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  • Towards the end of July, the Republican Party made a couple of attempts to repeal and replace the Affordable Care Act. When the Senate couldn’t pull together a consensus on a replacement bill, they moved forward with a straight repeal bill. Both attempts failed.

    Where does that leave a business owner who’s trying to figure what to do about healthcare? Two recent articles help shed a little light on what to expect.

    The Potential Future of Healthcare

    According to a recent Forbes article,  large employers will escape significant increases this year. They can expect something along the lines of the 5% average increases they’ve gotten the last several years. The expectation is that the 2018 renewals are where things will begin to implode.

    Unfortunately, individuals on the exchanges will see significant increases as the exchanges have been collapsing for the last few years and states are scrambling to try and prop them up for this year. Couple that with the Trump administration’s uncertainty on whether to continue subsidies, and this could lead to another issue for employers.

    If an employer is already offering healthcare, but excluding the part-time help (29 hours or less), they may see a push from those employees to be included in the group plan. Business owners will then have to decide what is best for the employees and for the business, but the situation could create some significant HR issues. Employee Benefits News lists this as one of the bigger issues arising from the uncertainty.  

    Lastly, no one is even certain how the IRS will respond to policy changes or how they will enforce them. The IRS already had issues collecting taxes on the uninsured in recent years and now have new potential hurdles.

    Prepare Your Business for Changes in Healthcare

    If your head is swimming from all of this and need help, or you’re simply looking for large group healthcare rates, consider reaching out to a Professional Employer Organization like GMS. We have a team of experts that can help you ride out these choppy waters, so contact us today to learn more about our group health coverage and other ways we can help your business.

  • Dealing with health insurance is one of the biggest challenges for a small business owner. Between the cost of insurance and the need to attract and retain talent, offering insurance is a major decision. Add in all the uncertainty that surrounds your responsibilities and health insurance can be a major headache.

    Simply put, health insurance administration is confusing. It’s understandable why employers are unsure about the health insurance requirements for small businesses – there’s a lot of information and only so much time to manage everything. This post will break down what you need to know about small business health insurance requirements and how you can keep your company compliant.

    Do Small Businesses Have To Provide Health Insurance?

    When it comes to small business health insurance requirements, this is likely the biggest question on your mind. The exact definition of a small business can differ from one organization to another. According to the Affordable Care Act (ACA), any business with 50 or fewer full-time-equivalent employees counts as a small business.

    That cutoff is significant because businesses with 50 or fewer full-time equivalent employees are not required to offer health coverage to their employees. However, these businesses are still required to provide a report about healthcare information to employees. This report should cover certain information about the health insurance marketplace, outlining what it is and how employees can contact the marketplace.

    A doctor going over the health insurance requirements for a small business.

    Requirements For A Small Business That Offers Health Insurance

    Despite health coverage not being mandatory, many small businesses with fewer than 50 full-time employees still choose to provide workers with health insurance because quality healthcare coverage can help businesses attract and retain top talent. This decision can be very beneficial, but it does mean that small business owners will need to take on a few new responsibilities.

    Minimum employer contribution for small business healthcare

    If an employer opts to offer group health insurance, the business must pay at least half of the monthly health insurance premiums. Employers must also meet the affordability threshold for the health coverage they offer. In 2022, an employee’s monthly contribution couldn’t exceed 9.61% of their income. The IRS adjusts this rate every year and has already announced that the affordability requirement will go down to 9.12% in 2023.

    Employees eligible for coverage

    Small businesses that offer health insurance are required to offer coverage to all full-time equivalent employees. Full-time equivalence requires an average of 30 hours of service per week for a calendar month or at least 130 hours of service in a month. You can also choose to offer health coverage to your part-time employees as well, although it is not mandatory.

    An employer may not discriminate between employees when offering insurance. If you offer insurance to some full-time employees, you must offer it to every employee. You must also provide health insurance to each employee’s dependents up until they turn 26 years old. However, federal law does not require employers to offer coverage to any spouses or other domestic partners.

