Managing a small business and maintaining proper HR compliance can be a hefty task. In fact, many people find they spend more time doing HR work then the work they set out to do with their company. Even more often, they find trying to remain compliant with HR laws and regulations is almost impossible as their company grows. Hiring a PEO can help reduce these three common employer HR compliance violations that often happen when HR is not your specialty.
Wage Payment
Managing payroll is a full-time job. Making sure that employees are compensated appropriately can present even greater difficulties. Problems with proper compensation and wage payment is the number one problem that employers struggle to comply with. For example, let’s say your employee is hourly or non-exempt. They work an extra 12 minutes every day for a week but only get paid their 40 hours. This is a wage violation because that extra 12 minutes adds up to about an hour of overtime for which the employee should be paid. Having a PEO can help manage payroll appropriately and make sure that your company remains HR compliant.
Tax Deductions
Along with HR compliance in wage payment, taxes can be very tricky to deduct correctly and it should go without saying that the paperwork is confusing. There are so many places an employer who is not versed in tax regulations can go wrong, triggering an HR compliance nightmare. A PEO can take that off of your plate and make sure everything is documented appropriately.
Employee Leave
There are a couple of different ways that an employer could violate the Family Medical Leave Act (FMLA) that is a federal law protecting workers. Though there are no federal requirements stating that companies must give a certain amount of paid leave, employees that have worked for a given amount of hours are legally required to have job security for up to 12-months of unpaid medical leave. Additionally, many states require that unused paid vacation be paid out if an employee resigns or is terminated. A PEO can advise on proper HR compliance concerning employee leave and can help track paid leave in the company
