Duties Chart
The chart below illustrates your administrative duties if : (A) you are on your own; (B) if you are using a payroll service only; or (C) if you are taking advantage of a PEO's services. A "check" means this is an administrative duty that you must perform. Remember, a reduction in the amount of time and effort that you spend on administrative tasks and issues allows more time to focus on the productive aspects of your business.

Your Administrative duties if you are:

  A

On
Your Own
B

Using a
Payroll Service
C

Using
Harbor America
Payroll Administration
Report Hours
Compute Pay (OT, Vacation, Sick, etc.)  
FICA  
Social Security & Medicare  
FUTA  
SUTA  
Compute Deductions  
Write Checks  
Reconcile Payroll Account  
Court Ordered Payments  
Payroll Tax Deposits  
940s  
941s  
Penalties  
IRS Audits  
W-2s  
Direct Deposit 
  A

On
Your Own
B

Using a
Payroll Service
C

Using
Harbor America
Insurance - Workers' Comp
Shopping & Negotiating for W/C Coverage 
Assume Liability for W/C Insurance  
Claims Administration  
Develop Safety Program  
  A

On
Your Own
B

Using a
Payroll Service
C

Using
Harbor America
Human Resources
Governmental Compliance 
Wage Law Compliance 
Unemployment Claims 
Labor Board Disputes 
Immigration Compliance 
Assist EEOC, ERISA, TEFRA Compliance 
Assist FMLA, ADA, OSHA Compliance 
Assist with Labor Law Compliance 
Assume Responsibility for COBRA Compliance 
Assume Responsibility for Unemployment Administration 
Assume Responsibility for Government Reporting Forms 
Processing Applications 
Maintaining Employee Files 
Testing and Checking Credentials 
Develop a Drug Free Workplace 
Offer Client "How To" Manuals 
Assist with Benefits Booklets 
Employment Verification 
W-4s 
I-9s 
Unemployment Hearings 


Administrative Costs

While it is difficult to precisely calculate your non-productive administrative costs, it is possible to accurately estimate them. The following table was compiled from actual data that mirrors that from the U.S. Chamber of Commerce, the U.S. Labor Department and the Small Business Administration. These costs are a conservative estimate of your administrative costs related to processing payroll, acquiring commercial insurance programs, tracking claims, selecting health and other employee benefits, handling unemployment claims and hearings, and dealing with many other employee-related issues.

Number of Employees 1 - 9 10 - 24 25 - 49
Administration Cost as percentage of Gross Payroll 8 - 12% 4 - 8% 3 - 6%