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  • Payroll taxes are complicated, especially when you don’t have any payroll training. Small business owners have several tax responsibilities that they must manage throughout the year, which can take up hours of your time each month. Of course, if you incorrectly calculate the tax withholdings for someone’s paycheck, both the employee and the federal or state government may have a bone to pick with you.

    One of the most time-consuming and difficult parts of payroll tax management is that there is more than one type of tax that you need to handle. You are responsible for withholding multiple types of taxes from your employees’ wages, including income tax and payroll tax. These taxes each have specific rules in terms of how you and your employees contribute to them and what groups regulate them. Here’s a rundown of the difference between income tax and payroll tax.

    Income tax and payroll tax documents for a small business.

    What is Income Tax?

    Income tax is part of what the IRS deems as employment taxes, which also includes items like unemployment taxes. In all, income tax is comprised of federal, state, and local income taxes, depending on where your business and employees are located. These taxes are used to fund public services such as parks, education, and other programs.

    Federal income tax is mandatory for employees in all states. The amount of federal income tax you withhold from each employee’s paycheck will depend on the allowances they selected on Form W-4, which is required for each employee after they’re hired. The more allowances an employee claims, the less you’ll generally have to withhold from his or her paycheck. The IRS’ Publication 15 provides calculation methods and table so that you can determine what needs to be withheld from each employee’s paycheck.

    State and local income tax are regulated by individual state and local governments. However, only 41 states require employers to withhold state income tax from employees’ wages. Two states—New Hampshire and Tennessee—have income taxes that don’t apply to employment income. The seven other states simply don’t have any income taxes to worry about at all:

    • Alaska
    • Florida
    • Nevada
    • South Dakota
    • Texas
    • Washington
    • Wyoming

    Local income taxes are not nearly as common as state income taxes. There are only 16 states that require you to withhold local income taxes in addition to state and federal income taxes:

    • Alabama
    • Arkansas
    • Colorado
    • Delaware
    • Indiana
    • Iowa
    • Kentucky
    • Maryland
    • Michigan
    • Missouri
    • New Jersey
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • West Virginia

    While you can use Publication 15 for instructions on how to calculate federal income tax, state and local income taxes are dependent on the location of your business and your employees. Each state has its own rates for state and local income tax (if applicable), some of which will be a flat percentage while others have their own personal allowance system that require additional calculations. You’ll need your state government’s site to find specific details in terms of withholding rates and depositing schedules.

    It’s also important to note that while your business may be in one state, out-of-state employees may be subject to different payroll regulations depending on their location. This can affect the amount of income tax you withhold from these employees’ wages and open you up to non-compliance penalties, so make sure you stay up to date with the regulations for different states and local governments if they apply to your employees or multiple business locations.

    What is Payroll Tax?

    While multiple taxes affect payroll, the IRS does have a more specific definition for “payroll taxes.” These taxes are also known as FICA taxes and are a combination of Social Security and Medicare taxes, both of which fall under the Federal Insurance Contributions Acts (FICA). As expected, these taxes are used to fund Social Security and Medicare programs.

    Unlike federal income tax and some state and local income taxes, payroll taxes are based on a flat percentage. However, FICA taxes also call for both employees and employers to contribute to them. For Social Security tax, both parties contribute 6.2 percent of an employee’s wages up to a wage base of $128,400 for 2018. Medicare tax is similar in that both the employer and employee contribute 1.45 percent of the employees wages up to the following wage base limits:

    • $200,000 for employees who are single
    • $250,000 for employees who are married and file jointly
    • $125,000 for employees who are married and file separately

    However, Medicare also requires you to withhold an additional 0.9 percent of wages once an employee passes those wage base thresholds. As an employer, you are not required to match this additional 0.9 percent contribution.

    Stay on Top of the Payroll Process

    The multiple types of taxes involved in the payroll process are just one reason why one third of small businesses spend at least 40 hours per year managing payroll taxes. Add in the potential for mistakes that can lead to fines from the IRS and it makes sense why many small business owners turn to outside companies to help them manage their payroll.

    As a Professional Employer Organization, GMS has a team of experts that can help decrease your payroll responsibilities and liabilities while saving you valuable time. Contact GMS today to talk to one of our experts about how outsourcing payroll administration and other HR functions can benefit your business.

  • There’s more to payroll than calculating wages and submitting pay stubs. Payroll management is a detailed process that requires business owners to properly compensate employees for services performed, which includes calculating employee hours, distributing pay, withholding taxes, and keeping detailed financial records. As a business owner, this can be a lot to tackle. Luckily, there are trusted companies like Group Management Services (GMS) that can provide payroll services to business owners just like you.


    Although outsourcing payroll services is more expensive, it can save you time and potentially reduce compliance issues. When you outsource payroll administration to an outside company, such as a professional employer organization (PEO), you have access to payroll experts who take care of every function of payroll management, such as recordkeeping, handling payroll taxes, and processing paychecks. While a PEO like GMS streamlines these payroll processes, you will still retain full control and direction over your employees.

