Best payroll service for small business 2021

When it comes to managing your small business in 2021, picking the best payroll service isn’t just about cutting checks. it’s about safeguarding your time, ensuring compliance, and setting your business up for smooth operations. For many small business owners, the sheer complexity of payroll taxes, deductions, and regulatory changes can feel like a labyrinth. That’s why services like Gusto stood out in 2021 as a top contender, offering a robust, user-friendly platform that simplified the entire process, from onboarding new hires to automated tax filings. However, while some conventional payroll services streamline operations, it’s crucial for Muslim entrepreneurs to scrutinize their offerings, especially concerning integrated financial products or underlying structures that might involve riba interest. Always prioritize ethical, Sharia-compliant financial practices and ensure that any financial service provider aligns with your values. If a payroll service pushes credit lines, interest-bearing loans, or other impermissible financial tools, it’s best to seek alternatives that uphold integrity and promote financial well-being without compromising Islamic principles.

Understanding the Payroll Puzzle: Why It Matters for Small Businesses

Diving into the world of small business payroll might seem like a mere formality, but trust me, it’s a critical gear in the machinery of your enterprise.

Neglecting it is like trying to drive a car with no oil—eventually, things grind to a halt.

The True Cost of DIY Payroll Mistakes

Think you can handle payroll with a spreadsheet and a prayer? Many small business owners try, only to find themselves drowning in penalties and wasted time. The IRS reported in 2020 that nearly 40% of small businesses incurred penalties for payroll errors. That’s a staggering number!

• IRS Penalties: Late filings, incorrect tax calculations, and missed deadlines can trigger fines ranging from 2% to 15% of the underpaid amount, sometimes even more.
• State Penalties: Each state has its own set of rules and penalties, adding another layer of complexity. For instance, California is notorious for its strict labor laws.
• Time Drain: Manually calculating wages, deductions, and taxes for each employee, then generating pay stubs and filing reports, can eat up countless hours that could be better spent growing your business.
• Compliance Headaches: Keeping up with ever-changing federal, state, and local tax laws like new FMLA rules or state minimum wage hikes is a full-time job in itself.

Key Features Every Small Business Payroll Service Needs

When evaluating payroll services, don’t just look for the cheapest option.

Think about what truly liberates your time and secures your peace of mind.

• Automated Tax Filings: This is non-negotiable. The service should automatically calculate, withhold, and remit federal, state, and local payroll taxes. Gusto, for example, handled all W-2s, 1099s, and quarterly filings automatically.
• Direct Deposit: Employees expect this. It’s faster, more secure, and eliminates the need for physical checks.
• New Hire Reporting: Compliance with state reporting requirements for new hires is crucial. A good service will automate this.
• Employee Self-Service Portal: Empowering employees to access their pay stubs, W-2s, and update personal information reduces administrative burden.
• Integrations: Can it talk to your accounting software e.g., QuickBooks, Xero? Seamless integration saves hours of data entry.
• Time Tracking Integration: For hourly employees, linking time tracking to payroll simplifies wage calculation.
• HR Features Bonus: Onboarding, benefits administration, and compliance checklists can turn a payroll service into a comprehensive HR partner.

Gusto: A Deep Dive into the 2021 Frontrunner

In 2021, Gusto consistently topped lists for small business payroll, and for good reason.

Its blend of user-friendliness, comprehensive features, and competitive pricing made it a standout.

It offered a streamlined experience that helped businesses navigate the complexities of employee compensation and tax compliance.

Why Gusto Stood Out in 2021

Gusto’s popularity wasn’t accidental.

It built a platform that genuinely addressed the pain points of small business owners. Benefits of outsourcing payroll

• Intuitive Interface: Even if you’re a payroll novice, Gusto’s dashboard was easy to navigate. Running payroll took minutes, not hours.
• Automated Tax Compliance: This was Gusto’s strongest suit. It handled all federal, state, and local payroll tax filings automatically, including W-2s and 1099s, saving businesses from penalties. In fact, Gusto reported a 99.9% accuracy rate in tax filings for its customers.
• Employee Self-Service: Employees could easily access their pay stubs, update their information, and manage their benefits through a dedicated portal, reducing inquiries to the HR department.
• Robust HR Features: Beyond just payroll, Gusto offered tools for onboarding, benefits administration health insurance, 401k, workers’ comp, and HR compliance resources, making it a more holistic solution.
• Competitive Pricing: With tiered plans, Gusto offered options for businesses of all sizes, from contractors to growing teams. Their “Core” plan typically started around $39/month plus $6/employee.

