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  • As employees continue to have the upper hand in the workforce, now more than ever it is important to keep a pulse on their job performance and trajectory to ensure they remain engaged in their roles. Simply having annual reviews and/or occasional one-on-one meetings will no longer meet the needs of your employee pool. By implementing a performance management system, you can ensure consistent, organized feedback – which will, in turn, help your organization and teams meet their goals and objectives.  

    The question then becomes how do you measure performance? Implementing key performance indicators (KPIs) can help you quantify individual and organizational goals, thus evaluating performance accordingly. When used correctly, KPIs will support your business strategy and allow you to monitor progress. Below are three KPIs to consider for your performance management strategy.  

    Employee Turnover Rate (ETR) 

    The first step is to understand that employees’ happiness starts with the management team. If someone is unhappy in a job they need to be able to feel as though they can express this. To alleviate this problem, creating a great management team is key. If you want to figure out how employees feel in the job, Impraise suggests sending out regular surveys to have them share their feelings anonymously. As many know, high turnover is most companies’ nightmare, and training new employees can be extremely expensive. A study, the Center for American Progress reported the average cost of replacing an employee to be 21% of their annual salary. That said, making ETR something you continually review can save you both time and money in the long run.  

    Engagement Is Key 

    Keeping your employees engaged is an aspect that many struggle to balance – however, this is a clear link between engagement and bottom-line objectives. Disengagement can cost $3,400 for every $10,000 of salary. This can be controlled by managers giving feedback at least once a week. 43% of highly engaged employees reported this being the case. Nowadays, people take flexibility and understanding as a huge plus in their jobs. This ties directly into employee productivity because of they are engaged in their work then they will be a lot more productive.  

    Productivity Suggestions 

    Are you interested in boosting productivity on your team? You can do so by helping them understand how their efforts lend a hand in the overall goals of the company. When employees are motivated and inspired, their productivity greatly increases. Here are a few ways that Indeed suggests keeping your team working hard.  

    1. Establishing values is important because this will constitute a good performance.  
    2. Hiring smart means not only do they need to have the skills, but they also need to be a good culture fit because if the values don’t align with the ones you have within the organization, then they will not be productive.  
    3. Offering constructive feedback is critical for your team to understand how they are succeeding. Everyone wants to see that their work is noticed and if they are not doing a good job, it is easier to fix it early on than wait for there to be an issue.  
    4. Two-way communication means that your team understands that their feedback is also important in the job and that it is not just about you being happy with their work, they need to be happy with the work they are doing also.  
    5. Always celebrate the success of your team, because this will boost their morale and also benefit you by letting them know that their work is where you want it to be and to continue this. 

    If you’ve been contemplating implementing a performance management system for your business,  contact us today. With recent holiday time off, year-end bonuses, and new year resolutions, employees are motivated to start the year on a good note. Leverage their excitement to help reach your company’s goals!  

  • Progressives in Congress have begun backing a bill that would decrease the typical 40-hour workweek to 32 hours. This proposed bill has gained a multitude of traction within congress. If successful, this would set a new precedent within American society; the four-day workweek. 

    Republican, Mark Takano stated, “nearly 100-member group formally endorsed the “32-Hour Workweek Act,” noting the measure is a move “toward a modern-day business model that prioritizes productivity, fair pay, and an improved quality of life for workers across the country.”  

    Why Implement The 32-Hour Week? 

    Throughout the United States, wages have been declining over the past 50 years. Since COVID-19, Americans have come to understand the coined term, The Great Resignation. To combat the rapid decline of employees and increase the number of open positions, there had to be a change. Rapid burnout and inadequate wages are something that will no longer be accepted. Americans began to rethink how work impacts their lives. This has left employers struggling to find ways to adapt to the work shortage and rising inflation. Many have begun to consider whether to implement higher wages or a shorter week.  

    The New Way Of Modern Business?  

