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  • As the end of the year approaches, it’s time to review your HR policies and ensure they are up-to-date and compliant. HR compliance is intricate and constantly evolving. It’s a complex issue that can’t be overlooked or hastily reviewed, as noncompliance can have severe long-term consequences.

    Noncompliance can lead to significant penalties, damage to your reputation, decreased employee retention, and lower job satisfaction – all of which can have detrimental effects on your business. It’s crucial to be proactive to mitigate these risks. Regular audits, education on legal changes, and consistent policy enforcement can safeguard your organization.

    Moreover, a culture of compliance can enhance your company’s image in the eyes of potential talent, customers, and partners, leading to better recruitment opportunities, customer trust, and strategic relationships. It also fosters a positive work environment, which is instrumental in boosting employee morale and engagement. Investing in HR compliance is not just about avoiding negative outcomes—it’s about creating a solid foundation for your business’s success and longevity.

    Maintaining compliance is complex, so we’ve gathered a few things to consider as you wrap up the year.

    What Is HR Compliance

    HR compliance is the practice of adhering to all labor laws and regulations at the federal, state, and city levels.

    • Federal laws: These broad regulations apply to all U.S. employers, covering minimum wage, anti-discrimination, and benefits. A few examples include the Fair Labor Standards Act (FLSA), Title VII of the Civil Rights Act, and the Affordable Care Act (ACA).
    • State laws: Each state has its own set of employment laws that can expand upon or differ from federal regulations. These include higher minimum wages, stricter anti-discrimination laws, or different overtime pay requirements.
    • Local laws: In some cases, local governments enact ordinances that affect employment practices within their jurisdictions. For example, some cities have their own paid sick leave requirements that are more generous than state or federal provisions.

    Businesses that operate across multiple states face a magnified challenge when it comes to compliance. You must ensure you’re not only meeting the federal baseline but also adhering to the varied requirements of each state in which you operate. 

    HR Compliance Checklist

    To set yourself up for success, wrap up the year by reviewing and ensuring your HR policies are up to date. While it can be a lot to manage, a little work now will save you time and stress later. The following is a list to get you started:

    OSHA regulations

    • Assess and update your job safety and health training programs to ensure they are current and effective.
    • Keep precise documentation of work-related injuries and illnesses using OSHA’s Form 300 log.
    • Evaluate personal protective equipment (PPE) needs to identify the required safety gear for employees.
    • Post the official OSHA Job Safety and Health poster in a prominent location where all employees can see it.
    • Establish and maintain transparent channels for employees to report workplace hazards or compliance issues without fear of retaliation.

    Workers’ compensation 

    • Ensure your business is compliant with state-level regulations for workers’ compensation. 
    • Establish and maintain correct protocols for reporting and filing workers’ compensation claims. 
    • Conduct an assessment of your workplace to confirm it’s secure and hazard-free. 

    Employee information and W-2s 

    • Check your records and ensure you have updated addresses from your team to ensure they receive their W-2s immediately.
    • Confirm you have all social security numbers or federal employer identification numbers (FEIN) to avoid penalties from the IRS.

    Benefits and leave

    • If you have 50 or more employees, you’re required to provide health care coverage under the ACA.
    • Review employee classifications to ensure accurate benefit entitlements.
    • Familiarize yourself with the Family and Medical Leave Act (FMLA), which allows up to 12 work weeks of leave annually and requires you to keep records for no less than three years.
    • Review and communicate your leave application process to ensure employees understand how to request leave and the approval process.
    • Perform a thorough examination of all benefit offerings to verify their adherence to regulatory standards.

    Hiring practices

    • Review your hiring practices and job postings. Avoid discriminatory language that would violate Title VII of the Civil Rights Act.
    • Retrain your hiring managers on appropriate interview questions to avoid any illegal questions. For example, you can’t ask if someone has a disability or a medical condition. You can, however, ask if they will be able to perform the job with or without reasonable accommodation.

    Onboarding

    • Update your employee policies and ensure employees have easy access to them via an employee handbook.
    • Review your onboarding process to ensure each new hire understands your company’s policies and how to remain compliant.

    While this checklist is comprehensive, it does not encompass everything your business needs to ensure compliance. You should revisit laws and regulations specific to your industry and location to ensure you haven’t missed anything.