Areas Where Gusto Could Improve Even in 2021

While Gusto was a strong contender, no service is perfect.

• Customer Support: While generally good, some users reported longer wait times during peak periods.
• Advanced Reporting: For very large or complex businesses, the custom reporting features might have been less robust than enterprise-level solutions.
• International Payroll: Gusto primarily focused on U.S. payroll, which could be a limitation for businesses with international employees.

Other Top Contenders in 2021: Exploring Diverse Options

While Gusto was a top pick, the payroll market in 2021 was rich with other excellent services, each with its own strengths.

Depending on your specific business needs, one of these might have been a better fit.

QuickBooks Payroll: Best for QuickBooks Users

If your business already lived and breathed QuickBooks for accounting, then QuickBooks Payroll was a natural extension. Its seamless integration was a huge time-saver.

• Seamless Integration: Data flows directly from payroll to your QuickBooks accounting ledger, eliminating manual entry and reconciliation. This was a major advantage for the over 80% of small businesses that used QuickBooks.
• Tax Penalty Protection: QuickBooks offered a guarantee against tax penalties, providing peace of mind for business owners.
• Full-Service Options: Like Gusto, QuickBooks Payroll offered automated tax filings and direct deposit.
• Pricing: QuickBooks Payroll had various tiers, often starting around $45/month plus $4/employee, with higher tiers offering HR features and tax penalty protection.

ADP Run: Best for Scalability and HR Support

ADP is a giant in the payroll world, and their “Run” platform was designed specifically for small to mid-sized businesses.

It offered comprehensive HR features and robust scalability.

• Comprehensive HR Solutions: Beyond payroll, ADP Run provided extensive HR support, including compliance guides, HR forms, and even access to HR professionals.
• Scalability: ADP could grow with your business, offering solutions for companies of all sizes, from a single employee to thousands.
• Multiple Payroll Options: Whether you wanted to run payroll yourself or have ADP manage everything, they offered flexible options.
• Pricing: ADP’s pricing was often less transparent online, typically requiring a quote, but generally competitive for its feature set, often starting around $50-70/month plus $5-8/employee.

Patriot Payroll: Best for Budget-Conscious Businesses

For small businesses keenly watching their pennies, Patriot Payroll offered a highly affordable and straightforward solution without sacrificing essential features.

• Affordable Pricing: Patriot’s basic payroll service started at a very competitive price, often around $10-15/month plus $4/employee, making it one of the most budget-friendly options.
• User-Friendly: Like Gusto, Patriot was known for its easy-to-use interface, making payroll quick and painless.
• Full-Service or Basic: You could choose between a basic payroll service where you file taxes yourself or a full-service option that handled tax filings.
• Solid Customer Support: Patriot generally received high marks for its responsive and helpful customer service.

OnPay: Best for Flexibility and Benefits Integration

OnPay carved out a niche by offering highly flexible payroll and HR services, with a particular strength in benefits administration.

• Transparent Pricing: OnPay had a straightforward pricing model, often a flat fee around $40/month plus $6/employee, making it easy to budget.
• Excellent Benefits Integration: OnPay excelled at integrating with various health insurance, 401k, and workers’ comp providers, simplifying benefits administration.
• Unlimited Payroll Runs: You could run payroll as many times as needed without extra charges.
• Dedicated Support: OnPay was known for its responsive, U.S.-based customer support team.

Essential Considerations When Choosing a Payroll Service

Picking the right payroll service in 2021 wasn’t just about features.

It was about understanding your business’s unique rhythm and requirements. Adp bundles

Think of it like tailoring a suit – one size definitely does not fit all.

Your Business Size and Employee Type

This is probably the most crucial factor.

A service perfect for a single contractor won’t cut it for a growing team of 50.