    90-day maximum waiting period

    When an eligible employee is hired by a business that offers health insurance, that employee must be offered health insurance within 90 days of his or her employment start date. Employers may institute a waiting period before new employees can enroll in the company’s health insurance plan. A small business owner may also decide to waive this waiting period and allow employees to enroll as soon as possible.

    Summary of benefits and coverage (SBC) disclosure

    Employers are required to provide eligible workers with an SBC form to help individuals understand their options. This form explains what an employer’s plan covers and exactly what it costs employees. This includes breakdowns of specific costs, such as deductibles and out-of-pocket costs for varying medical events. The Department of Labor provides an online SBC template and other resources for any owners who provide health coverage.

    Tax Reporting Requirements For Small Business Health Insurance

    Offering comprehensive health coverage isn’t enough to meet your requirements. There are also certain tax reporting requirements that small business owners must follow if they decide to offer group health coverage. The following requirements include:

    What It Takes To Manage Healthcare Benefits

    In addition to following special requirements when offering healthcare, small business owners also need to consider how they’ll manage this new benefit. While employers can go through the Small Business Health Options Program (SHOP) to offer coverage for small groups, this means you’ll have to handle policy administration and health insurance billing.

    Fortunately, you don’t have to take on employee benefits administration alone. As a professional employer organization (PEO), GMS can leverage its buying power to procure quality group health insurance coverage with lower premiums than a small business would be able to obtain on its own. GMS also gives you access to trained benefits experts who can help small businesses stay compliant with any health insurance requirements.

    Looking to invest in health insurance for your small business? Contact GMS today to talk to one of our experts about how we can help you attract and retain quality employees through benefits administration and other services.

  • Let’s be honest; what business owner looks forward to managing payroll? While payday may be exciting for your employees, it’s likely that you’re not thrilled about having to put together payroll reports, track deductions, and oversee every other critical aspect of payroll administration, especially if you do everything by paper. 

    For some small business owners, payroll administration is just a necessary part of business life and the business isn’t big enough to justify its own HR department. While payroll administration is necessary, it doesn’t have to be a big burden. Online payroll software can give you the tools to take some of the pain out of payday preparation. Here are a few questions you should consider when evaluating your payroll management process.

    Small business owner using online payroll software. 

    Do You Spend Too Much Time on Payroll Administration?

    Payroll management takes time. A survey conducted by the National Small Business Association found that more than half of owners who handled payroll internally spent at least three to five hours per month on the administration of payroll taxes alone. That time doesn’t even include other key payroll functions like processing paychecks, keeping records, and answering questions from employees. 

    Five hours per month may not sound like a lot, but it adds up to 60 hours of payroll administration per year. That’s more than a full work week of time solely dedicated on payroll, and that’s if you only spend five hours per month. Depending on your situation, you could easily spend more time to try and keep your business compliant with payroll tax requirements. If you cut down the time you had to spend on payroll administration, it would free you up to focus on other key projects that can help you grow your business (or even take a well-deserved break every now and then).

    Are You Afraid of Payroll Taxes?

    It’s important to spend time to make sure your payroll is managed correctly, as noncompliance can be costly. According to the Federal Register, the Department of Labor increased the penalties for payroll tax violations effective Jan. 13, 2017, making penalties even more expensive now than they were in the past. 

    When you aren’t a trained payroll professional, mistakes can happen even if you spend more time on payroll tax management. A miscalculation or missing piece of information is all it takes to incur a penalty. Payroll software allows you to easily keep track of deductions online without having to shuffle through old sheets of paper to determine if you did everything right.

    Is Your Business Growing?

    Even if you have a handle on your business’ payroll now, that may not be the case in the future. The more employees you add, the more work will be necessary to complete payroll. If you handle payroll offline, that means more storage space for documents, more potential for mistakes, and more strain on your schedule. 

    Just because your business grows doesn’t mean that your already-hefty workload needs to get bigger. Online payroll allows you to manage everything from any location as long as you have an internet connection. Thanks to the ability to complete payroll in a fraction of the time, you can add more employees without worrying nearly as much about how much longer it’ll take you to handle payroll administration each month.

