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  • Managing payroll is one of the most critical responsibilities for business owners. Mistakes can lead to fines, penalties, and disgruntled employees, potentially derailing business operations. As payroll regulations become increasingly complex in 2025, it’s essential to understand and avoid common errors. 

    To navigate the complexities of payroll, many business owners partner with professional employer organizations (PEOs). These organizations possess the expertise and specialized tools to streamline the payroll process while ensuring compliance and efficiency. However, if you choose to manage payroll independently, there are a few common errors you should be aware of. 

    Common Payroll Mistakes To Avoid 

    Failing to stay up-to-date on payroll regulations 

    Payroll laws are constantly evolving. In 2025, new legislation such as the SECURE 2.0 Act and updated state-specific regulations (e.g., California’s retirement savings mandates) require businesses to be proactive. Neglecting to stay informed about changes can lead to compliance issues and hefty fines. 

    How to avoid it: 

    • Partner with payroll experts who monitor and implement regulatory updates. 
    • Regularly review government resources or work with a professional employer organization (PEO) to ensure compliance. 

    Misclassifying employees and contractors 

    Employee classification establishes the legal relationship between a business and its workers, determining their eligibility for benefits, wage protections, and tax obligations. Under the Fair Labor Standards Act (FLSA), employers must classify their employees as exempt or non-exempt.  

    • Exempt employees typically receive a salary and are not subject to overtime and minimum wage laws.  
    • Non-exempt employees are paid hourly and are entitled to overtime pay and minimum wage protections.  
    • Misclassifying employees as independent contractors is a common payroll error that can lead to penalties, back wages, and additional tax liabilities. 

    How to avoid it: 

    • Follow the Internal Revenue Service (IRS) guidelines to classify workers correctly. 
    • Seek guidance from a payroll expert or legal advisor when hiring new team members. 

    Missing payroll deadlines 

    Timely payroll processing is non-negotiable. According to Form 941, employers must make payroll tax payments periodically. 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. Ensure you understand which depositor category applies to your business and strictly adhere 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. 

    How to avoid it: 

    • Set automated reminders for payroll deadlines. 
    • Use payroll software to streamline and schedule payments. 

    Incorrect tax withholding 

    Ensure you have the proper tax rates, calculate overtime correctly, and understand how deductions should be applied. Mistakes in calculating or withholding taxes, such as Social Security, Medicare, or state income taxes, can lead to IRS penalties and employee dissatisfaction. 

    How to avoid it: 

    • Double-check employee tax forms, including W-4 and state-specific documents. 
    • Perform regular audits of your payroll records. 
    • Integrate benefits management into your payroll system. 

    Neglecting to track paid time off (PTO) and overtime 

    Mismanaging PTO and overtime payments can have serious consequences for businesses, resulting in underpaying employees and violating wage laws. Failure to comply with wage and hour regulations can result in significant financial penalties, back pay obligations, and damage to the company’s reputation. Additionally, such mismanagement can lower employee trust and morale, potentially leading to higher turnover rates and difficulties attracting new talent. 

    How to avoid it: 

    • Automate time-tracking systems to monitor employee hours. 
    • Understand state and federal overtime laws to ensure proper compensation. 

    Failing to provide accurate payroll records 

    Employees have the right to access their payroll records. Failure to provide clear, accurate, and timely information can lead to disputes or legal consequences. Under the FLSA, employers must maintain pay records for at least three years, including hours worked, pay rates, and payroll dates. 

    How to avoid it: 

    • Maintain organized and accessible payroll records. 
    • Invest in a payroll platform with self-service options for employees. 

    Mishandling garnished wages 

    Mishandling wage garnishments can have serious repercussions for businesses. Obligations like fines, taxes, and child support have distinct rules that can vary by state. Incorrectly handling these garnishments, such as neglecting to file or filing improperly, can lead to legal judgments requiring your business to pay the full amount of the employee’s debt. 

    How to avoid it: 

    • Follow the instructions from the issuing authority, such as the IRS, state tax agencies, or the U.S. Department of Education, precisely. 
    • Stay updated on state-specific rules and regulations regarding wage garnishments. 
    • Implement robust payroll systems to ensure accurate and timely processing of garnishments. 

    Why Avoiding Payroll Mistakes Matters In 2025 

    In 2025, payroll and compliance will be more intricate than ever. New technologies, evolving regulations, and employee expectations demand a proactive approach to payroll management. Avoiding these common mistakes will protect your business from penalties and foster trust and satisfaction among your employees. 

    Partner With GMS For Payroll Peace Of Mind 

    Navigating the complexities of payroll can be overwhelming, but you don’t have to do it alone. GMS specializes in payroll management, compliance, and benefits administration, helping business owners focus on growing their businesses while we handle the details. 

    With our expertise in payroll tax filings, time tracking, and employee benefits, we can help you avoid costly mistakes and streamline your payroll process, all within one platform. Contact GMS today to learn how we can help you confidently manage your payroll in 2025 and beyond. 

  • Each year, the Internal Revenue Service (IRS) releases revised forms to help individuals and businesses correctly handle federal income tax withholding. For 2025, the IRS has published updated versions of:

    • Form W-4: Employee’s withholding certificate
    • Form W-4P: Withholding certificate for periodic pension or annuity payments
    • Form W-4R: Withholding certificate for nonperiodic payments and eligible rollover distributions

    Below is an overview of each form, how they differ, and what employers should keep in mind.

    Form W-4: For Employees’ Wage Withholding

    Who uses it: Active employees earning wages or salaries.

    Purpose:

    • Informs an employer how much federal income tax to withhold from each paycheck.
    • Reflects an employee’s filing status, multiple jobs, dependents, and any additional withholding amount.

