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  • Key Takeaways

    1. Next steps: The BWC Board will vote on the six percent reduction on February 28th.
    2. Effective date: If approved, the rate change takes effect on July 1, 2025.
    3. Potential savings: Ohio private employers would pay $60 million less in total premiums over the next fiscal year.

    Ohio’s private employers may soon see yet another reduction in their workers’ compensation premiums. On January 24, 2025, the Ohio BWC announced a proposal for a six percent rate cut, a move that could save employers across the state a collective $60 million starting in July of this year.

    Continuing A Trend Of Rate Decreases

    If approved at the BWC Board of Directors’ meeting on February 28th, this would be:

    • The sixth rate reduction since Governor Mike DeWine took office in 2019.
    • The 16th decrease in the past 17 years, going back to 2008.

    According to the BWC, the average premium levels for both private and public employers (totaling about 257,000 across Ohio) now stand at their lowest in 60 years.

    Why The Proposed Rate Cut?

    BWC Administrator/CEO Stephanie McCloud emphasizes that the continued trend toward lower rates reflects the commitment of Ohio’s workforce to promoting safety on the job. In addition, program participation, fewer claims, and a strong focus on injury prevention have helped keep costs in check.

    Impact On Employers

    This six percent rate decrease is an average statewide premium reduction. Actual savings for individual employers will vary based on:

    • Industry risk and expected future claims costs
    • Recent claims history
    • Participation in various BWC safety and discount programs

    Nonetheless, Ohio businesses, particularly small and midsize businesses (SMBs), stand to benefit significantly if the BWC Board gives final approval.

    Looking Ahead

    With the BWC’s track record of approving proposed cuts, many anticipate a favorable outcome on February 28th. Ohio Chamber of Commerce President and CEO Steve Stivers has already expressed strong support, noting that this decision would help make Ohio “the best place in the nation for business.”

    How GMS Can Help

    If you’re looking to take full advantage of potential premium savings or want to ensure your workplace safety measures and BWC program participation are optimized, Group Management Services (GMS) can help. Our experts will work alongside your organization to:

    For more information on how this rate reduction could affect your organization, or to explore additional ways to reduce overhead costs and streamline your HR, contact us today. We’re here to help you stay informed, compliant, and prepared for changes as they develop.

  • Co-employment is a strategic partnership between a business and a professional employer organization (PEO) that enables the sharing of employer responsibilities. This arrangement allows business owners to focus on core operations while the PEO manages essential human resources (HR) functions such as payroll, compliance, and benefits administration. Understanding the dynamics of co-employment can help businesses leverage their benefits effectively and avoid potential pitfalls. 

    Defining Co-Employment 

    The National Association of Professional Employer Organizations (NAPEO) states, “The PEO relationship involves a contractual allocation and sharing of certain employer responsibilities between the PEO and the client, as delineated in a contract typically called a client service agreement (CSA).” Ultimately, the PEO does not make decisions for the business; all control remains with the business itself. 

    The business is responsible for all business decisions, operations, day-to-day supervision of employees, job assignments, employee reviews and assessments, and determining the employee’s salary and benefits offerings. Although the PEO may be recognized by the state as the employer of record, the business retains the ultimate authority over crucial business decisions. The main advantage of sharing employer status is to receive access to tools and HR services that are typically out of reach for small businesses.  

    Benefits Of Co-Employment 

    Greater buying power  

    Small businesses often lack the purchasing power of larger companies, but co-employment helps level the playing field. Through a co-employment relationship, businesses can leverage economies of scale. PEOs utilize the collective buying power of all their group health clients, allowing them to secure more cost-effective, high-quality group health plans. 

    Some PEOs offer additional benefits beyond medical and dental insurance, such as retirement savings plans, pet insurance, legal insurance, and more. By combining the collective strength of all their clients, PEOs enable small to midsize businesses to access competitive premiums similar to those of large companies. This means businesses can benefit from lower health insurance premiums while still offering comprehensive coverage to their employees. 

    With rising health care costs, this buying power is more valuable than ever, allowing companies to provide top-tier benefits without sacrificing their bottom line. 

    Simpler payroll processing  

    In a co-employment relationship, the PEO is responsible for paying your employees. Businesses must apply for an Employer Identification Number (EIN) to manage payroll. Companies in a co-employment relationship agree to let the PEO handle this responsibility under its own EIN. 

