Midsized Companies and Non-CompliancePost Views 3
In today’s society, there are a lot of challenges, especially for those who own and operate businesses. It is the midsized companies that seem to have to go the farthest when it comes to managing the costs of their employees and helping to take their business off the ground so that it can eventually grow and expand. The entire process can be quite complex, which is why some of the work often needs to be outsourced to others, particularly trusted partners like ADP, which is known for providing payroll services and other tax-related services as well. There are many midsized companies that have begun following the trend of outsourcing because they want to make sure they are following both state and federal regulations that have been set.
A recent study that was performed during May of 2012 on different midsized businesses and their owners has provided insight on the fact that a total of around 33% of the midsized companies in the United States end up having to pay more money due to noncompliance expenses for failure to comply with specific regulations that have been put in place. Many of the midsized companies have received more than just one fine or penalty as well, which is troubling. The study also showed that the midsized companies that do not outsource their payroll processing are often more likely to receive both fines and penalties than those who actually outsource the tasks to trusted partners. The President of ADP’s Major Account Services, Regina Lee, recently said, “A growing number of midsized companies are outsourcing their payroll processing to help mitigate risk in an increasingly complex regulatory environment.” She also said, “As more mid-market organizations realize the value that outsourcing can offer, we’re also seeing increased demand for our ADP Workforce Now® solution, which helps midsized companies simplify the regulatory compliance process, reduce their administrative burdens and focus more squarely on growing their business. In fact, more than a quarter of our new midmarket sales come to ADP from companies previously performing payroll in-house.”
A study performed by the ADP during 2011 has shown that within the past seven years, more companies have chosen to go with outsourcing the payroll processing tasks to trusted partners instead of doing the payroll processing in-house. Because of this, many companies in the United States have been able to improve their functionality. However, those who do not outsource often continue to struggle. Companies that manage their own payroll often have less satisfactory results than those who are outsourcing payroll as well.Midsized Companies and Non-Compliance by Harrison Barnes