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  • Recently, the U.S. Department of Labor (DOL) has taken a stand against workplace safety violations by suing a Georgia pesticide and agricultural chemical manufacturer. The lawsuit alleges that the company illegally terminated a worker who had filed a workplace safety complaint with federal regulators, shedding light on the crucial issue of employee protection and the cost of speaking up for safety.

    Allegations And Retaliation

    The DOL filed the suit against Gainesville-based Avenger Products LLC and its parent company, Kittrich Corp, citing the wrongful termination of an employee who had raised concerns about chemical exposures in the workplace. This move comes after a federal whistleblower investigation by the Occupational Safety and Health Administration (OSHA) uncovered the alleged retaliation against the worker for voicing safety apprehensions.

    OSHA’s Assistant Regional Administrator in Atlanta emphasized the impact of employer retaliation on employees’ willingness to engage with federal safety investigators. She stated that it creates a chilling effect that hampers the cooperation necessary for ensuring workplace safety.

    Legal Action And Consequences

    The lawsuit filed by the DOL seeks justice for the terminated employee by demanding back pay, compensatory and punitive damages, and damages for emotional distress from Avenger Products. It’s a strong message to employers who disregard their employees’ rights and prioritize their own interests over the well-being of their workforce.

    In addition, the DOL highlighted the company’s troubling history of workplace safety violations over 20 years, with proposed penalties totaling $254,189 between June 2018 and December 2019. These repeated violations underscore the urgency of addressing the company’s disregard for safety protocols and the need for accountability in safeguarding employees.

    How A PEO Can Help

    To ensure your business doesn’t make the same mistakes as Avenger Products LLC, consider partnering with a professional employer organization (PEO). A PEO like GMS offers various services; however, in this instance, it can help business owners prevent cases of workplace safety violations, employee lawsuits, and compliance issues. This strategic partnership mitigates the risk of costly lawsuits and ensures a focus on essential business operations. Ultimately, gaining access to the expertise and resources of a PEO empowers business owners to proactively safeguard their workforce and maintain a compliant, secure, and efficient work environment. Contact our safety team today to learn how we can make your business simpler, safer, and stronger.

  • On average, employers report nearly 2.8 million cases of nonfatal injuries and illnesses among employees annually. Whether it’s a slip in the hallway or an equipment malfunction, accidents happen, and taking a proactive approach is crucial in safeguarding your employees and business.

    While worker safety programs with regular training and protocols are important, workers’ compensation insurance is one of the most essential tools to utilize. In fact, in every U.S. state except Texas, having workers’ compensation insurance is not only best practice but also the law. The consequences of being caught without coverage can lead to severe legal issues for your business, including possible shutdown.

    While we can give you a general overview of workers’ compensation, it’s crucial to note that every state in the U.S. and Washington D.C. has its own program, each with specific requirements and regulations. This means it’s not only a recommendation but it’s also a necessity to check and understand your local laws to protect your business. By doing so, you can ensure full compliance and avoid potential legal issues down the line.

    What Is Workers’ Compensation?

    Workers’ compensation is a type of insurance that provides comprehensive benefits to workers who become injured or ill on or as a result of the job. This insurance offers quick help to cover medical expenses related to the injury, rehabilitation costs, and lost wages during the period an employee is unable to work.
    While regulations vary by state, employers generally accept liability for work-related injuries and illnesses regardless of fault. In return, employees receive prompt and guaranteed compensation for their injuries while giving up the right to sue their employer for negligence. This system not only protects your employees but also provides a safety net for your business, ensuring that you can continue operations even in the face of unexpected accidents or illnesses.

    What Does Workers’ Compensation Cover?

    Workers’ compensation can cover a variety of needs, including salary replacement. Salary replacement can be particularly helpful when an employee needs to take a significant amount of time off work. However, typically, it covers less than an employee’s full salary, usually around two-thirds.

