Who said starting or running a business was easy?
In this day and age, there are so many I’s to dot, T’s to cross, it could make anyone’s mind explode! One particular headache facing small business owners is human resources. Outsourcing your human resource functions minimizes exposure to unnecessary fines and penalties while saving you money from the start!
Facts and Statistics
The average business owner spends between 7% and 25% of his or her time handling employee-related paperwork.
When you add in the time spent on all the other HR tasks, this figure rises from 35% to 45%.
Small businesses bear a greater brunt of employment expenses than their larger counterparts. The annual costs for a small business (under 20 employees) average $7,600 per employee, while large companies (over 500 employees) paid on average $5,300 per employee (a 45% discrepancy).
Your company has grown or is growing and your HR needs are increasing.
Employees have been misclassified during downsizing and job duties are changing again.
Some employees are paid less than $12.38 an hour, and are being paid overtime after 40 hours in a week.
Work hours have increased and the start time of your hourly employees varies – has the Nevada 24-hour rule been applied appropriately?
Employee related paperwork has not been a focus, yet errors discovered by regulators could be devastating.
Your company is unexpectedly losing key personnel.
The Bottom Line
We will work from our local office in Reno, Nevada, and will meet with you as much as requested. No need to create extra office space for human resources.
We can augment your current staffing.
We are contracted out, and paid as an independent contractor, therefore you will not need to pay additional taxes and requirements that you would need to with a salaried or hourly employee.
Our efficiency will save your business money.
We will save you the time and money of hiring and training a new human resources person for your office.
We carry Errors and Omissions Coverage, so if we make a mistake we have the project covered!
As a boutique HR firm, Strategic HR Partners provides HR Outsourcing Packages designed to meet the client’s individualized needs.
Wondering about liabilities? Here are a few that we have compiled recently:
- The independent contractor classification definition varies between the federal and state regulations. Federal has a 20-factor test while Nevada as an ABC test. Significant tax obligations and penalties can be imposed by both entities.
- A fine of $1,100 for any violation of the appropriate payment of overtime for non-exempt employees in accordance with the Fair Labor Standards Act (FLSA).
- Penalties as high as $10,000 each occurrence for failing to post required safety notices or keeping accurate records.
- 1,486 is the average number of wrongful termination, harassment and discrimination claims filed by disgruntled employees every day.
- $770 million is how much U.S. employers paid out recently in just one year to settle EEOC claims of discrimination and harassment.
- 2½ years is the average length, from complaint to settlement, of an employment lawsuit.
- There are 50 percent more federal wage and hour investigators now than in 2008. The Department of Labor 2013 requested budget sought 1,839 full-time investigators when there were just 1,208 investigators in 2008.
- A recent study by the Department of Labor (DOL.gov) concluded that almost 70% of all businesses in the United States are in violation of the existing statute.
- Willful violators of the Fair Labor Standards Act may be prosecuted criminally and fined up to $10,000. A second conviction may result in imprisonment.
- Employers who willfully or repeatedly violate the minimum wage or overtime pay requirements are subject to civil money penalties of up to $1,100 per violation.
- The Department of Labor may also bring suit for back pay and an equal amount in liquidated damages, and it may obtain injunctions to restrain persons from violating the Act.
- Immigrations and Customs Enforcement (ICE) can hand down penalties of up to $3,200 per unauthorized worker for the first violation and up to $16,000 per unauthorized worker for multiple violations.
- ICE can also issue penalties of up to $1,100 per person for paperwork errors, and prison time from up to 6 months for knowingly hiring an illegal worker to 10 years for harboring