    Online Payroll for Small Businesses

    Small business owners wear many hats, but you don’t have to be on your own when it comes to payroll management. Outsourcing payroll administration to a Professional Employer Organization allows you to lessen your workload while gaining the benefits of online payroll services. Not only does this mean you can make the move to online payroll, but you also have access to a dedicated payroll specialist who can provide you with help when you need it.

    Considering investing in online payroll software? Contact GMS today to talk to one of our experts about how payroll software can help you and your business.

  • As a business owner, you likely didn’t start your venture with the excitement of managing payroll. Managing payroll is a daunting task due to its complexity and the meticulous attention to detail it requires. Staying compliant with the changing payroll tax regulations and labor laws adds another layer of difficulty. Mistakes in payroll can lead to significant financial penalties and damage employee trust, making accurate payroll management crucial but challenging.


    The time-consuming nature of payroll management can also detract from focusing on core business growth strategies. Fortunately, online payroll software offers a solution to streamline this process, allowing you to redirect your efforts toward business expansion. However, some business owners remain skeptical about transitioning to digital payroll solutions. Let’s address three common myths about online payroll software and reveal the truth behind them.

      

    Myth 1: Switching To Online Payroll Software Is Complicated

    Fact: While manual payroll management is indeed complex and time-consuming, transitioning to an online system is designed to simplify the process. The right software can streamline payroll tasks for both employers and employees, reducing the burden of paperwork and manual calculations.

     

     For instance, GMS’ online payroll is tailored to meet your specific needs and facilitate a smooth transition. We provide a dedicated payroll specialist to guide you through the setup process, answer questions, and ensure both you and your employees are comfortable with the new system. Our team collects necessary employee information to build your custom payroll system and offers personalized walkthroughs. Should any issues arise, dedicated support is readily available.

      

    Myth 2: It’s An Unnecessary Expense

    Fact: While there is a cost associated with online payroll software, it’s important to consider the time and resources it saves. According to The Business Journals, a survey found small business owners spend five hours or more each pay period, or 21 days each year, managing payroll. Online payroll software significantly reduces this time investment, allowing you to focus on core business functions.

    GMS’ online payroll system offers features that streamline the payroll process, including:

    • Easy tracking of deductions
    • Simplified workers’ compensation calculations and payments
    • Generate on-demand payroll reports
    • Direct deposit setup
    • Scan signed documents for compliance needs

     Moreover, access to payroll experts can help prevent costly errors, potentially saving your business from IRS penalties. The flexibility to manage payroll remotely is another significant advantage, enabling you to handle payroll tasks from anywhere with an internet connection.

      

    Myth 3: I’ll Lose Control Over My Payroll

    Fact: Investing in payroll software through a Professional Employer Organization (PEO) does not mean relinquishing control over your payroll. Instead, it provides you with enhanced tools for easier payroll management and access to expert support when needed.

      

    With GMS’ online payroll software, you maintain full control. The software doesn’t replace your accountant; it simply provides efficient tools to streamline payroll management. You can even customize what employees see when they log into the payroll site, ensuring you always stay in charge while benefiting from simplified processes.

      

    Take Your Time Back With Online Payroll Services

    In today’s fast-paced business environment, leveraging technology to streamline operations is crucial. GMS understands this need and offers comprehensive payroll solutions designed to save time, reduce errors, and provide expert support. Our online payroll software, combined with our team of payroll experts, ensures that you can manage your payroll efficiently while maintaining full control.

      

    By choosing GMS, you’re not just getting software; you’re gaining a partner committed to your business’s success. Our payroll services, backed by cutting-edge software and knowledgeable professionals, can help you navigate the complexities of payroll management with ease. Whether you’re looking to improve efficiency, ensure compliance, or simply free up more time to focus on growing your business, GMS has the tools and expertise to support your goals.

      

    Don’t let payroll management hold your business back. Contact GMS today to learn how our online payroll solutions can benefit your business and propel it toward greater success.

  • Whether you have a single paid employee or run a small business with many employees, you need to pay attention to payroll. However, payroll involves more than cutting a few checks. Good payroll management is comprised of several different functions that help you properly pay your employees and keep your business compliant with government regulations.

    Payroll documents for a business handling payroll management. 