    While changing the EIN might not seem exciting, it lets you offload many complex, time-consuming tasks. Using the PEO’s EIN, the PEO becomes responsible for more than just issuing paychecks. These additional payroll administrative tasks include: 

    • Calculating and withholding income and payroll taxes from employee paychecks 
    • Calculating and distributing overtime pay 
    • Reporting these taxes to the Internal Revenue Service (IRS) 
    • Determining proper employee classifications 
    • Filing and issuing W-2s and other payroll forms 

    This transfer of responsibility saves you significant time and effort. Additionally, having your PEO manage these tasks ensures that all calculations and filings are accurate and compliant with payroll guidelines. With a PEO, you can trust that your payroll is handled by trained professionals. 

    Safer workplaces 

    Businesses can also benefit from a co-employment relationship through improved workplace safety and risk management. A PEO can help your company qualify for workers’ compensation discounts and maintain lower unemployment tax rates, saving you money and reducing future headaches. 

    PEOs can assist with safety culture and claims management. These processes not only create a safer environment for employees but also help reduce workers’ compensation costs. Risk management measures include: 

    • Safety training 
    • Risk assessments 
    • Timely reporting 
    • Post-accident investigations 
    • Return-to-work programs 

    Better business alignment 

    As your company grows, you may need more than just payroll administration or benefits assistance. The co-employment relationship gives PEOs a vested interest in your business goals, working with you to identify growth opportunities and retain talented employees. A PEO can support your growth through: 

    • Employee recruiting and training 
    • Performance management 
    • Unemployment claims 
    • Human resource audits 
    • Wellness programs 
    • Telemedicine 

    In addition to helping you grow, being co-employed by a PEO means you have access to experts when you need them. This breadth of resources helps you stay on top of trends and regulatory changes that can impact your business. 

    Common Concerns About Co-Employment 

    Despite its benefits, some business owners hesitate to engage in co-employment due to misconceptions, such as: 

    • Loss of control: Business owners worry they will lose authority over their workforce. However, in a co-employment relationship, the client company retains full control over hiring, terminations, and workplace culture. A PEO serves as a trusted advisor, providing expert support and resources while allowing the business to maintain its leadership and decision-making power. 
    • Cost concerns: While partnering with a PEO requires a financial investment, the long-term savings on compliance, payroll, and benefits outweigh the costs. Businesses can streamline operations, reduce errors, and access high-quality benefits, ultimately enhancing efficiency and profitability. 
    • Employee confusion: Some employees may initially feel uncertain about their relationship with the PEO. However, clear communication and transparency about roles and responsibilities can alleviate these concerns and foster a positive working relationship.  

    Co-Employment Statistics  

    Partnering with a PEO through a co-employment arrangement offers numerous tangible benefits, including: 

    Cost savings on HR and benefits 

    • Studies from NAPEO indicate that businesses partnering with PEOs experience a 27% return on investment (ROI) through cost savings in HR administration and benefits procurement. 
    • PEOs leverage economies of scale to negotiate better health insurance rates, saving businesses up to an estimated 30% on premiums compared to standalone plans. 

    Improved compliance and risk mitigation 

    • PEOs stay updated on evolving labor laws, ensuring businesses remain compliant with regulatory changes such as overtime pay rules and workplace safety requirements under the Occupational Safety and Health Administration (OSHA). 
    • They assist with Equal Employment Opportunity Commission (EEOC) compliance, helping prevent discrimination lawsuits and penalties. 

    Enhanced employee retention and satisfaction 

    • Access to comprehensive benefits packages, including employee assistance programs (EAPs), professional development opportunities, and flexible spending accounts (FSAs), can boost employee morale and reduce turnover. 
    • According to NAPEO, businesses using PEOs have 10-14% lower turnover rates than those that don’t. 

    Streamlined hiring and onboarding processes 

    • PEOs offer applicant tracking systems (ATS), background checks, and onboarding software to ensure a seamless hiring experience. 
    • They help small businesses attract top talent by offering competitive compensation packages and structured onboarding programs. 

    Selecting The Right PEO Partner  

    When choosing a PEO, businesses should conduct thorough due diligence, considering factors such as: 

    • Accreditations and certifications: Look for PEOs certified by the IRS, ensuring they meet strict financial and ethical standards. These PEOs are called CPEOs.  
    • Industry experience: Choose a PEO with experience in your specific industry to ensure compliance with sector-specific regulations. 
    • Service offerings: Assess whether the PEO provides the necessary HR services tailored to your business’s needs, such as recruitment support or performance management. 
    • Technology capabilities: Ensure the PEO offers user-friendly HR technology solutions for payroll, benefits management, and employee self-service. 

