According to the latest governmental reports and labor analysts’ expectations, American businesses will continue to increase hiring over the next 18-24 months. In fact, an average of 182,000 new jobs had been added per month from June 2012 through June 2013.[1] And this trend is not expected to stop any time soon. 

3 Key Ways to Manage Compliance While you Grow

Jobs data June.JPG

According to the latest governmental reports and labor analysts’ expectations, American businesses will continue to increase hiring over the next 18-24 months. In fact, an average of 182,000 new jobs had been added per month from June 2012 through June 2013.[1] And this trend is not expected to stop any time soon.

“With an improving economy, many organizations are finding themselves back in growth mode, and companies are growing in a variety of ways,” says Dean Rehfeld, vice president, Product Management, Ceridian Tax Compliance and Payment Solutions. “Whether through onboarding new hires or by gaining employees through acquisitions and mergers, this growth spells a big opportunity for companies to increase revenue and create greater operational efficiencies.”

With growth, however, come compliance challenges. Companies looking to drive revenue, maintain compliance and stay competitive in the marketplace can turn to untapped solutions, such as tax credit incentives, background screening and professional services, to not only boost their revenue, but also mitigate compliance risk and penalties that come with growth.

Growing revenue and gaining operational efficiencies

In an era where efficiency is king, streamlining your operations in order to maximize revenue is a top priority, and maintaining compliance is as critical as ever.  According to Aberdeen Group, the demand for improved efficiency is the greatest pressure facing human resources and recruiting professionals.

Three often overlooked ways to improve efficiencies and maintain compliance in the hiring process are through better background screening processes, tax credit incentives and professional services.Growing Pains 2.JPG

Background screening

As your business grows, it is important to get the right person in the right role as quickly as possible. Unfortunately, 66 percent of U.S. companies reported making a bad hire last year[2], which can have a significant impact on a company’s bottom line.

With such high costs, leading companies are taking advantage of state-of-the-art background screening services, it can find up to 20 percent more criminal records compared to other vendors. These services can effectively and compliantly help identify applicants with criminal records or other offenses that might weaken the integrity and safety of the company.

Opportunities for tax credits

The smartest companies are also those taking advantage of eligible tax credits, grants and government incentives. Companies that are able to seamlessly capture new employee information are in the best position to identify hidden or less common tax credit opportunities, which include:

  • Hiring tax credits
  • Job training incentives
  • Negotiated incentives
  • Research and development tax credits

Rehfeld says, “One reason tax credits can be such a big win for companies is because with the right partner they cost the company nothing until a credit has been identified. This is different than the fee-based approach the Big 4 accounting firms and most CPAs pursue. Also, Ceridian’s partner Tax Credit Co. uses proprietary technologies to help companies identify and file for all eligible credits. And because Tax Credit Co. has a 99.5 percent tax credit acceptance rate, customers can be assured they are in compliance.”

Professional Services

In the first quarter alone, business transactions were at a near record pace – and there’s no slowing down. The next 12 months could mark a return to the rampant merger and acquisition activity of just five years ago.

One of the biggest concerns employers face as they grow is maintaining tax filing compliance in light of complex mergers and acquisitions. One way to mitigate risk or penalties is to rely on professional services partners who can address growing pains and help you navigate the following situations:

  • Reporting and reconciliations
  • Agency account registrations, reconciliations and closures
  • Original and amended filings
  • Employee-level and deposit transfers

As your company grows, consider how services such as background screening, tax credits and professional services can help you maintain compliance and streamline efficiencies. Tapping into new opportunities can be a critical component of your growth strategy as the economy improves.

For more information:

  • View our “Growing Pains” infographic
  • Watch how background screening can help you get hiring right first time
  • Learn how tax credits can be a part of your growth strategy

[1] U.S. Bureau of Labor Statistics

[2] Career Builder