    As a PEO with strong data security, quality customer service, and accurate payroll processing technology, Group Management Services can be the trusted partner that decreases your workload, lowers liability, and ensures compliance.   


    Setting Up Your Payroll 

    Before you can begin running payroll, you need to set up your payroll system. The first step involves registering for an Employer Identification Number (EIN). 

    1. Apply for an employer identification number

      An employer identification number is a unique nine-digit number the Internal Revenue Service (IRS) assigns to identify each business. EINs are also used for filing tax returns, submitting payroll, and providing identity protection for your company. You can obtain an EIN for free on the IRS website. Additionally, depending on local and state government regulations, you may need a state ID number to pay state income taxes. Learn more about your state’s registration requirements here.


    2. Collect employee information
      To properly pay your employees, you need to collect the necessary information. Employers must obtain each employee’s full name, address, Social Security number, and tax withholding forms. Each employee must also fill out the following government documents:
      • Form I-9: Employee Eligibility Verification 
      • Form W-4: Employee’s Withholding Certificate 
      • State withholding allowance certificates
        • In most states, you’re required to withhold state taxes, as well as federal income taxes, from employee wages. Therefore, your employees must complete the IRS Form W-4 or a state withholding certificate. 
    3. Determine a payroll schedule
      After collecting the necessary business documentation and employee information, it’s time to choose a payroll schedule. A payroll schedule is the length of your pay period and determines how often you pay your employees. The most common pay schedules are weekly, bi-weekly, or monthly.  

    It’s important to note that your pay schedule should meet state regulations and fit your employees’ needs. For example, a payroll schedule may differ for a business that employs all salaried workers compared to a company that employs mostly hourly employees. 


    Payroll Management 

    Once you’ve obtained your EIN, the necessary employee information, and selected your payroll schedule, it’s time to run your first payroll. We’ve listed a brief overview of how to get started running your first payroll: 

    1. Calculate gross and net pay
      To calculate gross pay, you must add up the hours worked by an employee during the predetermined pay period; make sure to include bonuses or overtime pay. The total hours worked is then multiplied by each worker’s pay rate to determine the gross pay. Employers often use timesheets, punch clocks, spreadsheets, or timekeeping software to make time tracking easier. 

      After calculating gross pay, it’s time to make your pre-tax deductions. If you offer your employees benefits such as a 401(k) retirement plan, health benefits, or life insurance, then you’ll need to withhold those contributions. Next, you must deduct Federal Insurance Contribution Act (FICA) taxes, which include federal and state income tax, Social Security taxes, and Medicare taxes. Then, you must subtract the post-tax deductions, which may include court-ordered wage garnishments or union dues. 

      When all pre-tax and post-tax deductions are subtracted from the gross pay, your final number is your employee’s net pay or the amount your employee takes home. 

    2. Pay employees and deduct withholdings

      After making your payroll calculations, you’re ready to generate paychecks and initiate direct deposits. Payroll taxes must be filed with the government regularly and vary based on local regulations, business size, and location. You may be liable to pay the IRS if you fail to withhold the employee portion of employment taxes. 


    Filing And Documentation 

    While calculating payroll and tax deductions is an important part of processing payroll, you also must file these deductions with various agencies, including the federal government.  These tax reports include: 

    • Form 941 – Employer’s Quarterly Federal Tax Return
      • Employers use this form to report income taxes, Social Security taxes, and Medicare taxes withheld from employee paychecks. 
    • Form 940 – Employer’s Annual Federal Unemployment (FUTA) Tax Return 
      • Only employers pay FUTA taxes – DO NOT deduct FUTA tax from employee wages. 

    After filing these reports, you must document and store these records. Filed records should include tax filings, pay stubs, and employee information such as address, occupation, birth date, and more. Business owners must keep all payroll records and documentation for at least three years. Failure to do so may result in costly penalties or non-compliance fees. Businesses that violate Fair Labor Standards Act (FLSA) requirements, such as minimum wage, overtime pay, or record-keeping, may be fined up to $1,000 per violation. Keeping payroll records is also useful when you send your annual report to the IRS and can provide evidence if there is ever an employee compensation dispute or audit. These fees can quickly add up and take their toll on your bottom line. 


    Choosing Your Payroll Process 

    It’s important to note that there’s more than one way to process your payroll. The best option for your company may depend upon your industry, budget, the type of workers you have, or the amount of time you have. There are three main options to choose from: 

    1. Manual payroll
      Manually processing payroll is the most inexpensive way to process it. Despite the fact that manually processing payroll is less expensive than software or outsourcing, you, as a business owner, will be liable for any mistakes made. If you’re like most business owners who don’t have extensive payroll training, manually managing payroll can leave you vulnerable to costly errors and IRS penalties.  

    2. Payroll software
      Investing in payroll software allows you to streamline your payroll process by managing tasks online, automating payroll calculations, and more. While software can save time and simplify the overall process, you will still need to oversee payroll compliance and management. 

