Balancing the budget of a small business can force owners to find creative ways of cutting costs. Some may find they can bring down operational costs when they re-assess their payroll practices.
Employers can often trim down costs and stay in compliance with the Fair Labor Standards Act (FLSA) when they outsource human resources. That way, they will have access to expert advice, reduce the risk of violations and benefit from employees they might not be able to afford full-time.
To meet staffing needs without breaking the budget, independent firms can hire independent contractors to fulfill certain duties when business picks up, and let them go when it slows down, according to Business Insider. Employers aren't responsible for providing independent contractors overtime wages and other benefits owed to employees.
Professional human resource services would be able to write the proper job descriptions and keep accurate records of the employees' tasks so employers wouldn't be violating labor laws. The FLSA has a specific definition of independent contractors to prevent employers from wrongfully denying workers the wages they are owed.
HR services can also inform employers if there are mistakes on their payroll, whether they are in the owners' favor or not. Either way, this could end up saving the business money in the long run by identifying violations that could cost them back wages and penalties.
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