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Human Resources

HR Services Keep Employers in Compliance with Federal and State Laws

Nannette Madera, PHR
by Nannette Madera, PHR on December 6, 2018

hr-services-complianceThe employers of small and mid-sized businesses often struggle with running the business and handling the demands of employees. After all, most business owners don’t go into business to become employers. That’s where outsourced HR can be vital to keeping the business humming. Whether business owners are challenged with staying up to date with state minimum wage regulations, the Affordable Care Act (ACA) or even planning the holiday party, HR services companies help guide employers to make sound decisions and stay in compliance with employment regulations. And rather than be reactive, these companies encourage and support employers to be proactive when it comes to managing the regulatory environment.

Here are four ways HR Services companies keep employers in compliance with federal and state laws:

1. HR services companies collect and remit taxes

Research shows that tax laws and reporting requirements take employers dozens of hours to process every year. When tax payments and procedures are handled efficiently, the business runs more smoothly and allows business owners more time to focus on customers and growth. Here are just some of the tax payments handled by an HR services company:

  • FICA taxes – Medicare and Social Security taxes
  • SUTA - State Unemployment tax
  • FUTA - Federal Unemployment tax
  • Other local or state taxes

2. HR experts give guidance on discrimination and harassment regulations

Employers are responsible for ensuring their employees have a safe and discrimination-free workplace. Failure to do so could result in hefty punitive and compensatory damages paid to employees. The experts at HR services companies have in depth knowledge of Equal Employment Opportunity Commission (EEOC) laws that regulate discrimination and harassment, and help employers manage specific cases and training. Some of the laws employers should be familiar with are:

  • Title VII of the Civil Rights Act
  • Age Discrimination in Employment Act (ADEA)
  • Americans with Disabilities Act (ADA)

3. HR services companies provide experts in wage and hour laws

Wage and hour laws are some of the very toughest to keep up with. They change constantly, and employers have to meticulously monitor hours worked and rates of pay in order to abide by them. If an employer underpays or pays an employee late, the result can come with some major fines. HR services companies provide HR support with teams of experts who consult employers on employment regulations like the following:

  • Equal Pay Act
  • Recordkeeping
  • FLSA – Fair Labor Standards Act (wage and hour compliance)

4. HR experts help maintain compliance with ACA regulations

Even though the ACA may be changing soon, employers still dedicate significant amounts of time and energy to maintain compliance with the current version of the law. Small business owners feel the brunt of the effects with the increased information they have to collect and benefits they have to provide. Partnering with an HR services company can relieve the burden of the ACA because many offer benefits and administer plans.

Here are some key areas to watch for when it comes to the Affordable Care Act:

  • Identifying your full-time equivalent employees
  • How many fines are you susceptible to?
  • Are fines actually cheaper than offering affordable coverage?

When it comes to the ACA, HR professionals consult with employers regarding their options as a business owner, and explain how to avoid the tax penalties. They can also delve into how a MEC plan can benefit business owners, and show how offering health coverage helps attract and retain talented employees.

One outsourcing solution to compliance challenges that small and mid-size businesses are increasingly considering is a professional employer organization (PEO). PEO solutions include all of the following:

  • Payroll, technology and tax administration
  • Employee benefits and benefits administration
  • Workers' compensation, safety and risk management
  • Human resources and compliance

FrankCrum, a PEO headquartered in Clearwater, Florida, has saved businesses of all sizes thousands of dollars by providing a results-oriented HR consulting service. The team of HR professionals helps clients put together a handbook, draft policies, and maintain legal compliance. FrankCrum’s “FrankAdvice” team provides:

  • Unlimited phone and email access to a variety of HR resources
  • Discussion and expert advice on topics such as hiring practices, discipline, termination, investigations, discrimination, wage and hour issues and federal acts
  • Expert knowledge and instruction on wage and hour topics
  • Comprehensive employee handbook preparation or detailed review of existing handbooks or policies
  • Tools to create clear, detailed and uniform job descriptions
  • Ability to provide information or training on important topics
  • Availability to provide forms and publications related to HR functions
  • Regular communication on various topics and important changes in employment laws

To learn more about the HR administration services provided by FrankCrum, call 1-800-277-1620.

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Nannette Madera, PHR
Nannette Madera, PHR

Nannette Madera, is a bilingual Certified Professional in Human Resources who has over 10 years of experience in Human Resources, Management, Training, and Organizational Development.