• Freelancers/Contractors 1099: If you primarily work with independent contractors, you need a service that easily generates 1099s and handles payments. Patriot Payroll and Gusto both had strong 1099 capabilities.
• Small Teams 1-10 employees: Most services shine here. Look for ease of use, automated tax filings, and direct deposit. Gusto, OnPay, and Patriot were excellent choices.
• Growing Businesses 11-50 employees: You’ll need more robust HR features, benefits administration, and potentially time tracking integrations. ADP Run and Gusto’s higher tiers were strong contenders.
• Hourly vs. Salaried Employees: If you have many hourly employees, seamless time tracking integration or a built-in time clock is vital to avoid manual data entry errors.

Pricing Models and Hidden Fees

Payroll service pricing can be tricky. Don’t just look at the headline number.

• Base Fee + Per Employee: Most services use this model e.g., $39 base + $6/employee. Calculate your total monthly cost based on your current and projected employee count.
• Monthly vs. Annual: Some services offer discounts for annual billing.
• Add-ons: Are there extra charges for year-end tax forms W-2s, 1099s, state tax registrations, or additional HR features? Gusto and OnPay were fairly transparent, while ADP often required a quote.
• Switching Fees: Check if there are any fees for migrating your existing payroll data.

Integrations with Existing Software

Your business likely uses other software.

Seamless integration saves you mountains of time and reduces errors.

• Accounting Software: Can it integrate with QuickBooks Online, Xero, FreshBooks, or other accounting platforms? This is key for financial reporting. Gusto and QuickBooks Payroll were kings here.
• Time Tracking Software: If you use tools like Clockify, TSheets, or When I Work, ensure your payroll service can pull in employee hours automatically.
• Benefits Providers: If you offer health insurance, 401k, or other benefits, check if the payroll service can sync with your providers for easy deductions and remittances.

Setting Up Your Payroll Service: A Step-by-Step Guide

Once you’ve chosen the best payroll service for your small business in 2021, the next step is getting it up and running.

While each platform has its nuances, the general process follows a logical flow.

Think of it as laying the foundation before building your house – careful preparation prevents future headaches.

Gathering Essential Information Pre-Setup

Before you even log into your new payroll service, ensure you have all the necessary documentation at your fingertips. Workful quickbooks

Missing just one piece of information can cause delays.

• Employer Identification Number EIN: This 9-digit number from the IRS is your business’s tax ID. You can’t run payroll without it.
• State Tax IDs: You’ll need specific IDs for state unemployment insurance SUI and state withholding tax, which vary by state. For example, in California, you’d need your EDD account number.
• Bank Account Information: Your business checking account details for direct deposit and tax payments account number, routing number.
• Employee Information:
  • Full legal names and addresses
  • Social Security Numbers SSN
  • Date of birth
  • Hire date
  • Pay rate hourly or salary
  • Pay frequency weekly, bi-weekly, semi-monthly, monthly
  • W-4 forms for federal withholding
  • State withholding forms if applicable
  • Direct deposit information bank name, account type, account number, routing number
  • Any deductions e.g., health insurance premiums, 401k contributions, garnishments.
• Previous Payroll Data if switching providers: If you’ve run payroll before, you’ll need year-to-date YTD wage and tax information for each employee to ensure accurate W-2s at year-end.

The Onboarding Process: What to Expect

Most payroll services have streamlined onboarding wizards to guide you through the setup. Don’t rush this part!

1. Create Your Account: Sign up for your chosen plan.
2. Enter Company Information: Input your EIN, business name, address, and industry.
3. Connect Bank Account: Link your business bank account for payments and tax debits. Most services use secure third-party verification.
4. Add Employees: This is where you input all the employee data you gathered. Many services allow you to invite employees to fill out their own personal and bank information via a self-service portal, which is a huge time-saver.
5. Set Up Pay Schedule: Define your pay frequency e.g., bi-weekly, every other Friday.
6. Configure Deductions & Contributions: Set up health insurance deductions, 401k contributions, garnishments, or other pre-tax/post-tax deductions.
7. Tax Setup: This is critical. The service will prompt you for your state tax IDs. They will then configure your federal, state, and local tax rates and filing frequencies. This is where automated services really shine, ensuring you’re compliant.
8. Review and Verify: Before your first payroll run, double-check all information. Many services offer a “preview” payroll to catch errors.

Initial Payroll Run and Ongoing Management

Your first payroll run might feel a bit nerve-wracking, but with a good service, it quickly becomes routine.

