Labor management through labor law compliance is an essential tool for business growth. Businesses spend huge amounts annually either to ensure compliance with these stipulations, or as a penalty payment for non-compliance.
While small businesses are offered exemptions from certain laws, compliance with other regulations is always mandatory. As a result, you can either opt for expert opinion on labor law consultancy or opt for inexpensive compliance methods.
Payroll outsourcing is a business best-practice through which most small businesses ensure labor law compliance. Best-in-class payroll outsourcing involves a highly advanced cloud-based payroll platform, which acts an integrated Payroll Management system. Here is how this option serves as a bottom-line friendly solution:
Integrated System that helps cuts Resource Time
The host updates the payroll system virtually without the need for a business to worry about any software downloads or repeated annual purchases. This saves you the hassle of sifting through labor regulations on your own or paying thousands in fees for expert advice when managing payroll. It also cuts down on your admin costs as there is absolutely no need for clients to have multiple vendors managing their employee time management and payroll processing needs. Click here to learn more. In addition, for a small business, it costs a fraction of the total cost a company would pay in monthly wages and benefits if it had a full-time person on staff managing payroll.
Ensure Compliance through Proper Time-keeping
Not only does payroll outsourcing ensure compliance, it also provides documentary evidence to assist the same. For e.g. the Fair Labor Standards Act (FLSA) implements a:
- Forty-hour workweek
- Minimum wage rate
- Time and a half overtime for certain jobs
Cloud-based payroll systems calculate employee attendance and working hours to the nearest second. This ensures fair and transparent wages/salaries calculation and overtime (if any). Employees also have access to stubs as documents of the number of hours worked.
The U.S. Code Section 4302 on the Establishment of Performance Appraisal Systems requires the setting up of fair and transparent performance appraisal criteria. This criterion is based upon a mutual participation of both the employer and employee.
For small businesses with few employees, setting up a performance criteria for job growth is easy. However, monitoring and evaluating employees’ performance against the criteria can be problematic. Without a proper employee management system in place, irregularities in employee promotion and rewards can be expected.
Payroll outsourcing enables businesses to view a productivity report of every individual. This reiterates objectivity when evaluating the performance of an employee against the established criterion.
Payroll Outsourcing provides small businesses with complete payroll solutions for emerging businesses that:
- Keeps all employee data confidential (in accordance with Employee Privacy Laws)
- Gives employees access to their own individualized payroll accounts; and
- Ensure accurate payroll calculations and tax deductions.
- Fully manages the payroll and payroll tax compliance dynamics of a growing company having employees in multiple locations.
To learn more on how you can avoid state penalties for non-compliance of labor laws, please do reach out and contact us.
About SimpleX Payroll
SimpleX Payroll is a full-service payroll company that specializes in delivering unparalleled service standards to small-medium sized businesses in all 50 States. SimpleX Payroll is built on providing a cloud-based all-in-one premier Payroll Processing Suite that includes Employee Time Management & Attendance, Unlimited Custom Reporting, Calculating Taxes, Accounting & System Integration features.