    In addition, workers’ compensation can include the following:

    • Medical expense coverage: Most plans provide reimbursement for health care costs, including, but not limited to, emergency room visits, surgical procedures, and medication.
    • Continuous support: Should an injury or illness require long-term care, such as occupational or physical therapy, due to a work-related incident, workers’ compensation may cover these needs.
    • Repetitive stress injuries: Conditions such as carpal tunnel syndrome, often seen in employees involved in continuous typing, develop over months or even years. Most workers’ compensation will cover injuries or conditions resulting from repetitive tasks.
    • Disability assistance: In cases where an injury permanently incapacitates an employee, workers’ compensation offers financial support similar to wage replacement. Both disability assistance and salary replacement help cover medical expenses and compensate for lost wages. The difference is salary replacement is for employees who can return to work after healing, and disability assistance is for those unable to resume their roles.
    • Benefits for survivors: In the unfortunate event of an employee’s death from a work-related injury or illness, workers’ compensation provides financial assistance to the dependents and may also cover funeral expenses.

    Employer Responsibilities

    As an employer, you’re responsible for providing adequate and compliant coverage for your team. When looking into your coverage options, there are several factors to consider, including which industry you work in. Sectors known for their high-risk environments, such as manufacturing or nursing, typically require more comprehensive coverage and are subject to higher premiums compared to other industries. In addition, it’s important to consider how many employees you have and what you are legally required to provide based on your state.

    Your legal obligations extend beyond just providing insurance; you’re responsible for accurately documenting and reporting incidents. In the event of a workplace injury, your first responsibility is to ensure the injured employee receives necessary medical attention. This may involve calling emergency services for severe injuries or providing transportation to a medical facility for evaluation and treatment.

    Once your employee has received medical attention, it’s crucial to document the incident thoroughly. This documentation should include details about how the injury occurred, the nature of the injury, and the time and place of the incident. All this information should be included in the First Report of Injury (FROI) and sent to your claims representative. In most cases, this needs to be done within 24 hours of the incident or from when an employee seeks medical attention. Failure to do so will result in substantial fines and leave your business open to lawsuits from the injured employee.

    Workers’ compensation can get expensive, especially if you’re in a high-risk industry. Creating a culture where safety is a priority and claims management is taken seriously is crucial to combat costs and prevent injuries

    Protect Your Business With GMS

    Workers’ compensation can be a costly expense, especially for small businesses. Partnering with a professional employer organization (PEO) like GMS can help save money and prevent your workers from being injured on the job. At GMS, we approach workers’ compensation in two ways: cost containment and loss prevention.

    Cost containment

    You may not be a Fortune 500 company, but when you partner with GMS, you’ll gain access to a risk management team that gives you Fortune 500 service. We do this by minimizing your exposure, helping you keep records, and completing other crucial best practices that keep your business compliant with OSHA.

    Loss prevention

    Our loss prevention strategies include risk assessments, safety training, the development of safety manuals and guidelines, workplace inspections, and OSHA compliance. GMS will work with you to reduce the risk of workplace accidents so that your business has fewer, less severe claims over time. If an incident does occur our partnership with CarivaCare provides our clients with 24/7 access to a workers’ compensation nurse triage program. This program offers employees a neutral, third-party medical professional to report any injuries on the job.

    Contact us today, and let us help you offer your employees the best coverage while saving your company time and money.

  • When employees come to work, they want to feel confident in their surroundings and know that their safety is prioritized. In fact, 89% of Americans have determined workplace safety to be more important than ever. Workplace safety isn’t just a box to check; it’s the foundation for building an environment where employees feel secure and takes ongoing effort to maintain. Establishing safety protocols is critical to developing a culture of trust, respect, and responsibility, supporting employee satisfaction and business success and maintaining legal compliance.

    Safety laws and regulations help ensure employee well-being and empower them to effectively perform their duties without fear of injury or illness. Regulations concerning safety also help to preserve company equipment and property by requiring regular maintenance and inspections. Whether it’s operating heavy machinery, handling hazardous materials, or navigating busy workspaces, having up-to-date safety protocols reduces the chance of work-related injuries and safeguards your business. No matter the size of your business, guidelines are necessary to maintain optimal conditions for employee safety and productivity.

    To create a workplace where employees feel confident in their safety, it’s crucial to identify vulnerabilities, understand how to prevent accidents, and promote a practice of safety.