    Processing Paychecks

    While payroll management involves more than just paying people, proper paycheck processing is still a critical function. Employees don’t appreciate paycheck errors, so a payroll manager needs to verify several details that go into an employee’s compensation. This includes verifying salary and hourly rates while also accounting for regular and overtime hours. Additional compensation in the form of vacation time, holiday pay, and other factors may also apply.

    Another part of processing paychecks is applying any necessary deductions. Some of these deductions, such as federal income tax, are mandatory. Other are optional depending on the employee. For example, an employee who has opted into a company’s group health insurance and 401(k) plans will have insurance premiums and retirement contributions deducted from his or her paycheck.

    Handling Payroll Taxes

    Your employees aren’t going to be the only people upset if you don’t correctly process payroll. Roughly 70 percent of the IRS’ annual revenue is made up of payroll taxes. This means failing to pay payroll taxes can be a costly mistake, as businesses are hit with billions of dollars in payroll tax penalties each year. 

    Payroll managers need to weigh several factors to determine tax deductions, as different regions will have different tax rates. Then they must complete several forms documenting payroll taxes, which includes filing W-2s for each employee by Jan. 31 and completing a 941 form that reports the employment taxes an employer withholds and contributes each quarter. Not only do these files need to be filed accurately, they need to be filed on time, which can be difficult for someone without any training in payroll tax management.

    Keeping Records

    In addition to payroll tax compliance, payroll management also includes a great deal of recordkeeping. The Fair Labor Standards Act (FLSA) requires employers to keep accurate records for every non-exempt worker. These records include:

    1. Employee’s full name and social security number
    2. Address, including zip code
    3. Birth date, if younger than 19
    4. Sex and occupation
    5. Time and day of week when employee’s workweek begins
    6. Hours worked each day
    7. Total hours worked each workweek
    8. Basis on which employee’s wages are paid (e.g., “$9 per hour,” “$440 a week,” “piecework”)
    9. Regular hourly pay rate
    10. Total daily or weekly straight-time earnings
    11. Total overtime earnings for the workweek
    12. All additions to or deductions from the employee’s wages
    13. Total wages paid each pay period
    14. Date of payment and the pay period covered by the payment

    The FLSA also states that payroll data should be kept on file for three years. Records that involve wage computations should be kept for two years, such as work schedules, time cards, and other related documents. A payroll manager can ensure that these documents are stored electronically in case the Department of Labor [DOL] ever decides to check in on a business.

    Employee Accessibility

    It’s important to have financial documents readily available for the DOL, but employees should also be able to access key payroll information. An online employee portal like GMS Connect gives workers a secure online place where they can access personal information, such as:

    • Benefits summaries
    • 401(k) summaries
    • Check history and deduction totals
    • Direct deposit details
    • Time clocks
    • Paid time off 

    In addition, GMS Connect allows employees to download and print out important documents such as W-2s, change tax settings, and make payroll inquiries, which gives your employees the power to answer their own questions come tax season.

    Simplify Payroll Management with the Help of a PEO

    Payroll isn’t easy. As a small business owner, you may not have an HR department to deal with the responsibilities and liabilities of payroll management. However, that doesn’t mean you need to manage payroll on your own.

    Outsourcing payroll administration to a Professional Employer Organization can help you ease the burden of managing payroll for your business. GMS can help you handle all the important financial details, allowing your business to effectively manage payroll and stay compliant. Contact GMS today to talk to one of our experts about how outsourcing payroll administration can benefit your business.

  • As a small business owner, you’ve likely thought of ways that you can cut business expenses to save money. One of these ideas may involve whether you should invest in outsourcing HR or hiring in-house HR professionals.

    HR just isn’t that important when you don’t have many employees, right?

    Wrong. Every business needs to deal with critical HR functions, whether it’s a major corporation or a five-person business. Here’s what you need to consider the next time you think about whether your business needs HR management.

    Employees at a small business thEmployees at a small business that outsources HR management.at outsources HR management.

