In times of uncertainty, cost reduction and effective risk management remain key imperatives, given the ever-changing and increasing burden of regulatory compliance.
Business is loaded with risky regulatory compliance challenges. And as business needs and regulatory priorities change, managing compliance is a top evolving priority. And it is no surprise that businesses that make compliance a priority, often have a competitive edge, a stronger bottom line and company culture, and a more engaged workforce.
But with the employment-related tax and payment compliance landscape becoming increasingly complex, human resources and finance are constantly challenged.
Compliance requirements impact many functions: HR, Legal, Information Technology, Finance. Adding to that pressure, are limited budgets coupled with increased complexity and all the emerging compliance requirements.
And it all adds up to compliance costs.
Meeting compliance challenges requires a cost-effective and auditable approach.
Compliance is an ongoing process requiring constant re-examination and reinvention.
The costs of regulation – financial and administrative
Regulation has a number of consequences for businesses. Administrative costs are only one type of costs that regulation can entail. The figure below illustrates the different types of costs that regulation can impose on businesses.
- Direct financial costs are the result of a concrete and direct obligation to transfer a sum of money to the Government or the competent authority. These costs are therefore not related to a need for information on the part of the Government. Such costs include administrative charges, taxes, etc.
- Compliance costs are all the costs of complying with regulation, with the exception of direct financial costs and long term structural consequences. In the context of the Standard Cost Model, these can be divided into ‘substantive compliance costs’ and ‘administrative costs’.
Administrative costs versus administrative burdens
Administrative burdens are the part of administrative costs that businesses sustain simply because it is a regulatory requirement. The administrative burdens are thus a subset of the administrative costs in that the administrative costs also encompass the administrative activities that the businesses will continue to conduct if the regulations were removed.
It is a tough uphill struggle for most small businesses
Did You Know?
According to a survey conducted by CFO Research, more than 80 percent of finance leaders say that monitoring employment-related tax, HR and payment rule changes, has become more and more time-consuming. The research survey also revealed that more than one-third of businesses may be taking an unnecessary risk. By ignoring new regulations, they could be subject to large penalties and legal action. They’re also putting their brand and reputation on the line.
The problem is considerable for small to mid-sized companies. For example, meeting the RTI submission deadline, has been and still is one of the biggest challenges for employers. The survey also revealed that 73 percent expect increasing compliance complexity to consume additional resources.
Take away the burden, and indemnify your company from any compliance risk.
With Co-employment, compliance doesn’t come at an extra cost, or with any hidden fees, and can be tailored to any type of industry.
Many of the companies engaging in a collaborative employment relationship, do not have a dedicated HR function and yet, as employers have to deal with increasingly complex employment legislation, and a host of employee-related issues. For them, is essential to keep HR policies, processes and administrative systems up to date with legislation updates.
So! Let your co-employment management company take care of your compliance administration and reporting needs.
The co-employment management company is covered by a full range of insurance, to guarantee that you and your interests are fully protected, from any eventualities that may occur.
- Professional indemnity insurance
- Public liability insurance
- Employers liability insurance
- Debt transfer – fiduciary liability insurance
Keep growing your business, with security, focus and peace of mind, knowing that legal and HR experts are navigating the complex world of compliance for you, ensuring that your internal team has the knowledge they need to operate effectively.
Feel confident knowing that a trusted adviser is handling everything you need to protect your business and provide a great employee experience.
EXCEPTIONAL SERVICE FOR YOUR HR DEPARTMENT AND YOUR EMPLOYEES
FREE TO FOCUS ON TOMORROWS GROWTH OPPORTUNITIES THAN TODAY’S TRANSACTIONAL PROCESSING
Make the Co-employment connection.
With co-employment, your company can rest assured that all your payroll administration and compliance management needs will be handled with precision and focus, while avoiding the overwhelming burden of legal and regulatory compliance on your time and resources.