What do the rising compliance costs mean for Houston companies?

Small and midsized businesses across the country are growing more and more anxious about the costs of complying with new tax laws and employment regulations.

calculating costAccording to business outsourcing firm ADP, the past year has brought more than 21,000 proposed changes across the country to business tax rules alone.

Michael Houston is VP of Sales for ADP’s Southwest Division. Houston says the more resources small and midsize companies spend on keeping on top of legal and regulatory changes, the fewer resources they can devote to the day-to-day challenges of growing their business. 

“It’s daunting for any small or medium-size business, to conform, comply, much less keep up with the new.”

A recent survey by ADP found that roughly half of small and midsize business owners expect their compliance costs for hiring, employee relations and risk and safety to go up. That’s leading more companies to consider outsourcing back office functions, such as payroll.

Bio photo of Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...