    HR Needs for Small Businesses

    Payroll

    If you have employees, you’re going to deal with payroll. While you can manage payroll on your own, simple mistakes can get pricey. Inc. reports that “the IRS penalizes about one out of every three business owners for payroll errors,” with penalties costing small businesses up to $4.5 billion per year according to Bloomberg.

    Compliance is likely not your only concern when it comes to payroll. More than half of small business owners spend at least three hours a month managing payroll. Investing in HR can give you the time you need to focus on other key business items instead of struggling with payroll management.

    Hiring and Firing

    While you have a smaller staff, every hiring decision is crucial. SHRM found that the average cost per hire is around $4,129, which makes every bad hire a costly mistake. 

    An HR function like employee recruiting and training can help you find the right people for your business and better prepare them for their roles, lowering the chances of a bad recruit. HR can also handle employee performance management. This involves not only keeping employee policies up to speed, but also handling everything involved with employee termination, such as legal regulations and internal procedures.

    Risk Management

    One crucial aspect of good HR is that it can help you deal with costs that you may think can’t be managed. Let’s say that you had to fire an employee. That employee could make an unemployment claim. Another worker may get injured on the job and try to argue that your workplace was unsafe. These scenarios could end up being very costly for a small business without the right compliance documents and risk management strategies.

    HR professionals can take actions to protect your business. Managing key documents like employee handbooks and keeping track of performance records can be the evidence you need to fight off future claims. A good HR partner can also help lower standard workers’ compensation rates and unemployment taxes through detailed record-keeping and management, offering you some savings in places you wouldn’t have expected to be possible.

    Benefits

    You don’t have to be a big employer to offer group health insurance and other attractive benefits. While businesses with fewer than 50 full-time employees don’t have to offer health insurance, 95 percent of HR professionals cite health care benefits as a top benefit for employees, making an intriguing benefits package a great way to attract and retain top talent.

    Of course, offering these benefits can be expensive and time-consuming without expert help. An employee benefits administration team can help you identify exactly what benefits your employees want, keeping you from wading into a pool of healthcare compliance and helping you offer an attractive package that won’t break the bank.

    Find the Right HR Option for Your Small Business

    A small business has a lot to gain from quality HR management. A good HR partner can handle everything from complicated tax compliance concerns to helping you understand which employee documents you need to keep on file, but that doesn’t mean you need to hire a whole staff in the process. The key is to find an HR solution that fits what you need and can grow along with your business. 

    A Professional Employer Organization (PEO) allows small businesses to find an HR management solution that suits them. A PEO gives you access to HR professionals who can manage your payroll, benefits, and any other key HR functions, saving you time and ensuring that your business is covered in the process. Contact GMS today to talk to one of our experts about how we can help your business.

  • A lack of motivation can really cost your business. Entrepreneur reports that disengaged, disinterested employees have led to a loss of up to $550 billion per year for U.S. businesses. Fortunately, there are ways that you can help motivate your employees so that they’re ready to give it their all every day. Here are three steps that you can take to engage your employees.

    A motivated employee. 

    Build Relationships

    Just how important is it to build a relationship with your employees? When the Society for Human Resource Management (SHRM) conducted a survey on job satisfaction and engagement, a whopping 95 percent of respondents noted that “their relationship with their immediate supervisor plays an important role in how they feel about their job.”

    Whether you work directly with your employees or have a management staff that supervises everyone, it’s important to build a welcoming culture that places an emphasis on communication. Employees want to feel like their voices are heard, and the occasional email or chat message isn’t going to be enough to motivate them. Some ways to improve workplace communication include:

    • Establishing regular face-to-face communication with employees
    • Set regular meetings where employees can share input, such as weekly townhall meetings or monthly retrospectives
    • Offer an anonymous feedback system
    • Invest in online communication tools, such as Slack or HipChat

    Instituting some of these practices can give employees an avenue to share their thoughts and feelings. However, communication can be about more than just the workplace. Showing an interest in employees’ lives outside of the office can show your employees that they’re more than just a dollar sign, which can inspire them to become more invested in your business and motivated to do great work.

    Let Them Grow

    Future opportunities can play a big role in an employee’s motivation. SHRM’s job satisfaction and engagement survey found that roughly half of respondents noted that “career advancement opportunities within their organization were very important to their job satisfaction.” Fortunately, there are many ways that you can help your employees develop as a part of your business.