    How GMS Can Help

    As a business owner, you may discover that you can no longer manage administrative tasks or keep up with the ins and outs of HR. That’s where we come in. We manage a range of responsibilities for your business. From payroll tax to employee benefits, we focus on administrative work so you can focus on what truly matters in your business.

    At GMS, we take HR off your plate. In addition, we offer four types of HR audit programs to meet your specific needs, including the following:

    • Compliance audit: This focuses on how compliant your business is with federal, state, and local laws and regulations.
    • Best practices audit: This audit reviews your competitive advantage by comparing your HR practices to proven best practices.
    • Strategic audit: This audit helps identify your strengths and weaknesses and helps ensure your HR processes align with your organization’s strategic plan.
    • Function-specific audit: Need help with something specific? We can run focused audits on areas such as payroll, hiring and onboarding, and risk management, to name a few.

    For all of your HR needs, we’re here to help. We’ll connect you with one of our dedicated HR specialists who can lighten your load so you can focus on other areas of your business. Contact us today!

  • Effective payroll management is one of the most essential parts of operating a successful business. It’s a complex process that, if mishandled, can result in serious legal repercussions, fines, and reputational harm. Payroll responsibilities go beyond the distribution of paychecks; they encompass a range of regulatory compliance and detailed record-keeping that can be confusing.

    As you prepare for the year ahead, it’s the perfect time to review your payroll processes and ensure your business has an efficient payroll system in place. This will help ensure compliance, foster employee trust, and ultimately contribute to the overall health of your business.

    To navigate the complexities of payroll, many small business owners turn to partnerships with professional employer organizations (PEOs). These organizations have expertise and specialized tools designed to streamline the payroll process and maintain compliance and efficiency. However, if you’re determined to tackle payroll alone, there are a few common errors you should be aware of.

    Common Payroll Mistakes To Avoid

    Employee misclassification is one of the most frequent pitfalls employers make. Employee classification is a framework used to categorize workers, which in turn dictates their pay structure and tax obligations. This classification also plays a role in determining eligibility for company benefits and differentiates between U.S. citizens and non-citizens.

    Under the Fair Labor Standards Act (FLSA), employers must categorize their employees as either exempt or non-exempt. Exempt employees typically receive a salary and are not subject to overtime and minimum wage laws. In contrast, non-exempt employees are paid hourly and are entitled to overtime pay and minimum wage protections. Misclassifying employees can result in over or underpaying your staff. Additionally, it can cause issues when determining if an employee receives benefits and overtime.

    In addition to exempt vs. non-exempt classification, another error is classifying an individual as an independent contractor rather than an employee. This misclassification can be costly as you will have to make back payments or other adjustments to rectify that employee’s pay. This not only affects the financial aspect of a business but can also have legal and reputational consequences.

    Hourly tracking and overtime

    Overtime compensation (1.5 times the regular pay) is mandatory for the following: 

    • Employees clocking in more than 40 hours per week
    • Work performed during designated breaks 
    • Travel time spent moving between job sites
    • Participation in activities beyond usual work hours, such as team-building events, training sessions, or other company-sponsored activities. 

    For non-exempt employees, meticulous tracking of work hours and any overtime is a legal obligation. Without close monitoring, you risk over or underpaying your staff, leading to a lengthy and complex correction process. It can also be uncomfortable for employees who might have to repay the company.

    Poor record keeping

    Keeping accurate records is a must for any business, especially regarding payroll. Under the FLSA, employers must keep accurate pay records for at least three years. These records should include specifics such as the number of hours worked, pay rates, and the dates of each payroll period. It’s a critical step to maintain compliance with labor laws and ensure everything’s squared away if any questions or issues arise down the line.

    Miscalculations

    It’s critical to double-check your team’s pay. Ensure you have the right tax rates, calculate overtime correctly, and understand how deductions should be applied. Payroll errors can be a hassle, but by taking the time to ensure everyone is paid correctly, you can save yourself a lot of headaches later on.

    Inaccurate paperwork

    Employees must complete W-2 forms to ensure accurate documentation of benefit withholdings, 401(k) plans, and health spending accounts (HSAs). Employees rely on their W-2s to file their annual tax returns; even a single mistake can lead to considerable complications and annoyance for you and your employees. Ensuring the accuracy of these forms is crucial for a smooth tax filing process.

