1. Not classifying workers correctly
A worker is generally classified into one of two categories: an employee or an independent contractor. This classification affects many aspects of their employment as well as how you are expected to report to the IRS. An incorrect classification can lead to many problems down the line.
As we all know, the IRS doesn't take tax issues lightly, especially when it results in them losing money, so there can be hefty fines for employers who misclassify their employees. Whether it's on purpose or not you are still responsible for correctly classifying your workers, so this is something you need to take very seriously.
2. Not educating employees about their benefits
An employee benefits package is not a one way transaction, in fact your business can get out of it even more than what you put in, provided you do it correctly. Occasionally we see businesses who go through all the work of setting up this great benefits package, and then assuming their employees will understand and appreciate it on their own.
The truth is, employee benefits can become very complicated. This is especially true if you offer benefits with lots of choice and options for customization. If you want to get the most return from your benefits package you need to take the initiative and educate your employees about it.
3. Neglecting their insurance benefits enrollment platform
When it comes to insurance benefits, it's just as important to think about how you're going to offer something as it is to choose what you're going to offer. The process of enrolling in insurance is never going to be trivial, but there are things you can do to make the process easier on your employees and ensure you get people enrolled in an efficient manner.
There are many companies out there who specialize in insurance enrollment platforms, offering a variety of services that can improve the employee enrollment process and increase efficiency.
4. Sticking with an inefficient payroll platform
Not all payroll service platforms are created equal, some are simply inefficient while some are not a right fit for certain kinds of businesses. We also see smaller businesses who choose to do their payroll in house, frequently making costly errors, when it would be more prudent to outsource.
What kind of payroll platform is right for your business, and whether you should choose to perform your payroll services in house, is a topic for another article. The main takeaway from this point is: if you notice lots of mistakes in your payroll, it may be time to reevaluate and consider your other options.
These are just a few of the mistakes we see businesses make when it comes to human resources. Finding a partner with experience in HR related services like insurance enrollment and payroll can help cut down on these mistakes, especially for small to mid-size businesses.
At Summerlin-Roberts, we provide employers assistance in understanding and managing your human resources. Please, contact us today to learn more about how we can help your company with its HR needs.