    Hiring internally can be a powerful tool that can allow your workers to make the next logical step in their career. Internal candidates already know your company intimately, and you have the advantage of knowing what their skills are before you offer them the job. For your employees, it gives them a big forward step without having to leave for a new company. In return, you get to retain key talent and help your workers grow. Also, internal hires can be up to 20 percent cheaper to hire than external candidates, which adds some cost savings to your team development efforts.

    If you don’t have any open positions, you can still help your employees develop. Offering employee training or allowing workers to attend educational conferences and trade shows can give them the ability to learn new skills that they can use at your business. It also shows that you care about their career development, which can serve as a great motivational tool.

    Give Your Employees Benefits That They Want

    Money is a big motivator, but it isn’t always the biggest factor for employees. According to the Harvard Business Review, “80 percent of employees would choose additional benefits over a pay raise.” Catering your benefits package to the wants and desires of your employees can act as a good source of motivation.

    Of course, employees may value certain benefits more than others depending on their needs at home. Across generations, employees’ preferences have changed, which can impact which types of benefits you may consider adding to help motivate your workers. Glassdoor offers some insight into what benefits each generation tends to value:

    • Baby Boomers value salary level, health insurance, and a retirement plan
    • Gen Xers value salary level, a 401K plan with matching benefits, job security, advancement within the company, and opportunities for work-life balance
    • Millennials value benefits choices, paid time off, ability to work remotely, control over their schedules, and a great deal of flexibility

    Each business is different, so you may find that giving your employees some work-from-home privileges to be beneficial while another business owner may see more value in employee training. It can also be beneficial to listen to what your employees have to say on the matter, whether it’s in person or during a regular meeting that you set up to improve communication. 

    By listening to their wants and needs and amending your benefits package in a way that makes sense for both your business and your employees, you can show your workers that your company is one that values them. In turn, this can inspire them to keep up the hard work and become more invested in your business.

    Get Some Help to Motivate Your Employees

    While implementing employee management initiatives to motivate employees can be very valuable, it can also be a lot of work to take on by yourself. Partnering with a Professional Employer Organization allows you to turn to HR experts to set up employee training programs, get the most bang for your buck on benefit plans, and manage other critical HR functions that can keep your workforce motivated. 

    Contact GMS today to talk to one of our experts about how we can help you with employee management.

  • Employees are at the heart of every business. From managers to entry-level staff, they are the key to long-term success, so ensuring you have a satisfied, dedicated, and productive team is critical. For small businesses, everyone on your team is integral to the workflow, and the failure of a single employee can have a more significant impact than larger organizations. Because of this, it may be tempting to fire employees who are underperforming and start fresh, but that’s not always the best solution. Taking the time to implement employee management strategies can be the answer to turning a situation around.

    Employee management is not just about reacting to underperformance or issues. It is a proactive approach that shapes the performance and potential of your workforce. It’s more than just ensuring that people are doing their jobs; it’s a range of procedures and strategies that enable you to measure, monitor, and engage with your team, all of which are crucial to your company’s success.

    How Does Employee Management Work?

    Employee management involves a strategic approach to overseeing your organization’s workforce to ensure effective and efficient functioning. It should play a role in every part of the employee lifecycle, starting with employee recruiting and training to guarantee that suitable candidates are properly vetted and onboarded. This involves adopting a few crucial tactics to allow your employees to realize their full potential.

    Support open communication

    Teams that can effectively communicate are 25% more productive than those that cannot. Communication significantly impacts team morale, retention, and recruitment. When communication breaks down, it can exacerbate other issues, leading to more significant problems over time.