    2025 updates/reminders:

    • There is a minor tip reminding employees about the IRS tax withholding estimator.
    • The “Multiple Jobs Worksheet” (on page 3) includes updated wage thresholds for 2025.
    • Employees who haven’t adjusted their withholding since 2019 are encouraged to submit a fresh W-4 to help ensure accurate tax withholding.

    Employer tip:

    • Prompt employees to review their Form W-4 annually or whenever significant life changes occur (e.g., marriage, divorce, birth of a child).

    Form W-4P: For Periodic Pension Or Annuity Payments

    Who uses it: Individuals receiving periodic (regularly scheduled) pension or annuity distributions (e.g., monthly retirement benefits).

    Purpose

    • Tells the pension or annuity payer (often a plan administrator) how much federal income tax to withhold from each periodic payment.
    • Mirrors many of the W-4 adjustments but specifically pertains to retirement income streams rather than employee wages.

    2025 updates/reminders:

    • No major changes from the prior year, but the new form includes references to using the IRS’s tax withholding estimator (particularly beneficial for partial-year or more complex retirement scenarios).
    • Starting in 2023, payees had to switch to the “redesigned” W-4P or W-4R. This continues in 2025, so ensure retirees/pensioners are using the correct new version.

    Employer (or Plan Administrator) tip:

    • Clarify for retirees that Form W-4P only applies to periodic pension or annuity distributions. For one-time or lump-sum retirement distributions, see Form W-4R.

    Form W-4R: For Nonperiodic Payments And Rollovers

    Who uses it: Individuals receiving nonperiodic distributions or eligible rollover distributions from qualified retirement plans, IRAs, annuities, etc.

    Purpose:

    • Governs how much federal income tax is withheld from lump sums or other nonperiodic distributions, including rollover distributions (those not being paid out on a recurring schedule).
    • Often associated with a flat percentage approach.

    2025 updates/reminders:

    • Also lightly updated for 2025, with references to the IRS tax withholding estimator for more precise calculations.
    • For many nonperiodic payments, the withholding default rate may be 10% or 20% (depending on the distribution type), unless the payee specifies a different arrangement on Form W-4R.

    Employer (or Plan Administrator) tip:

    • If your business or plan pays out one-time distributions, ensure recipients understand that Form W-4R must be submitted if they wish to adjust from the default withholding percentages.

    Differences At A Glance

    Form

    Primary User

    Payment Type

    Key Notes

    W-4

    Employees with wages

    Regular wages/salaries

    Employees give this to their employers to set paycheck withholding

    W-4P

    Retirees receiving pensions

    Periodic annuity/pension

    Payees file with the plan administrator for ongoing retirement payments

    W-4R

    Recipients of nonperiodic/lump sums

    One-time distributions

    Covers distributions such as lump-sum or rollover from retirement plans

    Tips For Employers

    1. Educate your workforce
      • Provide guidance on which form is relevant. For instance, employees actively working for you submit W-4; retirees collecting monthly pension checks submit W-4P.
    1. Stay current on IRS changes
    1. Encourage updates after major life events
    • Marriage, divorce, or adopting a child may warrant a new Form W-4 or W-4P to ensure proper withholding.
    1. Distinguish between periodic and nonperiodic
    • Periodic = Repeated payments on a set schedule (W-4P).
    • Nonperiodic = One-time or lump-sum distribution (W-4R).
    1. Use reliable collection processes:
    • Keep digital or paper records consistent, and ensure new forms are collected whenever employees or payees want to change withholding amounts.

    Conclusion

    Navigating the IRS’s 2025 updates for Forms W-4, W-4P, and W-4R is crucial to maintaining accurate tax withholding for both wages and retirement distributions. Familiarize yourself with the specific scenarios each form addresses, encourage your employees and retirees to review their withholding decisions, and utilize the IRS’s online tools for best results.

    Even when you have a good understanding of each payroll form, the time and effort it takes to complete them and manage your payroll can put a serious dent in your schedule. That’s why many owners turn to Group Management Services (GMS) to handle payroll administration for their small business. Our experts take an active approach to managing your payroll so that you can spend your time growing your business instead of struggling with forms and tax calculations.

    Need assistance managing withholdings or other payroll processes? Get in touch with GMS today to see how we can support you with a streamlined, comprehensive payroll solution.

  • Employee Assistance Programs (EAPs) are a workplace resource designed to help employees address personal and professional challenges that may impact their well-being, job performance, and overall productivity. These programs provide confidential, no-cost access to counseling and support for issues such as mental health, substance abuse, legal concerns, financial planning, and more. 

    According to the Society for Human Resource Management (SHRM), in 2024, 68% of small companies with 50-99 employees offered an EAP. This growing adoption reflects the effectiveness of EAPs in promoting employee wellness and driving organizational success. For employers, these programs aren’t just a way to support workers; they are a strategic investment in a healthier, more engaged workforce. 

    How Does An Employee Assistance Program Work? 

    EAPs operate as a confidential resource that employees can access 24/7. Employees may self-refer or be referred by a manager for challenges that might affect their job performance. Common services include: 

    • Mental health counseling: Assistance for depression, anxiety, grief, or trauma, delivered by licensed professionals. 
    • Substance abuse support: Access to addiction recovery resources and tools to maintain sobriety. 
    • Legal and financial assistance: Guidance on legal issues such as landlord disputes or financial challenges like debt management. 
    • Work-life balance solutions: Help with parenting, eldercare, and time management concerns. 

    EAP services are typically accessed through phone lines, online portals, or in-person sessions, ensuring flexibility and convenience for employees. Employers pay a flat fee per employee to the provider, making it a cost-effective solution with measurable benefits. 

