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  • Going to work shouldn’t feel like, well, going to work.

    Sadly, that’s how most workers feel. A Gallup study found that two-thirds of full-time workers experience burnout on the job. Yet, only 23 percent of companies offer burnout prevention programs, according to a 2017 Statista survey. It’s a huge issue for many companies and a major reason why talented workers leave for better opportunities.

    However, employee burnout doesn’t have to be part of the job. Learning how to spot job burnout and understanding its effects can help employers not only reduce burnout and job stress, but also increase productivity and revenue. We put together some tips to learn more about what job burnout is, how job burnout is affecting your company and ways you can prevent (and even reverse) job burnout at your organization.

    An employee shows signs of job burnout when they are unmotivated, overworked, cynical and frustrated.

    What is job burnout?

    Job burnout is a type of job stress defined by Mayo Clinic as “a state of physical, emotional or mental exhaustion combined with doubts about your competence and the value of your work.” Job burnout symptoms can include lack of motivation, cynicism, frustration, impatience, irritability and even physical pain like headaches and backaches.

    From demanding deadlines to bad bosses, there are many factors that can be attributed to the causes of job burnout. Lack of control, unclear job expectations, dysfunctional workplace dynamics, unreasonable time pressure and work-life imbalance can all cause an employee to experience burnout from work.

    Effects of job burnout

    An overworked, over-stressed and unhappy employee can take a serious toll on any company. Burnout affects every facet of an organization, with decreases seen in production, morale, retention and revenue.

    Quantity and quality of work both suffer when an employee is burned out. Data from The O.C. Tanner Institute’s Health and Wellbeing Study revealed that employees with poor wellbeing, on average, self-reported that they are only working at 64 percent of their maximum output. That’s because employee productivity decreases with a lack of motivation, causing slower work and lower productivity.

    The previously mentioned Gallup survey also found that employees who suffer from burnout are 63 percent more likely to take sick days, as burnout can lead to increased instances of illness. You’ll also start to see increased errors in work, which could be attributed to factors including apathy, lack of communication and/or time constraints.

    You’ve likely heard the saying, “it only takes one bad apple to spoil the bunch,” and the same can be said for a burned-out employee. Employee burnout is highly contagious, as team morale decreases, and workplaces are more susceptible to conflict, ultimately resulting in a toxic work environment.

    Retention rates will suffer with good workers leaving bad situations due to burnout. A study conducted by Kronos and Future Workplace found that burnout is the biggest threat to employee retention, according to 95 percent of human resources leaders.

    Overall, job burnout can cost your organization serious losses in revenue. The American Institute of Stress estimates that job stress can cost U.S. businesses as much as $300 billion annually.

    Job burnout solutions

    You don’t have to—and shouldn’t—accept burnout as part of the job. While job burnout doesn’t just happen overnight, it can creep up slowly if you’re not paying attention to the warning signs. Job burnout can be prevented (and even reversed) by changing how you manage and lead your employees. Follow these five steps to prevent job burnout at your organization.

    Define goals and expectations

    Regular check-ins with employees can increase productivity, lower stress levels and encourage open communication throughout the company. Perhaps that’s why 65 percent of employees wished they received more feedback from their employer, according to a study by employee engagement firm Office Vibe.

    When was the last time you had a check-in with an employee that involved more than just giving project updates? Frequent check-ins and employee reviews can help make sure goals and expectations are clearly defined by providing direction, eliminating guesswork and creating better employee/manager relationships. These check-ins can also help you spot a burned-out employee.

    Should you notice signs of burnout in one of your employees, address the situation head-on by scheduling a one-on-one meeting to determine ways you can work together to reverse the symptoms before they escalate.

    Delegate tasks evenly

    When you’re understaffed, it’s easy to see how employees can become overworked or overwhelmed. Just make sure it’s not one person carrying the entire team. A study by the Families and Work Institute found that almost one in three employees feel overworked or overwhelmed by the amount of work they have to do.

    Overloading employees can cause stress and increase the chance of burnout if the weight of responsibilities becomes too much.

    If your employees are downing in a sea of work, it’s up to management to provide the life rafts—not add stress by upping the workload. To prevent work overload, distribute job responsibilities fairly, monitor scheduling, set reasonable deadlines and arm your employees with the tools and resources needed for them to be successful. Even more than that, create a culture where the word “no” is respected.