    Missing deadlines

    According to Form 941, employers must make payroll tax payments periodically throughout the year. The frequency of these payments, whether monthly, semiweekly, or on the next day, depends on your total payroll amount and how long your business has been operating. Make sure you understand which depositor category applies to your business and adhere strictly to the corresponding deadlines. Neglecting to meet these payment obligations can result in substantial fines and legal consequences, which could be detrimental to your business.

    Garnished wages

    It’s important to understand that not all wage garnishments are handled in the same way. Obligations such as fines, taxes, and child support each have their own set of rules that can vary by state. You must adhere strictly to the instructions given by the issuing authority, such as the Internal Revenue Service (IRS), a state tax agency, or the U.S. Department of Education.

    Incorrectly handling your employees’ wage garnishments, such as neglecting to file or filing improperly, can have serious consequences. You could face legal judgment against your business that requires you to pay the total amount of the employee’s debt, meaning this isn’t something you can afford to mismanage.

    In addition to the common mistakes mentioned here, there are many less common mistakes we haven’t covered. So, it’s essential to keep a watchful eye over your payroll practices. Ensure you have robust systems in place and stay up-to-date on new laws and regulations in your area to remain compliant. Set yourself up for success next year by conducting a detailed review and audit of your payroll operations.

    How GMS Can Help 

    For small business owners, managing payroll and tax filings can be one of the most time-consuming and challenging tasks. Through expert payroll management services, GMS can save time and give you peace of mind. 

    We seamlessly blend proprietary technology with dedicated HR services and support from our expert employees. We offer: 

    • Payroll processing
    • Payroll software
    • Payroll tax management
    • Employee self-service

    Stop spending time worrying about payroll and start spending time growing your business. GMS is more than just another payroll management company – we’re a PEO that provides comprehensive HR solutions to solve your payroll and other administrative issues. Contact us today!

  • In a recent development, the New Jersey Commissioner of Banking and Insurance has approved a 3.9% decrease in rates and rating values tied to workers’ compensation insurance for new and renewal policies. This significant shift, set to take effect on January 1st, 2024, is grounded in the latest financial and statistical data reported to the state Rating Bureau. What’s intriguing is how this change echoes the impact of the COVID-19 pandemic within the workers’ compensation realm.

    The commissioner’s statement highlights the far-reaching implications of the pandemic, influencing health and the financial landscape of insurance. It’s a pivotal moment for businesses in New Jersey, with this rate adjustment offering a glimmer of relief and opportunity. However, beneath this rate adjustment lies other crucial alterations directly impacting employers and employees involved in workers’ compensation claims.

    Data-Driven Changes

    Starting January 1st, 2024, there will be noticeable adjustments in the structure of weekly benefits tied to workers’ compensation. The maximum weekly benefit for most injury types (excluding permanent partial disabilities) will increase to $1,131 from the previous $1,099. Simultaneously, the minimum weekly benefit will increase to $302 from its previous mark of $293. These changes, set to come into effect at the start of the new year, signify a concerted effort to align compensation more effectively with prevailing economic conditions.

    Weekly Benefit Adjustments

    The notable increase in maximum and minimum weekly benefits signals a step towards enhancing compensation for workers in New Jersey. It’s an opportunity for businesses to reevaluate their existing workers’ compensation policies to ensure they align with these revised benefit structures. Understanding and adapting to these changes will be pivotal in guaranteeing fair and adequate coverage for employees, offering a level of financial security in the event of work-related injuries.

    Permanent Partial Disabilities

    For claims related to permanent partial disabilities, the revised weekly benefit range presents a more comprehensive approach. With adjustments to the weekly benefits range varying from $302 to $1,131, contingent upon the duration and severity of the disability, this change represents a more nuanced approach to addressing the varying needs of individuals with long-term or partial disabilities. Businesses must understand these benefit ranges to adequately support employees with specific needs.

    Partner With A Professional Employer Organization (PEO)

    Ultimately, the approval of rate changes and benefit adjustments represents a balancing act between protecting the interests of employers and employees. Embracing these changes with a proactive stance will empower businesses to navigate the shifting workers’ compensation landscape, ensuring comprehensive coverage and compliance. Consider partnering with a professional employer organization (PEO). Amidst these changes in workers’ compensation regulations in New Jersey, a PEO like GMS handles HR-related tasks, including managing workers’ compensation claims, ensuring compliance with evolving regulations, and offering tailored solutions to mitigate risks. Partnering with GMS can empower New Jersey business owners to navigate these changes seamlessly, allowing them to focus on their core operations while ensuring their employees receive comprehensive support and coverage. Contact us today to learn more.

