Congress has enacted 142 new laws since January of 2015 that are adding pressure to many businesses already struggling with other tax rules and employment regulations, including the Affordable Care Act (ACA) and the Fair Labor Standards Act (FLSA). Many businesses will assign skilled talent to navigate these changing regulations and put stronger business technology in place. While it may be tempting to sit back and enjoy the processes you’ve put into place, this isn’t the time to get comfortable. Laws and industry regulations change and you need to change right along with them.
As suggested in “Don’t Get Burned by Compliance Overconfidence,” posted by the ADP Blog Team, many businesses expect to commit additional resources to managing payroll and human resources regulations. Considering that both time and added staff can contribute to the increased costs for maintaining compliance, these new expenses can impact cash flow for small and mid-sized businesses.
Surprisingly, many midsized business executives report that they are confident with being able to comply with payroll and other workplace regulations. However, over one-third incurred unintended expenses due to non-compliance in 2015, which is up from the previous year. Even more surprising is that nearly half of employers didn’t know how many fines they incurred or how much they cost.
Part of the confusion could be due to the number of multiple, disparate systems that many businesses use to manage operations, financial information and human resources and payroll tasks. Half of respondents in a survey by ADP and CFO Research indicated they use multiple systems and 78% of respondents indicated they are essentially forced to devote more money to compliance due to the lack of integration between systems.
Why invest more money in a broken system?
Instead of spending more money on a broken system, deploy strategic add-on solutions that allow you to further streamline accounting and payroll processes and improve compliance with changing regulations. For example, our ACA Compliance Solution can provide greater control and insight over ACA-related data and reporting and Overtime Hours Rules can strengthen overtime management, which is timely as new overtime regulations take effect later this year.
Be confident in your payroll and human resources procedures and prepared when these regulations change over time. Contact Integrity Data for more information about the technology you can use to streamline these key processes and strengthen compliance efforts.