    While employees benefit from the fewer hours required, employers can likely expect higher productivity during the hours their workers are clocking. If the bill is passed, it will not get rid of the 40-hour workweek altogether – employers must offer overtime for anything work completed after 32 hours. Zeeshan Aleem  stated, “It’s a measure that has no real prospect of becoming law in the near term, but it’s a compelling idea that’s garnering more attention worldwide — and it could serve as a potential point of focus for the American left in the future.” 

    Staying up to date with the rapidly changing regulations can be overwhelming. However, when you partner with GMS, business owners can undoubtedly rely on being the first aware. Ready to partner with GMS? Contact us today to get started!  

  • As the year comes to an end, most corporations want to spread some cheer and figure out ways to ensure that their employees know just how much they appreciate them and their continued hard work over the past year. There are many ways of doing this, but some companies complete holiday or year-end bonuses as a generous way to show their gratitude.  

    Many large organizations find that their employees are more motivated, positive, and tend to do their job better when they receive a bonus. According to Wagepoint, 40% of employees wouldn’t be inspired to put in extra effort if there’s no tangible reward. Employees can rejoice, knowing that twice as many employers are offering year-end bonuses this year, compared to 2020.  

    While determining bonuses, there’s no one size fits all method to calculating. You’ll first need to determine, is your bonus a holiday-related one or is it year-end related? Many don’t realize that there is a difference; holiday bonuses are typically spread out equally among employees, whereas a year-end bonus is decided by looking at one’s tenure and performance. Use that logic to decide which route is best for your company. It goes without saying that the company’s success over the year will lend a hand in how generous your bonuses are.  

    Remember, it’s highly important that whichever one you decide to give out, you communicate this when delivering news of the bonus to ensure your employees are not surprised at what they receive.  

    Performance-based bonuses can include individual sales incentives or sales commissions, department-wide incentives, and annual or quarterly performance compensation. Department goals are another way to determine who gets what. For example, did a specific department reach their goals or other KPIs? This could be an easy way to figure out how much they should receive.  

    If you are unable to give your employees a bonus this year but still want to show them you care, consider one of the options below: 

    1. Thanking them and giving them a nice note 
    1. Flexible schedules  
    1. Host a holiday get-together for all employees 
    1. Extra time off 
    1. Achievement awards 
    1. Appreciation and recognition 

    Not every company can offer money as a thank you but offering some form of appreciation is still extremely important. Now more than ever, workplaces with generous flexibility and understanding can be even more important than more money. If you show some form of admiration to your team, you are sure to see their happiness through their hard work.  

  • The IRS recently released guidance for employers on the early termination of employee retention credit (ERC) if an employer received an advance payment or reduced deposits in anticipation of the credit. The Infrastructure Investment and Jobs Act, which was enacted on November 15th, 2021, amended the law so that the ERC applies only to wages paid before October 1st, 2021, unless the employer is a recovery startup business.  

    Notice 2021-65 applies to employers that paid wages after September 30th, 2021, and received an advance payment of the ERC for those wages or reduced employment tax deposits in anticipation of the credit for the fourth quarter of this year but are not ineligible for the credit due to this legislation change.  

    If an employer received advance payments for fourth-quarter wages, they will avoid failure to pay penalties so long as they repay those amounts by the due date of their applicable employment tax returns.   

    Employers that reduced deposits on or before December 20th, 2021, for wages paid during the fourth quarter 2021 in anticipation of the ERC, will not be subject to a failure to deposit penalty if: 

    1. The employer reduced deposed in anticipation of the ERC, consistent with the rules in Notice 2021-24 
    2. The employer deposits the amounts initially retained in anticipation of the ERC on or before the relevant due date for wages paid on December 31st, 2021 – regardless of whether the employer actually pays wages on said date. Deposit due dates will vary based on the deposit schedule or the employer.  
    3. The employer reports the tax liability resulting from the termination of the employer’s ERC on the applicable employment tax return or schedule that includes the period from October 1st, 2021, through December 31, 2021.  

    Penalties for failing to deposit will not be waived for employers if they reduce deposits after December 20th, 2021. If your business needs assistance on how to manage these new IRS guidelines, GMS can help you with a plan that fits your business model. 

