In a new study by ADP Research Institute, small and mid-size businesses that had been confident about being in compliance with workforce regulations had higher than expected fines and penalties. Fewer than half of those polled believed their organizations fully understood new “Obamacare” regulations. However, businesses in the study that processed payroll in-house had nearly twice the fines as those who outsourced.
In another study, Hiscox Ltd. said that States where employers have higher than the national average risk of facing employment practices litigation include California (42%), District of Columbia (32%), Illinois (26%), Alabama (25%), Mississippi and Arizona (19%), and Georgia (18%). Also, “Non-subscriber” Texas companies that opt out of Workers’ Comp may have greater concern for liability.
Since this is on the minds of businesses of all sizes today, a timely opportunity exists for banks and credit unions to offer added value to their business customer offerings. Many have partnered with reliable PEOs (Professional Employer Organizations) and other outsourcing payroll organizations to deliver employee services as part of a tier of support they offer to their business customers. In many cases, the bank’s branding is added to turnkey HR programs.
ComBanc Support Services Inc offers banks and credit unions programs provided by several regional HR outsourcers that are thoroughly familiar with Federal regulations as well as nuanced State laws. At a time when adding revenue from new loan production is difficult, finding alternative sources of fee income definitely makes sense. Even more important is pro-actively seeking ways to add value to financial institutions’ support of the businesses in their communities. http://sf.tradepub.com/free/w_insc62/prgm.cgi