    Benefits Of Implementing An EAP 

    Boost employee well-being 

    Mental health challenges are the leading cause of lost productivity worldwide. In 2024, 80% of employees reported experiencing workplace stress, with many citing it as a barrier to peak performance. EAPs can reduce this burden, offering timely interventions that help employees return to work with focus and confidence. 

    Enhance productivity 

    Employees struggling with personal challenges are five times more likely to be distracted on the job. Studies from 2024 reveal that businesses with EAPs reported a 25% reduction in absenteeism and a significant improvement in employee focus. 

    Lower turnover rates 

    Employees who feel supported by their employer are more likely to stay. Data shows that companies with robust EAPs saw 20% lower turnover rates than those without, saving an average of $15,000 per employee in rehiring costs. 

    Reduce healthcare costs 

    EAPs lead to proactive problem-solving, preventing issues like burnout or substance abuse from escalating into costly medical claims. According to recent reports, every dollar invested in an EAP generates a $3 return in reduced health care and productivity costs. 

    Requirements For Offering An EAP 

    While EAPs aren’t federally mandated, some state laws or industry standards may require support services. For instance, federal contractors and safety-sensitive industries often have stricter requirements for employee support due to compliance with Occupational Safety and Health Administration (OSHA) or Department of Transportation (DOT) regulations. 

    To remain competitive, many small and midsize businesses (SMBs) have begun voluntarily implementing EAPs, which ensures they can attract and retain talent in a challenging labor market. 

    How To Offer And Promote An EAP 

    • Select the right provider: Not all EAPs are created equal. Choose a provider that offers comprehensive services tailored to your workforce. Look for flexibility in delivery methods (virtual, phone, or in-person) and high utilization rates. 
    • Communicate the program’s value: Employee buy-in starts with education. Use onboarding materials, posters, and regular email campaigns to highlight EAP benefits. Emphasize confidentiality to alleviate fears about using the program. 
    • Encourage participation: Integrate the EAP into your workplace culture by discussing it openly during meetings or wellness events. Managers can also be trained to recognize when employees might benefit from EAP services. 
    • Monitor and optimize: Use provider reports to track utilization and feedback. For example, if only 10% of employees access the program, consider whether communication strategies need improvement. 

    How GMS Can Help 

    Employee expectations will continue to evolve in 2025, emphasizing holistic wellness and mental health support. EAPs are no longer an optional perk; they are necessary for businesses seeking to attract, engage, and retain top talent in a competitive labor market. 

    When you partner with Group Management Services (GMS), you gain access to a top-tier EAP provider as part of a comprehensive benefits package. With over 25 years of expertise, we understand the importance of tailoring solutions to meet the specific needs of SMBs. 

    Our team manages the complexities of EAP administration, from onboarding to compliance, so you can focus on running your business. Additionally, GMS helps integrate the program seamlessly with other HR initiatives, such as employee wellness programs and performance management systems. 

    Don’t wait to invest in your employees’ well-being. Partner with GMS to build a benefits program prioritizing your workforce while driving measurable business outcomes. 

  • An informational overview of new regulations reshaping the workplace.

    The year 2025 has arrived with new employment laws. Some are already in full effect, others are entering a transition phase or pending further review. Whether focused on non-compete reforms, paid family leave expansions, or more specialized mandates, these changes underscore how quickly the workplace landscape can evolve.

    FTC Proposal And Ongoing Legal Disputes

    A Federal Trade Commission (FTC) proposal to ban non-compete agreements (except for senior executives making over $151,164) is still pending in the courts. Meanwhile, multiple states, such as Colorado, already restrict non-competes. Pennsylvania’s House Bill 1633 has specifically limited them for certain health care practitioners. Employers may want to note that several court rulings are expected in the months ahead.

    Paid Leave Laws

    Several states ramped up or introduced paid family and medical leave on January 1, 2025. Examples include:

    • Delaware: Employers must begin payroll contributions to fund the statewide Paid Family and Medical Leave program; the first payment deadline is April 30.
    • Connecticut: Under House Bill 5005, more employers must now offer paid sick leave, with further expansions slated for 2026 and beyond.
    • Maine: Its Paid Family and Medical Leave program kicked off payroll deductions on January 1, though full benefits phase in later.

    These state-level laws often interact with (or go beyond) the federal Family and Medical Leave Act (FMLA), creating different entitlements depending on location.

    Mandatory Salary Range Disclosures

    More jurisdictions require or encourage employers to list pay scales and benefits in job postings. For instance, Illinois (House Bill 3129) and Minnesota (Senate File 3852) specify that advertised roles must include a wage or salary range and general benefits details. Cities like St. Paul have also tightened wage theft ordinances, requiring more detailed wage statements at hire and each pay period. Employers that post nationally may need consistent practices to avoid compliance pitfalls.

    AI In Hiring And HR Tasks

    New or proposed laws require employers to evaluate AI-driven tools for potential bias. The Equal Employment Opportunity Commission (EEOC) has issued technical guidance urging oversight on algorithms that might disproportionately screen out protected groups. Some states are drafting or enacting laws targeting AI oversight in human resources (HR), suggesting that AI usage in job applications or performance reviews will remain an active area of regulation in 2025.

    Select State-Specific Changes Worth Noting

    • New Hampshire (HB 1336): Restricts employers from barring lawful firearm storage in an employee’s locked vehicle if the employer receives public funds.
    • Rhode Island (HB 7171): Increases available temporary caregiver paid leave from six to seven weeks in 2025, and to eight weeks in 2026.
    • Washington (SB 5793): Allows employees to use paid sick leave when their child’s school is closed due to a public health emergency; also expands the definition of family member for sick leave.

