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  • Retaining top talent is crucial for the success of any small business. High employee turnover leads to increased costs, operational disruptions, and a negative impact on both productivity and workplace morale. Of the average 3.8% turnover rate, more than half are employees voluntarily leaving their positions. Common reasons for voluntary departures include inadequate benefits, limited career growth opportunities, and poor work-life balance.

    As a business owner, you have significant influence over employee retention. A comprehensive benefits plan can address key turnover-related factors, providing more financial support and nurturing a more stable workforce. By incorporating options like Flexible Spending Accounts (FSAs) into your benefits package, you offer employees a valuable tool to manage their expenses with tax advantages. This financial benefit not only reduces out-of-pocket costs but also boosts overall job satisfaction and loyalty.

    How Do FSAs Work?

    FSAs enable employees to reserve a portion of their paycheck into a tax-free account used for eligible expenses, such as medical treatments, dental cleanings, and more. Additionally, employers can contribute to their employees’ FSAs, but it is not a requirement.

    There are different types of FSAs tailored to specific needs:

    The Advantages Of Offering FSAs

    Integrating FSAs into your plan provides a range of benefits for both your business and your employees, including:

    Enhanced benefits package

    While health insurance is a valuable benefit, it can still leave gaps in coverage. FSAs strengthen your benefits package by providing employees with extra financial support for costs not fully covered by standard health insurance plans. Not only does this offer employees a practical way to manage their expenses, but it also helps your business remain competitive in attracting and keeping top talent. Adding FSAs to your benefits package shows your commitment to addressing the diverse needs of your workforce, fostering a greater sense of company loyalty.

    Cost savings

    FSAs can lead to significant cost savings for both employees and employers. Employees can reduce their taxable income by contributing pre-tax dollars to an FSA, resulting in lower taxes and higher take-home pay. Since employee contributions are deducted before taxes are applied, employers can also benefit by saving on payroll taxes. Additionally, FSAs are a cost-effective way to support employees’ medical and dependent care needs, which can help reduce your overall benefits costs.

    Flexibility in spending

    With FSAs, employees can direct pre-tax funds to a range of eligible expenses, including medical treatments, dependent care, and other essential costs. FSAs aren’t limited to just health and care costs; they can also cover creative uses such as travel-related items and various professional services. This flexibility allows employees to better manage their spending based on their own individual needs. By providing greater control over expenses, FSAs can make employees feel better supported in handling their financial responsibilities, increasing overall satisfaction and morale.

    How To Implement FSAs Into Your Business 

    Establishing FSAs in your benefits package calls for careful planning and structure to promote a smooth implementation. Consider the following to achieve an effective rollout and deliver meaningful support to your employees:

    Select an administrator and ensure compliance

    Begin by choosing a reputable professional employer organization (PEO) or third-party administrator (TPA) with expertise in FSA management. Your selected administrator will manage critical functions, including claims processing, account management, and adherence to Internal Revenue Service (IRS) regulations. This choice is essential to uphold legal standards and maximize the benefits of your FSA program.

    Establish guidelines and communication

    Work closely with your selected administrator to formulate clear guidelines and establish communication channels. This step clarifies roles and responsibilities during the transition, simplifying the implementation of the FSA program. Transparent communication will address concerns and questions promptly while also keeping everyone updated on the program’s features and benefits.

    Customize your FSA program

    To make the most of your FSA program, adapt it to fit the particular needs and goals of your business. Evaluate your employees’ demographics and preferences to decide which FSAs to offer. Depending on your assessment, you might consider including different types of FSAs, such as . Customization is key to making the program effective and relevant, encouraging employee engagement and satisfaction.

    Provide training and information

    Deliver thorough training to your HR team to ensure they are well-versed in the nuances and features of your FSA program. Next, hold informative sessions with employees to outline the advantages and practical use of FSAs. By offering detailed resources such as brochures and FAQs, you can further assist employees in optimizing their FSA benefits and enhance the program’s overall success.

    Measuring The Success Of Your FSA Program

    To determine how well your FSA program is performing, focus on key metrics that reflect its impact. Track employee satisfaction through surveys and feedback to see if the program meets their expectations and specific preferences. Check utilization rates to determine how frequently employees use their FSAs and if they are benefiting from it. Leveraging data and feedback to make informed adjustments will ensure the FSA program continues to align with your employees’ needs and reinforces its role in your retention strategy.

    Boost Your Benefits Management With A PEO

    Incorporating FSAs into your comprehensive benefits package offers you and your employees significant advantages, such as increased flexibility and potential cost savings, setting your business apart from competitors and demonstrating your commitment to your workforce.

    To streamline the management of FSAs and other benefits, partner with a professional employer organization (PEO) like GMS. A PEO provides expert guidance, handles administrative responsibilities, and ensures regulatory compliance. Additionally, employees with FSAs can visit our FSA Store to browse eligible products that can be purchased with their accounts. Contact us today to learn how our services can enhance your benefits program and promote retention.

  • Accidents and illnesses can occur without warning, despite our best efforts to avoid them. While health insurance covers many medical expenses, it may not cover everything, especially during extended recoveries. Supplemental insurance is an option for individuals seeking more peace of mind and assured support during a crisis. While employees can find this insurance on their own, adding them as options to your benefits package can benefit your business in the long term. It not only supports your employees but also enhances productivity and retention and reduces absenteeism.

    What Is Supplemental Insurance?

    Supplemental insurance is an additional type of insurance that provides coverage beyond a standard health insurance plan. Some of the main benefits for your employees are financial protection from out-of-pocket costs like deductibles and copayments, flexibility in choosing plans that fit individual needs, and peace of mind knowing there’s extra coverage for unexpected health issues or accidents.