• First Payroll: Input hours for hourly employees or review salaried wages. The system will calculate gross pay, deductions, and net pay. Review the summary carefully before approving.
• Direct Deposit & Tax Payments: Once approved, the service will initiate direct deposits to your employees’ bank accounts and remit taxes to the appropriate agencies. This typically takes 2-4 business days.
• Pay Stubs: Employees will receive digital pay stubs, often accessible through their self-service portal.
• Ongoing Management:
  • New Hires/Terminations: Add new employees or process terminations as needed.
  • Wage Changes: Update pay rates.
  • Deduction Changes: Adjust benefits deductions or add new ones.
  • Year-End Reporting: The service will automatically generate W-2s, 1099s, and other year-end tax forms, making tax season a breeze.

The Future of Payroll: Trends Beyond 2021

While 2021 saw significant advancements in payroll services, the industry continues to evolve.

Staying abreast of these trends isn’t just about being tech-savvy.

It’s about positioning your business for greater efficiency and compliance.

AI and Automation in Payroll

Artificial intelligence AI and machine learning are increasingly being integrated into payroll systems, moving beyond simple automation to predictive analytics.

• Predictive Analytics: AI can analyze historical data to predict future payroll costs, identify potential compliance issues before they arise, and even forecast staffing needs.
• Enhanced Error Detection: AI algorithms can flag anomalies in payroll data more effectively than rule-based systems, reducing costly mistakes.
• Automated Audits: AI-powered tools can perform continuous internal audits, ensuring compliance with labor laws and tax regulations.
• Natural Language Processing NLP: Imagine asking your payroll system, “How much did we spend on overtime last month?” and getting an instant, accurate answer. NLP is making this a reality in customer support and reporting.

Real-Time Payroll and On-Demand Pay

The traditional bi-weekly or monthly pay cycle is slowly giving way to more flexible payment options.

• Real-Time Payroll: Some services are exploring the ability to process payroll instantly, allowing businesses to pay employees on demand or immediately after a shift.
• On-Demand Pay Earned Wage Access: This allows employees to access a portion of their earned wages before their official payday. While this offers flexibility, Muslim entrepreneurs should approach such solutions with caution, ensuring no hidden interest or debt-like structures are involved. Any service that encourages borrowing or financial entanglement with interest riba should be avoided. The focus should always be on ethical, timely payment of earned wages, not on providing early access through a system that might resemble a loan.
• Financial Wellness Integration: Payroll platforms are increasingly linking with financial wellness tools, allowing employees to budget, save, and manage their finances more effectively.

Increased Focus on HR Integration and Compliance

The lines between payroll and HR continue to blur, with services offering more holistic human capital management HCM solutions.

• Unified Platforms: Expect more platforms that seamlessly integrate payroll, time tracking, benefits administration, onboarding, performance management, and learning & development.
• Proactive Compliance Alerts: Payroll services will become even better at alerting businesses to upcoming regulatory changes e.g., minimum wage increases, new leave laws and providing resources to ensure compliance.
• Employee Experience Focus: The “employee self-service portal” will evolve into a more comprehensive employee experience platform, offering a personalized hub for all HR-related needs.

Why a Professional Payroll Service is an Investment, Not an Expense

For small business owners, every dollar spent is scrutinized. Payroll plan

But thinking of a professional payroll service as merely an expense misses the bigger picture.

In 2021, it was, and continues to be, a strategic investment that pays dividends in various ways.

Minimizing Risk and Ensuring Compliance

A professional payroll service acts as your expert guide, helping you navigate it safely.

• Avoid Costly Penalties: The IRS and state agencies don’t distinguish between intentional and accidental payroll errors. Penalties for late or incorrect filings can quickly snowball, far exceeding the cost of a payroll service. As mentioned, nearly 40% of small businesses faced IRS penalties for payroll errors in 2020. A good service drastically reduces this risk.
• Up-to-Date on Laws: Tax laws, minimum wage rates, and labor regulations change constantly. A professional service stays on top of these changes, updating their system automatically, so you don’t have to.
• Audit Readiness: Should you ever face an audit, having a professional service handle your payroll means your records are accurate, organized, and readily accessible, simplifying the process and reducing stress.

Freeing Up Your Most Valuable Asset: Time

As a small business owner, your time is gold.

Every hour spent on administrative tasks is an hour not spent on growth, strategy, or customer engagement.