    Of course, good communication is more than just talk. It’s essential to set up processes that give employees a voice and allow you better means to listen to their thoughts, suggestions, and complaints. These include:

    • Being visible: Ensure your employees see you around the workplace and know you’re available to talk with them if they need anything. If your team is virtual or hybrid, it’s worth establishing a set time when your team knows you’re free to chat. In addition, you might take the extra step of regularly checking in with your team without them initiating the conversation.
    • Being transparent: Share company information with your employees. Sharing overall objectives, status of projects, and other relevant information will help your team feel included.
    • Being open to criticism: Ensure a proper grievance policy is in place so employees know how and with whom to share any issues they face. This feedback mechanism can help identify potential problems that may negatively impact employees. In addition, addressing these issues whenever possible is crucial. Acting on employee feedback can increase trust in the workplace by 75%, which in turn helps with morale.

    Fostering a culture that values open communication and establishes clear policies and channels for staff communication can mitigate many long-term issues. Beyond these practices, there are more strategies you can implement to help boost engagement and productivity, including:

    Employee development

    Training and development are critical components of effective employee management. Orientation programs help new employees understand the company culture, policies, and roles, ensuring smooth integration into your team.

    Additionally, career development opportunities provide pathways for professional growth and advancement, motivating employees to perform better and remain committed to your organization. Investing in training and development can build a skilled, knowledgeable, and motivated workforce that drives long-term success.

    Build trust

    Individuals in low-trust companies are, on average, 74% more stressed than their peers in high-trust companies. High-stress environments can damage morale and productivity, increase absenteeism, and lead to employee disengagement. Once the downward spiral begins, this harm to your company culture can be challenging to recover from.

    One way to help build trust with your employees is by avoiding micromanagement. Give them enough space to work independently and step in when they need help or to check in on progress. By giving them a level of independence within reason, you can build confidence that can help motivate your employees.

    How Much Does Employee Management Matter?

    Without careful attention to employee management, your team can become disengaged and disconnected, leading to significant costs over time. Poor performers, on average, cost companies 30% of their annual salary; their mistakes, absenteeism, and negative attitudes can permeate your company culture, affecting overall employee well-being. This not only diminishes overall productivity, but neglecting these aspects can result in a cascading effect, where the burden of compensating for underperformers falls on the shoulders of your top talent. This can lead to burnout or discontent, eventually affecting your recruitment and retention.

    Knowing when to terminate the employment of a poor-performing staff member can be difficult but is often necessary. To protect your business from legal issues, you can place poor performers on professional improvement plans (PIPs). These plans should detail specific steps, set clear goals, and outline how you’ll evaluate progress. If a poor performer cannot address the areas you’ve identified, you can proceed with termination, confident that you’ve done everything possible as an employer to facilitate improvement.

    While there are instances where immediate termination is required, it’s still essential to have a clear plan in place. It’s important to have a fair and transparent process for all employees, ensuring that decisions are well-documented and justified.

    Overall, empowering employees to do their best and weeding out those who don’t show any potential for improvement can make your business more effective and save you from ongoing costs caused by poor performance.

    Focus On Employee Management

    Employee management is not just a one-person job. It involves many parts requiring plenty of time and effort, such as performance reviews, a grievance policy, and more. Fortunately, you don’t have to work on employee management alone. A professional employer organization (PEO), like GMS, can take on some of the administrative burden required to improve employee performance and other essential HR functions. Contact us today to talk to one of our experts about how we can help you manage your employees.

  • The fiduciary rule has had a bumpy ride in the past few years. After initially going into partial effect in June of 2017 and targeting Jan. 1, 2018 for a full rollout, the move to have all financial professionals who work with retirement plans follow the same fiduciary ethics and standards was postponed until July 1, 2019. Now MarketWatch reports that the Fifth Circuit Court “struck down the Labor Department’s fiduciary rule” in a split decision Thursday, March 15, 2018.

    This may not be the end of the fiduciary rule, however. According to Forbes Contributor David Trainer, the fiduciary rule may still make an impact even after being struck down. Trainer writes “While the ruling could end the Fiduciary Rule as law, it cannot erase the awareness the DOL [Department of Labor] raised, nor can it stop market forces leading the business towards a more ethical place.”  

    So, what does this mean for business owners? The fiduciary rule wasn’t designed to directly impact you as an owner, but it does affect the financial advisors connected to your business. Here’s a quick rundown of how the fiduciary rule can still make an impression on financial advisors and what that may mean for your business.

    Financial advisors for a small business 401(k) plan.