  • Imagine walking into your workplace greeted not just by colleagues but also by furry friends wagging their tails. This isn’t a far-fetched dream but a growing reality in many forward-thinking companies today. A pet-friendly workplace isn’t just about accommodating pets; it helps foster a happier, healthier, and more productive work environment.

    Creating A Welcoming Environment

    Introducing pets into the workplace isn’t just about indulging in cute and cuddly moments. It’s about setting a tone of inclusivity. Pets have the ability to reduce tension and create positivity. 87.3% of Americans were reported as happier than the average person because of owning a pet. Their presence often leads to increased social interactions among employees, fostering camaraderie. Pets contribute to longer lives by influencing longevity, stress reduction, and fighting cardiovascular disease.

    Enhancing Employee Well-Being

    Stress is a ubiquitous aspect of modern work life. Approximately one million Americans miss work each day because of stress, with 94% of workers feeling stressed at work. However, the fix to this might be simpler than we thought. Studies consistently show that interaction with pets can significantly reduce stress levels. Petting a dog or playing with a cat can trigger a release of oxytocin, the feel-good hormone, leading to decreased cortisol levels, which, in turn, reduces stress and anxiety.

    Boosting Productivity And Creativity

    Contrary to popular belief, allowing pets in the workplace doesn’t necessarily lead to chaos. Instead, it often results in increased productivity. Employees tend to take shorter breaks, opting for playful moments with pets rather than longer, more distracting pauses. In addition, the presence of pets can stimulate creativity, providing mental breaks that inspire fresh perspectives and innovative thinking.

    Fostering A Healthier Lifestyle

    Pets encourage physical activity. Taking a dog for a short walk or playing a quick game of fetch during breaks can promote a more active lifestyle among employees. In addition, the responsibility of caring for a pet can instill a sense of routine and discipline, positively impacting the overall well-being of employees who own pets.

    Attracting And Retaining Talent

    A pet-friendly policy can be a powerful tool in attracting and retaining top talent. For many, the ability to bring their furry companions to work is a significant perk. It showcases the company’s commitment to employee happiness and work-life balance, ultimately contributing to a positive employer brand.

    Considerations And Implementation

    Implementing a pet-friendly policy requires careful consideration and guidelines to ensure a harmonious environment for everyone. Factors such as allergies and pet behavior should be taken into account. Should you consider a pet-friendly workplace, it’s essential to clearly define rules and designate pet-friendly areas to maintain a balance between accommodating pets and respecting the needs of all employees.

    Fetching Solutions

    In embracing a pet-friendly workplace, we unlock a world of positivity, improved well-being, and heightened productivity. However, transitioning to this innovative work culture requires careful planning and consideration. This is where a professional employer organization (PEO) can lend a helping hand. PEOs like GMS specialize in HR management, providing expertise in creating and implementing policies that cater to diverse workplace needs. From crafting pet-friendly guidelines to addressing logistical concerns, partnering with GMS can streamline the process, ensuring a smooth and successful integration of pets into the workplace. Partnering with GMS allows businesses to confidently venture into this exciting opportunity, fostering an environment where wagging tails and productive workdays seamlessly coexist. So, why not pave the way for a more paw-sitive work environment? Contact us today to learn more.

  • The Internal Revenue Service (IRS) unveiled its annual adjustments for the upcoming year, and among the updates include the changes in transportation fringes and flexible spending arrangements (FSAs). These changes outlined in Rev. Proc. 2023-34, released on November 9th, 2023, shed light on the cost-of-living adjustments (COLAs) for 2024, signaling notable shifts in various financial parameters. A COLA is an increase made to Social Security and Supplemental Security Income (SSI) to counteract the effects of inflation.

    Enhancements In Transportation Fringes And Qualified Parking

    In 2024, employers can exclude from gross income amounts related to qualified transportation fringe benefits and parking. The new threshold for exclusion has risen to $315 per month, a substantial jump from the previous year’s $300. This upward adjustment reflects the evolving landscape of transportation costs and seeks to provide individuals with additional financial flexibility.

