ROSELAND, N.J., Dec. 19, 2013 /PRNewswire/ -- ADP®, a leading global provider of Human Capital Management (HCM) solutions, reveals a disconnect between midsized business leaders' confidence in their ability to manage regulatory compliance compared to the reality of keeping pace with evolving requirements. According to a recent ADP Research Institute® study, Top Concerns and Challenges of Midsized Business Leaders in 2013, 30% of midsized companies reported unintended expenses, including fines, penalties or lawsuits, in the past 12 months due to noncompliance with government workforce and payroll regulations.
The study found that 83% of midsized business owners are confident their firms are compliant with payroll tax laws and regulations. Similarly, 80% of respondents felt the same about government workforce regulations, such as those related to 401(k) plan management and workers' compensation. ADP's study also found that nearly one-third of midsized firms fined or penalized in the past year reported an average of six fines or penalties with an average total cost of $91,300. Interestingly, midsized organizations processing payroll in-house received almost twice as many fines or penalties as those that outsource processing to a third party.
"Our research reveals a 'compliance overconfidence' in the midmarket that's creating costs these firms can ill afford," said Regina Lee, President, Major Account Services and ADP Canada. "With more than 60 years of experience helping companies adapt to a changing regulatory landscape, ADP's dedicated team of compliance experts and integrated HCM platforms empower organizations to reduce compliance risk and unintended expenses."
Complex legislation, such as the Affordable Care Act (ACA), and growing pressure from global competition make regulatory compliance even more challenging for companies of all sizes. The same ADP study found that 70% of midsized business leaders expressed confidence that their firms would be in "complete compliance" with ACA, yet less than half expressed confidence in their firms' understanding of all the new ACA regulations. As midsized companies expand operations into multiple countries, they need integrated HCM tools to simplify compliance with diverse payroll laws and streamline reporting.
Recent enhancements to the ADP Workforce Now® platform directly address midsized companies' top compliance challenges, such as new features to support ACA provisions stemming from the law's employer "shared responsibility" requirements. This all-in-one HCM platform also helps midsized businesses quickly implement ongoing changes in payroll and employment tax laws, such as those mandated by the American Taxpayer Relief Act of 2012.
More information about how ADP Workforce Now helps midsized companies overcome compliance challenges is available at www.adp.com/workforcenow.
About the ADP Research Institute®
The ADP Research Institute is a specialized group within ADP that provides insights to leaders in both the private and public sectors around issues of human capital management, employment trends and workforce strategy. For more information about the ADP Research Institute, visit: www.adp.com/research.
With more than $11 billion in revenues and more than 60 years of experience, ADP® (NASDAQ: ADP) serves approximately 620,000 clients in more than 125 countries. As one of the world's largest providers of business outsourcing and human capital management solutions, ADP offers a wide range of human resource, payroll, talent management, tax and benefits administration solutions from a single source, and helps clients comply with regulatory and legislative changes, such as the Affordable Care Act (ACA). ADP's easy-to-use solutions for employers provide superior value to companies of all types and sizes. ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world. For more information about ADP, visit the company's Web site at www.adp.com.
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