  • Recently, the IRS issued a proposed regulation that would permanently and automatically allow a 30-day extension for furnishing Affordable Care Act (ACA) reporting forms to individuals – eliminating transitional good-faith relief for inaccurate and incomplete Forms 1094 and 1095.  

    These forms clarify that minimum essential coverage (MEC) does not include Medicaid coverage that is limited to COVID-19 testing and diagnostic services provided under the 2020’s Family First Coronavirus Response Act (FFCRA). While these regulations would apply and be effective at the beginning of 2022, entities should rely on the current regulations for 2021 reporting submissions. 

    The ACA requires applicable large employers (ALEs) – employers that during the prior year had 50 or more full-time employees or the equivalent when part-time employees’ hours are combined. Deadlines to these forms are as follows: 

    ACA Requirement 

    Deadline 
    • 1095 forms delivered to employees 
    • Jan. 31st, 2022 
      (proposed automatic extension to March 2nd  
    • Paper filing with IRS* 
    • Feb. 28th, 2022 
    • Electronic filing with IRS 
    • March 31st, 2022 

    The proposed regulation includes the following aspects:  

    1. A permanent and automatic extension of time for providing statements to individuals to no more than 30 days after January 31st, or the next business day if this day falls on a weekend or a holiday. Note, however, the proposed regulation has not changed the deadline for filing with the IRS (February 28th if on paper and March 31st if electronically). 
    2. The IRS will no longer accommodate employers filing incomplete or inaccurate information on Forms 1094 and 1095 (as previously permitted under Notice 2020-76). 
    3. As long as the ACA individual mandate (otherwise known as “shared responsibility”) penalty remains zero, a small, self-insured employer may simply post a clear and conspicuous notice on the entity’s website stating that responsible individuals may receive a copy of their Form 1095-B upon request, an alternative from mailing out individual forms to each enrolled individual.  

    Of particular note, five states (California, Massachusetts, New Jersey, Rhode Island, and Vermont – along with Washington D.C.) have enacted individual health coverage mandates that mirror the former federal requirement that individuals obtain ACA-compliant health coverage or pay a penalty tax. These states could require taxpayers to show proof of coverage or face fines.  

    GMS is devoted to helping businesses stay up to date on deadlines and regulations. If you are looking to spend more time focusing on the core of your business and minimize your administrative burden, contact us today.  

  • In a recent tax alert, the Ohio Department of Taxation announced the threshold for electronic filing of W-2 and 1099-R information for 2021 (submitting in 2022) to be lowered. Under this new change, all employers and retirement system payers that issue 10 or more W-2/1099-Rs will be required to upload the information electronically.  Before this, the threshold was 250 or more forms, as listed in a previous Department notice.

    When uploading these, Forms W-2 may be uploaded via the Ohio Business Gateway (OBG) – employers should note that magnetic media is not accepted. Also new this year, the deadline to submit has been extended to March 2nd, 2022, rather than January 31st, 2022, to help employers comply with the new threshold that was put into place.

    Previously, the IRS proposed regulations amending the rules for filing electronically that reduced the threshold for filing information returns (e.g., Forms W-2, 1099). The proposed amendments reflect changes made by the Taxpayer First Act of 2019 (TFA).

    Currently, the threshold to return electronic filings is 250. The TFA has authorized that they should gradually reduce this to 10 returns – which would lower the threshold to 100 returns for the year 2022 (returns for 2021 filed in 2022) and 10 returns beginning January 1, 2023. 

    Will Hart, Director of Payroll Tax at GMS, explained this in more detail, “This change will have its largest impact on small employers that are currently running in-house payroll. In the past, a small employer could get W2s from their payroll system and simply mail a copy to the state.” Hart continued, “Now, they’ll either need to generate a file in the proper format, or type all of those W2s into the Ohio Business Gateway. Programming for a file will be costly and typing the W2s into the OBG will be time consuming. Being with GMS eliminates both of those problems because we’re already filing electronically; and have been for many, many years.”