    There are also benefits for you as an employer. Supplemental insurance enhances your benefits packages and helps attract and retain top talent. Today, 46% of professionals are considering quitting their roles. Of course, it takes more than monetary benefits to attract and retain top employees. For the best results, supplemental insurance should work in tandem with other nonmonetary initiatives.

    Enhancing Employee Financial Security

    While you may offer your employees the best health care, oftentimes, employees must cover themselves. Supplemental insurance for small businesses helps cover gaps in primary health insurance, providing financial support for medical expenses not covered by standard plans.

    In the event of a severe health condition, supplemental insurance, such as critical illness insurance, can offer lump-sum payments, providing financial aid for recovery and rehabilitation. Additionally, supplemental insurance ensures continued income for employees during long-term medical leave, bridging the divide between short-term and long-term disability benefits.

    This reduces financial stress during recovery periods, helping employees maintain economic stability while they focus on getting better. This support gives employees and their families peace of mind, knowing they have additional resources to cope with critical illnesses and accidents.

    Improving Organizational Productivity

    Many employers struggle with absenteeism. While you know your team best and the specific reasons that might be hindering full engagement, a common reason for absenteeism is financial stress. When employees face financial stress due to unexpected medical expenses, it can lead to increased absences as they struggle to manage their health and economic situations simultaneously. By providing supplemental insurance, you can minimize these financial stress-related absences.

    This support enables employees to access necessary medical care without worrying about the costs, leading to quicker recoveries and a faster return to work. As a result, employees can remain more present and productive, contributing to your organization’s overall efficiency and performance.

    Reducing absenteeism not only benefits individual employees but also helps maintain smooth operations and reduces the burden on other team members who might otherwise need to cover for absent colleagues.

    Additionally, offering supplemental insurance can:

    Enhance employee focus and performance

    Financial and health-related worries can be significant distractions for employees, impacting their ability to concentrate on tasks. Supplemental insurance alleviates these concerns by providing a safety net that covers additional medical expenses and supports income protection during illness or injury.

    Employees who are less preoccupied with personal financial issues can dedicate their energy and attention to their professional responsibilities, fostering a more productive and high-performing work environment.

    Strengthen employer-employee relationships

    Providing these benefits demonstrates your commitment to your workforce’s well-being and financial security. This commitment helps build trust and loyalty among employees, who feel valued and supported.

    Additionally, supplemental insurance encourages open communication and support within the workplace. Employees are more likely to express their needs and concerns when they know you’re invested in their overall health and well-being. This open communication fosters a positive and productive work environment where employees feel comfortable and motivated to perform at their best. By creating a supportive and inclusive workplace culture, you can cultivate long-term relationships with your team, boosting retention and establishing a cohesive workforce.

    Enhance corporate reputation

    Providing supplemental insurance also enhances the corporate reputation of your organization. Employees are looking for companies that prioritize the well-being of their team, and word travels fast. While there are many ways to improve your organizational culture, offering comprehensive benefits, including supplemental insurance, signals that your organization cares about your team. This positive perception can improve employer branding and enhance customer loyalty and stakeholder trust. Overall, investing in supplemental insurance not only benefits employees but also strengthens your business’ standing in the market and community.

    Types Of Supplemental Insurance

    There are many kinds of supplemental insurance to consider. Individuals will likely have different needs and can select the right options for them and their circumstances. Continue reading to learn about the types of supplemental insurance.

    • Accident insurance: Accident insurance provides benefits in case of accidental injuries. It covers medical treatments, hospital stays, and accident recovery costs, reducing the insured’s financial burden and helping them recover more comfortably.
    • Critical illness insurance: Critical illness insurance offers a lump-sum payment if an employee is diagnosed with a specified critical illness such as cancer, a heart attack, or stroke. The funds can be used for medical expenses, travel for treatment, or everyday living costs.
    • Disability insurance: Disability insurance replaces a portion of an employee’s income if they are unable to work due to injury or illness. This coverage ensures financial stability during recovery periods, helping employees manage their living expenses and maintain their standard of living while they are unable to work. Separate from short-term and long-term disability benefits, it helps offer continuous support throughout recovery.
    • Hospital indemnity insurance: Hospital indemnity insurance pays a fixed amount for each day an employee spends in the hospital. This coverage helps cover costs like deductibles, copayments, and other non-covered expenses that can accumulate during a hospital stay. By providing a daily benefit, hospital indemnity insurance alleviates the financial burden of hospitalization, allowing employees to focus on getting well.
    • Dental and vision insurance: Dental and vision insurance covers routine dental and vision care, which standard health plans may not fully cover. This includes benefits for exams, treatments, and corrective lenses.
    • Cancer insurance: Cancer insurance often provides a lump sum to cover expenses related to cancer treatment. In most cases, primary health insurance does not cover all associated costs, so cancer insurance can be an invaluable resource for some individuals.
    • Life insurance: This isn’t always considered supplemental; however, it provides financial protection for beneficiaries in the event of your death. Many options include term life, whole life, and universal.

    Supplemental Insurance With GMS

    Offer your team the best resources possible with GMS. Navigating supplemental insurance can be confusing. Juggling multiple vendors and price points when you have a business to run is not always possible, but you need to provide exceptional benefits to remain competitive. 

    Partnering with a professional employer organization (PEO) like GMS is one way to offer the best benefits without all the stress. Supplemental health insurance helps employees find health coverage that meets their specific needs, which is why GMS offers a variety of health coverage options. Contact us today to speak with one of our HR and Benefit experts.

  • Open enrollment can be a source of stress and confusion for many, with only a small percentage of people feeling confident in their ability to choose the right plan. If your employees are feeling anxious about this process, they are not alone. Let’s break down the essentials of open enrollment so your team can approach it with confidence. 

    What Is Open Enrollment? 