    How GMS Can Help

    Group Management Services (GMS) specializes in supporting small to midsize businesses as they face complex changes in HR, payroll, and compliance. From addressing new paid leave mandates to aligning job postings with pay transparency rules, GMS can simplify your administrative workload. If you’re looking for a partner who stays on top of shifting regulations so you can focus on running your business, contact GMS today to learn how we can help.

  • Practical and real advice on juggling chaos, fear, and a full workload without losing your mind. 

    There comes a point in every small business owner’s journey when you feel like there just aren’t enough hours in the day, or enough emotional bandwidth to keep going. You’ve got responsibilities at home, a growing list of tasks at work, and an anxious voice in your head whispering, “Am I actually cut out for this?” If any of that sounds familiar, you’re not alone. Let’s talk about how to run a business when time is scarce, energy is low, and stress is high. 

    Clarify Your Next Step (Don’t Overwhelm Yourself With 20) 

    When you’re overloaded, everything can seem urgent, yet you don’t know where to begin. You end up unsure how to move forward, so you waste precious mental energy worrying instead of doing. 

    • Do a weekly “time-block”: Write down every single task swirling in your head. Then highlight the most important. Focus on those; let the rest wait until you’ve finished your prioritized objectives.
    • Complete at least one micro-goal per day: Maybe it’s drafting a social media post or emailing a potential client. By accomplishing a single targeted task every day, you’ll inch the needle forward.

    Reframe “I Have No Time” 

    It’s easy to say, “There’s no time left in my schedule.” But you can almost always reshape your priorities. This might mean: 

    • Reallocating mornings: Wake up 30 minutes earlier to knock out a key task or get some focused thinking done. 
    • Reimagining your calendar: Block out specific time slots for strategic work (e.g., marketing, product development) and treat these appointments as non-negotiable. 
    • Eliminating “fake busy”: That extra hour of nightly social media scrolling? That’s time you could invest in strategy or in a good night’s sleep. 

    There’s a difference between saying, “I have no time,” and “It’s not a priority right now.” Once you’re honest about what truly matters, you’ll carve out the space. 

    Tackle Stress Head-On Before It Tackles You 

    When you’re consumed by anxiety, worrying about finances, clients, or employees, it chips away at your productivity and mental health. Signs like persistent headaches, poor sleep, and irritability shouldn’t be ignored. They’re warning signs. 

    • Find non-negotiable breaks: Schedule short mental breaks throughout your day. Even a 10-minute walk can help reset your nerves. 
    • Adopt healthy habits: High-sugar or high-caffeine diets can exacerbate anxiety and mood swings. Consider cleaning up your eating patterns or incorporating morning runs. 

    Recognize That Fear Is Part Of The Entrepreneurial Journey 

    Being a business owner often means confronting the possibility of failure. Yes, it can be financially and emotionally devastating. But if you ask seasoned founders who’ve gone bankrupt or lost major clients, many will say, “I survived – and came back stronger.” Instead of letting fear run your life, channel it into: 

    • Calculated delegation: Tackle the tasks only you can do (e.g., high-level strategy, fundraising) and delegate or outsource the rest. Skilled professional employer organizations (PEOs) or part-time employees can significantly lower your stress and reclaim your time. 
    • Realistic boundaries: Working 20 hours a day can’t last. Sleep deprivation kills creativity and problem-solving. Let your brain reboot so you can tackle issues fresh the next day. 

    Fix The Root Causes, Not Just The Symptoms 

    Stress and time-crunches often stem from a few core issues: 

    • Poor task management: If you’re not using a calendar, project management tool, or another system, you’re likely drowning in random tasks. 
    • Overcommitting: It’s tempting to say yes to everything, but a jam-packed schedule leaves you zero wiggle room for emergencies or personal life. 

    Assess your task flow with tools like Trello or a simple spreadsheet to help you track tasks, deadlines, and who’s responsible for what. Determine if a PEO could handle routine responsibilities, freeing you to focus on higher-level strategy. 

    Invest In Your Health And Well-Being As Non-Negotiables 

    Working yourself into exhaustion may feel like a badge of honor, but it’s unsustainable. In the long run, preserving your health and time is the smartest business move you can make: 

    • Pay yourself first: Start your day with exercise or a healthy breakfast before checking emails. 
    • Eat for stability: A diet high in sugar or refined carbs can amp up mood swings and anxiety. Swapping them for whole foods can do wonders for mental clarity. 
    • Set sleep rules: Try going to bed at a reasonable hour. You’ll solve problems faster in the morning than if you force yourself to power through late at night. 

    Before Taking That Long Vacation, Solve The Core Issue 

    Yes, breaks and vacations are crucial, but only if you’ve addressed the underlying chaos. Otherwise, you’ll spend your time off feeling guilty or anxious about what’s piling up. Tidy up your processes, get extra help if you need it, and then unplug guilt-free. 

    GMS Can Help You Shift From Overwhelmed To Organized 

    Dealing with never-ending admin tasks, payroll headaches, and HR challenges often piles on extra stress. That’s where Group Management Services (GMS) steps in: 

    • Efficiency boost: Offload time-consuming HR and payroll duties so you can focus on strategic growth. 
    • Expert guidance: Our specialists can help you structure your team and processes more effectively. 
    • Peace of mind: With compliance and administrative details handled, you’ll have the mental bandwidth to lead confidently, and maybe even sleep better. 

    If you’re ready to shed the chaos and reclaim your focus, contact GMS today. You’ll gain a partner that understands the demands of small and midsize business owners and has proven solutions to lighten your load. 