    Flexibility And Expansion In Flexible Spending Arrangements (FSAs)

    The changes don’t stop there. The dollar limitation for voluntary employee salary reductions saved for contributions to health FSAs has been raised to $3,200 for plan years starting in 2024, up from $3,050 in 2023. This upward revision allows individuals to allocate more pre-tax income toward their health care expenses, potentially alleviating the financial burden of medical costs.

    In addition, for those utilizing cafeteria plans allowing the carryover of unused amounts in FSAs, the maximum carryover amount has been adjusted to $640, up from $610 in the previous year. This enhancement in the maximum carryover amount allows individuals to retain a more significant portion of their unspent funds, providing a safety net for unforeseen medical expenditures.

    Additional information about the complete coverage will be in Payroll Currently.

    Implications For Employers And Individuals

    Employers will need to reassess their benefit offerings and adjust them in accordance with the updated limits. This entails revisiting policies related to transportation benefits, FSAs, and cafeteria plans to ensure compliance with the new thresholds. In addition, individuals should leverage these revised limits to optimize their tax savings and health care budgeting for the upcoming year.

    The Assistance Of A PEO

    The 2024 IRS cost-of-living adjustments bring pivotal changes in transportation fringes and FSAs, offering avenues for optimized tax planning and health care budgeting. However, for businesses navigating these updates, the complexities might be challenging. Fortunately, a professional employer organization (PEO) like GMS is here to help. A PEO assists with ensuring compliance with these revisions and provides expertise in managing benefits, payroll, HR, and the intricacies of changing regulations. Collaborating with a PEO can empower businesses to seamlessly adapt, leveraging these updates to enhance employee benefits and streamline operations with evolving IRS standards. Embracing these changes with the support of a PEO could be the catalyst for businesses to thrive in the dynamic financial landscape of 2024 and beyond. Contact our HR experts today to learn more.

  • In recent years, the corporate landscape has shifted towards more inclusive and comprehensive employee benefits. A notable and groundbreaking addition to this trend is the growing acknowledgment of menopause and the need for the workplace to offer support. The conversation gained momentum when Microsoft took the lead in recognizing the gaps in its benefits package and proactively addressed the unique needs of employees navigating menopause.

    The Catalyst

    A spark for change regarding better workplace support for menopausal women echoes across the U.S. and beyond. At Microsoft, the conversation was kickstarted by an internal podcast featuring a guest who openly shared her menopause journey. Sonja Kellen, Microsoft’s Senior Director of Global Health and Wellness, reflected on the company’s existing benefits – comprehensive medical coverage and flexible working arrangements – but realized they lacked a benefit specifically tailored to menopause.

    The Turning Point

    Recognizing the missing piece in their benefits package, Microsoft partnered with Maven Clinic, a virtual health care provider specializing in women’s health. In July, the company rolled out a comprehensive menopause support program for its global workforce. The benefits, facilitated through Maven Clinic, included the following:

    • Hormone therapy
    • Physical therapy for pelvic-floor issues
    • Access to specialists in menopause care
    • Menopause-specific paid leave

    A Growing Trend

    Microsoft is among a pioneering group of employers acknowledging the importance of menopause support. While still a minority, the number of companies offering menopause benefits is gradually increasing. According to a report by benefits consultant NFP, around 4% of employers with sick leave policies currently provide additional support for menopause. However, 32% expressed openness to incorporating such benefits within the next five years.

    A growing understanding of the economic and personal impact of menopause drives the increase in interest. Studies estimate that menopause costs the U.S. economy $1.8 billion in lost working time annually, with an additional $26.6 billion in medical expenses. A Bank of America report revealed that 64% of working American women desire menopause-specific benefits, signaling a demand for more comprehensive workplace support.

    Kate Ryder, Chief Executive Officer (CEO) of Maven Clinic, highlights the significant gap in support for menopausal employees. The virtual health care provider, working with over 300 employers, has witnessed rapid adoption of its menopause benefits suite. The suite connects workers to virtual care providers, sleep coaches, OB/GYNs, nutritionists, and other professionals trained in menopause care. Ryder emphasizes that the conversation around menopause is gaining traction and is poised to continue growing.

    Inclusive Benefits

    The push for menopause benefits aligns with a broader movement towards inclusivity in workplace benefits. As companies focus on fertility benefits and parental leave, there’s a realization that employees in different life stages also need tailored support. The idea is to provide services and support similar to resources available during other transformative life stages, such as pregnancy.