    What It Does

    According to Investopedia, the fiduciary rule “expands the ‘investment advice fiduciary’ definition under the Employee Retirement Income Security Act of 1974 (ERISA).” In simpler terms, it was designed to give financial professionals who work with retirement plans or offer retirement advice the same legal and ethical standards of a fiduciary.

    With this rule in place, retirement advisors would have more responsibility placed on them. According to Investopedia, the rule would leave “no room for advisors to conceal any potential conflict of interest,” which would include stating “all fees and commissions for retirement plans and retirement planning advice must be clearly disclosed in dollar form to clients.”

    Even though the rule has been struck down for now, it may not be dead quite yet. Trainer notes in his Forbes piece that the DOL could start on a new rule addressing the matter or request a stay in the Fifth Circuit Court’s ruling. The Wall Street Journal reports that the U.S. Securities and Exchange Commission is also “close to proposing rule requiring new disclosures on financial advice.” Even without going into effect, Trainer suggests that the fiduciary rule has raised awareness of fiduciary responsibility for owners and investors.

    What It Means for Owners

    Fiduciary responsibility can be intimidating, especially if you aren’t well versed in the legal responsibilities associated with 401(k) management and other financial decisions. The push for the fiduciary rule can help ease this burden by placing more of this responsibility on your financial advisors. However, it may lead some advisors to pull away from managing 401(k)s for businesses because it places more scrutiny on them. 

    Fortunately, there are other options that can take a lot of the fiduciary responsibility off your plate. By having a Professional Employer Organization like GMS manage your 401(k), you’re able to offload a lot of the financial risks associated with the plan. This includes financial transaction risk, as we’re responsible for making sure that money gets remitted to the financial institutions. We deduct that money out your payroll and send it directly to Transamerica, our record keeper. We’re also responsible for maintaining plan documents and making sure they stay compliant. If something happens, like an IRS restatement, we’re the ones responsible for applying it, not you.

    The exact form of the fiduciary rule may change, but financial responsibility can always be problematic for an owner. Contact GMS today to talk to one of our experts about how we can help your business manage its 401(k) plans so that we can take on that responsibility for you. 

  • Wellness programs have become very popular in recent years. In its 2017 Employee Benefits Survey, The Society for Human Resource Management (SHRM) found that 24 percent of organizations added to their wellness benefits, which was the biggest increase for any benefit during the year. 

    While more businesses are investing in wellness initiatives, some owners may ask how effective workplace wellness programs really are. The answer to that can depend on your goals.

    Employees using a workplace wellness program.

    How to Measure the Success of a Workplace Wellness Program

    To determine if a wellness program works, you need to define what you would consider success. It can be misleading to attribute the effectiveness of a wellness program to individual factors, like overall weight loss. Instead, the point of a wellness program is for employees to establish long-term healthy behaviors that help them improve their overall wellbeing.

    Can a wellness plan help instill long-term healthy behavior? A study in the U.S. National Library of Medicine found that people who participate in wellness coaching “improved their current health behaviors and learned skills for continued healthy living.” In turn, the improved health of these employees helps them be more productive, while their improved health can allow their employers to save money on costly healthcare benefits. 

    These small changes can have big effects, as the overall health of a group is one of the factors that determines how your group health insurance premium is calculated. For example, the American Lung Association cites that “employers can save nearly $6,000 per year for every employee who quits smoking.”

    Money isn’t the only factor. According to SHRM, “Three-fourths of organizations promote wellness to improve overall employee satisfaction and well-being, with just 25 percent hoping to reduce health care costs.” A wellness program can be about much more than just health savings and weight loss. It can also serve as a way for owners to show their employees that they have their well-being in mind and serve as an attractive benefit to attract and retain top talent.

    Small Business Guide to Health & Welness

    Is Your Wellness Program Set Up for Success?

    Like any other type of project, a wellness program needs to be run effectively to work. A Professional Employer Organization can help your business set up a dynamic program that includes several key components that foster healthier lifestyle decisions and sets your workers up for long-term success. Contact GMS today to talk to one of our experts about the benefits of a workplace wellness program or any other important employee benefits administration needs.