    If you’re looking to relieve your payroll headaches, we can help you! Contact us today to get started.

  • Technology is a powerful tool for businesses looking to improve operational efficiencies and address internal challenges. A good human resources information system (HRIS) can help businesses of all sizes make data-driven decisions, improve compliance, and cut down administrative work, all within a single platform.

    While an HRIS is a powerful management tool, choosing the right system is complicated if you don’t know where to start. It’s time to break down the benefits of an HRIS, what an ideal system should include, and how to identify a platform that’s best suited for your business.

    Does My Business Need An HRIS?

    The need for an HRIS depends on your business. Some employers may not mind manually managing all their HR operations. For the majority of growing businesses with complex, time-consuming HR needs, that isn’t the case. As such, there are a variety of reasons why an HRIS can benefit your business:

    • Your business keeps growing and it’s becoming increasingly difficult to manage employee data and other information.
    • You need more tools to properly analyze workforce data.
    • Your business utilizes different systems for a variety of HR functions (payroll, recruitment, etc.).
    • You need better support recruiting specialized talent or hiring independent contractors and other individuals.
    • You can’t keep pace with changing regulations or evolving workforce demographics.
    • You want to improve the employee experience for your organization.

    What Features Should An HRIS Include?

    Identifying whether you need an HRIS is only the first step. Different systems have various features, so you’ll want to review potential options to ensure they can help you address and solve specific challenges. The following features are some of the HR tools and notable elements that you should look for in an ideal HRIS.

    Payroll management

    The average owner spends nearly five hours calculating, filing, and paying payroll taxes each pay period. A payroll management system gives employers the tools to automatically deduct taxes and benefits from employee wages, generate reports, and complete other critical payroll tasks. In turn, employers save plenty of time and limit the chances of costly errors.

    Benefits administration

    A good HRIS provides businesses with a range of capabilities to streamline benefits and improve the employee experience. These advantages include:
    • Simplified electronic enrollment for new hires, open enrollment, and qualifying life events.
    • Customization options for management and open enrollment, including the ability to set up several rules for auto-enrollment, dependent types, and more.
    • Online portals that give employees the ability to access and control their benefits information.
    • Improved connection to benefit carriers, including automating the data transfer process.
    • Quick, easy reporting features to help employers identify the number of benefits changes, audit bills, and review other information.
    • Advanced security compared to completing enrollment manually.

    Time tracking, attendance records, and scheduling

    A streamlined time tracking and scheduling system allows businesses to cut back on needing multiple spreadsheets or calendars to find data. An online system can keep all this information in one space so that employers can quickly monitor attendance records and other scheduling information. An HRIS can also integrate time tracking with payroll to keep data accurate and ensure employees are paid for the hours they worked.

    Recruitment and onboarding management

    A good onboarding experience not only sets up new employees for success, but also saves employers’ time. An HRIS can provide a paperless onboarding process that guides employees through every step, including collecting necessary forms for new hires and open enrollment. An HRIS can also assist employers before a hire is made through background checks, preliminary screenings, and other services.

    Reporting and analysis

    Information is critical for a growing business. A good HRIS can integrate multiple HR functions into a single system to deliver comprehensive analysis on critical HR metrics. Businesses can also set up push reports and other actions to leadership, stakeholders, and other individuals based on specific criteria to alert them when necessary.

    Employee self-service capabilities

    Employers aren’t the only people who benefit from an HRIS. An online system allows employees to remotely access information so that they have all their information handy when they need it. These online portals give employees the means to edit or add to personal information, mark attendance online, and enjoy other benefits all from the comfort of their desktop, laptop, or mobile device.

    How To Select The Right HRIS For Your Business

    There are plenty of options available, so it’s crucial to identify your exact needs when choosing an HRIS for your business. As such, you’ll want to take a few steps to identify the best HRIS partner for your specific pain points and requirements.