    3. Outsourcing payroll
      Although outsourcing payroll services is more expensive, it can save you time and potentially reduce compliance issues. When you outsource payroll administration to an outside company, such as a professional employer organization (PEO), you have access to payroll experts who take care of every function of payroll management, such as recordkeeping, handling payroll taxes, and processing paychecks. While a PEO streamlines these processes, you will still retain full control and direction over your employees. 

    GMS: A Trusted Payroll Partner 

    Whether you’re a payroll expert or not, the payroll process can be tedious. It can also be time-consuming to manually calculate paychecks or stay up to date on payroll regulations and important filing dates. Luckily, Group Management Services (GMS), a PEO, can take the burden of payroll off your shoulders.  

    With GMS’ state-of-the-art payroll technology and dedicated Payroll Specialists, you can spend less time worrying about overtime calculations and tax deductions and more time focusing on growing your business. As a PEO with strong data security, quality customer service, and accurate processing technology, GMS can be the trusted partner that decreases your workload, lowers liability, and ensures compliance.  

    Contact GMS today to simplify your payroll process! 

  • Thanks to technological advancements in the modern workplace, remote work, or work-from-home (WFH) jobs have become increasingly more common. According to the Global Workplace Analytics’ analysis of 2018 American Community Service data, work-from-home jobs have grown 173 percent since 2005—11 percent faster than the rest of the workforce. Remote work has likely grown even more so as a result of the 2020 outbreak of COVID-19, which prompted many employers to shift to a remote work model to limit the spread of the coronavirus. 

    Telecommuting can be an attractive work option for both employees and employers. For employees,  flexible work hours and more time to spend with family can make remote work an ideal situation. For employers, hiring remote workers can save money and increase productivity if you manage your remote team effectively. 

    As more businesses implement work-from-home policies, employers will need to consider how the trend will impact HR initiatives. Here are some best practices for managing HR for remote employees.

    A small business employee working from home.

    Remote Employee Performance Management

    How do you manage an employee that you don’t see face-to-face every day? With technology and some effort, it may not be as hard as you think it is. In fact, some evidence shows that working remotely can improve performance. 

    According to the Society for Human Resource Management (SHRM), “77 percent [of employees] reported greater productivity while working offsite.” In addition, the article cites a U.S. News & World Report story that states “Telecommuters log five to seven more hours per week than non-telecommuters” With good management, remote employees can be a boon for business.

    Of course, this can all depend on making sure that proper employee performance management practices are in place to monitor performance and make sure that employees stay engaged. In terms of monitoring performance, timesheets or online time tracking can help you keep track of employee productivity.

    It’s also good to set up phone or video check-ins to see how they’re doing (but not so often that it feels like they’re being micromanaged). In addition, regular facetime can help remote employees feel like they’re a part of the company.

    While telecommuters can have flexible schedules, it’s a good idea to make sure that part of their schedules overlap with office workers and that they work together via Skype, Zoom, Slack, or other communication programs. 

     

    Payroll for Remote Employees

    Managing payroll can be a complex and time-consuming task for any business owner. However, remote employees might be subject to different payroll regulations and laws depending on where they’re located. Each state, county, and even city can have its own stipulations on how much people are paid and how it happens. This can affect multiple aspects of payroll compliance, including:

    Employers must also find a way to display federal and state labor law posters for remote employees. You can electronically share the posters via email or in an employee online workplace portal, or you can mail copies for the employee to keep.

    In addition, employers need to be aware of any state requirements for the reimbursement of business expenses that remote employees may incur, such as Internet access from a home office. Where the expense may be used for business and personal use, such as having a stable WiFi connection, consider a system to help employees monitor and record how much of the cost is related to business activities and reimbursing employees at least that amount.

    Nobody wants to be hit with costly non-compliance penalties, especially for infractions that could be easily avoided. If your employee works in a different city, make sure that you or your payroll provider checks each state’s payroll regulations to make sure that your business is compliant.

     

    Hiring Remote Employees

    While some HR functions may be impacted more by remote work locations, the hiring process can be very similar to what it would be for anyone who works on location. Aspects of the process like creating face-to-face time for an interview, assessing skills, and determining if someone is a good culture fit all apply to remote employees as well.

    While it’s not always possible to have remote applicants sit down for an in-person interview, technology gives you a way to conduct a “face-to-face” interview. Video interviews through Skype, Zoom, and other tools allow you to still get a more personal feel for how an applicant would fit through nonverbal communication and body language.

     

    Terminating Remote Employees

    As for termination, you need to take the same precautions that you would for someone located in your office. Create a checklist of matters to address when an employee is terminated, such as final pay requirements, removing IT and security access, and retrieving any company property in their possession (if the employee has anything). If the employee is out of state, make sure to review the laws in that state. For example, final payment laws can differ, impacting what’s included in a final paycheck and deadlines for when it must be provided.

    Another item to consider is how you inform your soon-to-be former employee about the termination. Even if he or she telecommutes, it’s good to let an employee hear the news face-to-face, whether it’s for an in-office meeting or through a video conferencing tool like Skype. The latter may not be as personal, but it’s much better to let someone know about a dismissal during a video conference than via email.

