Author Question: Which of the following risks commonly associated with small businesses can most likely be minimized ... (Read 114 times)

ss2343 · **on:** Jul 7, 2018

Which of the following risks commonly associated with small businesses can most likely be minimized by an HR information system?

A) data entry errors
B) personality testing
C) college recruiting
D) discrimination lawsuits

Question 2

You are the owner of a small business and feel overwhelmed by the paperwork. You have decided to use a PEO. What are the issues you must address to determine which PEO is best for your company?

What will be an ideal response?

shewald78 · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

Answer: A

Answer to Question 2

Answer: Small business managers need to choose and manage the PEO relationship carefully. You should conduct a needs analysis so that you'll know ahead of time exactly what human resource and risk management concerns your company wants to address. You should review the services of all PEO firms you're considering and determine if the PEO is accredited. Check the provider's bank, credit, and professional references. Make sure to demand specifics on things like insurance providers and creditors. Understand how the employee benefits are funded. Is it fully insured or partially self-funded? Who is the third-party administrator or carrier? Confirm the participating employers will receive first-day coverage. See if the provider contract assumes the employment law compliance liabilities in the applicable states. Review the service agreement carefully. Investigate how long the PEO has been in business. The vendor should show a history of staying power to show that it's well-managed. Check out the prospective PEO's staff. Periodically get proof that payroll taxes and insurance premiums are being paid properly and that any legal issues are handled correctly.