    Foster creativity

    On the flipside of being overworked, burnout can also occur when employees are bored or under-stimulated. A Gallup study found that about two-thirds employees are disengaged on the job, which means they are not performing to their full potential.

    Creativity helps maintain mental fitness by keeping the mind sharp and increasing engagement and motivation. Holding brainstorming meetings or inviting employees to participate in decision-making processes can be great ways to keep employees engaged.

    Additionally, sending employees to training courses or conferences can rejuvenate employees, boost productivity and help not just them, but also your company reach its full potential.

    Encourage breaks and vacation time

    Vacations are good for more than fancy drinks with tiny umbrellas in them. A 2015 study by the American Psychological Association found that vacations make for great stress relievers, which can help prevent burnout.

    But don’t think that just because your organization has a vacation policy that workers will actually take advantage of it. Many employees think they can’t take time off over fear of being replaced, they’re burdened by too heavy of a workload or there’s simply no one else who can cover their work while they’re gone. Perhaps that’s why 52 percent of employees left unused vacation time on the table in 2018, collectively throwing away 705 million vacation days, according to the U.S. Travel Association’s Project Time Off.

    Not only do you want to encourage your employees to take time off, you need to make sure they stay off. Discourage the practice of working after hours or answering email while on vacation—and lead by example. Allowing flexible scheduling or remote work options can be another way workers can catch a break from the office bustle.

    Show appreciation

    Saying “please” and “thank you” is more than just polite manners. A study conducted by Clear Review, a performance review software system, found that the top workplace frustration is a lack of appreciation regarding performance and effort, with 40 percent of employees saying that employee recognition isn’t a priority at their company and thus limited their motivation to truly excel.

    Give credit where credit is due by showing your employees their hard work is appreciated. Recognizing accomplishments and top performers can help increase employee engagement. It also provides management with an excellent opportunity to provide feedback and guidance for an employee’s growth and development.

    A few ways you can show your appreciation could be as simple as a round of applause in a meeting or celebratory lunch, presenting an award, or rewarding an employee with a promotion and/or pay raise.

    Ignoring the warning signs of employee burnout and promoting dysfunctional organizational standards can create a serious burnout epidemic for your organization. However, leaders can work to eliminate burnout by being proactive and taking measures listed above. Decreasing job stress and creating work-life balance will help drive your organization’s continued success by reducing burnout and raising engagement, productivity, retention and revenue.

    Contact Group Management Services today to talk with one our experts about job burnout solutions for your organization.

  • As a small business owner, it’s important to try to prepare for anything—even Mother Nature. In Florida, that means doing what you can to make sure your business and your employees are as ready as possible for hurricanes, named storms, and other events that can cause serious problems.

    Hurricane season is a stressful time that requires plenty of preparation and employee management to help weather any issues. Here are some tips that you can use to help you and your employees navigate any potential problems before, during, and after a storm.

    A hurricane approaching Florida, causing small business owners to prepare for the storm.

    Train Your Employees Ahead of Time

    Good employees play a major role in the success of your business, but sometimes they don’t always look out for themselves. The best time to prepare for a natural disaster is long before one arrives, so it’s smart to include hurricane education as part of a regular training program, especially if you have a lot of transient workers who never experienced a storm before.

    People move to Florida all the time. According to the U.S. Census Bureau, nearly 330,000 moved to the Sunshine State from 2016 to 2017, which is an average of nearly 900 people per day. That means a lot of workers in the state have never been through a bad storm before. A hurricane education session can help them know what they should always have available, including:

    • Battery operated TV and fans
    • Generator
    • Second refrigerator just to store water (will keep somewhat cool even after power is out)
    • Nonperishable canned goods

    While basic hurricane preparation education and supplies are good, you can go the next step and see if an expert would be willing to help. Local meteorologists are a great resource for hurricane training, whether they give you some helpful advice or are willing to visit your business to talk to your employees. It never hurts to ask.

    The frequency of the training depends on the makeup of your business. If you have a small workforce and little turnover, training can be more infrequent. If you’re in a high turnover business or have a larger staff, yearly training sessions can be a good idea. It’s also important to stress to your employees that they may want to consider leaving the area depending on the storm. Sometimes the best plan of action is to be nowhere near the hurricane when it hits.