    Open enrollment is the designated time each year when employees can enroll in or make changes to their health insurance plans. Outside of this period, changes can only be made if you experience a qualifying life event (QLE), such as marriage, the birth of a child, or moving to a new location. These events allow for a special enrollment period, providing flexibility when significant life changes occur. 

    Choosing The Right Plan 

    Selecting the right health insurance plan involves evaluating your current and anticipated health care needs. Ask yourself if your current plan met your needs last year, whether your preferred doctors are within the network, and if your family circumstances have changed. Consider whether you expect to use more or fewer medical services in the coming year and whether you prioritize lower monthly costs or a broader network of providers. If you’re uncertain, seeking advice from a third-party resource, like a health advocate, can offer valuable insights. 

    Understanding Health Insurance Terms 

    Health insurance terminology can be complex, but understanding key terms is crucial for making informed decisions. Here are a few important concepts: 

    • Deductible: The amount you pay out-of-pocket before your insurance begins to cover expenses. 
    • Copay: A fixed fee you pay for specific health care services. 
    • Coinsurance: The percentage of costs you share with your insurer after meeting the deductible. 
    • Out-of-pocket maximum: The maximum amount you’ll pay in a year for covered services. 
    • Preferred provider organization (PPO): A type of health plan that offers a network of health care providers but allows for out-of-network care at a higher cost. 

    Can You Change Your Plan After Enrollment? 

    During the open enrollment period, you can make changes to your plan. However, once this period ends, changes are only possible if you experience a QLE. For new employees, benefits typically start on the first of the month following enrollment, while existing employees’ coverage begins according to the employer’s plan year. 

    Open Enrollment In 2024 

    Under the Affordable Care Act (ACA), employers with 50 or more full-time employees or the equivalent must provide health care to their team. Regardless of your team’s size, health care is a leading benefit that can assist with hiring and retention efforts due to the rising cost of personal health expenditures. While businesses have different renewal periods throughout the year, Q4 is a common time for many companies to conduct open enrollment. It’s important to stay informed with your company’s schedule to know when it’s time to elect benefits. For 2024, the open enrollment period for HealthCare.gov begins on November 1st and extends until January 15, 2025, in most states. This timeframe allows individuals to enroll in or make changes to their health insurance plans for the upcoming year. 

    Navigate Open Enrollment With GMS 

    It can be difficult for employees to make informed decisions regarding benefits due to the complex array of options available. When you partner with GMS, we shoulder the responsibilities of the open enrollment period, allowing you to concentrate on other aspects of your business. Your dedicated benefits account manager closely collaborates with you and your team to offer top-notch benefit plans and educate your employees effectively. Gain access to a team of specialists who can train your employees on plan details and address challenging coverage inquiries. We understand the complexities of health insurance. Let us guide you on how to maximize your plans, ensure compliance, and stay updated on regulations. Connect with us today. 

  • In today’s fast-paced business environment, many employers underestimate the importance of remaining compliant with employment laws and regulations. Underestimating the significance of compliance can have serious repercussions, including audits, lawsuits, and damage to your company’s reputation. 

    For human resources professionals, it’s imperative to stay on top of all the employment laws that your organization is subject to. Ignoring these regulations can hinder your ability to hire and retain talent. It’s crucial to recognize that compliance is not just a legal obligation but a foundation for a successful and sustainable business. Let’s explore some common compliance mistakes that you may be overlooking. 

    Classifying Employees Incorrectly 

    Misclassifying employees is a common mistake that can lead to costly penalties. The Department of Labor (DOL) provides specific guidelines for classifying employees as exempt or non-exempt. Exempt employees are not entitled to overtime pay, while non-exempt employees are. This classification depends on factors such as job duties, level of responsibility, and salary, not just job titles or work environments. Correct classification is crucial for accurate payroll processing, record keeping, and compliance with labor laws. 

    Mishandling Hiring Paperwork  

    Properly managing hiring paperwork is essential to avoid legal complications. Form I-9, which verifies an employee’s eligibility to work in the U.S., must be completed accurately and on time. Employers must ensure that all sections of the form are filled out correctly, including dates and signatures, and that valid supporting documents are provided. Common errors include missing information, incorrect documentation, or failure to update forms for employees with temporary work visas. Employers should provide clear instructions to new hires about acceptable documentation and ensure that all paperwork is completed on time. Failure to comply can result in hefty fines and legal issues. 

    Ignoring Safety Regulations 

    Compliance with safety regulations is critical to protecting employees and avoiding legal liabilities. The Occupational Safety and Health Administration (OSHA) requires all employers to provide a safe working environment free from recognized hazards. This includes providing necessary safety training, equipment, and protective gear, such as hard hats and eye protection. Employers must regularly communicate safety protocols and ensure that employees are aware of and adhere to them. Implementing a comprehensive safety training program can help employees understand potential hazards and the steps to take in case of an incident. 

    Failing To Stay Compliant During Growth 

    Rapid growth can lead to increased compliance challenges, especially as employee numbers rise. Businesses must be cautious when reclassifying employees or hiring independent contractors to avoid violating labor laws. Independent contractors must operate as separate entities, providing their own tools and setting their own hours. Misclassifying employees as contractors to circumvent benefits or tax obligations can lead to significant legal issues. As your business grows, regularly review compliance requirements to ensure all aspects of the law are being met. 

    Not Staying Up To Date 

    Staying updated with the changing landscape of employment laws is crucial for maintaining compliance. Regulations can vary significantly at the local, state, and federal levels, and new laws are frequently enacted. Business leaders must be aware of rules governing sick leave, employee privacy, hiring practices, workplace safety, and more. Failure to keep policies current can result in non-compliance and potential legal action. Regularly reviewing and updating company policies to reflect changes in the law can help mitigate risks and ensure your business remains compliant. 