    Understanding Workplace Risks

    In order to prepare for and prevent workplace accidents, it’s necessary to first understand the risks and vulnerabilities associated with your working environment. While working conditions vary by industry, there are common hazards such as slips and falls, exposure to hazardous chemicals or machinery accidents to be aware of and plan for.

    In addition to physical risks, as a business owner, you have legal and ethical obligations to ensure your staff’s safety. Failure to meet these standards not only puts employees at risk, but can also lead to reputational harm, costly fines, and penalties. To implement the proper protocols and remain compliant with safety laws, you must understand the risks your work environment presents and anticipate possible incidents.

    Proactive Measures

    It is best to treat and prepare for accidents before they arise. The first step in taking a proactive approach to workplace safety is to conduct thorough risk assessments that can help identify potential hazards. The Occupational Safety and Health Administration (OSHA) recommends each workplace create a checklist of potential hazards, pertaining to categories such as electrical systems, equipment operations, fire protection, and more.

    Furthermore, analyzing past incidents can help identify patterns and provide valuable insights into recurring issues and areas for improvement. To assure your business is actively reducing risks to employee safety, make sure you are taking the following precautions:

    Establish safety protocols and procedures

    Once possible hazards and risks have been identified, it’s vital to implement safety protocols and procedures that address the detected vulnerabilities. Safety guidelines should be documented and clearly communicated to employees. Making safety protocols easy to access supports employees in understanding the practices and swiftly locating them during emergencies. In addition, regularly review and update your protocols to keep up with evolving safety regulations and industry standards.

    Provide training and education programs

    To aid in enforcing protocols, comprehensive workplace safety strategies should include training and education in how to avoid accidents, handle equipment, and respond to emergencies. Providing safety training to all employees helps keep them aware of risks and everyone understands their role in maintaining a safe work environment. Research shows employees are 68% more likely to follow protocols when employers offer at least 20 hours of annual safety training. Along with general safety education, specialized training should be offered to any employee required to complete high-risk tasks.

    Supply necessary safety equipment

    Providing the appropriate safety equipment is critical to employees’ well-being. While hazards differ depending on the working environment, personal protective equipment (PPE) offers defense against many risks. From construction sites to health care facilities, PPE includes helmets, gloves, goggles, earplugs, respirators, and more. To uphold proper protection, safety equipment should be regularly maintained and inspected for any malfunctions. It’s also important to keep up with changing standards for safety equipment to guarantee employees have the best protective gear available.

    How To Create A Culture Of Safety

    In addition to following documented standards and protocols, your company’s overall mindset around safety and communication is also a key factor in protecting employees and equipment. Over half of Americans believe their employers’ communication regarding safety needs improvement. Beyond simply adhering to established guidelines, it’s imperative to cultivate a culture that prioritizes safety and promotes open communication.

    Leadership commitment to safety

    To boost buy-in and morale amongst employees, your company’s leadership must demonstrate their commitment to the health and safety of the team. Leaders can set a positive example concerning safety through their actions and decisions. When leaders actively engage in safety protocols, such as wearing PPE, they set the standard for others to follow. Investing in training, upgrading equipment, and allocating resources also displays dedication towards maintaining a healthy and safe work environment.

    Encourage employee involvement and open communication

    Reporting near misses should be encouraged as it allows you to identify potential hazards and address them before they escalate into more serious incidents. To foster open communication within the workplace, it’s essential to make employees feel comfortable sharing safety-related information without fear of reprisal. Promptly handling safety concerns also shows devotion to employee well-being and reinforces trust between management and staff.

    Monitor and show continuous improvement

    Maintaining effective workplace safety requires consistent effort. Conduct regular safety audits and inspections to identify potential hazards and deficiencies in existing safety protocols. Diving into past incident reports to find issues that may have been originally overlooked. By consistently refining safety procedures, you can enhance workplace safety and create a safer environment for all employees.

    Stay Safe By Partnering With A PEO

    A professional employer organization (PEO) can equip your business with the necessary resources and expertise to implement effective workplace safety protocols. When you partner with a PEO like GMS, you have access to safety experts who can offer professional advice and various services to guarantee compliance and protect your employees. We also offer courses and training to assist you in reducing workplace injuries and enhancing safety practices.