    1. Identify and understand the HR challenges your business needs to address

    Every business is different, so it only makes sense that certain HRIS features will be more important to your organization than others. The first step is to list out every challenge you face with your current HR process. The results will help your organization focus on areas of need and highlight the specific features your business will require from an HRIS.

    2. Examine how an HRIS can address each problem

    Once you have your list of pain points, you can evaluate how an HRIS can solve your organization’s HR challenges. This process will help you identify which features are most important for your business when you assess different HRIS options and judge their capabilities.

    3. Create a list of business goals that apply to your HRIS search

    Not all capabilities are created equal. Some HRIS vendors may be better suited for solving current issues, whereas others may offer more opportunities for scalability and access to HR experts. Some key criteria for an HRIS can include any or all of the following:

    • Does the HRIS make it easy for all users to adopt and use its technology?
    • How well does the HRIS streamline productivity through improved workflows and processes?
    • How extensive are the HRIS’ reporting and data insights?
    • How well does the HRIS integrate key HR systems and create a smooth end-user experience for employers and employees?
    • What are the built-in compliance capabilities that ensure your business continually meets local, state, and national regulations and requirements?
    • How much support does the HRIS offer in terms of customer assistance and HR expertise?
    • How well will the HRIS be able to scale with your business in the future?

    4. Evaluate HRIS vendors

    Once you have a list of your organizational needs, business goals, and other criteria, it’s time to compare potential HRIS vendors. Create a shortlist of vendors based on your needs and budget and reach out to schedule interviews and request live demos to get as much information about the vendors as possible.

    5. Conclude the process

    The work doesn’t end with a decision. After you identify the best HRIS for your organizational needs, you’ll need to implement this new system. Create a thorough migration plan with your HRIS vendor and communicate with employees about what to expect and how this transition will impact them. Once the implementation is over, train individuals on how to best utilize the system and enjoy it’s benefits.

    Simplify Your Business With GMS Connect

    An HRIS can make a massive difference for small and medium-sized businesses looking to make their businesses more efficient and effective. That need for support is why GMS partners with businesses to provide cutting-edge HRIS technology along with dedicated service and support.

    GMS Connect is a fully integrated, cloud-based HRIS that allows small and medium-sized businesses to drive efficiencies from anywhere with an internet connection. Our software gives your business access to a complete online HR platform, complete with world-class payroll, benefits, HR, recruiting, performance management, and other critical functions to cover the entire HR spectrum.

    Ready to make your business simpler, safer, and stronger with the right HRIS? Contact us now about how GMS Connect can help solve your business’ HR challenges.

  • As we near a whopping two years since the beginning of the COVID-19 pandemic, President Biden doubles down on his actions to protect Americans. With 59.9% of people fully vaccinated in the United States and the expanded availability of both booster shots and testing, the Biden administration hopes to limit the pandemic’s ongoing devastation. 

    On Thursday, December 2nd, the president announced his efforts to push all private-sector employees to offer paid time off in an effort to encourage individuals to receive their vaccine(s) and/or booster dose – a measure already offered to federal employees. Outside of the PTO incentive, highlights of the administration’s plan include free at-home tests covered by insurance, more rapid response teams to assist medical staff, and accelerating vaccination efforts. Additionally, the Transportation Security Administration will extend its requirements for all travelers to wear masks on airplanes, trains, and buses and in airports or train stations, through March 18th. 

    For workplaces, the CDC guidelines state that they should keep following prevention strategies by wearing a mask indoors and in highly transmissible areas. The vaccine mandate is still not being implemented and the law has not been passed for private-sector companies. The best cause of action for small businesses across the board is preparation and understanding. By partnering with GMS, you’ll remain in the know with all of the latest legal changes.  

  • If you’ve noticed that your family health insurance prices are on the rise, you’re not alone. In fact, the cost of family premiums for employer-sponsored coverage has jumped 47% in the last decade – which outpaces wage growth at 31% and inflation by 23% over the same period. In the last year alone, premiums for family coverage reached an average of $22,221, a 4% increase.