    Stay Compliant With GMS

    GMS offers expert guidance to help businesses navigate the complex world of compliance. Whether it’s payroll, HR, or risk management, GMS provides the tools and support needed to ensure your business remains compliant with all relevant regulations. By partnering with GMS, you can focus on growing your business while we handle the intricacies of compliance. Contact us today and discover how we can support your compliance needs. 

  • New York businesses are bracing for significant health insurance premium increases in 2024. The New York State Department of Financial Services (DFS) has approved average rate hikes of 13.5% for individual plans and 7.4% for small group plans. While these increases are lower than insurers initially requested, they still represent a substantial burden for businesses and employees alike. 

    Three Factors Driving Premium Increases: 

    1. Rising medical costs: The cost of medical care, including hospital stays, physician services, and pharmaceuticals, continues to rise. This is compounded by increased utilization of these services as patients seek more care post-pandemic. 
    2. Economic inflation: Broader economic inflation has put additional upward pressure on health care costs, including administrative expenses for insurers. 
    3. End of public health emergency (PHE): The unwinding of the PHE has led to changes in coverage, such as the reintroduction of cost-sharing for COVID-19 testing and the commercialization of COVID-19 vaccines, which increase insurers’ costs. 

    What This Means For Business Owners: 

    Increased costs 

    Higher insurance premiums will impact New York businesses’ overall operating costs. This is particularly challenging for small businesses, which may struggle to absorb these increases. 

    Administrative challenges 

    The process of navigating these changes and ensuring compliance can be administratively burdensome. This includes managing renewals and understanding new coverage options for employees. Businesses may need to invest more time and resources into understanding the changes and communicating them effectively to their employees. 

    Employee impact 

    Rising premiums may lead to higher contributions from employees or reduced benefits, potentially affecting employee satisfaction and retention. Employees may also face increased out-of-pocket costs, which could affect their financial well-being and job satisfaction. 

    Strategic decisions 

    Business owners may need to revisit their benefits strategy. This could involve considering different insurance carriers or plans, exploring self-insurance options, or increasing the focus on preventative care and wellness programs to help control costs. 

    Navigating Changes In Health Insurance Premiums 

    As businesses face rising health insurance premiums, it’s crucial to explore various options to manage costs while still providing quality coverage for employees. Here are some strategies to consider: 

    1. Explore GMS’s master health plan:
    • GMS offers an in-house master health plan that helps businesses avoid large swings in usage trends and renewal rates. 
    • Our plan provides access to one of the largest national networks. 
    1. Leverage group buying power:
    • By partnering with GMS, small businesses can access the buying power of a large corporation. 
    • GMS represents more than 50,000 employees, allowing for more competitive rates. 
    1. Consider different plan options:
    • Evaluate various plan types, such as preferred provider organizations (PPOs), health maintenance organizations (HMOs), or high-deductible health plans paired with health savings accounts (HSAs). 
    • Each option has different cost structures and benefits that may better suit your business and employees. 
    1. Implement cost-sharing strategies:
    • Adjust deductibles, copayments, or coinsurance to balance costs between the employer and employees. 
    • Offer voluntary supplemental insurance plans to cover gaps in primary coverage. 
    1. Promote wellness programs:
    • Implement wellness initiatives to improve overall employee health and potentially reduce long-term health care costs. 
    1. Educate employees:
    • Provide comprehensive education on plan options and how to use the benefits effectively. 
    • Help employees understand how these changes might affect their contributions and benefits. Transparency can build trust and reduce anxiety. 
    • GMS offers a dedicated team of experts to assist with employee training and answering complex health plan questions. 
    1. Regular plan reviews:
    • Conduct annual reviews of your health insurance plans to ensure they still meet your business needs and budget. 

    By exploring these options, particularly GMS’s master health plan, businesses can work towards managing premium increases while still offering competitive benefits to their employees. 

    Navigate Change With GMS: 

    As New York businesses navigate these challenging premium increases, GMS offers a valuable solution. Our in-house master health plan helps businesses avoid large swings in usage trends and renewal rates. By leveraging the collective purchasing power of over 50,000 employees, GMS enables small businesses to access group health insurance at significantly lower rates—24% lower for employee premiums and 21% lower for family premiums compared to the U.S. average.  

    By working with GMS, you can navigate these challenges more effectively, ensuring that your business remains competitive and your employees are well supported. Partner with GMS to better manage your health care expenses, support your employees, and maintain a competitive benefits package that supports employee retention. 

  • Although regulatory compliance isn’t the easiest task, it is arguably one of the most important for small business owners. With limited time and resources, it can be easy for small business owners to overlook the importance of compliance. Failing to comply with legal requirements can have severe consequences for your business. This can lead to costly monetary penalties, legal liabilities, reputational damage, and more. There are many types of non-compliance, including, but not limited to, misuse of funds, unethical business practices, fraud, corruption, and bribery.  

    Understanding Regulatory Compliance 

    Regulatory compliance refers to an organization’s adherence to federal, state, and local laws, standards, and regulations. The specific regulations a company must follow depend on a business’s industry and location. Regulatory compliance is a broad topic and touches a wide range of areas, including data protection, ethics, financial reporting, and workplace safety. Maintaining compliance involves staying up-to-date on legislative changes, implementing proper protocols, and providing educational training opportunities for employees to ensure compliance.    

    Importance Of Compliance 

    Laws and regulations are enforced for many reasons, from ensuring workplace safety to protecting employee data and beyond; regulatory compliance can make or break a business’s reputation and bottom line. In fact, 87% of organizations indicated negative outcomes as a result of low compliance maturity. Continue reading to discover why business owners should make regulatory compliance a priority.: 

    Avoid monetary penalties 

    Failing to comply with laws and regulations can lead to costly monetary penalties. Fines can quickly add up, effectively lowering available funds to improve workplace efficiency and afford quality employee benefits. 

