enacted minimum wage increases, paid leave laws, and retirement plan mandates that may impact your business. The compliance experts at a PEO, like G&A Partners, will help by:- Monitoring all federal, state, and local employment laws and regulations that may affect you
- Keeping you informed of evolving requirements
- Monitoring all federal, state, and local employment laws and regulations that may affect you
Customized Compliance Solutions
When changes occur in labor laws that affect your business, including industry-specific or location-based regulations, your PEO can help you develop new policies and systems, if necessary, to address them. For example, a PEO can assist you in categorizing your employees properly as exempt or non-exempt.Accurate Payroll and Tax Administration
Payroll and tax responsibilities increase as your business grows. A PEO will:- Help you feel more secure that costly payroll tax penalties and audits can be avoided.
- Help ensure that payroll and payroll taxes are processed accurately and on time.
- Employee Policy and Handbook Development
As your company grows, clear workplace policies can help reduce the risk of noncompliance. A PEO can assist you in:- Evaluating current policies or developing new policies
- Creating or updating information/handbooks for your staff
- Evaluating current policies or developing new policies
- Assisting with Workplace Investigations and Audits
Even with clear policies and effective implementation, it’s possible to trigger an investigation by regulatory bodies such as the Equal Employment Opportunity Commission (EEOC) or OSHA. If one of these government agencies initiates an audit, your PEO can:- Identify potential areas of concern in advance and recommending corrections
- Help you gather necessary documentation
Benefits of Partnering with a PEO for Compliance
When you engage with a trusted PEO like G&A, you gain a valuable HR partner that:
- Helps free up your time by handling administrative HR functions, so you and your leadership team can focus on growth
- Gives you peace of mind by helping you reduce risk and liability
- Offers strategic guidance to elevate the experience you provide employees
How G&A Can Help
At G&A, our commitment to best-in-class customer service sets us apart from our competitors – and we have the client service ratings to back it up. We believe in delivering world-class HR solutions that help build thriving businesses, and we are committed to making a difference in the lives of you and your employees. Schedule a consultation today.