    Our experts can help make your safety practices not only compliant but also tailored to the unique needs of your business. Contact us today to start improving your employees’ health and safety!

  • In response to increasing concerns over workplace safety, California’s Governor Gavin Newsom signed Senate Bill 553 (SB 553) into law, a significant step towards ensuring a safer work environment for all employees. This new legislation, effective July 1, 2024, mandates all employers establish, implement, and maintain an effective Workplace Violence Prevention Plan (WVPP). SB 553 underscores the state’s commitment to enhancing workplace safety by requiring employers to proactively address and mitigate the risks associated with workplace violence.

    Empowering Cal/OSHA

    The California Division of Occupational Safety and Health (Cal/OSHA) enforces the requirements outlined in SB 553, which are now codified in California Labor Code Section 6401.9. This puts the responsibility for compliance and enforcement in the hands of a dedicated regulatory body.

    Cal/OSHA published a Model WVPP, similar to existing models such as the Injury and Illness Prevention Plan (IIPP) and COVID-19 Prevention policy. Model WVPP serves as a valuable resource for employers, specifically designed to aid employers in formulating their own customized workplace violence prevention plans. While not mandatory, the Model WVPP offers a structured framework that employers can adopt as a template for their individualized plans.

    The Model WVPP provides a comprehensive set of questions and examples, enabling employers to conduct a thorough risk assessment of their workplaces. This empowers employers to identify potential risks and tailor their prevention plans accordingly.

    Navigating Requirements

    Cal/OSHA has also released a Fact Sheet for Employers, offering a clear overview of the requirements set forth by SB 553. The fact sheet provides an overview of the following criteria:

    • Creating a workplace violence prevention plan
    • Maintaining a violent incident log
    • Employer responsibilities in workplace violence record keeping 
    • Training employees on workplace violence 

    By providing detailed guidance on the essential components of compliance, the fact sheet equips employers with the necessary knowledge to navigate the intricate landscape of workplace violence prevention.

    The Assistance Of A PEO

    As the implementation date for SB 553 draws closer, California business owners are seeking reliable support to ensure compliance with new WVPP requirements. This is where a professional employer organization (PEO) like Group Management Services (GMS) comes into play. PEOs offer tailored expertise in HR solutions, including specialized guidance on workplace safety protocols and regulatory compliance. By partnering with GMS, California business owners can tap into tailored support for developing and implementing effective WVPPs, ultimately creating a safer and more secure work environment for their employees. Are you interested in learning more? Contact our safety experts today.

  • California has recently made updates to two crucial pamphlets that employers are required to provide to new hires. These changes aim to ensure that workers are well-informed about their rights, benefits, and the procedures to follow in the event of workplace-related issues.

    Understanding The Updates

    The California Department of Industrial Relations Division of Workers Compensation has revised the “Time of Hire” pamphlet. Employers must provide this document to all newly hired employees. The pamphlet serves as a comprehensive guide, explaining the intricacies of workers’ compensation, including the process of filing claims and accessing medical care. This update showcases the state’s commitment to ensuring employees are equipped with the necessary knowledge to navigate the complexities of workers’ compensation.

    The ”For Your Benefit” pamphlet

    In addition, the Employment Development Department (EDD) updated its “For Your Benefit” pamphlet, which must be provided to new hires and employees upon discharge. This document outlines the various benefits that the state provides to employees in the event of termination or when they’re on specific types of leave. It also offers valuable insights into obtaining unemployment insurance, tax requirements related to unemployment benefits, eligibility criteria for state disability insurance, and a list of workers who may not qualify for unemployment benefits.

    Compliance And Accountability For Business Owners In California

    These updates remind employers of their legal obligations to provide accurate and updated information to their employees. By complying with these regulations, employers contribute to a more transparent and accountable work culture where employee rights are respected and upheld.