  • Employers are exploring how devices like smartwatches, rings, helmets, and other “wearables” can reduce injuries, boost performance, and track employee productivity. While these tools can yield significant benefits, they also carry legal risks if employers collect or use personal data in ways that violate anti-discrimination laws. Below, we’ll explore the key considerations and best practices for adopting wearables at work while staying compliant.

    Why Wearables Are On The Rise

    Nearly two-thirds of employees would be willing to use wearable devices if it helped them do their jobs better. From a smartwatch that monitors employee fatigue to an exoskeleton that relieves physical strain, wearables can drive tangible advantages:

    • Improved safety: By flagging early signs of fatigue or discomfort, wearables can prevent injuries in high-risk industries like construction and manufacturing.
    • Enhanced productivity: Smart glasses and helmets can deliver real-time instructions or detect errors on the line, reducing downtime.
    • Worker well-being: Many companies use devices to encourage healthy habits (step counting, heart rate monitoring, etc.) as part of broader wellness initiatives.

    But There’s A Legal Catch

    Recent guidance from the U.S. Equal Employment Opportunity Commission (EEOC) warns that employers must tread carefully when using wearable devices that collect health or biometric data. Certain data collection may be considered a “medical examination” or “disability-related inquiry” under the Americans with Disabilities Act (ADA) – and the ADA has strict limitations on when, why, and how such examinations may occur.

    Potential ADA Pitfalls

    • Unintended medical exams:

    If your device tracks an employee’s heart rate, blood pressure, or other physical/mental conditions, you may be inadvertently conducting an ADA-governed “medical examination”.

    • Disability-related inquiries:

    If you require employees to explain certain health metrics or conditions revealed by the wearable, you could be making disability-related inquiries, permitted only under tightly defined circumstances (e.g., job-related and consistent with business necessity).

    • Data storage:

    The ADA mandates that any medical or disability-related data be stored separately from general personnel files and treated as confidential.

    Nondiscrimination Obligations

    Employers must also comply with other federal and state EEO laws, such as Title VII, the Pregnancy Discrimination Act, and the Genetic Information Nondiscrimination Act (GINA). For instance:

    • Unequal impact: If wearable data is less accurate for employees with darker skin, but you use that data to make adverse decisions, it may constitute unlawful discrimination.
    • Pregnancy or family health: Firing or reassigning a pregnant worker based solely on wearable-collected health data could lead to a discrimination claim.
    • Genetic information: Accidentally gleaning details about an employee’s family medical history can violate GINA if the information is used to make employment decisions.

    How To Adopt Wearables Responsibly?

    1. Define your purpose – then limit collection

    Ask yourself: Why am I using wearables? Is it purely safety-related (e.g., identifying high-risk behaviors), or is it also about wellness incentives? Nail down the rationale, then collect only the data points necessary to achieve that goal. Using a watch or band just to see if people are “working hard enough” can quickly cross into ADA or privacy minefields.

    1. Keep it voluntary or prove “business necessity”

    Most safety-related wearable usage in high-risk jobs can often be justified as job-related and consistent with business necessity. Otherwise, keep your program voluntary. When wearables are part of an optional wellness program:

    • Ensure it’s truly voluntary: Establish that there is no undue pressure or negative consequences if an employee opts out.
    • Offer an alternative: Provide a reasonable accommodation or alternate method for employees who can’t or won’t use the device.
    1. Protect confidential data

    Whether you’re collecting heart rate or geolocation, treat it like the sensitive information it is:

    • Segregate medical files: If the data is health-related, store it in separate medical files as mandated by the ADA.
    • Control access: Only authorized personnel (such as human resource (HR) or occupational health staff) should view personally identifiable health data.
    • Prevent illegal disclosures: Don’t share health metrics with managers responsible for promotions or discipline, unless there’s a strict, lawful need to know.
    1. Avoid disparate treatment

    Ensure that wearable policies apply across the board, or at least follow a clear, neutral standard (e.g., all forklift operators or all employees in a certain high-risk area). Requiring only one demographic group to wear a device could be discriminatory.

    1. Communicate openly about privacy

    Transparency fosters trust. Let employees know:

    • Exactly what data is being collected.
    • How it’s used (Safety metrics? Wellness incentives?)
    • Who sees it and why.
    • What their rights are if they have concerns or want to opt out, if applicable.

    In some states, like California, you may also need to provide formal notice outlining these details.

    Balanced Risk And Reward

    If done right, workplace wearables can be a powerful tool for:

    • Reducing on-the-job injuries
    • Boosting efficiency
    • Improving employee wellness

    But any data that touches health or biometric details is legally sensitive. The U.S. EEOC’s latest fact sheet underscores how crucial it is for employers to align wearable usage with anti-discrimination and disability accommodation laws.

    How GMS Can Help

    • Policy review and crafting: Our HR experts can design wearable device policies that comply with ADA, GINA, and state-specific laws.
    • Compliance training: We’ll train managers to avoid discriminatory practices, from collecting the wrong data to using metrics for improper reasons.
    • Secure data management: We’ll provide proprietary technology for storing health-related information confidentially and prevent unauthorized access.

    By partnering with Group Management Services (GMS), you’ll have a team that understands the complexities of workplace tech adoption. We’ll help you implement wearables in a way that safeguards employee privacy, reduces risk, and promotes a safe, productive environment.

    Contact GMS today to learn how our HR and compliance experts can keep you exploring wearable tech solutions safely.

  • From the widespread adoption of artificial intelligence (AI) to a multigenerational workforce and rising health care costs, the world of business is on the brink of transformative change. For small to midsize businesses (SMBs), adapting to these trends can feel overwhelming, but it also offers a golden opportunity to innovate and thrive.  

    Below, we highlight key insights from the 2025 Trends Guide For Small Business Owners and explore how each trend can impact your people, processes, and bottom line. 

