Valve Magazine

One Third of Midsized Companies Incur Penalties for Noncompliance

According to a May 2012 study among midsized business owners and senior executives conducted by the ADP Research Institute, a specialized group within ADP, 33% of U.S.-based midsized companies incurred unintended expenses related to noncompliance with government regulations in the past year. Of those who were fined or penalized, each received an average of 6.4 fines or penalties. Moreover, the study also found that organizations who process payroll in-house received nearly three times as many fines or penalties as organizations that outsource their payroll (an average of 5.7 fines or penalties for businesses that process payroll in-house, versus 2 fines or penalties for companies that outsource their payroll).