     

    Workplace Safety Concerns for Work-from-Home Employees

    Even though remote employees may not work in your office, they still may be subject to health and safety regulations. The level of responsibility an employer has regarding workplace safety for remote employees is hazy. 

    According to SHRM, OSHA is on record as saying that it “will not conduct at-home workplace inspections and that it will generally not hold employers liable for at-home safety issues.” However, the article also cites attorney Alec Beck stating that “OSHA continues to maintain that employers are responsible for safe working conditions regardless of location.” 

    As a result, the best plan of action is to create safety reporting systems and policies that can help protect you and your employees. SHRM suggests the following risk management strategies to help reduce the chance of claims against your business:

    • Create an at-home work policy and disseminate it to all employees.
    • Require that remote employees create and provide evidence of a dedicated work area at home that has been set up according to your specifications.
    • Periodically follow up to ensure compliance.
    • Require employees to have homeowner’s or renter’s insurance that covers any potential equipment damage or liability.
    • Review the employer’s insurance to make sure that all contingencies are covered—including business travel incidents.
    • Make it clear that computer security issues are monitored and that employees wishing to use their own computers must have safety protocols installed.

     

    Manage HR for Remote Employees with a PEO

    It takes a lot of hard work to run a business. Telecommuting adds yet another layer of complexity to HR management, a task that already requires plenty of time and know-how. This amount of work and expertise is a big reason why many businesses turn to a professional employer organization (PEO) to help manage HR.

    At GMS, our experts can help you save time and strengthen your business through payroll management,  benefits administration, and other key functions. Contact GMS today to talk to one of our experts about how we can help your company manage remote employees.

  • My experience as an intern at GMS has been nothing short of amazing. In the three months that I’ve been here, I have had times of information overload—in a good way—and times of building relationships. When I talk to my friends about their internship experiences and they begin to explain the tasks they have to complete, I often hear “I just sit at a computer all day and do boring stuff” or “I actually grab coffee for people and organize things for my boss.” When they return the question back to me, it feels a little bit awkward because I could go on forever about what I do here at GMS. So, what has my summer looked like so far at GMS?

    Group Management Services employees and interns.

    What have I done?

    If I get into detail, then we’re going to be here forever because I’ve obtained skills that I didn’t know existed. I learned how to speak in a professional manner, how to dress professionally, how to manage my time, how to build relationships, and how to take criticism.

    Why is any of that important?

    Presentation

    When you’re in the workforce you must speak professionally; it’s just a fact. You cannot possibly try to sound like an established business person if you’re speaking in slang. Former intern and current Sales Representative Sara Scacchi taught me that first hand, while I shadowed her during a first meeting. 

    Dressing professionally is also incredibly important. Kate Carnahan stressed this during her presentation at our National Sales Conference in Indianapolis. I learned that you are judged within the first 15 seconds of meeting someone. How happy do you think I am to know that now? My outfits require plenty of planning. 

    Time Management

    Managing time is critical to your success, not only college, but in the workforce as well. You better keep tabs and reminders for days and times that you have appointments or meetings to make sure you are meeting and exceeding expectations. 

    Building Relationships

    Having a healthy relationship with people you work with just gives you another reason to be excited to wake up and go to work in the morning. I enjoy seeing the people at GMS every day. They all have such unique personalities, but all these personalities complement each other. 

    Growth

    Every person working at GMS cares about growth, for themselves and for others. My sales manager, Dave, even said in my initial interview with him that he wants everyone working here to succeed and to grow. How cool is that? 

    Working at GMS as an intern this summer helped me realize that constructive criticism never stops. It’s all just to ensure that you don’t plateau as an employee. Everyone wants to see you succeed.

    In the end…

    I do not think I could have landed a better opportunity for an internship this summer. I have had such a wonderful time learning new things and hearing things I’ve learned in school. I took a sales class in the fall that, so far, has mirrored exactly what the sales world is like. It’s been eye-opening working here at GMS this summer and I can’t wait to bring what I’ve learned back to school so that I am a better student.

    Want to join the GMS family? Check out our current openings and apply to GMS today!

  • Welcome to GMS! I am so excited for you to start your career with such an amazing company. I was a summer intern in 2018 and learned so much from the people at this company. I figured I’d give you a heads up as to what’s to come.

    You’ll feel overwhelmed for sure in your first week. Any time you start something new, you’ll feel that way. Don’t worry though, your new co-workers will help you through it all.

    A group of happy GMS employees and interns.

    You’re going to meet some amazing people while you’re at this company. You’re going to meet a rep who’s been here for a while and you might not know how to feel about him at first. Give that some time because you’ll see another side of him when you go to the sales conference and you’ll become friends. Another rep is one of the biggest goofballs you’ve probably ever met, but he’s also really good at what he does. I suggest learning from him. There’s another rep who you’ll meet and she’s one of the sweetest humans you’ve ever come across. You’ll teach her things about social media and use terms she’s never heard in her life. In return, she’ll teach you things about life and be a great person to share secrets.