    In light of these updates to mandatory pamphlets for new hires in California, professional employer organizations (PEOs) can play a pivotal role in assisting businesses in the state. PEOs can provide invaluable support by ensuring businesses remain compliant with the updated regulations and offer expert guidance on workers’ compensation, state-provided benefits, and other related matters. GMS’ HR experts are here to take on the administrative burdens of small business owners in California. Contact us today to learn more!

  • As a company grows, so do the needs of its employees. Offering competitive and comprehensive employee benefits is crucial for attracting and retaining top talent. However, navigating the complexities of employee benefits can be challenging, especially as your company expands. Continue reading to explore the key considerations and strategies for effectively managing employee benefits as your company grows.

    Understanding The Importance Of Employee Benefits

    Employee benefits play a significant role in the overall satisfaction and well-being of your workforce. They contribute to employee retention and loyalty and impact recruitment efforts. 78% of employees say they would stay with a company because they like the benefits. As your company scales, the need for robust employee benefits becomes more significant, making it essential to understand the importance of offering a compelling benefits package.

    Tailor Benefits To Meet Diverse Needs

    Understanding your employees’ diverse needs is fundamental to tailoring an effective benefits package. Conducting surveys or holding focus group discussions can provide valuable insights into your employees’ specific needs and preferences.

    In addition, consider customizing benefits to cater to different demographics within your workforce. This may include offering flexible work arrangements, wellness programs, or personalized health care options to accommodate varying lifestyles and preferences.

    Navigate Legal And Compliance Considerations

    It’s also crucial to stay on top of evolving labor laws and regulations related to employee benefits. Compliance with local, state, and federal laws is essential to avoid potential issues. Consult legal and HR professionals to ensure your benefits offerings comply with relevant regulations. This can help mitigate legal risks and ensure your benefits programs adhere to industry standards.

    Evaluate Cost-Effective Benefits Solutions

    Growing companies often face budgetary constraints. It’s important to conduct a thorough cost analysis to assess the financial implications of expanding or modifying employee benefit programs. Research and explore cost-effective benefit solutions such as group insurance plans, retirement savings programs, or employee assistance programs. Evaluating multiple options can help identify affordable yet impactful benefits for your employees.

    Communicate Benefits Effectively

    Clear and transparent communication about employee benefits is essential, especially during growth and change. Develop effective communication strategies to ensure employees understand the full scope of their benefits. In addition, provide educational resources and workshops to help employees make informed decisions about their benefits. This can enhance appreciation for the benefits offered and maximize their utilization.

    Leverage Technology For Benefits Administration

    Now, it’s essential to implement HR software that streamlines benefit administration processes. This can simplify enrollment, tracking, and employee benefits management, improving overall efficiency. Providing employees with self-service tools for benefits management can enhance their experience and reduce administrative burdens on HR personnel.

    Partner With A PEO

    Consider finding support from HR professionals such as a professional employer organization (PEO) who are there to help create a competitive benefits package for your business needs. While growth is great, you no longer have the time to manage everything on your own. Partnering with a PEO like GMS is the light at the end of the tunnel. GMS does more than simply offer coverage like a health insurance company. We provide our clients with various tools and resources to find a coverage solution tailored to their needs. Common benefits options we provide business owners include:

    By embracing the support of a PEO and incorporating sought-after benefits, small business owners can attract and retain top talent, foster a positive workplace culture, and ultimately drive the growth and success of their organizations. Contact us today to explore how we can help you navigate employee benefits for your growing business.

  • The recent decision by the 7th U.S. Circuit Court of Appeals has brought to light crucial implications for employers’ responsibilities under the Family and Medical Leave Act (FMLA). This ruling emphasizes the need for employers to adjust performance expectations for employees who are on approved FMLA leave. Continue reading to dive into the details of this decision and its potential impact on how employers navigate the FMLA.

    Brief Overview Of The FMLA

    The FMLA is a federal labor law that provides certain employees with essential benefits related to leave for family or health issues. The purpose of the FMLA is to help employees balance their work and family responsibilities, allowing eligible employees to take unpaid, job-protected leave for specific family and medical reasons.

    Employees are eligible if they have worked for their employer for at least 12 months. In addition, they must have worked at least 1,250 hours over the past 12 months. The employer must have 50 or more employees within 75 miles of the employee’s location.