    Long-term financial impact 

    Non-compliance can often lead to expensive long-term costs that negatively impact your business. The cost of legal counsel, high insurance premiums, and consistent workers’ compensation claims can affect your company’s long-term appeal and revenue. In most cases, the best practice to lower these fees is to identify compliance problem areas and then work from the ground up to install a viable long-term solution. Solutions can range from conducting quarterly audits to managing important employee information through a (HRIS). 

    Legal liability 

    If your business is non-compliant, it can expose your company to legal risks and liability. In the event of a lawsuit or workers’ compensation claim, your company may be liable for violations, leading to expensive legal fees and reputational damage.  

    Reputational damage 

    When your customers or potential clients view your company as unsafe or untrustworthy, your bottom line will suffer. A lack of compliance can also negatively impact consumer confidence, market share, and growth opportunities.  

    Employee safety and morale 

    In most cases, a complaint workplace is a safe workplace. When businesses follow and enforce safety laws and procedures, not only are employees more cautious and protected, but they also feel safer. By working in an environment where they feel safe and valued by their employer, their morale and productivity may improve.  

    Educating employees on how and why they should focus on compliance is also essential. It can be beneficial to hold a seminar, attend a webinar, or conduct compliance training with your employees to ensure they understand what regulations to follow and why it’s crucial. 

    Indirect costs 

    While there are many direct costs to non-compliance, such as workers’ compensation claims and Internal Revenue Service (IRS) fines, there are also many indirect costs. After an incident occurs, employee turnover may increase. When employees don’t feel safe or feel like they are expendable, they are less likely to trust their employer and may depart from the company. High turnover also means you’ll have to focus on hiring and training new talent. Training new employees can take time and resources away from your dwindling workforce.  

    How GMS Can Help 

    Regulatory compliance can be an overwhelming and confusing topic. Keeping track of hundreds of laws can be exhausting, as the laws are constantly changing. While it may seem daunting, know that you’re not alone.  

    With a professional employer organization (PEO), like Group Management Services (GMS), you’ll have a dedicated partner to help ensure compliance with federal, state, and local laws. GMS can conduct compliance audits, help you stay current on legislation, and provide employee training. Simplify your compliance efforts with GMS! Contact us today to learn more. 

  • Seasonal workers play a crucial role in many industries, from retail and hospitality to agriculture and tourism. Currently, there are more than 73,000 seasonal employees working in the United States. While the number of seasonal job openings shrunk after the COVID-19 pandemic, they’re finally beginning to creep back up.

    As businesses gear up for peak seasons, attracting and retaining skilled seasonal employees becomes essential for maintaining smooth operations and delivering excellent customer service. Offering competitive compensation and benefits tailored to meet the needs of seasonal workers not only attracts top talent but also enhances employee satisfaction and productivity, ensuring they feel valued and motivated throughout their tenure.

    What Is A Seasonal Job?

    A seasonal job refers to temporary employment during specific times of the year when businesses experience increased demand or require additional staffing. These jobs are typically tied to recurring cycles or events, such as holidays, seasons, weather patterns, tourism peaks, or agricultural harvests.

    Seasonal employment can be found in various industries, including retail, hospitality, tourism, agriculture, event planning, landscaping, and outdoor recreation. The duration of seasonal employment can range from a few weeks to several months, depending on the industry and specific seasonal demand.

    Key characteristics of seasonal jobs include:

    • Temporary nature: Seasonal jobs are intended to meet short-term demands and are not permanent positions. They are often filled to handle peak periods or specific events.
    • Predictable cycles: These jobs follow predictable cycles based on calendar events (e.g., summer vacations, winter holidays), natural occurrences (e.g., agricultural seasons), or business trends (e.g., retail sales seasons).
    • Varied industries: Seasonal work spans across different sectors, each with its own peak seasons and staffing needs. For example, retail sees high demand during the holiday shopping season, while tourism peaks during summer or winter vacations
    • Flexibility: Seasonal jobs may offer flexibility in scheduling, making them attractive to students, retirees, or individuals seeking supplementary income.
    • Role variety: Depending on the industry, seasonal jobs can range from customer service and sales positions to roles in agriculture, hospitality, event management, and more.

    Understanding The Needs Of Seasonal Workers

    Overall, seasonal jobs serve a crucial function in supporting businesses during busy periods and providing employment opportunities that align with specific times of increased demand or activity within the economy.

    Before delving into compensation and benefits packages, it’s crucial to understand what seasonal workers prioritize. Many seasonal workers are looking for:

    • Schedule flexibility
    • Fair pay for their work
    • Opportunities for additional hours or overtime
    • Access to essential job benefits that enhance financial security and well-being

    Competitive Compensation Strategies For Seasonal Workers

    First and foremost, businesses should offer competitive hourly wages that align with industry standards and local cost of living. Employees will quickly find new jobs if your pay rate does not meet their needs. Be upfront about this number. Additionally, overtime policies should be clearly outlined, and compliance with labor laws regarding overtime pay should be ensured.

    Clearly communicate how pay rates are determined and potential wage increases based on performance or tenure. Transparency builds trust and helps manage expectations among seasonal employees. Beyond pay, to help make your business attractive to seasonal workers,consider the following:

    Performance-based incentives

    To motivate seasonal workers, recognize and reward exceptional performance. Implement discretionary bonuses or incentives based on achieving sales targets, customer satisfaction scores, or productivity metrics.

    Seasonal premiums

    Consider offering seasonal premiums or a sign-on bonus for workers who commit to the entire season or specific high-demand periods. This can incentivize reliability and encourage workers to return in subsequent seasons.