    Roughly 155 million people rely on employer-sponsored coverage, with 59% of employers offering health benefits. It’s no secret that the larger the company, the more likely they are to offer a health plan. That said, the looming crisis of affordability continues to be an ongoing issue throughout the country. This proves especially true for small businesses with tighter budgets and fewer management resources at their disposal. On average, small businesses pay 8-18% more than large firms for the same insurance plans. Furthermore, location and industry type can make your organization’s premiums even (you guessed it) higher. Northeast and Midwest regions of the United States typically see more expensive premiums – as do those in the transportation, utility, and construction industries.

    Outside of the cost to implement a group health plan, many small business owners are often spread too thin – thus making the cost of time to actually administer the plan yet another hurdle to overcome. Managing a group health plan can be labor-intensive because of the ongoing regulatory changes, complicated communication processes, and the dreadful renewal process.

    Still, not offering health benefits is a recruiting and retention risk that you do not want to take. “Offering a healthcare plan is one of the most effective steps you can take as we continue to witness a workforce shortage,” shared GMS VP of Benefits, Beth Kohmann. “In today’s turbulent times, people throughout the country are looking for a solid, affordable healthcare plan to give them peace of mind. As an employer, providing that to your employees is one of the most vital things you can do.”

    Given the difficulty of offering an affordable, comprehensive plan, it’s easy to see why many business owners turn to a Professional Employer Organization like GMS. When you partner with GMS, you’ll take advantage of our consultative approach, giving you plan options and savings that will benefit your organization. In fact, last year GMS family premiums were 34% lower than the U.S. average.

    Contact us today to discuss a health plan tailored to your organization’s needs.

  • COVID-19 has brought many unforeseen challenges, however, one that employers can get ahead of is the Great Resignation. The term was coined in 2019 by Texas A&M’s Anthony Klotz. This prediction displayed a widespread voluntary removal of those within the workforce. As we come to the end of the year, the Great Resignation has continued to gain momentum. According to Harvard Business Review, beginning in April 2021, over four million employees quit within that month alone. This led to a record-breaking number of open positions reaching 10.7 million by July.  

    Is the worst yet to come? Experts are telling employers to brace themselves as they expect even more employees to quit after year-end benefits, such as bonuses, commissions, celebrations, and PTO, all diminish.  

    Heading into 2022, this is going to play a major role in the way businesses operate. To attract and retain top talent, one must understand why employees are leaving. Spoiler alert, contrary to popular belief, the once generous government benefits that may have encouraged people to opt-out of actual work are actually not to blame.  

    There are two key trends that have been identified thus far. First, mid-career employees (those aged 30 to 45 years old) have the greatest increase in resignation rates. It’s possible that this is caused by “pandemic epiphanies,” meaning employees have simply reached their breaking point and are choosing to step away from the heavy workloads and stressors that come along with their current 9-5. The second trend points out that the dramatic variance of turnover rates in different industries. Specifically, both the technology and health care industries have seen much higher attrition. It’s assumed that these industries witnessed such change due to the increase in demand for both during the pandemic, ultimately leading to burnout.  

    Strategies To Combat The Resignation: 

    Knowing that the cost to onboard a new employee exceeds $4,000, now more than ever employers need to focus on keeping the talent that they already have. Consider these strategies to help: 

    1. Put work-life balance at the top of your organization’s list 
    2. Invest in your employees – give them competitive compensation, top-notch healthcare, and retirement 
    3. Train leaders to recognize and address burnout 
    4. Create a clear pathway for employee growth by investing in training and development 
    5. Implement “stay interviews,” which consist of management interviewing employees to get a better pulse on their experience and allows the employee to share any recommendations or feedback that they may have. 

    How GMS can make a difference:  

    Partnering with GMS allows business owners to have valuable tools to continue to increase employee retention. The Great Resignation is by no means coming to an end as we head into 2022. Partnering with GMS can combat the challenges that await. Contact GMS today to learn how we can help you tackle The Great Resignation.