HR Compliance: Small Business Challenges

Did you know 98% of businesses in Colorado have less than 100 employees? In fact, according to the Small Business Administration of Colorado, 86% have less than 20 employees. Though small businesses are the bread and butter of our state’s economy, these small business owners often do not have the capacity to understand HR compliance policies and procedures. Here are the top challenges small business owners face in their HR administration.

Did you know 98% of businesses in Colorado have less than 100 employees? In fact, according to the Small Business Administration of Colorado, 86% have less than 20 employees. Though small businesses are the bread and butter of our state’s economy, these small business owners often do not have the capacity to understand HR compliance policies and procedures. Here are the top challenges small business owners face in their HR administration.

HR Compliance Challenge #1: Interviewing and Hiring

  • Legally acceptable questions during the interview
  • Appropriate phrasing of job descriptions
  • How to properly obtain background checks, reference checks, and drug screenings
  • Constructing an offer letter
  • Understanding “at-will” versus a contract
  • Ensuring your hiring practices reflect non-discrimination

HR Compliance Challenge #2: Poor Documentation

  • We will continue to see a rise in HR administration costs due to investments in software and big data. In order to stay competitive in employee engagement, recruitment, and overall efficiency small businesses will have to make the same leap.
  • Not having sufficient documentation makes small businesses vulnerable to state and federal investigations. It’s important to have digital records of employee documents.

HR Compliance Challenge #3: Payroll & Taxes

  • Filing State & Federal Unemployment
  • Processing payroll without mistakes
  • Understanding pre-tax and after-tax benefits

HR Compliance Challenge #4: State and Federal Laws

  • Record retention and accurate bookkeeping
  • New hire reporting and I-9 forms
  • HIPAA, FMLA, COBRA, and Civil Rights Act compliance
  • Workers compensation coverage and claims processing
  • Liability coverage
  • IRS limits of 401k retirement plans

Need a Professional Employer Organization?

Professional Employer Organizations (PEOs), like StaffScapes, can alleviate the burdensome tasks related to HR administration. A PEO will make sure your business follows appropriate HR compliance rules, meets all HR related deadlines, and stays up-to-date on employee records.

StaffScapes values contributions small businesses make to our state economy. We are knowledgeable in all your HR compliance needs. Contact us to learn more about how we can help your small business.