    One of the very first reps you’ll get to know will probably start to call you her duckling. She’ll take you under her wing and try her very best to help you succeed. Make sure you thank her frequently for dealing with you daily. You’ll meet one of your favorite people while you’re here. You’ll admire her for being herself at all times and thank her for making you laugh daily.

    Happy GMS interns.

    You’ll meet so many others: a self-proclaimed Dave Franco look-alike, a new guy who is secretly a famous musician, a sweet little brunette who actually loves soccer more than you do, a big, tall guy who keeps tags on his T-shirts, a mom who is more like your college bestie, a guy who becomes your bestie just so you stop bugging him about being friends, and a few others who are just as special. You might even meet your work dad!

    You’ll get to know your manager pretty well too. He’ll make you realize how much potential you have, and that sales is a career that you’re capable of doing. There won’t really be a “right” way to thank him, but make sure he knows how much you appreciate everything he’s done, even if he’s not aware of exactly what he did. 

    You’ll want to thank the whole office for impacting you in different ways and teaching you so much. So, thank you Andy, Justin, Shelly, Sara, Zemba, Zach, Branden, Brandi, Drummy, J-Maas, Schooly, Dave, and everyone else at GMS. I’ve loved every second of my summer thanks to you guys.

    Want to join the GMS family? Check out our current openings and apply to GMS today!

  • “How has your internship been going?” I’ve been asked this question more times than I can remember this summer. Family and friends have been seeing my social media posts all summer and are curious as to what I’ve been learning. 

    When I was asked this question for the first time, I took a long pause—not because I didn’t know what to say, but because I didn’t know how to put it into words. How do you put into words that you’ve learned more about yourself in 10 weeks than you have your entire life? How do you tell your family that you now have a second family in the office? How do you say that you’re sad to leave your internship when your senior year of college is approaching?

    If someone at the beginning of the summer told me that I would feel like this about an internship, I never would have believed them. As I’m getting ready to go back to college, I’ve realized that GMS and the people there have had such an impact on me and have taught me more than I ever expected. These are the top three things they’ve taught me.

    Part of the GMS team at an event.

    Teamwork

    Every single person at GMS works together. It’s rare to step into a sales office and see all the reps working together instead of competing against each other. They all truly act as a family here. A good family is a strong team and I believe that’s why they’re so successful. More times than not, teams work better than individuals and this company proved it to me.

    Knowledge

    I took this internship in hopes that I would learn more about the sales world and the working world in general. Learning to work in an office environment after learning in a classroom setting my entire life is a little bit of an adjustment. I like to be able to learn and fail behind closed doors and that’s not an option here. 

    I was thrown in to the mix of it when I started and messed up time after time, but people here helped me fix what I was doing wrong. When I messed up and was frustrated with myself, they helped me figure out what I could say differently on a call to be more successful. When I booked my first appointment, everyone was so excited for me and helped walk me through the rest of the process without me even asking. I didn’t have to figure it out on my own like I would have if I hadn’t been thrown in to it.

    Leanne Grubbs making calls on behalf of a Professional Employer Organization. 

    Confidence  

    I feel as though my internship with GMS has been so different from those of my college friends. This company is like a big family. Everyone truly cares about their co-workers and encourages each other to keep grinding and keep being the best sales rep possible. I couldn’t have asked for a better place to spend eight hours of my day. 

    People don’t understand the importance of a company’s culture. The people at GMS made me realize that I have more potential than I ever saw in myself and gave me the confidence to pursue a career in sales and I could never thank them enough for that. During my time here, I feel like I’ve been adopted into this crazy family dynamic. I never imagined that I would be so sad as my time here at GMS comes to an end. I’m going to miss the daily laughs and smiles that these people have brought me.

    Want to join the GMS family? Check out our current openings and apply to GMS today!

    The GMS team.

  • A small act of recognition can make a big difference for an employee’s morale. When Forbes reports that nearly two-thirds of employees would “likely leave their job if they didn’t feel appreciated,” these gestures can help you retain happy, talented employees.

    While recognition is a good goal, you also need to make sure that these efforts make sense for your bottom line. Fortunately, there are plenty of good rewards that won’t break the bank. Here are five low-budget ideas that small business owners can use to show employees their appreciation.

    A small business owner recognizing an employee for hard work.

    A Warm Welcome

    One of the most important times to recognize an employee is on his or her first day. According to the Society for Human Resource Management (SHRM), “Up to 20 percent of turnover takes place in the first 45 days.” Considering the average cost of replacing an employee, this can make early recognition a very cost-effective strategy.

    Fortunately, it doesn’t cost much to make new employees feel recognized on day one. There are several ways to help a new hire feel welcome right away, such as:

    • Greeting them personally on the first day
    • Giving them a tour and introduce them personally to team members
    • Sending out a welcome email
    • Creating a personalized orientation program
    • Sitting down and getting their feedback at the end of the first day

    A welcome package is also a nice first-day reward that can make workers feel like they belong. A bag with some mugs, a gift card or two, and some written welcome notes from team members is a small investment to make for a new employee who could be a long-term member of your company.

