Q: What does it cost your company to perform
      these personnel related functions?

A: Nonproductive Administrative Expenses such
     as the tasks listed below:

	Prepare payroll
	Bookkeeping for a payroll deduction such as credit union, fringe benefits, advances, commissions, garnishments, etc.
	W-4’s, W-2’s and I-9's
	Payroll inquiries, additions, deletions and tax changes
	Being aware of changes in federal, state and local taxes
	Computer related issues that corrolate with payroll administration

	State and Federal withholding taxes
	FICA withholding and employer matching
	Quarterly tax returns

	Workers’ Compensation management and audits
	State and Federal unemployment insurance reports
	Federal and state tax audits
	Claims for unemployment insurance and Workers’ Compensation

	Negotiate insurance proposals
	Administer the medical, life, retirement and dental programs
	Facilitate insurance claims
	Orientation and enrollment for the medical and fringe benefit packages
	COBRA administration

	Hire and terminate employees
	Turnover-loss of superior employees because of inferior benefits
	Employee morale, loyalty and productivity
	Loss of goodwill because of poorly trained employees
	Economies of scale—Paying too much for benefits and services because of lack of experience and numbers necessary to create effective buying power
	Time factor for management of personnel
	Revenue potential for nonproductive time
	Reduced business license fees because of fewer employees

According to the National Chamber of Commerce and the Small Business Administration, average cost for nonproductive administration runs 6% to 27% of salary and wages.