If you're running a small to mid-sized business, you’ve probably heard the term HRIS, maybe during a software demo, maybe while troubleshooting payroll issues.

Here’s what it actually means: HRIS = Human Resources Information System. It’s a tech platform that stores and manages employee data. Think of it as the central hub for your HR operations, from hiring and offboarding to payroll and benefits.

What Can an HRIS Do? An HRIS (Human Resources Information System) helps streamline and centralize your people operations by handling:

• Employee records management
• Time off and leave tracking
• Payroll processing and tax filings
• Time and attendance tracking
• Health insurance and benefits administration
• 401(k)
• Onboarding and applicant tracking (ATS)
• Compliance support and documentation
• PTO and sick leave policy enforcement
• Manage regulatory requirement and mandatory training tracking
• Custom HR analytics, reporting and audit readiness

Can One System Do All of This, or Do I Need Multiple? Yes, some systems can handle it all, and that’s typically what a PEO offers. For many businesses, that all-in-one model may be the best fit. Learn more about how PEOs work here. But depending on your business needs, it might make more sense to use separate systems for payroll, benefits, recruiting, and more. This can give you more flexibility, especially if you've already invested in tools your team knows and likes.

The catch? If you're using multiple platforms, they either need to sync seamlessly or you need clear, reliable processes to keep everything aligned. Either way, you’ll need streamlined checks and balances in place, or you risk costly mistakes, compliance issues, and a lot of manual cleanup.

Why Integration and Processes Matter? When your systems don’t communicate - or your processes aren’t solid - important updates can slip through the cracks, and the consequences can be serious:

• Benefits deductions may not pull correctly from payroll
• 401(k) contributions can fall out of sync or be missed
• Terminations might not update across systems, leaving employees active on benefits or retirement plans when they shouldn’t be
• Address or tax info might get updated in one place but not another, leading to filing errors or compliance risks

Another issue is compliance, from taxes to insurance to the Form I-9, you need to make sure your systems are compliant without bogging your day to day tasks down. It’s more than just a headache. These disconnects can lead to tax mistakes, compliance violations, and frustrated employees.

Where Do I-9s Fit Into This? Form I-9s seem simple, but mistakes can lead to major fines in an ICE audit. They need to be accurate, securely stored, and updated on time. Some HRIS platforms include I-9 tracking, but not all are audit-ready. If your current system doesn’t flag issues or track completions reliably, a standalone I-9 tool may be worth the investment.

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Written by: Mary Southworth

The Shiftly

Making HR & Payroll so seamless, you won’t need us anymore.

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