    By partnering with a reputable PEO, businesses can access valuable resources and expertise that would otherwise be out of reach, creating a more efficient and productive work environment. If you’re considering co-employment, Group Management Services (GMS) can help guide you through the process and tailor solutions that meet your business’s unique needs. Contact us today to learn more about how we can support your business growth and help you reclaim your valuable time. 

  • President Donald Trump has been sworn in as the 47th President of the United States, making him the first leader since Grover Cleveland to serve non-consecutive terms. Despite the administration still being in its early days, we’re already seeing substantial changes to labor and employment policy, including signals about diversity, equity, and inclusion (DEI) programs, workplace discrimination enforcement, and federal contracting requirements. 

    Here’s what we’ve gathered so far, plus some key insights to help guide your business decisions. 

    Major Shakeup At The EEOC

    The Equal Employment Opportunity Commission (EEOC) recently experienced an unprecedented staffing change beyond the appointment of Andrea R. Lucas as Acting Chair:

    Firing of two democratic commissioners
    President Trump terminated Democratic Commissioners Charlotte Burrows and Jocelyn Samuels, effectively removing them from office before their terms expired. Trump also dismissed EEOC General Counsel Karla Gilbride. Legal challenges questioning the scope of the president’s power are already in the works, and it is unclear whether courts will ultimately reinstate the terminated commissioners or uphold the firings.

    Current status
    With Burrows and Samuels gone, the EEOC now has only two remaining commissioners: Acting Chair Andrea R. Lucas (Republican, originally appointed in 2020) and Commissioner Kalpana Kotagal (Democrat, confirmed in 2023). Because the EEOC must have a three-member quorum to take formal actions such as issuing new regulations or formal guidance, President Trump is expected to quickly appoint at least one new Republican commissioner, giving him a functioning majority.

    Acting Chair Andrea Lucas’s priorities
    Lucas has already outlined several top priorities, including:

    • “Rooting out unlawful DEI-motivated race and sex discrimination.”
    • “Defending the biological and binary reality of sex and related rights.”
    • Potentially revisiting or reversing the EEOC’s sexual harassment guidance.
    • Reconsidering the Pregnant Workers Fairness Act (PWFA) rules, especially those connected to abortion-related accommodations.

    Implications of the firings
    If the courts uphold Trump’s decision, Republicans could rapidly reshape the EEOC’s policies—speeding up the pivot away from “disparate impact” class actions and heightening scrutiny of certain DEI initiatives and LGBTQ+ protections. However, if a court temporarily or permanently reinstates the fired commissioners, any new regulations or guidance the reconfigured EEOC issues could be invalidated or tied up in litigation. This legal limbo could complicate employers’ compliance efforts for months or even years.

    What this means for employers 

    • DEI audits may become a focal point for the reconstituted EEOC. Even though legal challenges may slow changes, businesses should ensure their DEI programs are carefully structured to comply with existing law (i.e., not imposing quotas or favoring one group over another). 
    • Employers in states or localities with robust anti-discrimination protections should remain mindful that federal changes do not necessarily override state or local laws. 
    • If your organization has been relying heavily on DEI initiatives, it’s a good time to consult legal counsel or human resource (HR) experts, such as Group Management Services (GMS), to confirm the legality of your programs and make any necessary adjustments. 

    Rollbacks Affecting Federal Contractors 

    Separately, President Trump issued an executive order rolling back portions of Executive Order 11246, which had expanded DEI responsibilities for federal contractors. This is consistent with the White House’s newly stated mission to “combat illegal private-sector DEI preferences” and push for more “colorblind” or strictly equal approaches to hiring and promotion. 

    What this means for employers 

    • Federal contractors should review any contractual obligations related to DEI or Affirmative Action Plans. Changes in guidance from agencies like the Office of Federal Contract Compliance Programs (OFCCP) may be on the horizon. 
    • Even non-federal contractors could feel an impact: the order instructs agencies to “enforce our longstanding civil-rights laws,” including scrutiny on private companies’ DEI policies. 
    • With litigation on the rise, both from special-interest groups opposing DEI and from employees advocating for inclusion, employers should walk a careful line in how they design or continue DEI initiatives. 

    Congressional Developments And DOL Moves 

    Meanwhile, the early days of the new Congress, led by Speaker Mike Johnson (R-LA) in the House, signal potential labor reforms. Various new measures, like Representative Zach Nunn’s proposal to limit telework or potential new oversight for the Occupational Safety and Health Administration (OSHA), underscore a theme: tightening certain policies that expanded under the previous administration. 