    Qualified employees can take up to 12 weeks of unpaid leave each year for the following reasons:

    • Birth and care of a newborn child
    • Adoption or foster care placement of a child
    • Caring for an immediate family member (spouse, child, or parent) with a serious health condition
    • Taking medical leave when the employee is unable to work due to a serious health condition 

    Employer responsibilities

    Employers covered by the FMLA must provide eligible employees with the specified leave. Group health benefits must be maintained during the leave. FMLA applies to public agencies, public and private elementary and secondary schools, and companies with 50 or more employees. Time taken off work due to pregnancy complications can count towards the 12 weeks of family and medical leave for the allocated year.

    The Case: OSF HealthCare System Vs. Former Employee

    A former employee of OSF HealthCare, an Illinois-based health care provider, filed a lawsuit claiming they violated her rights under the FMLA. The plaintiff alleged that the company failed to reasonably adjust its performance expectations to reflect her reduced hours while on leave. She cited instances where unadjusted deadlines were imposed despite her reduced office hours. In addition, she highlighted a substantial increase in workload during her leave period, including integrating two acquired hospitals into her unit. The plaintiff also pointed out that certain goals required mentorship, which she did not receive, and coordination with others outside her authority or control.

    In response, OSF defended its actions by stating the plaintiff was terminated for not meeting performance expectations outlined in a performance improvement plan (PIP) established upon her return. A PIP is a written document that outlines an employee’s performance gaps and provides a roadmap for improvement.

    Court Ruling And Implications

    The district court initially ruled in favor of the defendant, emphasizing the plaintiff failed to establish a causal connection between the exercise of her FMLA rights and her termination. However, the 7th Circuit Court of Appeals highlighted a genuine dispute over the amount of approved leave the plaintiff took, which could impact the outcome of the case. The court ruled that such a significant difference in testimony regarding the duration of leave warranted resolution by a jury.

    The appeals court also questioned the timing and motivation behind implementing the PIP, emphasizing that the defendant did not communicate to the employee that poor performance led to the PIP or that deficiencies would result in termination. Consequently, the court vacated the decision and remanded the case for trial, underlining the need for a jury to assess the sincerity of the employer’s motivation.

    Key Takeaways For Employers

    The ruling by the 7th U.S. Circuit Court of Appeals serves as a vital reminder for employers regarding their responsibilities under the FMLA. It underscores the following key implications:

    • Adjusting performance expectations: Employers must adjust performance expectations for employees on approved FMLA leave, considering reduced hours and potential limitations resulting from the leave. 
    • Causal connection: Establishing a causal connection between an employee’s use of FMLA leave and their termination is crucial in FMLA cases. Employers should ensure that disciplinary actions are not perceived as retalitory or interfering with the employee’s FMLA rights. 
    • Transparency and communication: Employers need to effectively communicate performance-related concerns and any subsequent disciplinary measures to employees, especially in cases where FMLA leave is involved. Lack of transparency could be perceived as pretextual and potentially lead to legal ramifications. 

    Stay Compliant, Partner With A PEO

    The intricacies of the FMLA can feel overwhelming for small business owners. However, there’s a strategic solution: partner with a professional employer organization (PEO) like GMS. We offer expertise in HR compliance, assist with leave requests associated with FMLA, and ultimately ensure you’re compliant with FMLA regulations. It’s time for you to focus on propelling your business forward and let us handle the nitty-gritty aspects of your business. It’s a win-win scenario that empowers businesses to thrive. Contact us today to learn more.

  • The Internal Revenue Service (IRS) has recently released the 2024 Form 941, Employer’s Quarterly Federal Tax Return, along with Schedule B, Report of Tax Liability for Semiweekly Schedule Depositors, and Schedule R, Allocation Schedule for Aggregate Form 941 Filers. These updated forms, along with instructions, are now available here.

    As a business owner, learn how these changes will affect your tax reporting by reading on.