    Written Recognition

    Speaking of written messages, an employee doesn’t have to be new to appreciate a heartfelt note. Gallup cited that only three out of 10 U.S. employees feel they received recognition for their work in the past week. A handwritten note can show your workers that you not only notice what they’re doing, but also appreciate them for their hard work. 

    How can something as little as a handwritten note be so effective? Unlike a quick email, written notes can create a personal connection that electronic messages just can’t match. Former Campbell Soup Company CEO Douglas Conant found that handwritten “thank you” notes were so effective that he wrote more than 30,000 of them over the course of a decade. While you don’t need to match his productivity, the occasional note is a small, inexpensive way to motivate your workforce.

    Open Recognition

    While handwritten notes are a great way to privately thank employees, company announcements are a free way to highlight workers in front of everyone else. Highlighting achievements during company meetings or via company-wide email are a way to make sure that everyone recognizes the efforts of various employees.

    Recognition doesn’t only have to be about what your employees do for your company. Your employees may appreciate when their peers recognize them for personal accomplishments as well. Did one employee finish that marathon she trained for? Congratulate him or her on the achievement. Did a group of employees volunteer at a local animal shelter? Share that in a company email. It may seem like a small thing, but these acts show that you care about more than just your employees’ performance.

    Gift Cards

    A little money is a nice reward for just about any employee. With gift cards, you can set a budget that works for you. They also allow you to diversify your gift ideas by catering to your employees’ personal preferences. If an employee makes a coffee run before arriving at work every day, a $10 gift card to his or her coffee shop of choice is a great perk that shows you pay attention.

    It’s important to note that the IRS does view certain gifts as taxable income for an income. According to SHRM, “Although there may be limited situations when the value of a gift card or gift certificate could be excluded from an employee’s income, employers might want to take a conservative view and include the value of all gift cards and gift certificates in employee wages.” This doesn’t mean that you can’t use gift cards as a low-budget gift; you just need to plan ahead to protect yourself from any tax issues.

    The Gift of Time

    Sometimes the best way to show your employees that you appreciate them is by freeing up their calendar. The occasional day off allows workers to recharge. If an employee does well, consider giving them a “free day” pass that can be used at a future date. 

    The occasional day off isn’t the only way that the gift of time is on your side. Flexible work schedules can be an amazing gift for an employee that has to balance daycare schedules and other family responsibilities. If a good employee needs to stay home to watch the kids, work-from-home privileges shows a level of empathy that can build a strong bond between you and your employees.

    Invest in Happy, Talented Employees

    When your employees play such a huge role in your success, it makes sense to try and invest in top talent. As a Professional Employer Organization, Group Management Services offers a variety of services that help you invest in your workforce, such employee benefits administration and training programs. 

    Ready to learn more about how GMS can strengthen your business? Contact GMS today to talk to one of our experts about how we can help your company.

  • When your employees are ailing, your business is also likely to suffer. The health and wellbeing of your employees can play a big part in your company’s success, as a happy, healthy workforce has several benefits, including:

    • Increased productivity
    • Reduced absenteeism
    • Decreased medical costs

    Many small business owners have turned to workplace wellness programs to help improve the wellbeing of their employees. Over time, these programs have evolved to address specific issues to better serve employers and their employees. Here are some recent wellness trends than may be a good fit for your business.

    An office worker stretching as part of the company’s workplace wellness program.

    Programs That Cover More Than Physical Wellbeing

    Physical health isn’t the only concern for your employees. While health concerns like chronic disease is a major issue for businesses, the stress caused by other factors can be a major source for lost productivity and morale. That’s why some businesses are expanding the definition of wellness to include areas like emotional, financial, and other types of wellbeing. 

    According to BMC Public Health, a peer-reviewed health journal, stress can increase health insurance costs for a business by 50 percent. This trend has led to the addition of skills training, financial counseling, and other outlets to some wellness programs. In addition to providing avenues for weight loss or smoking cessation, these programs focus on other avenues that can help improve both the physical and emotional health of employees by giving employees the knowledge and skills they need to reduce the stress placed on them by outside forces.

    Architectural Wellness

    You may not think about it, but your workspace can play a part in the wellness of you and your employees. Architecture and design magazine Metropolis notes that “new research about the effects of noise, light, and air quality—among many other factors—reveals direct links to long-term human health, not to mention daily productivity.” This means that certain changes to a workspace could help improve the overall wellbeing of employees, allowing them to be more productive while potentially limiting the number of sick days taken.

    Of course, most small businesses can’t do a complete redesign of an office. However, there are small changes you can make to create a healthier workspace. These include:

    • Air quality – Replace air filters and allow for fresh air flow to limit levels of carbon dioxide and other contaminants
    • Ergonomic furniture – Invest in seating and desks that relieve physical stress on employees over long periods of time
    • Private spaces – If possible, clear out some rooms or open spaces where employees can work privately when they need some space to focus
    • Noise control – Establish quiet zones for employees who need to get away from distracting conversations and use sound-deadening materials or furniture to help absorb noise

    Personalized Programs

    This shouldn’t come as a surprise, but every employee is different. This means that each worker can have certain preferences about what should be included in a workplace wellness program. Instead of trying to push aspects of a wellness program on disinterested employees, some businesses are personalizing programs so that users can take advantage of what they want.