    HR Trends: The Evolving Role Of People Management 

    AI is being used for everything from sourcing talent to automating HR paperwork. Traditional roles relying on repetitive tasks are at risk of being automated, creating a need for upskilling and retraining. According to GMS’ 2025 Trends Guide, 76% of HR leaders warn that not implementing AI soon could leave their organizations lagging behind in innovation. Additionally, only 41% of HR professionals say they feel prepared for AI’s ethical and operational challenges. With over 82% of companies using or exploring the use of AI applications, future business strategies will have to consider the opportunities and threats that come with the arrival of AI. 

    Payroll Trends: Pay Equity And Transparency 

    More states are passing laws requiring employers to disclose salary ranges, while pending federal regulations could further tighten rules around pay transparency. Fair and transparent practices build trust and reduce legal risks, while non-compliance or perceived inequities can hurt morale and expose you to lawsuits. We recommend auditing your current pay structures, verifying that job titles and salaries align, and communicating the rationale behind raises and promotions. 

    Risk Management Trends: Cybersecurity In A Hybrid World 

    As ransomware attacks and data breaches become more sophisticated, SMBs are prime targets – especially those juggling remote or hybrid setups. A single breach can cost you financially and damage your reputation. SMBs often lack in-house security expertise, making proactive measures critical. It’s vital that employees are patching software frequently and employers should consider managed detection and response (MDR) services to monitor threats 24/7. 

    Benefits Trends: Prioritizing Mental Health 

    Rising mental health needs mean more employers are expanding employee assistance programs (EAPs), adding teletherapy coverage and granting mental health days. Employees increasingly view mental health benefits as a must-have, not a perk. Offering genuine support enhances retention, boosts morale, and reduces burnout. It’s best to keep it simple. Start by improving access to mental health resources like free or discounted teletherapy sessions so employees can get help before crises escalate. 

    More Trends And Insights 

    These four trends are just the tip of the iceberg. Download our comprehensive 2025 Trends Guide For Small Business Owners for a deeper dive into the year’s most transformative shifts. 

    If you’re looking for hands-on support in HR, payroll, risk management, or benefits, contact us today. At Group Management Services (GMS), our experts can help you navigate these changes with confidence, so you can keep focusing on what you do best: growing your business. 

  • In this blog, we will go over how to navigate Ohio’s new minimum wage law and what your business needs to know to stay compliant and competitive in 2025.

    The state minimum wage is scheduled to rise from $10.45 to $10.70 per hour on January 1, 2025, while the hourly rate for tipped employees will go from $5.25 to $5.35. This shift is driven by a 2006 constitutional amendment requiring automatic, inflation-based adjustments to the minimum wage. Although 25 cents might seem minimal, it can have real implications for your staffing costs, compensation structures, and overall compliance strategy.

    Let’s break down the core details of this new law and address key steps to ensure your business is ready.

    What’s Changing

    Non-tipped employees

    • 2024 rate: $10.45 per hour.
    • 2025 rate: $10.70 per hour.
    • Who it covers: Employees of businesses with annual gross receipts exceeding $394,000 per year (up from $385,000 in 2024).

    Tipped employees

    • 2024 rate: $5.25 per hour.
    • 2025 rate: $5.35 per hour.
    • Who it covers: Employees who customarily and regularly receive more than $30/month in tips. Employers can use a tip credit, provided the combined cash wage plus tips meets or exceeds $10.70/hour.

    Small businesses and younger workers

    • Small employers: If your business has annual gross receipts of $394,000 or less, you’ll follow the federal minimum wage of $7.25/hour.
    • 14- and 15-year-olds: Must also be paid at least $7.25/hour.

    These changes stem from Ohio’s constitutional amendment (II-34a), which links annual minimum wage increases to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). According to state data, the CPI-W increased by 2.4% from September 1, 2023, to August 31, 2024, which triggered the $10.70 and $5.35 rates for 2025.

    Who’s Impacted By The 25-Cent Hike

    On the surface, a quarter raise might not sound substantial – but it still makes a difference:

    Directly affected workers

    About 112,700 Ohioans earning below $10.70 will see an immediate pay increase.

    Indirectly affected workers

    Employers often adjust wages for staff making slightly above $10.70 to maintain equitable pay scales, potentially affecting another 200,000 employees.

    Tipped employees

    Roughly 97,700 tipped workers will be directly or indirectly impacted as the tipped rate jumps to $5.35/hour, plus any additional tip credit to reach the full minimum.

    For small to midsize businesses (SMBs), these increases can influence everything from your bottom line to your competitive standing in Ohio’s labor market. Think about how a modest wage increase might help you retain talent or attract new hires, given that surrounding states may have their own wage adjustments, or none at all.

    Why The Increase Matters

    Keeping pace with inflation

    Ohio is one of 20 states and D.C. that tie the minimum wage to inflation, aiming to preserve workers’ purchasing power. Prices have jumped by 22.7% in the past five years, though recent inflation rates have cooled to about 2.9%. This annual wage adjustment helps lower-income families cope with the rising cost of living.

    Impact on family incomes

    According to research, over 28% of Ohio families living below the federal poverty line will see a paycheck boost. It can be easy to underestimate how $0.25/hour adds up over a year, but for many low-wage workers, every cent counts, especially as they face rising housing, food, and transportation costs.

    Potential ripple effects

    Employees already earning slightly above $10.70 may expect a wage increase for fairness and morale. Failing to adjust could cause frustration or turnover. At the same time, these increases can strain payroll budgets if you haven’t planned ahead, highlighting the importance of forecasting labor costs well in advance.

