Thirty-three percent of midsized companies have faced accidental noncompliance penalties for government regulations in the past year, according to the latest ADP Research Institute study.  

Among those penalized, they received an average of 6.4 fines or penalties, and of those that process payroll in-house, they received nearly three times as many fines or penalties as respondents that outsource their payroll.

"A growing number of midsized companies are outsourcing their payroll processing to help mitigate risk in an increasingly complex regulatory environment," says Regina Lee, president of ADP major account services, national account services, GlobalView and ADP Canada.