    What Employers Should Know

    Employers are advised to start using the March 2024 revision of Form 941 beginning with the first quarter of 2024. The IRS expects this revision to be utilized for all four quarters of the year. In addition, a notable change is the removal of COVID-19-related lines from the Form 941. This means the lines previously used to report COVID-19-related credits have been eliminated from the form. Employers will need to be mindful of this adjustment when completing their tax returns for 2024.

    Form instructions update

    The Form 941 instructions have been updated to align with the changes to the form. In addition, the updated instructions no longer include any worksheets. Employers should familiarize themselves with the revised instructions to ensure accurate completion of the form.

    Implications

    Employers are encouraged to familiarize themselves with the updated Form 941 and related schedules to ensure compliance with the latest reporting requirements. They may also need to review and adjust their internal processes and systems to accommodate the changes introduced in the updated forms. This could involve updating payroll and tax reporting software and training staff on the revised requirements to facilitate smooth and accurate reporting.

    Where GMS Steps In

    Given the dynamic nature of tax regulations, employers should stay informed about further updates or clarifications related to the revised forms. Regularly monitoring official IRS communications and updates can help employers stay ahead of any additional changes that may impact their tax reporting obligations.

    However, partnering with a professional employer organization (PEO) like GMS is here to take on this administrative task that, let’s face it, you don’t want to worry about. Our HR experts offer comprehensive HR, payroll, and compliance solutions that provide small business owners with expertise in managing tax-related matters. Small business owners can leverage the resources of a PEO to ensure seamless adaptation to the revised forms and instructions. This allows business owners to focus on their core business operations, knowing their tax reporting requirements are being effectively managed. Stay on top of regulatory changes and partner with GMS – contact us today.

  • Tax season can be a stressful time for many employees. In fact, a survey showed that 64% of individuals who were surveyed admitted that tax season introduced a level of stress to their lives. As a small business owner, you can support your employees during this period in several ways, helping them navigate the complexities of tax filing and ultimately boosting their morale and productivity. The following are five effective ways to assist your employees during tax season.

    1. Provide clear guidance and resources

    • Educate your employees: Offer informational sessions or workshops to educate your employees about tax-related matters such as deductions, credits, and filing procedures. Providing access to reliable online resources or inviting tax professionals to address common concerns can be immensely beneficial.
    • Clarify tax forms: Ensure your employees receive their W-2 form promptly and offer assistance in understanding the information provided. In addition, provide clear instructions for any other tax-related documents they may need to submit.

    2. Offer flexible work arrangements

    • Flexible schedules: Allow employees flexibility in their work schedules to accommodate tax-related appointments or personal time needed to organize their finances. This can alleviate the pressure of balancing work responsibilities with tax obligations.

    3. Support financial wellness

    • Financial counseling: Consider providing access to financial counseling services or workshops to help employees better understand their financial situation, including tax planning and budgeting.
    • Tax preparation assistance: Offer to cover the cost of professional tax preparation services for employees or negotiate group discounts with local tax preparers. This can alleviate the burden of navigating complex tax laws and regulations.

    4. Recognize and reward dedication

    • Acknowledge hard work: Recognize your employees’ efforts during tax season and express appreciation for their dedication and hard work, whether through verbal recognition, small tokens of appreciation, or additional time off once the tax season has concluded.
    • Incentive programs: Consider implementing incentive programs tied to tax season productivity or accuracy, such as bonuses or extra paid time off for exemplary performance during this challenging period.

    5. Foster open communication

    • Encourage dialogue: Create an open and supportive environment where employees feel comfortable discussing their concerns about tax-related stress. Encourage managers to check in with their team members regularly to offer guidance and support.
    • Seek feedback: Request feedback from employees about their experiences during tax season and use their input to continually improve the support you provide in future tax seasons.

    By implementing these strategies, small business owners can demonstrate their commitment to the well-being of their employees and help alleviate the stress associated with tax season. Supporting employees through this challenging time not only fosters a positive work environment but also contributes to enhanced employee satisfaction and loyalty.

    As a small business owner, prioritizing your employees’ well-being during tax season can yield long-term benefits, including improved morale, increased productivity, and a stronger sense of loyalty and dedication among your team. Remember, by investing in your employees’ well-being, you’re investing in the success and sustainability of your business.