    Benefit Offerings For Seasonal Workers

    Seasonal workers need to take care of themselves and their families. Providing access to essential benefits such as workers’ compensation insurance, which covers work-related injuries or illnesses, is one way to give your business a competitive edge. In addition, you can offer unemployment benefits for seasonal workers who meet eligibility requirements, including:

    • Flexible scheduling: Allow flexibility in scheduling to accommodate availability and personal commitments. Consider offering shifts that align with school schedules for students or parents.
    • Training and development: Invest in training programs that enhance seasonal workers’ skills and knowledge, improving job satisfaction and performance. Provide opportunities for cross-training in different roles or departments to broaden their experience.
    • Discounts and perks: Offer employee discounts on products or services to reward and enhance their overall experience. Consider also providing perks such as free meals during shifts or access to company facilities on off-time.

    Ensuring Fair Treatment And Compliance

    Compliance with labor laws is crucial to protect your business from fines and penalties. Adhere to local, state, and federal labor laws regarding minimum wage, overtime pay, and working conditions for all employees, including seasonal workers. Regularly review and update policies to ensure compliance with evolving regulations.

    Additionally, it’s essential to foster an inclusive workplace culture that values diversity and prohibits discrimination based on race, gender, age, or other protected characteristics. Ensure equal opportunities for seasonal workers to advance or transition to permanent roles based on merit.

    Retention Strategies For Seasonal Workers

    One way to help keep seasonal workers around is to include and consider them during company decisions.  Regular communication keeps seasonal workers informed about company updates, policies, and upcoming events. Encourage feedback and suggestions to improve their experience and engagement with the business. Just because an employee is seasonal does not mean they don’t have valuable insight to share.

    Additionally, aside from financial compensation and bonuses, acknowledge the contributions of seasonal workers through verbal recognition, certificates of appreciation, or thank you notes. Celebrate milestones or achievements as a team to foster a sense of belonging and loyalty.

    Lastly, provide information about potential long-term opportunities within the organization, encouraging seasonal workers to consider future roles. Make it a point to promote career growth and offer long-term opportunities to motivate seasonal workers to stay on or come back for another season. To go the extra mile, offer career development resources or mentorship programs to support their professional growth.

    The Importance Of Competitive Compensation

    Offering competitive compensation and benefits for seasonal workers is not just about meeting regulatory requirements but also about fostering a positive work environment where seasonal employees feel valued and motivated.

    By understanding their needs, implementing fair pay practices, providing essential benefits, and investing in their development, you can attract talented seasonal workers and build a reliable workforce for peak seasons. Remember, treating seasonal workers well enhances business operations and strengthens your overall reputation as an employer in the marketplace.

    How GMS Can Help

    It can feel overwhelming to manage full-time employees, let alone create a new list of benefits and programs designed for seasonal workers. However, every employee is important and deserves appropriate recognition and compensation. The good news: You don’t have to do it alone.

    GMS provides a variety of services that can be tailored to meet the needs of seasonal employees, including benefits management, employee development programs, and essential HR functions. GMS works with businesses to help them retain top talent and stay compliant with labor laws. Contact us today to talk to one of our experts about how we can help you revamp your approach to seasonal employee management.

  • Depending on your location, severe summer weather usually starts sometime in June and ends in November. The Occupational Safety and Health Administration (OSHA) mandates that all employers create a written plan of action to protect employees in cases of emergency, including weather-related states of emergency.

    To avoid potential disruptions to your workflow and ensure your team’s safety, it’s critical to prepare for the potential onslaught of extreme weather events that can disrupt operations, damage infrastructure, and pose risks to employees and customers alike.

    Types Of Extreme Summer Weather

    Before preparing for extreme weather events, it’s crucial to assess the specific risks your business may face based on your geographical location and climate patterns. Coastal regions might need to prepare for hurricanes and storm surges, while inland areas could experience heatwaves, thunderstorms, or wildfires.

    The following are the most common weather events that may be cause for emergency in the workplace during the summer season:

    • Heat waves
    • Wildfires
    • Tornados
    • Hurricanes
    • Severe thunderstorms
    • Lightning strikes
    • Flooding

    Workplace Summer Safety Tips

    Building a well-defined emergency response plan is the cornerstone of preparedness and should be one of the first tasks you complete. This plan should outline procedures for various scenarios, including:

    • Evacuation protocols
    • Designated meeting points
    • Emergency contact details
    • Employee responsibilities during severe weather
    • Checklist of crucial items like flashlights, batteries, non-perishable food, and first aid supplies

    Many businesses form committees to devise plans for personnel safety and protecting data, documents, and equipment. Whether you create the plan yourself or delegate it to your team, once it’s formed, it should be communicated to all team members. All your staff should receive a copy of the emergency response plan and a form requesting a signature to verify that they have read it.

    While building your emergency response plan, there are a few other aspects to consider, including:

    Protect physical infrastructure

    Protecting physical infrastructure is paramount to minimizing damage during extreme weather events. This involves taking action on the property’s exterior and interior areas.

    Exterior

    • Secure or move objects that could be moved by high winds.
    • Ensure gutters are secure and cleaned to avoid water damage
    • Repair leaks in roofs, windows, or skylights that can cause severe water damage during heavy rain
    • Call a professional to trim trees or plants that may interfere with power lines or infrastructure in high winds
    • Consider installing flood barriers, like sandbags

    Interior

    • Clear areas around broken glass
    • Remove items off the ground, such as filing cabinets, that flooding could damage
    • Unplug electrical equipment
    • Use tarps or plastic bags to cover critical equipment

    Use backup power and utilities

    Power outages are common during severe weather events. Investing in backup power generators can help you maintain essential operations such as lighting, refrigeration, or other necessary equipment such as computer systems. Backup power can also help avoid or reduce damage from high heat or humidity.

    Implement weather monitoring systems

    Early detection of weather patterns can allow you to respond swiftly to impending threats. Weather monitoring systems, including weather apps, alert businesses to approaching storms or heat waves, enabling them to promptly activate emergency response plans if needed.

