12/21/13 By Jennifer Brown

outsourcingOne of the quickest and easiest ways to save your energy,

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time, and money is to outsource some of your Human Resources administration. I highly recommend outsourcing what I call the “BIG 4:

1. Family and Medical Leave (FMLA)
2. Consolidated Omnibus Budget Reconciliation Act (COBRA)
3. 401k Plan
4. Benefits

The BIG 4 are complex, problem-prone processes that have specific legal requirements, notices, and completion time frames. Consequently, they are very time intensive to administer and have a big chance of resulting in legal trouble if you make an error or aren’t in compliance. However, you can outsource them easily and cost-effectively. There are firms that specialize in FMLA and 401k administration for very reasonable fees. Many health insurance carriers now also offer COBRA administration for a nominal cost. In addition, many benefits brokers will handle your benefit employee marketing, enrollments, changes, and terminations for FREE!

Another area to consider outsourcing is payroll, which often goes hand and hand with HR in small companies. This is a time-intensive function that requires 100% accuracy and a thorough knowledge of Federal and State laws related to pay frequency, final paycheck, paycheck deductions, overtime pay, and unemployment.

There are only 24 hours in a day, so leveraging outsourcing will increase your efficiency and compliance allowing you to free up your time to focus on growing your business.

YOUR TURN: What do you outsource? Please leave your reply below.


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Jennifer Brown is the founder of PeopleTactics LLC, she is devoted to helping small business owners implement solutions to prevent Human Resources problems that drain them of their time, money, and energy. Jennifer works with small businesses in order to help them build stronger employee relationships, understand and comply with employment laws, establish policies, and set up easy-to-use HR systems to consistently avoid problems.

Get your FREE report that reveals the top 8 HR mistakes that business owners are making and how you can avoid them to save money, time and effort!