    In addition, the Department of Labor’s (DOL) new leadership lineup is taking shape. Former EEOC Commissioner Keith Sonderling is set to serve as Deputy Secretary of Labor, pending Senate confirmation. We also expect a hearing for the new Labor Secretary nominee soon, which could help clarify how actively the DOL might revisit rules on wage and hour, workplace safety, and more. 

    What this means for employers 

    • Keep an eye on the Wage and Hour Division for guidance changes on overtime exemption standards, tip credits, and pay equity. 
    • OSHA is rescinding some COVID-19 era rules and may pivot more toward the administration’s broader stance on workplace regulations, meaning less pandemic-specific guidance but potentially renewed focus on enforcement of general safety obligations. 
    • The immediate takeaway is that compliance is still key. With shifting rules, partnering with a professional employer organization (PEO) like GMS helps ensure you’re always up to speed on federal requirements. 

    Key Takeaways And Next Steps 

    1. DEI under the microscope: 

    With the new acting EEOC Chair Andrea Lucas prioritizing “unlawful DEI-motivated race and sex discrimination” and “biological and binary reality of sex and related rights,” expect more investigations into the structure and fairness of DEI programs. 

    2. Monitor federal contracts: 

    If you’re a federal contractor, you may need to amend or revert certain DEI obligations. 

    3. Stay nimble: 

    HR compliance requires vigilance in times of political transition. Expect new DOL guidance, House and Senate proposals, and possible Supreme Court developments, especially around wage and hour standards and Affirmative Action-related issues. 

    How GMS Can Help 

    At Group Management Services, we monitor these changes daily and support businesses with: 

    • HR policy audits and compliance to ensure your workforce practices align with the shifting legal landscape. 
    • DEI best practices and robust training that stays within the bounds of anti-discrimination laws. 
    • Payroll and tax compliance solutions that adjust to new federal and state-level rules. 
    • Risk management guidance including how best to navigate a potential uptick in discrimination claims. 

    We encourage our clients and partners to stay informed and remain agile. If you’re unsure about how these first 90 days might affect your HR strategies, contact us here for tailored advice and updates on the latest regulatory guidance. 

  • Human resources (HR) is undeniably in a state of change. A convergence of global volatility, skills shortages, and higher C-suite expectations have left many HR teams asking the same question: How do we pivot from a reactive business to a ready one?

    Forward-thinking HR departments are paving the way by focusing on six core priorities: 

    1. Flow 

    Embedding HR in the organization’s strategy means that the “value” HR operationally provides flows across the entire enterprise, shaping decisions not just in HR but also in finance, operations, and leadership. Rather than being siloed, HR must be at the center of business decision-making. 

    2. Digital 

    Legacy processes and disconnected systems hamper the employee experience and slow time-to-hire. Model HR departments adopt a beyond-implementation mentality, focusing on integrated, seamless solutions that help employees collaborate, learn, and work more efficiently. 

    3. Analytics 

    Data can answer the real questions the business is asking, around engagement, retention, skill needs, and strategic objectives. Leading HR organizations do more than just tracking dashboards; they blend HR data with finance or operations metrics to unlock deeper insights. 

    4. Talent 

    Managing and developing skills is foundational in an ultra-competitive labor market. Forward-thinking HR teams experiment with talent marketplaces, skill matching, and real-time development. Shift from a job-based approach to a skills-based approach, ensuring the right people can plug into the right opportunities quickly. 

    5. Purpose 

    Today’s employees want more than just a paycheck; they want to align with a company’s mission and values. It’s ideal to utilize HR to integrate environmental, social, and governance (ESG) initiatives, achieve net zero goals, and embed broader organizational purposes into daily operations, enhancing engagement and brand reputation. 

    6. Wellbeing 

    People operating in high-stress, rapidly changing environments can’t sustain performance without a holistic approach to mental, physical, and emotional health. Future-fit HR invests in innovative well-being programs, from flexible schedules to mental health support, to help employees and the business thrive. 

    Why HR Data Is The Key To Strategic Decisions 

    Data is the engine driving clarity in the constantly changing working world. Historically, HR was left out of strategic decisions due to a lack of credible analytics. Now with the rise of more advanced HR technologies, it’s becoming imperative to include their insights. 

    Analytics are a competitive advantage 

    • Better business outcomes: HR Data isn’t just for tracking turnover or cost-per-hire; it can reveal deep organizational insights into productivity, training return on investment (ROI), or workforce planning. 
    • Leadership buy-in: Presenting HR data in terms of direct financial or operational metrics helps HR secure executive support. 