    If you choose to use a weather app, make sure it’s reputable. For example, the Federal Emergency Management Agency (FEMA) offers one that provides weather alerts and safety reminders. Your local media is also an excellent source of information and updates.

    Maintain communication channels

    Effective communication is critical during emergencies. Establish multiple communication channels, including email, text alerts, and social media, to quickly disseminate information to your employees, customers, and stakeholders.

    Secure data and digital assets

    In today’s digital age, protecting data and digital assets is as crucial as safeguarding physical infrastructure. Critical data should be regularly backed up to offsite locations or cloud servers to prevent loss due to equipment damage or power outages. Cybersecurity measures should also be strengthened to defend against potential breaches during chaotic periods.

    Designate safe shelters

    According to the American Red Cross, businesses should establish a designated shelter-in-place (SIP) area where anyone in the building can seek refuge in case of a sudden emergency. In tornado-prone areas, this weather shelter may be underground or in a room without glass windows.

    Develop local partnerships

    Collaboration with local emergency services, community organizations, and neighboring businesses can enhance preparedness efforts. Establishing partnerships allows you to share resources such as emergency supplies, manpower, or expertise during crises. It also fosters a sense of community resilience and support in times of need. A response plan should identify key contacts from these organizations to contact in case of emergency.

    Educate and empower employees

    Employees are often the first line of defense during emergencies. Training employees on emergency procedures, first aid, and evacuation protocols will empower them to respond calmly and effectively. In addition, educate your team to recognize warning signs of extreme weather and encourage them to report concerns promptly.

    Training will vary between workplaces. For example, businesses that regularly require employees to wear heavy personal protective equipment (PPE) should educate employees on the signs of heatstroke and develop protocols for avoiding working in extreme heat. Businesses that require employees to work in an office should develop a work-from-home protocol to avoid driving during bad storms.

    A great way to maintain regular training is via a quarterly meeting, one for each season. At these meetings, management should review emergency protocols, conduct drills, collect employee emergency contact information, and update employees on any changes to the emergency preparedness plan.

    Review and update regularly

    Emergency preparedness is an ongoing process that requires regular review and updates. Conduct post-event evaluations to identify areas for improvement in response plans and infrastructure. Updating contact information, reassessing risks, and incorporating lessons learned from past incidents ensures that your business can remain resilient in the face of evolving weather challenges.

    Know when to close up shop

    Finally, and perhaps most importantly, know when it’s time to close your doors. Ensure employees have adequate time to safely travel home and secure their homes ahead of severe weather. Establish a remote work policy to maintain operations until it is safe for employees to reenter the building.

    Preparing for extreme weather is a precautionary measure and a strategic imperative that can help protect your business during an extreme weather event. By following these tips, you can enhance your resilience, minimize disruptions, and maximize safety.  

    Stay Safe By Partnering With A PEO

    Severe weather can be unpredictable, but businesses can take steps to minimize risk and protect employees by partnering with a professional employer organization (PEO). A PEO like GMS offers comprehensive workplace safety programs with onsite training and consulting to help you prepare for extreme weather in every season.

    By collaborating with a PEO, companies gain access to expert guidance, safety training, and compliance resources. Contact our safety experts today!

  • On July 17th, the Internal Revenue Service (IRS) announced that some amended employment tax returns can be electronically filed using the Modernized e-File program.  

    The Modernized E-File (MeF) Program 

    MeF is a web-based system that allows electronic filing of tax returns. E-filing saves time and money. When taxes are e-filed, whether it be for businesses, professionals, or individuals, the data is directly transmitted online from the e-filer’s servers to the tax agency’s servers.  

    The MeF program provides electronic filing and payment options for filers of corporation, employment tax, estates and trusts, excise tax, exempt organization, individual, partnership, and withholding tax returns. Learn more about these returns here. 

    Amended Returns That Can Now Be E-Filed 

    The following amended employment tax returns can now be e-filed: 

    • Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return 
    • Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund 
    • Form 943-X, Adjusted Employer’s Annual Federal Tax Return for Agricultural Employees or Claim for Refund 
    • Form 945-X, Adjusted Annual Return of Withheld Federal Income Tax or Claim for Refund 

    Note: MeF cannot be used yet to e-file Form 944-X, Adjusted Employer’s Annual Federal Tax Return or Claim for Refund, or Form CT-1 X, Adjusted Employer’s Annual Railroad Retirement Tax Return or Claim for Refund. 

    About Form 940 

    Use Form 940 to report your annual Federal Unemployment Tax Act (FUTA) tax. Workers who have lost their jobs can receive unemployment compensation through the FUTA tax and state unemployment tax systems. Employers typically pay both federal and state unemployment taxes. Only employers pay the FUTA tax; your employee’s wages should not be subject to it. 

    About Form 941-X 

    Use Form 941-X to correct errors on a Form 941 that you previously filed. Form 941 is used to report both federal income taxes and Federal Insurance Contributions Act (FICA) taxes, the latter of which includes Medicare tax and Social Security tax. 

    About Form 943-X 

    Use Form 943-X to correct errors on a previously filed Form 943. Form 943 is a tax form used to report federal income tax, Social Security, and Medicare withholdings from agricultural employees. 

    About Form 945-X 

    Use this Form 945-X to correct administrative errors only on a previously filed Form 945. If the federal income tax you reported on Form 945 (including backup withholding) differs from the amount withheld from payees, you have committed an administrative error. 

    Use Form 945 to report withheld federal income tax from nonpayroll payments. Nonpayroll payments include: 

    • Pensions (including distributions from tax-favored retirement plans, for example, section 401(k), section 403(b), and governmental section 457(b) plans), and annuities 
    • Military retirement 
    • Gambling winnings 
    • Indian gaming profits 
    • Voluntary withholding on certain government payments 
    • Backup withholding 

    GMS Helps Keep Your Business Compliant 

    Staying compliant with the ever-changing landscape of tax and payroll regulations can be daunting for any business owner. With GMS, you can skip the manual work and focus on what truly matters—growing your business. Our expert team is dedicated to keeping you informed about new laws and regulations, ensuring your business remains compliant without the hassle. Let us handle the complexities of payroll and tax management. Contact us today to learn how GMS can support your business and simplify your operations! 

