Small business payroll and HR software designed for businesses like yours

Do small businesses need HR?

Yes, HR is important for any size organization, but the problem for many small businesses is that they lack dedicated resources. All too often, owners, managers and other employees take on HR responsibilities without the necessary training. This type of ad hoc management can lead to costly compliance violations, poor job performance and workplace safety issues. To help avoid such consequences and achieve peace of mind, employers can partner with or outsource HR to trusted experts, like ADP.

Why do small businesses outsource HR?

Small businesses outsource HR because it affords them the freedom to grow their business and get help with compliance risk and administrative burdens. Even if the organization already has an HR professional on staff, outsourcing can still be beneficial because that person will be able to focus more attention on long-term workforce goals and less on compliance research or clerical tasks. The key, however, is to find a provider, like ADP® Comprehensive Services or ADP TotalSource®, who has proven processes and technology in place and can tailor its approach to the specific needs of small businesses.

What are the important HR requirements for small business?

There are many requirements for small business HR, which if not met, could result in compliance violations and subsequent penalties or lawsuits. Some of these important necessities include, but are not limited to:

• Paying employees correctly and on time
• Filing taxes with federal, state and local governments
• Properly classifying workers
• Creating a safe work environment
• Providing health benefits as required under the Affordable Care Act
• Abiding by all applicable employment regulations
• Maintaining employee records and payroll data securely

What does HR do in a small business?

Whether it’s the owner, office manager or an HR professional, those who manage people in a small business often wear many hats. On any given day, they may have to:

• Process payroll and taxes
• Recruit new hires
• Oversee employee training and performance
• Manage regulatory compliance
• Create and maintain workplace policies
• Resolve employee disputes and conflicts
• Complete workers’ comp paperwork