    A wellness coordinator can meet with each employee to go over their health and to identify exactly what he or she wants to achieve through the program. Some employees may want to aggressively work to lose weight or quit smoking, while others may just want to maintain their level of health and learn other ways to improve their wellbeing. Coordinators can create personal health guides to provide workers with individualized information based on each specific user. 

    You can also offer “health hours” to employees to allow them to personalize their wellness on their own. This concept gives employees a set number of hours per week or month to go to the gym, take walks, or do some other healthy activity during company time. This can help workers who can’t find the time to work out on their own while still giving them the freedom to choose their own route to wellbeing.

    Small Business Guide to Health & Welness

    A Focus on Musculoskeletal Pain

    The U.S. Department of Health & Humans Services released a study back in 2015 that found nontraumatic joint disorders to be one of the five most costly conditions for American adults. Thanks to issues like back pain, arthritis, and carpal tunnel causing higher absentee rates and workers’ compensation claims, small business owners are now starting to realize that they may need to be proactive about musculoskeletal pain.

    A wellness program with a focus on musculoskeletal pain will help educate employees on how to prevent these issues. This may include:

    • Educating workers about what is considered a musculoskeletal disorder and how these injuries happen, which can include heavy lifting, bad work posture, and other practices that can lead to pain over time
    • Teaching prevention tactics such as important warmup stretches and proactive processes
    • Highlighting ways to improve workplace ergonomics

    Find the Right Workplace Wellness Program for Your Company

    While wellness programs can benefit small businesses, they’re only beneficial if they’re run effectively. At GMS, we can set up a customized workplace wellness program that’s designed around the needs and questions of your employees and features a quarterly review of claims and the impacts of your program. Contact GMS today to talk to one of our experts about how we can improve the wellbeing of your employees and your business.

  • Summer is on the horizon, which means that heat waves, overheating, and heat exhaustion will be more common for companies and employees working outdoors. According to the Occupational Safety and Health Administration (OSHA), dozens of workers die and thousands more become ill while working in hot temperatures or humid conditions.  

    While you can’t control the temperature, you can take measures to protect your employees from heat stroke and other serious health issues. It’s important to update your heat illness prevention strategies and develop a plan to help ensure the health and safety of your employees. Navigate the heat this summer by following these safety tips. 

    1. Know the Signs 

    To keep your employees safe from the high temperatures, educate them on how to identify signs of heat-related illness. Among the most common illnesses are heat stroke and heat exhaustion.  

    The following are symptoms of heat stroke: 

    • Flushed skin 
    • Rapid breathing 
    • Headache 
    • Confusion 
    • Nausea 

    Keep your eyes out for the following heat exhaustion symptoms: 

    • Cool, moist skin with goose bumps when in the heat 
    • Heavy sweating 
    • Paleness 
    • Dizziness 
    • Headache 
    • Faintness 
    • Muscle cramps 

    If one of your employees or co-workers exhibits these symptoms, it’s best to get them in the shade or indoors if possible. The Mayo Clinic also recommends removing the individual’s excess clothing, cooling them off with a cold towel or applying ice packs to their neck, head, and under their arms. If these symptoms persist, consider calling 911 or EMT services.  

    2. Be Aware of Risk Factors  

    While working in the summer heat can be dangerous for anyone, but there are various factors that increase the risk of experiencing a heat-related illness. Read further to understand more about these risk factors. 

    Age 

    Individuals over 65 have a less responsive nervous system, making working in hotter environments more difficult since they can’t regulate body temperature as well. Be aware of your employees’ ages and their health as you schedule them for hotter days or certain assignments. 

    Certain medications and health conditions 

    There are specific medications that impact your body’s ability to stay hydrated and regulate body temperature. Have your employees consult their doctors to see if any of their medications will put them at greater risk for heat exhaustion or heat stroke. Having a history of heatstroke, being overweight, or having heart or lung disease also puts workers at risk.  

    High intensity activity 

    Completing a high-intensity activity in the heat puts workers at greater risk for developing a heat-related illness. Scheduling consistent breaks, providing fans, and water stations are great ways to break up the day and reduce exposure to the sun and heat.  

    3. Dress for the Summer 

    Appropriate attire can help workers stay cool in the summer. If possible, let employees wear loose, light-colored clothing as dark-colored apparel attracts heat, making it easier to overheat. You can also protect your employees from the sun by providing hats and other protective headgear. A little sunscreen also goes a long way toward preventing sunburn. 

    4. Encourage Hydration 

    One way to prevent a heat-related illness is through hydration. By setting up a water station in a section of shade, you can help workers cool down and stay hydrated. It’s also important to set up regular water breaks so that employees have a designated time to rest. On long, sweaty days, providing sports drinks can help workers replenish their electrolytes.  

    5. Develop Risk Management Strategies

    The safety and well-being of your employees is a big responsibility, especially when the weather threatens their health. While educating your employees is a great way to limit the risk of heat exhaustion or heat stroke, many other heat-related risks can occur and fall through the cracks. One way to help protect your employees and your business is to invest in risk management.  