• Reclaim Dozens of Hours: Think about it: calculating wages, withholding taxes, preparing reports, printing checks, making deposits, dealing with W-2s at year-end. For a team of 10, this can easily add up to 5-10 hours per month or more. That’s valuable time you could be dedicating to sales, marketing, product development, or even much-needed rest.
• Focus on Core Business: By offloading payroll, you can truly focus on what you do best – growing your business, innovating, and serving your customers. This directly impacts your bottom line.
• Reduced Stress: Payroll errors, deadlines, and compliance worries can be incredibly stressful. Delegating this to a professional service significantly reduces your mental load.

Boosting Employee Morale and Professionalism

Payroll directly impacts your employees.

A smooth, accurate, and timely payroll system builds trust and professionalism.

• Accurate and Timely Payments: Nothing sours employee morale faster than incorrect or late paychecks. A professional service ensures your employees are paid accurately and on time, every time.
• Professional Pay Stubs: Clear, easy-to-understand pay stubs often accessible online reduce employee questions and demonstrate professionalism.
• Benefits Administration: Many payroll services also offer integrated benefits administration, making it easier to offer and manage health insurance, 401ks, and other perks, which are crucial for attracting and retaining top talent. Companies with strong benefits programs report significantly lower turnover rates.

Conclusion: Making the Right Payroll Choice for Your Small Business

In 2021, selecting the right payroll service was a pivotal decision for small businesses, not just a logistical one.

It was about choosing a partner that could streamline operations, ensure compliance, and free up invaluable time for growth.

While platforms like Gusto, QuickBooks Payroll, ADP Run, Patriot, and OnPay emerged as top contenders, each with distinct strengths, the ultimate “best” service always came down to the individual needs and ethical considerations of your business. Workful expense reimbursement

For Muslim entrepreneurs, this discernment extended beyond features and pricing to include a critical examination of the service’s underlying financial practices.

While conventional payroll services themselves are generally permissible, vigilance is necessary to ensure they do not subtly introduce or promote interest-based riba products or financial schemes.

The core function of payroll – processing wages and taxes – is an administrative necessity.

However, any integrated features pushing credit, loans, or investments that are not Sharia-compliant must be identified and avoided.

Always opt for services that provide transparency and align with Islamic principles of ethical finance, promoting honest transactions and avoiding debt where interest is involved.

By prioritizing both operational efficiency and unwavering adherence to values, small businesses can truly thrive, ensuring their financial practices are sound and their operations are blessed.

Frequently Asked Questions

What is the best payroll service for small business in 2021?

In 2021, Gusto was widely considered one of the best payroll services for small businesses due to its user-friendly interface, comprehensive features, and automated tax filings. However, other strong contenders included QuickBooks Payroll, ADP Run, Patriot Payroll, and OnPay, each excelling in different areas.

How much does payroll service cost for a small business?

Payroll service costs for small businesses typically range from $10 to $70 per month as a base fee, plus an additional $4 to $12 per employee per month. For example, a basic plan might start around $39/month + $6/employee. The total cost depends on the number of employees, desired features e.g., HR, benefits administration, and the specific provider.

Is Gusto good for small business payroll?

Yes, Gusto was exceptionally good for small business payroll in 2021. It offered intuitive navigation, full-service payroll with automated tax filing and remittance, direct deposit, and robust HR features like onboarding and benefits administration.

Its strong emphasis on user experience made it a favorite. Payroll software that integrates with xero

What is the difference between full-service and self-service payroll?

Full-service payroll means the provider handles all aspects, including calculating wages, withholding taxes, processing direct deposits, and filing all federal, state, and local payroll taxes on your behalf. Self-service payroll typically means the provider calculates wages and taxes, but you are responsible for remitting the taxes and filing the necessary forms yourself. Full-service offers more peace of mind and reduces compliance risk.

Is QuickBooks Payroll better than Gusto?

Whether QuickBooks Payroll is “better” than Gusto depends on your existing setup. If you already use QuickBooks for accounting, QuickBooks Payroll offers seamless, deeper integration that saves significant time on data entry and reconciliation. Gusto, however, often provided a more intuitive user experience and comprehensive HR features for businesses not tied to the QuickBooks ecosystem. Both were excellent choices in 2021.

Can I do payroll myself for a small business?

Yes, you can do payroll yourself, especially for very small businesses with few employees.