    Success Stories

    You may ask – is it worth it? Microsoft’s early success with menopause benefits underscores the unmet demand for such support. With over 1,000 activations in the first week and over 3,000 provider-member interactions within the first few months, Microsoft’s menopause support resonated with its diverse global workforce. The steady increase in employee sign-ups signifies sustained interest and utilization of the new offering.

    Employers offering menopause benefits are witnessing positive impacts on workplace dynamics. Among the notable outcomes are reduced absences, enhanced productivity, and increased employee engagement. The Bank of America report indicates that 58% of women perceive positive effects on their work when menopause benefits are provided. In addition, these benefits contribute to higher retention rates, making the workplace more attractive and supportive.

    Why Partner With A PEO?

    The emergence of menopause benefits as a pivotal workplace perk signifies a progressive shift in how businesses prioritize the well-being of their employees across all life stages. Microsoft’s proactive stance and the increasing interest from other employers underline a commitment to fostering an inclusive and supportive work environment. For business owners, recognizing the impact of menopause on individuals and the bottom line is essential.

    To navigate this evolving landscape seamlessly, consider the role of a professional employer organization (PEO) like Group Management Services (GMS). PEOs specialize in comprehensive HR solutions, ensuring that businesses can effortlessly integrate and manage benefits that address the diverse needs of their workforce. By embracing menopause benefits and leveraging PEO expertise, businesses can attract and retain top talent and cultivate a workplace culture that values every employee’s journey. Interested in learning more? Contact us today.

  • The Alabama Department of Revenue’s Income Tax Administration has recently announced three rules set to reshape the landscape of overtime wages and withholding taxes. With an effective date of December 3rd, 2023, these changes usher in a new era for employers and employees, significantly altering how overtime wages are handled for tax purposes.

    Diving Deeper Into The Law

    One of the most notable changes comes in the form of Ala. Admin. Code r. 810-3-72-.01, where the Department of Revenue has amended existing rules to exclude the entirety of overtime wages paid to full-time hourly employees from Alabama withholding tax. This shift marks a departure from the previous requirement that employees engaged in exempt and nonexempt work have either all or none of their earnings taxed. The amended rule, effective from January 1st, 2024, through June 30th, 2025, does not apply to salaried or alternative payment methods.

    Qualifications And Definitions

    To provide additional clarity for employers, Ala. Admin. Code r. 810-3-72-.02 introduces new definitions and qualifying information. The rule defines an hourly wage-paid employee and clarifies that gross income will not include amounts received for hours worked over 40 per week, even if paid at the regular rate. In addition, the exclusion of paid time off (PTO) and holiday pay from determining hours worked over 40 per week adds an extra layer of nuance to the exemption calculation.

    The rule also has exceptions for salaried employees, those compensated through alternative methods, and those receiving commissions and bonuses in addition to an hourly wage. These distinctions aim to provide a comprehensive framework for employers navigating the complexities of overtime wage calculations.

    Reporting Requirements

    Alabama employers now face enhanced reporting requirements, as outlined in the Department of Revenue’s third rule, amending Ala. Admin. Code r. 810-3-74-.01. Beginning January 1st, 2024, employers must report the total amount of exempt overtime wages for the filing period and the total number of employees who received such wages. These requirements apply to monthly and quarterly filings (via Form A-6 or Form A-1, respectively), placing an increased burden on employers to ensure accurate and timely reporting.

    Embracing Technological Advances

    Acknowledging the need for efficient reporting, the Department of Revenue’s third rule allows employers to comply with the new reporting requirements electronically. Encouraging the use of electronic filing for Form A-6 and Form A-1, employers can now seamlessly report total exempt overtime wages and the number of employees receiving such payments through the Department of Revenue’s website.

    Closing The Compliance Gap

    Alabama’s recent change to overtime wage regulations introduces a paradigm shift for employers, requiring meticulous attention to compliance and reporting. The amendments to withholding tax rules underscore the need for businesses to stay on top of evolving legislation. As these changes take effect, small business owners face the challenge of navigating intricate reporting requirements, which is where a professional employer organization (PEO) comes in. PEOs like GMS specialize in managing HR-related tasks, ensuring compliance with ever-changing laws, and providing valuable support in navigating complex regulations. By partnering with GMS, small business owners in Alabama can streamline their operations, reduce administrative burdens, and focus on what matters most – growing their business in a dynamic and competitive landscape. Contact GMS’ compliance experts today.

