Effective compliance management can translate directly into improved operational efficiency, heightened employee productivity and enhanced profitability.
Boston, MA (PRWEB) April 16, 2014
A well-managed employment-related tax and payment compliance program can pay off in bottom-line results. So say more than half of the 152 senior finance and human resources executives who responded to an online survey conducted by CFO Research, in collaboration with ADP, a leading provider of human capital management services.
The ROI of employment-related tax and payment compliance has typically been viewed as too imprecise to be quantified, measured at best by the absence of fines, legal sanctions and lawsuits. But survey-takers, consisting of senior finance and human resources executives at U.S. companies with revenues of $100 million or more, recognize that effective compliance management can translate directly into improved operational efficiency, heightened employee productivity and enhanced profitability.
The full report, The Bottom Line: Highlighting the Benefits of Investing into an Employment-Related Tax and Payment Compliance Strategy, is now available for download at cfo.com/research. For an explanatory infographic, please go to http://www.adpcomplianceinsights.com/the-compliance-continuum/
More than half of survey respondents say they have seen tangible benefits to good management of employment-related tax and payment compliance in many areas, including wage payment processing (64%), employment verification and employment-related tax credits (56% each) and employment tax processing (52%). (See chart.) Intangible payoffs, as a majority of survey-takers say, include improvements in employee satisfaction (chosen by 70% of respondents), employee engagement (63%) and corporate brand and reputation (55%).
There is also a link between the effectiveness of a compliance function and how much interest executives take in it, the survey found. Two-thirds of those respondents who ranked employment-related tax and payment compliance activities as a top priority graded its performance with an “A” or “B.” Conversely, nearly half of senior finance and human resources executives who slapped their compliance effort with a “C” ranked it as either a “lower priority” or “no priority.”
Effective compliance processes can give employees the time and space they need to focus more on their jobs, helping to boost their productivity as well as helping to enable them to make other constructive changes to the business. Focusing on compliance also encourages teamwork and collaboration among employees and departments. As one respondent put it: “We have a committed team that knows what’s going on and is dedicated to ensuring all the right things are getting done.”
The payoff: More than half of finance executives surveyed say there are tangible benefits to good management of employment-related tax and payment compliance.
Compliance activity (% identifying tangible benefits)
Wage payments processing - (64%)
Employment verification - (56%)
Employment-related tax credits - (56%)
Employment tax processing - (52%)
Unemployment claims processing - (50%)
Health care reform reporting and employee communications - (48%)
W2 management - (41%)
Wage garnishment processing - (33%)
For Further Information:
CFO Research (cfo.com/research) is the research group at CFO Publishing LLC, which also produces CFO magazine, CFO.com, and CFO Conferences. The company is based in Boston.
Contact: David Owens, Editorial Director, Custom Content and Research, CFO Publishing, 617-790-3280, [email protected]
With more than $11 billion in revenues and more than 60 years of experience, ADP® serves approximately 620,000 clients in more than 125 countries. As one of the world's largest providers of business outsourcing and human capital management solutions, ADP offers a wide range of human resource, payroll, talent management, tax and benefits administration solutions from a single source, and helps clients comply with regulatory and legislative changes, such as the Affordable Care Act (ACA). ADP's easy-to-use solutions for employers provide superior value to companies of all types and sizes. ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world. For more information about ADP visit the company's Web site at http://www.adp.com.
ADP and the ADP logo are registered trademarks of ADP, Inc. ADP SmartCompliance is a service mark of ADP, Inc. All other marks are the property of their respective owner(s).
Kira Lee Lakin