  • Depending on your industry, heat waves during the summer months are a severe concern for business owners. While the work still needs to be accomplished, extreme temperatures bring an added barrier that can be life-threatening if not taken seriously. As an employer, you have a legal and ethical obligation to provide a safe work environment, which includes taking precautions during periods of intense heat. This responsibility is particularly crucial if your team works outdoors, around hot sources or facilities with limited cooling, or in heavy, non-breathable work clothes.

    Heat-related illnesses can develop rapidly and become life-threatening if not addressed swiftly. Additionally, symptoms are often initially subtle and can vary between individuals. Prevention is the most effective approach to combating heat-related illnesses. However, in the event of an incident, having a detailed action plan is essential to ensure your team receives the necessary help as quickly as possible.

    What Is Heat Illness?

    Maintaining a consistent core temperature close to 98.6°F is essential for human health. Heat illness can occur when the body is exposed to excessive heat and cannot dissipate it effectively through natural mechanisms such as sweating. Sweating is the body’s primary cooling method, but if this fluid loss is not adequately replenished, it leads to dehydration.

    Prolonged dehydration impairs the body’s ability to regulate temperature, increasing the risk of heat-related illnesses. Understanding the mechanisms and consequences of heat stress is vital for preventing these conditions and ensuring the safety of your team during high temperatures.

    Common heat illnesses to be aware of include:

    • Heat rash: This condition often affects large areas of the body and appears as clusters of pimples or small blisters. It results from skin irritation due to excessive sweating and clogged pores.
    • Heat cramps: These painful muscle spasms typically occur in the legs, arms, or abdomen and are caused by a loss of electrolytes and dehydration from intense physical activity in hot conditions.
    • Heat exhaustion: Characterized by heavy sweating, weakness, dizziness, nausea, and a rapid pulse, heat exhaustion occurs when the body overheats. Immediate cooling and hydration are crucial to prevent progression to more severe conditions.
    • Heat stroke: This is a medical emergency where the body’s temperature regulation fails, leading to a rapid increase in core temperature. Symptoms include confusion, loss of consciousness, and hot, dry skin. Immediate medical intervention is required to prevent potentially fatal outcomes.

    Heat Stress Prevention

    Heat illness can become life-threatening within minutes. This means that it’s critical to have a robust plan in place to protect your team. The most effective strategy is a proactive one. Start by thoroughly assessing your work environment and look for ways to control the temperature. This could be through increasing air circulation by installing fans or air conditioning, minimizing steam and humidity in the workspace, and using heat-absorbing barriers to reduce temperature spikes.

    In addition, set up a designated cooling area with resources to maintain a comfortable atmosphere; this space will serve as a recovery zone for your employees to visit regularly. Ensure this area is shaded and equipped with water and seating. Portable tents or shelters are an excellent alternative for areas without natural shade.

    Beyond the physical work environment, it is also essential to consider the following:

    Train your team

    Training your team on the signs and symptoms of heat stress is another critical prevention tool. While it may not be possible for you to monitor the health and well-being of each team member, educating them on recognizing the signs in themselves and their peers is essential. With this knowledge, they can initiate your safety plan and seek medical attention or rest to prevent a life-threatening situation.

    Hydration

    Hydration is vital in preventing heat illness. Ensure that your team has easy access to cool water throughout the day. Encourage regular water breaks, even if they don’t feel thirsty, as thirst is not always an accurate indicator of hydration needs. Provide electrolyte drinks if possible, as they can help replenish essential salts lost through sweating. By prioritizing hydration, you can significantly reduce the risk of heat-related illnesses and maintain a healthier, more productive workforce.

    Plan ahead

    Planning is crucial, especially for outdoor work, to prevent heat illness and ensure the safety of your team. Schedule the most strenuous tasks for the early morning when temperatures are cooler, avoiding mid-to-late afternoon when temperatures peak. Additionally, incorporate regular rest periods into your schedule. Ensure these breaks are well-defined and frequent, allowing your team to rest and recover adequately.

    Establish a heat safety lead

    Appoint one or more designated team members to lead your heat safety initiatives. These individuals should be well-versed in prevention techniques and trained to take the necessary steps to secure emergency medical attention. By having a dedicated heat safety lead, you ensure that there is always someone focused on monitoring conditions and implementing safety protocols, enhancing your team’s overall protection and well-being.

    Acclimatization

    Gradually exposing your team to higher temperatures can help their bodies adjust safely. Implement the 20% rule, which involves a scheduled plan to increase heat exposure by no more than 20% daily. This gradual acclimatization allows the body to adapt to the heat, reducing the risk of heat illness and ensuring a safer working environment. By carefully managing exposure to high temperatures, you can help your team build tolerance and resilience, improving their ability to work safely and effectively in hot conditions.

    Risk Management With GMS

    As a business owner, you have a lot on your plate. Ensuring the health and safety of your team is a critical part of your responsibilities. Still, it can be challenging to determine if your policies and protocols meet OSHA’s safety standards. Partnering with a professional employer organization (PEO) like GMS can save you time and money while ensuring the safety of your team.

    GMS enables businesses to be proactive about workplace safety, minimizing risks and reducing the likelihood of employee injuries or illnesses on the job. From training to onsite inspections, we assist in assessing and bringing your worksite to proper safety standards. Our comprehensive services ensure your safety protocols are effective and compliant, giving you peace of mind and allowing you to focus on other aspects of running your business. Contact us today, and let us help you protect your team!