    Close the Office When Necessary

    In general, the decision to close the office due to an incoming storm is up to you. OSHA does stipulate in its general duty clause, that all places of employment are “free from recognized hazards that are causing or are likely to cause death or serious physical harm to his employees.” Essentially, if the storm makes your workplace a dangerous location, it’s time to shut down and evacuate.

    Another reason to play it safe and close your business if the weather is questionable is to avoid any potential liability issues. While the commute to and from your office is outside of your workplace, there is a grey area in terms of whether you’re on the hook if the impending or active storm causes an employee to get hurt or have an accident. A court may rule in your favor, but you may not want to take that risk when you can simply play it safe and close your office.

    Handle Wages with Care

    If you decide to close your business, your employees may still expect to be paid. According to the Society for Human Resource Management (SHRM), what they’re owed and if you need to pay them at all can depend on the type of employee:

    • Nonexempt employees are only owed for the hours they’ve worked according to the Fair Labor Standards Act (FLSA). This means that you do not owe them any money when you close your business.
    • Exempt employees are owed their full salary if the weather forces the office to close for less than a full workweek. However, you may require these employees to take paid time off (PTO) during these days.

    While the FLSA outlines your minimum requirements, that doesn’t mean that you should follow these guidelines. Forcing an employee to take PTO sends a message that you see the hurricane as their vacation, which will rub even the most loyal workers the wrong way. In addition, being left without a paycheck for something out of their control can create some discontent, even if the business isn’t able to generate any money during the closure either.

    One solution to this is to go above and beyond if possible. If you know what an employee typically makes during a week, find a compromise, whether it’s paying them in full or even offering a portion of their normal earnings. This can show them that you’re still trying to help during a difficult period. If you can’t make that kind of financial commitment or you need to make serious repairs to the business after the storm, explain the situation so that your employees understand instead of feeling blindsided by a lack of pay.

    Be Open and Accommodating About Leaves of Absence

    Even if you decide to keep your business open, there may be employees who want to stay home with their families. In this case, the Department of Labor allows you to consider such leave as an absence for personal reasons. As with wages, however, this can send a bad message to a good employee. Instead, it can be best to be flexible for employees who want to be at home to prepare for a storm, especially if they plan to head out of state.

    You can also offer some alternatives. For example, you can allow employees to work from home if possible. This will allow them to cut down on travel during a storm without sacrificing valuable work hours, at least until the power goes out.

    Employees may also be absent from work after a storm to attend to post-disaster needs, such as meeting with insurance adjusters. SHRM also notes that “employees affected by a natural disaster are entitled to leave under the FMLA [Family and Medical Leave Act] for a serious health condition caused by the disaster,” such as the need to care for a family member.

    If you want a more set structure in terms of how many days employees are allowed off for storms, you can include writing in your handbook or leave policies that sets out a specific process. The problem with this is that no hurricane is the same. One storm could last two days, while another could last 10. A set policy may pigeonhole you into an exact number of days if you’re not careful.

    Protect Important Documents

    Both you and your employees have important documents that must always stay safe. Unfortunately, hurricanes don’t cooperate. In Florida, it’s good to invest in document storage that can protect both business and personal documents from the elements, like a fireproof and waterproof safe.

    While a great start, a safe can’t protect your documents from a worst-case scenario. If a storm is projected to be bad enough to make you leave the area, make sure to take your documents with you so that the storm doesn’t take them away for good. Digitizing documents in a securely-stored online portal can also make sure that these files are safe from storms and accessible anyplace with an internet connection.

    Always Communicate

    Good communication is a key part of hurricane preparation. It’s important to keep in contact with your employees long before a storm hits, during the storm, and after it’s gone.

    While some employees will know the risks and protect themselves, others may not understand the danger of these storms or will be afraid to stay home out of fear of losing their job. Monitor the situation and make employees feel comfortable with their decision to stay or go if the coming storm looks dangerous. There are times where storms pass over and you don’t need to close, but it’s always good to err on the side of caution instead of being wrong about the weather.

    If you have any other questions about protecting your business before, during, and after a storm, it’s best to communicate with a trusted HR partner. GMS is a Professional Employer Organization that serves companies of all sizes across the nation. The experts in our Fort Myers, Florida branch can work with you to help you protect your business and manage key HR functions that complicate your day and bog down your schedule.