However, it’s highly complex due to ever-changing federal, state, and local tax laws, and precise calculations for withholdings and deductions.

Errors can lead to significant IRS and state penalties, making a professional service a strong recommendation to save time and ensure compliance.

What are the risks of doing payroll yourself?

The main risks of doing payroll yourself include IRS and state tax penalties for incorrect calculations, late filings, or missed payments which can be substantial, sometimes 15% or more of the underpaid amount. Other risks include inaccurate W-2s, compliance headaches, and a significant time drain that distracts from core business activities.

Does ADP Run include HR?

Yes, ADP Run designed for small to mid-sized businesses offers robust HR features in addition to payroll. Depending on the plan tier, it includes HR support, compliance resources, access to HR professionals, onboarding tools, and benefits administration, making it a comprehensive solution for managing human capital.

How often should a small business run payroll?

Most small businesses run payroll bi-weekly every two weeks or semi-monthly twice a month. Weekly is common for hourly employees, while monthly is sometimes used for salaried employees. The frequency depends on your business’s cash flow, industry norms, and employee preferences.

What documents do I need to set up payroll?

To set up payroll, you’ll need your Employer Identification Number EIN, state tax IDs SUI, state withholding, business bank account information, and comprehensive details for each employee, including their full name, address, Social Security Number, hire date, pay rate, W-4 form, and direct deposit information.

Can payroll services handle 1099 contractors?

Yes, most reputable payroll services, including Gusto, QuickBooks Payroll, and Patriot Payroll, can handle 1099 contractors in addition to W-2 employees. Digital payroll system

They facilitate payments to contractors and automatically generate and file 1099-NEC forms at year-end, simplifying tax compliance for independent contractors.

Do payroll services handle benefits administration?

Many full-service payroll providers in 2021 offered integrated benefits administration. Services like Gusto and OnPay were particularly strong in this area, allowing businesses to manage health insurance, 401k plans, and workers’ compensation directly through their payroll platform, simplifying deductions and remittances.

What is the most common payroll frequency?

The most common payroll frequency in the U.S. is bi-weekly, where employees are paid every two weeks 26 pay periods per year. This is followed closely by semi-monthly 24 pay periods per year and weekly 52 pay periods per year, especially for hourly workers.

Is direct deposit mandatory with payroll services?

While not universally mandatory by law for all businesses, direct deposit is a standard feature offered by virtually all modern payroll services. It’s highly encouraged due to its efficiency, security, and convenience for both employers and employees, though most services also offer check printing capabilities if needed.

How long does it take for direct deposit to clear?

Typically, direct deposit transactions initiated by payroll services take 2 to 4 business days to fully clear and appear in the employee’s bank account. This includes processing time by the payroll provider and the Automated Clearing House ACH network.

What is an EIN and why do I need it for payroll?

An Employer Identification Number EIN is a unique nine-digit tax identification number issued by the IRS to businesses. You need an EIN to hire employees, file federal and state payroll taxes, and open a business bank account. It’s essentially your business’s Social Security number for tax purposes.

Can a payroll service integrate with my accounting software?

Yes, seamless integration with accounting software like QuickBooks Online, Xero, and FreshBooks was a key feature for many payroll services in 2021. This integration automates the transfer of payroll data to your general ledger, eliminating manual data entry and improving accuracy.

Gusto and QuickBooks Payroll were particularly strong in this area.

What if I make a mistake on payroll?

If you make a mistake on payroll, a professional payroll service can often help you correct it.

For example, if you overpay an employee, they can guide you on how to recover the funds. Types of payroll systems

If you underpay, they can help process a supplemental payment.

For tax errors, they assist with amending filings and potentially working with tax authorities.

Do payroll services help with year-end tax forms like W-2s and 1099s?

Yes, a major benefit of using a full-service payroll provider is that they automatically generate, file, and distribute year-end tax forms like W-2s for employees and 1099-NEC forms for contractors. This significantly simplifies year-end compliance and ensures employees receive their forms on time.

How does a payroll service ensure compliance with state-specific laws?

Reputable payroll services have dedicated compliance teams that constantly monitor changes in federal, state, and local tax laws and labor regulations.

Their systems are automatically updated to reflect these changes, ensuring accurate calculations for state unemployment insurance SUI, state income tax withholding, and other state-specific requirements, thus reducing your risk of non-compliance.