The costs of labor and benefits comprise a large portion of most company’s expenses. Healthcare and other benefit costs are skyrocketing. Many companies incur the cost of hiring the wrong person—and possibly the costs associated with such individual’s termination, if not processed properly.

Today’s technology and alternative business models offer many tools to assist your company. It’s important to understand the health benefit requirements under the Affordable Care Act, along with all other state and federal regulatory requirements surrounding benefits and payroll administration.

Many companies choose to outsource all human resources through a Professional Employer Organization (PEO), whereby employees are “jointly” owned by your company and a third party who handles all the administrative benefits and payroll functions. This type of solution allows you to manage employees and operate your business, while the PEO handles the paperwork, insurance, and tax requirements. Also, PEOs typically provide benefits to the employer at a cost-effective rate by creating a large group.

Two large providers of PEO’s are ADP (publicly traded) and Oasis Outsourcing (privately owned). Learn more about PEO's in this related article:

What’s a PEO and How Can It Help My Business?, Entrepreneur, May 2014.

Additionally, we are highlighting two technology companies today which provide software solutions to assist with the complexities of human resources and benefits administration. The first is Zenefits, which provides free software that automates the majority of your administrative paperwork and a means to broker health insurance quotes quickly.

Another technology company is Zane Benefits. Their software helps employers provide individual health reimbursement to employees. A company can reduce their costs by eliminating the purchase of a group health plan and by reimbursing their employees who select and buy their own health insurance plan.