  • On November 7th, 2023, Ohio marked a historic moment by becoming the 24th state to legalize adult-use (recreational) cannabis. Recreational marijuana is essentially marijuana used for enjoyment rather than for health benefits (medical). This groundbreaking decision brought to fruition through Issue 2, a citizen-initiated statute, signifies a significant shift in public perception compared to the rejection of a similar effort in 2015. With approximately 57% of voters supporting the move, Issue 2 is set to take effect 30 days after election day, allowing adults aged 21 and older to purchase and possess up to 2.5 ounces of cannabis and grow their own at home.

    The Legislation In Detail

    Issue 2 not only paves the way for personal cannabis use but also establishes the Division of Cannabis Control within the Department of Commerce. This regulatory body will oversee and license commercial cultivation, testing, and cannabis sales. While the full regulatory framework is anticipated to be in place by 2024, the law has already set the groundwork for a 10% tax on marijuana sales. The generated revenue will be directed towards a cannabis social equity and jobs program, contributing to community development.

    Employer Protections Under Issue 2

    Issue 2 provides a framework that safeguards employers’ rights to manage their workplaces in light of the new cannabis laws. These protections mirror those found in the Ohio Medical Marijuana Law and include:

    1. Employer discretion: Employers are not obligated to permit or accommodate employees’ cannabis use, possession, or distribution.
    2. Hiring and employment actions: Employers can refuse to hire or take adverse employment actions against individuals based on cannabis use, possession, or distribution.
    3. Legal immunity: Employees cannot sue employers for refusing to hire or taking adverse actions related to their cannabis use.
    4. Drug policies: Employers are empowered to establish and enforce drug testing policies, drug-free workplace policies, or zero-tolerance drug policies.
    5. Workers’ compensation: The Ohio Bureau of Workers’ Compensation can continue granting rebates or discounts to employers participating in drug-free workplace programs.
    6. Unemployment compensation: If an employee is terminated due to cannabis use violating workplace policies, it’s considered “just cause” under the Unemployment Compensation Law, rendering them ineligible for benefits.
    7. Federal compliance: Issue 2 does not impede federal employment restrictions, including U.S. Department of Transportation regulations.

    Potential Amendments And Future Outlook

    Since Issue 2 is an initiated statute rather than a constitutional amendment, the General Assembly can amend it. Senate President Matt Huffman hinted at potential amendments, addressing concerns about THC limits, tax rates, and other aspects of the statute. The future actions of the General Assembly will undoubtedly shape the ongoing narrative of cannabis legalization in Ohio.

    The Role Of A PEO

    Ohio’s embrace of adult-use cannabis through Issue 2 signifies a progressive step forward, aligning with evolving perspectives on marijuana. As the state enters uncharted territory, navigating the regulatory landscape and ensuring compliance becomes paramount for businesses. Here’s where a professional employer organization (PEO) can play a crucial role for Ohio business owners.

    With HR experts well-versed in the intricacies of employment laws, a PEO like GMS can guide businesses through the nuances of Issue 2, helping them establish and enforce policies, navigate potential legal pitfalls, and stay abreast of any amendments to the statute. In this new era of cannabis legalization, GMS becomes a valuable partner, offering expertise to ensure smooth operations and compliance within the framework of Ohio’s pioneering legislation. Are you interested in learning more? Contact our HR experts today.

  • Let’s be honest: Managing health care can be challenging and expensive for your business. You might think about putting it on the back burner, but with health care costs consistently rising, you can’t afford to wait. In addition to a fair paycheck, your employees expect competitive benefits to take care of themselves and their families. Understanding what your employees want and need is a big part of managing health care successfully, but the complexity lies in ensuring compliance.

    Navigating health care can be a challenging endeavor, especially for small businesses. It involves grappling with ethical considerations and data privacy concerns, making compliance a growing challenge. In this context, non-compliance could result in substantial fines and potentially lead to legal ramifications, a scenario you want to avoid.

    Partnering with a professional employer organization (PEO) like GMS can be a great option to alleviate some stress. GMS offers an excellent solution for obtaining comprehensive health care coverage for your team while maintaining compliance. However, if you are determined to handle health coverage independently, there are essential things to consider.

