Whether your company has a full-time HR director - generally recommended at 75 employees - or an office manager who has been given basic HR responsibilities, HR outsourcing providers can complement your existing HR structure or lack thereof. An HR outsourcing provider offers many services including:

Regulatory compliance: The primary role of an HR outsourcing provider is to make sure you are 100% compliant with all federal & state laws. This includes audits and reporting for all tax filings and corporate regulations, such as FMLA, HIPAA, and Sarbanes-Oxley. HRO providers will also help develop documentation for federal and state-mandated notices such as minimum wage requirements and overtime policies.

Payroll: This is the most commonly outsourced HR function. It includes paycheck processing, tax filings, direct deposit, wage garnishments, and year-end tax forms.

Risk management: HR outsourcing providers help you determine policies for workplace safety, develop training programs and safety meetings for employees and ensure your workplace follows OSHA regulations.

Benefits administration: HR outsourcing providers help procure competitive rates for comprehensive benefits packages including health and dental insurance, short-term and long-term disability, life insurance, 401(k) plans, COBRA, and unemployment insurance.

HRO providers may be able to get you great rates on benefits, even if you're in an industry where coverage can be expensive. HRO providers buy the services at a discounted rate because they pool together the costly and high-risk businesses (like construction) with lower-risk industries (like law firms). This is helpful if your business had trouble securing benefits because of the high cost for individual subscribers.

If you have a self-funded health care plan and want help managing it, you may want to also consider Administrative Services Only (ASO) providers. ASOs are third party administrators that manage health benefits and process claims for businesses with self-funded health plans.

Recruiting: An HR outsourcing provider will help with the hiring process by posting job openings, tracking and testing applicants, and running background checks while ensuring compliance with non-discriminatory labor laws. They can handle hiring and firing, review compensation packages, and help structure programs to retain employees.

HR management: HR outsourcing providers create internal compliance policies, new hire kits, detailed employee handbooks and manuals, and training documentation. They can also set up employee files for smaller companies just starting to formalize their HR efforts. HRO providers are responsible for making sure all content is accurate and compliant.

HR technology: This includes various online applications for human resource solutions including HRIS (Human Resources Information Systems) and payroll and benefits integration. To request free quotes for HRIS, click here.