    Turning data into action 

    • Focus on integration: Merging HR data (e.g., turnover, performance) with operational data (e.g., revenue or project outcomes) yields strong evidence for planning. 
    • Predictive insights: Data can forecast churn, spot high-potential candidates, and identify risk areas, truly future-proofing the workforce strategy. 

    Single source of truth 

    • Data quality and alignment: Many organizations still face management misunderstandings about data’s value. Overcoming these hurdles, by ensuring data is accurate, governed, and well-presented, reinforces HR’s credibility. 
    • Cultural shift: Building a data-driven mindset in HR fosters consistent, evidence-based decisions, from hiring to performance management. 

    Nineteen HR Metrics To Supercharge Your Function 

    Bridging the strategic approach and data-driven mindset requires practical metrics. Below is a quick snapshot of some key HR metrics to track: 

    1. Time to hire: Measures recruiting efficiency. High values may indicate a cumbersome process or poor candidate experience. 

    2. Cost per hire: Helps track ROI in recruiting methods and indicates how well the recruitment budget is managed. 

    3. Quality of hire: Evaluates new hire performance, cultural fit, and retention, reflecting the effectiveness of your talent strategy. 

    4. Early turnover (first-year turnover): Pinpoints where mismatches occur before employees fully ramp up. 

    5. Turnover rate: Differentiating between high-performer and low-performer turnover can guide targeted retention strategies. 

    6. Performance & potential: Tools like the “9-box grid” help you map future leaders and identify skill gaps. 

    7. Revenue per employee: Illustrates overall workforce productivity and the financial impact of your talent. 

    8. Billable hours per employee: Key for professional service firms, ties directly to revenue and capacity planning. 

    9. HR to employee ratio: Shows how effectively HR resources are allocated. 

    10. Effectiveness of HR software: Adoption, active users, and retention reflect how well systems are integrated. 

    11. Absenteeism: High rates may signal stress, dissatisfaction, or health issues. Early detection can prevent bigger problems. 

    12. Training expenses per employee: Measures the investment in continuous learning, which can correlate with retention and agility. 

    13. Overtime expenses: Potential sign of resource constraints, sometimes linked to burnout or suboptimal scheduling. 

    14. Engagement rating (e.g., employee Net Promoter Score (eNPS)): Tracks employee sentiment, a direct driver of performance and advocacy. 

    15. Employee satisfaction: Captures workforce contentment, often measured via surveys covering workload, environment, and career growth. 

    16. Leadership effectiveness: 360-degree reviews or performance data to ensure leadership drives team success. 

    17. Time since last promotion: Long intervals might hint at career stagnation or flight risks among high potentials. 

    18. Soft HR metrics: Qualitative measures (e.g., manager communication effectiveness) can complement numeric data. 

    19. Single source of truth: Ensuring all HR data is integrated is itself a “meta-metric” that can drastically increase analytics power. 

    Putting It All Together: Next Steps For HR In 2025 

    Embed HR in the flow of work 

    • Act as a strategic partner, linking your function’s analytics with overall business goals. 
    • Co-create solutions with finance, operations, and the C-suite. 

    Double down on analytics 

    • Identify the top ten metrics that matter most to your organization, then measure, compare, and present them consistently. 

    Prioritize talent & well-being 

    • Offer upskilling and career development programs that fulfill both company and employee goals. 
    • Design well-being initiatives that address mental, physical, and emotional health, preventing burnout and improving retention. 

    Cultivate purpose & digital strategy 

    • Align your HR roadmap with your organization’s purpose, including ESG and sustainability goals. 
    • Evaluate and upgrade digital tools for a better employee experience and more effective processes. 

    Monitor & refine with key metrics 

    • If you see high early turnover, reevaluate your onboarding or selection process. 
    • If revenue per employee is dipping, cross-check engagement and skill data to realign your workforce strategy. 

    Strengthening Your HR Systems 

    The era in which HR becomes a connected, analytics-led, future-focused function is accelerating. By blending insights from HR data and implementing a robust set of metrics, you can shape an HR function that actively drives business strategy. 

    Remember, each organization’s journey is unique, but the overarching message is clear. Invest in digital tools, glean real insights from analytics, build HR’s strategic credibility, and keep the workforce’s well-being at the heart of everything you do. That is the surest path to success in 2025 and beyond. 

    At Group Management Services (GMS), we provide small to midsize businesses (SMBs) with tailored HR services that allow the company to focus on what really matters, growing their business. 

    Ready to accelerate your HR transformation? Contact us to explore how GMS can provide you with HR services that truly move the needle. 

  • 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.