    Health Care Compliance

    Under the Affordable Care Act (ACA) guidelines, businesses with 50 or more full-time employees or the equivalent in full-time equivalents (FTEs) must provide health insurance coverage. In addition, you must provide this coverage to all eligible employees within a maximum waiting period of 90 days. Failure to comply can lead you and your business to face hefty penalties.

    You’ll also need to provide employees with a comprehensive Summary of Benefits and Coverage (SBC). The primary objective of the SBC is to offer a clear and detailed explanation of what the health plan encompasses, as well as the associated costs. This empowers your team to make well-informed decisions concerning their health care choices.

    Suppose your business fails to meet these requirements, and one or more of your full-time employees receive premium tax credits or other government assistance to purchase coverage on the Health Insurance Marketplace. In that case, you may be subject to the Employer Shared Responsibility Payment (ESRP). This payment is a financial penalty imposed on the company to ensure large employers play their part. The ESRP ensures that large employers provide access to affordable health care coverage for their employees and prevents them from shifting the cost of health care coverage to government-subsidized programs.

    • Note: Businesses with less than 50 full-time or FTEs are not subject to ESRP.

    Compliance For Small Businesses

    You may be thinking health care compliance doesn’t apply to smaller businesses. While it’s true that you’re not obligated to offer health insurance, it shouldn’t be overlooked as it can be a valuable tool in recruitment and retention efforts. If you decide to provide health insurance for your staff, it’s crucial to customize your coverage to match your team’s specific needs while ensuring compliance with the regulations and protections outlined in the Americans with Disabilities Act (ADA). A general framework for achieving this is outlined below:

    1. Use anonymous surveys. Seek input from your team regarding their health care needs and preferences by using anonymous surveys. Anonymity can help ensure that individuals feel comfortable providing honest and open feedback without fear of potential discrimination.

    • Focus on health care needs. Frame your questions to inquire about specific health care needs and preferences rather than individual health conditions. For example, you might ask your employees about preferred types of coverage, particular services they value, or what aspects of their current plan they find beneficial or lacking.
    • Avoid discrimination. Be careful not to ask questions that directly or indirectly solicit information about an employee’s medical condition or disability. Questions about medical histories, specific conditions, or disabilities are inappropriate and can violate the ADA.
    • Consult legal or HR experts. If you have doubts about the legality or sensitivity of your survey questions, consider consulting legal experts or human resource professionals who are well-versed in ADA and ACA compliance. They can help you craft surveys that are both effective and legally sound.

    2. Educate your team. Ensure your employees know their responses will remain confidential and used solely to improve the company’s health care offerings. This can help build trust and encourage participation. 

    3. Review and adjust coverage. After collecting anonymous feedback, use the information to assess your current health care coverage and identify potential areas for improvement. Seek out insurance plans that align with the stated needs of your employees. 

    Traditionally, small-group insurance has been a primary option for small businesses providing benefits to their team. However, several other options may be suitable for your business, including self-funded, level-funded, and health reimbursement arrangements (HRAs).

    Supplemental Insurance

    To attract and retain top talent, every business owner should understand the importance of providing a comprehensive benefits package. However, in today’s increasingly competitive labor market, solely offering traditional group health insurance may no longer suffice. This is where supplemental insurance plans come into play.

    Supplemental insurance plans, often referred to as voluntary benefits plans, are not mandatory under the law but have become a crucial component of a well-rounded benefits package. These plans offer a host of valuable benefits that can complement your standard group health insurance, making them an attractive proposition for both employers and employees alike.

    At GMS, we recognize the significance of offering diverse and tailored health coverage options to meet the unique needs of your workforce. When you choose to partner with us, you empower your employees with the flexibility to select supplemental health insurance that suits their individual requirements. These supplemental insurance plans can include, but are not limited to:

    • Life
    • Dental
    • Vision
    • Accidental and critical illness
    • Long and short-term disability
    • And more!

    By incorporating these supplemental insurance plans into your benefits package, you empower your employees to make choices that align with their unique health care and financial needs. This not only sets your organization apart as an employer of choice but also demonstrates your commitment to the well-being and financial security of your workforce, fostering a loyal and contented team. Contact us today and let us find a plan that meets your team’s needs.