    Group Management Services and Heat Safety 

    A certified professional employer organization (CPEO) like Group Management Services (GMS) can provide your business with the resources and assistance needed to strengthen your safety policies and protect your employees. Our team of experts can help develop safety programs, write safety guidelines, provide onsite consulting, and more. Implementing these safety strategies will protect your employees’ health and safeguard your business from productivity loss, employee injury, and costly workers’ compensation claims. Contact GMS today to talk to one of our risk management experts about how we can help make your business a safer place this summer. 

  • As a small business owner, you’re likely being pulled in countless directions, including the responsibility of finding quality health insurance for your team. Health insurance is an expensive and complicated system to navigate and can be incredibly time-consuming for individuals who are unfamiliar with the process. However, it’s not something to ignore.

    In today’s competitive job market, health insurance is a benefit that can help you maintain a competitive edge. In some instances, such as if your business has more than 50 full-time or full-time equivalent (FTEs) employees, it’s a legal obligation.

    When searching for the best health insurance option, you don’t have to find a plan alone. Professional employer organizations (PEOs) and health insurance brokers can guide you. While both PEOs and brokers have the same general goal—to find you quality, affordable health insurance for your business—they work in different ways.

    PEO Vs. Brokers

    PEOs

    PEOs and brokers have distinct differences, particularly in their scope of services. PEOs go beyond just health insurance, providing comprehensive HR solutions. They can handle payroll, employee benefits, risk management, and other HR-related functions. By bundling these services, PEOs offer a holistic approach to managing employee-related tasks, freeing you, as a small business owner, to focus more on your core business activities.

    Beyond the scope of their work, PEOs and brokers differentiate in cost structure. PEOs can help small businesses lower their potential premiums by becoming a “co-employer” for your workers. Since PEOs partner with dozens of companies, they have greater buying power than any small group. As a small business owner, this allows you to step up to the insurance bargaining table and earn discounts as if you employ hundreds of people.

    Health insurance brokers

    On the other hand, if you’re not looking for comprehensive services, insurance brokers specialize solely in helping businesses select and manage their health insurance plans. They offer expertise in the insurance market, advising on the best plans, assisting with plan selection, and helping with claims management. However, their services are limited to insurance and do not extend to broader HR functions.

    Brokers can also help your company save money as they have a detailed knowledge of the health insurance market. Though they can offer more flexibility by helping to tailor plans to meet your team’s specific needs, you’ll have less negotiating power as a small business.

    Factors To Consider When Choosing Between A PEO And A Broker

    Choosing between a PEO and a broker for your health insurance needs requires careful consideration of several factors. The following are key aspects to keep in mind to ensure you make the best decision for your business:

    • Business size and needs: PEOs are generally more beneficial for small to mid-sized businesses that require comprehensive HR support. If your company struggles with managing multiple HR functions, a PEO can offer integrated solutions that streamline these processes. Brokers are ideal if your business has a well-established HR department but needs expertise in selecting and managing health insurance plans.
    • Future growth plans: As your business grows, the comprehensive HR services provided by a PEO can scale with you, offering continued support and helping manage the increased complexity of a larger workforce. While brokers can continue to provide valuable insurance advice, they may not offer the broader support needed to operate a larger, more complex organization.
    • Budget considerations: Brokers often earn their income through commissions paid by insurance carriers. These commissions are usually a percentage of the premiums paid for the insurance policies they help secure. PEOs charge a fixed fee per employee or a percentage of the total payroll. Understanding the costs of both options compared to the services you are receiving is crucial to making the right decision for your company.
    • Level of support needed: If your business requires assistance with various HR functions beyond insurance, relying solely on a broker may require outsourcing to multiple vendors to get the comprehensive support you need. This approach can lead to higher costs and increased complexity in the long run. On the other hand, PEOs offer bundled support across multiple HR areas, saving you time and money by providing a single, integrated solution.
    • Flexibility: Most PEOs offer a limited selection of health insurance options, which can simplify decision-making. However, if your business has unique or specific health insurance needs, these limited options may not be sufficient. In contrast, brokers can provide a broader range of insurance plans tailored to diverse requirements, although these options might come at a higher cost.

    While there are many pros and cons to both PEOs and insurance brokers, it’s crucial to weigh your specific needs, short and long-term costs, and overall business goals when making your decision. Ultimately, the goal is to provide comprehensive and competitive benefits to help retain and recruit top talent. By carefully considering these factors, you can choose the solution that best supports your business and its employees.

    Find A Health Insurance Expert To Help Your Business

    Although PEOs offer many additional services and potential savings opportunities, both PEOs and brokers can be extremely helpful when searching for the right health care plan. There are also ways that PEOs like GMS can work with brokers, helping them offer more comprehensive, customized solutions that benefit small businesses.

    Whether you’re looking for experts who can help you find the right insurance plan or are already working with a broker, GMS can help. Contact GMS today to talk to one of our experts about how we can help you find a quality, affordable health care plan for your business.