    Key Compliance Steps

    1. Evaluate gross receipts

    Determine if your annual gross receipts exceed $394,000. If so, you must pay at least $10.70 (or $5.35 plus tips). If not, you’ll follow the federal rate of $7.25.

    1. Update your payroll systems

    Make sure any software or platform you use for employee wages is prepared to automatically update hourly rates come January 1, 2025.

    1. Adjust pay scales where needed

    Employees who earn just above $10.70 may expect an increase to maintain fairness. Review your internal pay structures or consult with an HR expert about how best to handle this.

    1. Revise tipped policies

    If you use the tip credit, confirm that tips plus the new $5.35/hour combine to meet or exceed $10.70/hour. Keep accurate tip records to meet regulatory standards and prevent disputes.

    1. Overtime obligations

    Remember, you must still pay time-and-a-half for hours exceeding 40 in any given week, unless you gross under $150,000 annually (Ohio’s threshold for certain overtime exemptions).

    How GMS Can Help

    Navigating wage hikes might sound straightforward – just pay the higher rate, right? But these changes often trigger a series of administrative hurdles, from updating payroll and revising tip policies to ensuring compliance for younger workers. That’s where Group Management Services (GMS) comes in:

    • Expert HR guidance: GMS stays on top of changing minimum wage laws, payroll regulations, and other employment mandates, so you don’t have to. We’ll help you figure out compliance and coach you on any next steps.
    • Integrated payroll solutions: GMS can help you avoid manual errors or outdated pay rates. Our payroll services adjust for new wage laws and maintain accurate records, so you can avoid penalties.
    • Employee classification and documentation: If you’re unsure whether an employee qualifies as a “tipped” worker or need assistance with documentation, GMS can provide clarity and guidance.

    When you partner with GMS, you gain a dedicated team that takes care of HR complexities, allowing you to focus on running your business. Contact GMS to streamline your payroll, ensure full compliance, and keep your business growing.

  • Stay alert, stay genuine, and stay engaged: a straightforward guide to understanding why employees quit and what you can do to inspire them to stick around. 

    The so-called “war for talent” isn’t new. Employers have been grappling with high turnover and disillusioned workers for decades, even before the days of remote work, employers have dealt with “quiet quitting” or the brewing threat of “revenge quitting.” Many leaders still rely on old-school retention tactics, like salary bumps or flashy perks. Yet these quick fixes rarely address the deeper reasons people leave. Underneath all the salary negotiations and office perks, employees are on a personal journey, searching for alignment, growth, trust, and meaningful work. 

    So, if your workforce feels like a revolving door, it may be time to rethink how you engage, manage, and develop your team. Let’s break down what truly pushes employees to leave, and how you can create an environment that encourages them to stay. 

    Why People Really Quit

    If you ask someone why they left their job, you might get a polite, surface-level answer. Perhaps they wanted a raise, a shorter commute, or a perk their old job didn’t offer. But the real reasons often run deeper: 

    1. They’re not making the progress they want 

    According to research, employees often leave because they’re not getting the kind of progress they’re seeking in work and life. This could mean feeling stuck in a dead-end job, craving more control over their responsibilities and schedule, longing for better alignment between their skills and their role, or simply wanting to take the next step in their career. 

    People join companies hoping to learn, grow, and improve their lives professionally and personally. If your workplace doesn’t support their quests for progress, they’ll look elsewhere. 

    2. Boredom and burnout 

    A job that’s too routine, repetitive, or void of challenge leaves employees feeling restless. Add in the risk of burnout, where once-engaged staff end up cynically drained and apathetic, and you’ve got a recipe for high turnover. Monotony, exhaustion, and feeling stunted in their roles push employees to search for more stimulating or sustainable work. 

    3. Toxic or unsupportive cultures 

    If your employees don’t trust their managers or feel genuinely valued by the organization, no amount of foosball tables, wellness stipends, or pay raises will make them stay. Disrespectful culture, poor communication, and lack of recognition quickly drive people to the exit. As research shows, feeling disrespected or misaligned with company values is a powerful push factor, while supportive leadership and strong teams are major reasons people join and stay. 

    4. Rigid policies that don’t fit their lives 

    The world is more flexible than ever. If companies insist on in-person requirements or fail to offer flexible work arrangements, employees may seek out opportunities with more balance. Currently, employees with remote options or flexible schedules are reluctant to give them up. 

    5. Building resentment and “revenge quitting” 

    “Revenge quitting” is the pent-up frustration employees feel when they believe big business has ignored them, their well-being, or their career progression for too long. If you fail to recognize potential or fan the flames of burnout, resentment builds. Eventually, workers walk out; sometimes abruptly, and sometimes as soon as a better offer appears. 

    How To Keep Employees Engaged And Committed 

    Stopping employees from leaving isn’t just about throwing money at the problem. It’s about creating a workplace that helps them make real progress in their lives. Here’s how: 

    1. Dig deeper with “early” interviews 

    Don’t wait for the exit interview because by then, it’s too late. Talk to employees about their previous roles and what motivated them to leave those jobs. Understand the forces, the pushes and pulls, that guided their last career move.  

    • What caused them to hit their breaking point?  
    • What drew them to your company in the first place? 

    Use these insights to tailor their work experience so it aligns with their career goals and development needs. 

    2. Design roles that reflect reality and ambition 

    Traditional job descriptions are often vague, one-size-fits-all lists that fail to capture the role’s true nature. Create descriptions that reflect the actual tasks and experiences employees will have. Show them how their daily work makes an impact on customers, the business, or their own career path. Then, be flexible: 

    • Could you let a project manager spend a day a week on a special assignment that matches their passion? 
    • Could you break down roles into smaller pieces so employees can choose work that matches their skills and developmental goals? 

