HRIS for small businesses

Thomas Farrell HR Technology Leave a Comment

Small businesses are constantly challenged with the need to keep up with basic HR functions while trying to grow year over year. Entrepreneurs trying to nurture and expand their businesses usually fall behind when it comes to keeping up with HR, sometimes to the detriment of the company. Does your company need an HRIS for small business to keep your HR humming along?


What is a small business owner to do? The old way to keep HR records was paper all over the desk or a million manilla folders stuffed into a clanky metal file cabinet. Now, there is an app for that and or at least a platform in the cloud. You can have all the digital storage you need, if that is all you need. Do you need more than just a Internet-based eManilla folder?


3 Things That Say You Need More Than An HRIS For Small Businesses


When you need HR governance advice -Your HRIS is not going to field questions on what to do about HR compliance laws and it isn’t going to tell you when those laws change in your area. There is no where to turn when an employee goes from godsend to nightmare for advice on how to handle disciplinary action up to and including termination.


An HRIS for small businesses is not going to help you with HR policy which, trust us, you will need in the near future and you really need it no matter what. How you legally handle things with employees can cost you your business in lawsuits if you handle it incorrectly. Guessing and Googling is no way to play HR Manager.


When You Are Having Trouble Keeping Up With Payroll Taxes -Every small business owner hates that whole payroll tax thing. While it can be painful to figure everything out and write checks to the IRS, it is necessary and can land you in hot water if you put it off.


Putting everyone on a 1099 and shoveling off the responsibility to your employees doesn’t help either. The IRS is getting wise to 1099 filers who should really be paying taxes on a W-2 instead. A 1099 employee is not really an employee, they are technically a consultant and are supposed to file their taxes differently than someone who is actually a full-time employee of your business. While the line seems fine to you and your employee, it is not to the IRS.


Full-time employees who are working for you and not as a consultant to your business should be paid on a W-2 and have their various taxes withheld. If this kind of bookkeeping and responsibility is getting in the way or not getting done correctly, an HRIS is not going to make that any better. More is needed to make sure the proper withholding is done and payroll taxes are filed and paid.


When Employee Onboarding and Offboarding Is Falling Behind AKA Non-Existent -There is a lot of time and paperwork that goes into hiring and terminating an employee. Most small businesses hardly have a written policy in place around what paperwork is needed for what and when to do it. This can be a problem for you and your new/former employee, especially if they need paperwork from you for insurance coverage through a spouse or they are applying for something that requires accurate employment verification.


Employee handbooks are also an important factor in keeping record of things like this and letting the employee know what to expect for behavior, policy and other information. Too many small businesses are getting around to getting one together but never really do. An HRIS for small business may have a place to store them but they aren’t going to write on for you.


What Do I Do If I Need More Than An HRIS For Small Businesses?


If you need more help than a new piece of software but cannot afford to hire an HR person to manage all of the daily and weekly tasks, a PEO provider may be just what you need. A lot of the functions that fall through the cracks or just plain need to get done but don’t in a timely fashion are easily done by your PEO, including attractive and affordable benefits for your employees, likely saving you thousands of dollars per year for letting them do the HR and payroll functions for you. Too good to be true? Find out for yourself with a free no-obligation PEO Comparison report and let the numbers do the talking for you.

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