    One Final Consideration

    While the five items listed above are great options to help support your employees during tax season, consider partnering with a professional employer organization (PEO) instead. A PEO like GMS is your one-stop shop for a smoother and more efficient tax season for you and your employees. PEOs provide their expertise in payroll management, tax compliance, and employee benefits administration, ultimately lifting the administrative burden off the business owner’s shoulders and ensuring all tax-related processes are handled accurately and efficiently. Through partnerships with PEOs, business owners can streamline their tax-related responsibilities, allowing their employees to focus on their work with peace of mind and contributing to a more efficient work environment. Contact our experts today!

  • In a bid to overturn the U.S. Department of Labor’s (DOL’s) final rule, which aims to tighten the criteria for classifying workers as independent contractors, Representative Kevin Kiley, R-California, and Senator Bill Cassidy, R-Louisiana, have introduced the Congressional Review Act (CRA) resolutions. While it’s scheduled to take effect on March 11, 2024, several business organizations are challenging the rule in court. Continue reading to dive into the key aspects and implications of this rule, the responses from stakeholders, and the potential outcomes of the ongoing battle.

    The Controversial Rule

    The new rule, set to replace the 2021 framework, introduces a more complex six-factor test to determine whether a worker should be classified as an employee or an independent contractor. This shift has been resisted by several business organizations, including the U.S. Chamber of Commerce, which has joined a lawsuit challenging the rule. The Chamber of Commerce argues that the new rule fosters ambiguity, restricting businesses’ ability to provide essential training to independent workers.

    Criticisms And Concerns

    Representative Kevin Kiley has strongly criticized the new rule, alleging it restricts the freedom of U.S. workers to operate as independent contractors. He contends the rule will jeopardize the livelihoods of millions of independent professionals and take away the freedom of many others to enjoy flexible work arrangements.

    In addition, introducing the six-factor test has raised concerns among businesses, particularly small businesses, regarding the potential confusion in determining worker classification. This uncertainty threatens the independent contractor model, enabling companies to scale their operations and retain specialized expertise while granting workers flexibility and control over their work activities.

    Six Factors Of The New Test

    The six factors of the new test include the following:

    1. The degree of employer control over the work

    2. The worker’s opportunity for profit or loss

    3. The level of skill and initiative required for the work

    4. The permanence of the working relationship

    5. The worker’s investment in equipment or material

    6. The extent to which the service rendered is integral to the employer’s business

    Seeking Clarity And Challenging The Rule

    Representative Kevin Kiley has called for the withdrawal of the independent contractor rule and has requested specific guidance from the DOL’s Wage and Hour Division Administrator on the criteria for employee and independent contractor classification. His concerns center on the need for clarity and understanding amidst the complexities of the new rule.

    The Road Ahead

    Despite the intense efforts to challenge the rule, the odds of a successful resolution remain uncertain. The Democrat-controlled Senate presents a formidable obstacle, requiring a two-thirds majority to overcome a potential presidential veto. In addition, the rule faces multiple legal challenges, with lawsuits alleging its illegality and deviation from the Fair Labor Standards Act (FLSA).

    The battle over the worker classification rule is poised to have far-reaching implications for businesses, workers, and the regulatory landscape. As the debate unfolds, stakeholders eagerly await the resolution of this issue, mindful of the potential impact on the workforce and the broader economy.

    Advice For A Small Business Owner

    We’ll make it simple – consider partnering with a professional employer organization (PEO). PEOs offer a compelling avenue for small businesses to address these challenges. By partnering with a PEO, small businesses can leverage expertise in HR management, gain access to comprehensive guidance on employment regulations, and receive tailored support in navigating worker classification complexities. As the landscape of labor regulations continues to evolve, the role of PEOs in assisting small businesses in effectively classifying workers and ensuring compliance with changing labor standards cannot be overstated. Meet Group Management Services (GMS), a certified PEO (CPEO), ready to take on the administrative burdens small business owners don’t have the time and energy to worry about. Get a quote from us today to start your journey with a simpler, safer, and stronger business.