    3. Collaborate with HR for more meaningful development paths 

    Partner with human resources (HR) to systematically address their employees’ desire for progress. During onboarding, explain how your organization supports flexible career growth. Encourage regular check-ins focused not just on performance but also personal development and life changes. Consider talent marketplaces or short-term “gig” opportunities within the company. Let employees try different areas of the business, develop new skills, and forge new connections. 

    4. Empower managers who “get it” 

    All the policies in the world won’t help if frontline managers undercut them. Since managers are often the single biggest factor in retention, ensure they have training in empathetic communication, feedback, and career coaching. Evaluate leaders not just on key performance indicators (KPIs) or revenue, but on how well they support their team’s growth, flexibility, and well-being. 

    5. Walk the talk on work-life integration 

    Offer flexible hours, remote options, and genuine support for personal responsibilities. If you promise a better balance, follow through. Model boundaries from the top: CEOs and executives should show their commitment to employee well-being by taking paid time off (PTO) without guilt and respecting after-hours quiet time. 

    6. Acknowledge and reward potential 

    Promote employees who show true leadership potential, not just top performers who aren’t interested in guiding others. Develop mentorship or sponsorship programs so people gain the skills they need for the future. Recognize achievements, big or small, and show appreciation for the unique strengths and contributions everyone brings. 

    By Helping Employees Win, You Win Too 

    People don’t leave because of one bad day or a slightly better paycheck elsewhere. They leave because, over time, they realize their current job no longer supports their personal quest for progress. Maybe they’re stuck in a rut, working under a manager who doesn’t value them, or struggling to balance work with personal obligations. Maybe the culture feels toxic, or the company’s priorities feel misaligned with their own. 

    The key is to act now, not after your best performers have submitted their resignations. Working with a professional employer organization (PEO) like Group Management Services (GMS) can make all the difference. GMS streamlines HR functions, handles administrative complexity, and frees you up to focus on what really matters: building an environment where employees thrive. GMS provides the support you need, whether it’s: 

    • Guidance on crafting better job descriptions 
    • Training managers to nurture talent 
    • Setting up flexible work policies 

    Ready to empower your workforce and reduce turnover? Contact GMS today. Our comprehensive HR solutions, payroll services, and benefits administration can help you create the kind of workplace where people don’t just join, but stay and excel. Because when your employees flourish, so does your business. 

  • The SECURE Act 2.0 introduces significant changes in 2025 that will impact how employers manage retirement and benefits plans. These regulations aim to enhance retirement security and improve access to employer-sponsored retirement plans. Staying compliant with these changes is crucial for businesses to avoid penalties and ensure employees benefit from the new provisions.  

    Key Provisions Of The SECURE Act 2.0  

    Enhanced eligibility for part-time workers 

    Beginning in 2025, part-time employees who work at least 500 hours annually for two consecutive years will gain eligibility to participate in their employer’s 401(k) plan. This builds on the previous SECURE Act’s three-year requirement. Employers need to prepare by updating their tracking systems to identify eligible employees and ensuring enrollment processes are streamlined. 

    Automatic enrollment and escalation requirements 

    Newly established 401(k) and 403(b) plans must include automatic enrollment features. Employees will be automatically enrolled at a minimum contribution rate of 3%, with automatic annual increases of 1% until contributions reach at least 10%, but not more than 15%. Employers should review plan designs and payroll systems to ensure these requirements are met.

    Emergency savings accounts 

    The SECURE Act 2.0 introduces optional emergency savings accounts linked to retirement plans. These accounts allow employees to save up to $2,500 annually on a Roth basis, providing a tax-advantaged way to address financial emergencies. Employers interested in offering these accounts must work with plan administrators to integrate them into their benefits packages. 

    Increased catch-up contributions 

    For employees aged 60 to 63, the catch-up contribution limit for 401(k) plans will increase to the greater of $10,000 or 150% of the standard catch-up contribution limit for that year. Employers must ensure payroll systems and retirement plan documents reflect these updated limits. 

    Student loan repayment matching contributions 

    Employers can now make matching contributions to 401(k) or 403(b) plans based on an employee’s qualified student loan payments. This provision incentivizes retirement savings while helping employees pay off student debt. Employers should consider whether this feature aligns with their benefits strategy and work with plan administrators to implement it. 

    How GMS Can Help Your Business Stay Compliant 

    Navigating these complex changes can be overwhelming, especially for small and midsize businesses. Group Management Services (GMS) provides the tools and expertise to help employers stay ahead: 

    • Compliance guidance: Our team monitors legislative changes to ensure your business complies with all SECURE Act 2.0 regulations. We help update plan documents, adjust eligibility criteria, and align payroll systems with the new requirements. 
    • Plan design and administration: We work with your business to design a retirement plan that meets regulatory standards and your employees’ needs. Our experts can also coordinate with plan administrators to integrate new features, such as emergency savings accounts and student loan repayment matching. 
    • Employee education and enrollment support: Educating employees about their retirement options is critical for participation. GMS provides resources to help employees understand new features and make informed decisions about their financial future. 
    • Payroll integration: GMS simplifies payroll integration for features like automatic enrollment, increased catch-up contributions, and eligibility tracking for part-time workers. Our comprehensive payroll solutions ensure a seamless transition to compliance. 

    Preparing For 2025 

    The 2025 changes under the SECURE Act 2.0 emphasize the need for proactive planning and compliance. Employers who act now can not only avoid penalties but also enhance their benefits offerings to attract and retain top talent. Partnering with GMS ensures your business is equipped to manage these regulatory changes with ease.  

    Contact GMS today to learn how we can help your business meet the requirements of the SECURE Act 2.0 and beyond.