    Contact GMS today to talk to one of our experts in our Florida office about how we can help your business prepare for the future.

  • A healthy and efficient workforce is paramount for business owners to keep operations running smoothly, yet injury in the workplace is all too common. According to the National Safety Council, a worker is injured on the job every seven seconds. Prioritizing occupational health is essential, not only to reduce the risk of workplace injuries, but also to lower your workers’ compensation rates and limit violations for the Occupational Safety and Health Administration (OSHA). Follow these workplace safety tips to build a more secure workplace for your company.

    Do Educate Your Workforce

    No matter how many safety guidelines and practices you set, they’ll do no good if your employees aren’t aware or don’t understand them. Take the time to educate your workforce—not just new hires—to ensure they are fully aware and understand the guidelines you have in place. A quick refresher course on workplace safety for employees never hurt anyone. Ongoing safety training supports a strong occupational health culture and helps reinforce critical protocols across all levels of staff. 

    Don’t Take Shortcuts on Procedures

    Workplace procedures exist to protect employees and maintain occupational health standards. While it may seem like a good idea at the time to skip a couple steps to speed up production, if it results in an injury, production will only be slowed down. In 2017, the National Safety Council reported that 104 million production days were lost due to work-related injuries. It’s critical that employees follow procedures—and supervisors and managers enforce protocol as a standard operating procedure at all times.

    Do Be Aware of Your Surroundings

    Whether it’s from contact with heavy machinery or slipping on wet floors in the office, every job can present some dangers. The National Safety Council also found that the most common workplace injuries are the result of overexertion, contact with objects and equipment, and slips, trips, and falls. Promoting environmental awareness is the cornerstone of occupational health and safety.

    Make sure workers are aware of their surroundings. One of the top safety violations reported to OSHA is a lack of warning signs and labels. Having proper signage in place, like “Watch for Falling Objects” or “Caution Wet Floors,” can help workers become more aware of any potential dangers in their environment.

    Don’t Be Quiet About Unsafe Conditions

    It’s important to take a proactive approach to workplace safety. Your employees are the eyes and ears of your workplace. Promote a culture where employees feel comfortable speaking up about safety concerns. This kind of proactive reporting supports both compliance and occupational health by addressing small hazards before they escalate into serious problems. After all, it’s in your best interest as an employer to correct safety issues as they arise, rather than face an OHSA violation and/or a workers’ compensation claim later.

    Do Encourage Regular Breaks

    In a culture that often promotes workaholic tendencies, it’s important to give and encourage employees to take regular breaks. Tired workers are more prone to injuries, as they become less aware of their surroundings. Data from the National Health Interview Survey found that injuries occur over three times more often to workers who sleep fewer than five hours per night.

    While there is no federal requirement for breaks or meal periods under the Fair Labor Standards Act (FLSA), some states like Illinois and New York do require it. Regardless of your location, all employers should encourage workers to take breaks, which includes not eating lunch at a desk. Breaks are an important component of any occupational health strategy, especially when paired with scheduling physically demanding tasks for the start of a shift , when your employees are most alert.

    Don’t Forgo Drug Testing

    It can be a tough pill to swallow but working under the influence is more common than you may think. A Hazelden Foundation survey found that more than 60 percent of adults know people who have gone to work under the influence of drugs or alcohol. Similar to fatigue, when a worker’s ability to exercise judgement, coordination, motor control, concentration, and alertness is compromised, workplace injury is bound to happen. According to the Substance Abuse and Mental Health Administration (SAMHSA), employees who abuse alcohol or drugs are over three times more likely to be involved in a workplace accident.

    We’ve seen it happen to employers firsthand, resulting in ugly battles over workers’ compensation claims. Ongoing drug testing is a surefire way to reinforce occupational health and safety measures and protect your business and workforce.

    Do Wear Protective Equipment

    Personal protective equipment (PPE) is a critical defense against injury and is a fundamental element of occupational health practices. Whether it’s eye protection, a hard hat, or a respirator, PPE must be worn when necessary. This may sound like a no-brainer, but the majority of OSHA violations involve a lack of protection, whether it’s fall protection or eye and face protection. It’s up to facility managers and business owners to enforce that all workers wear the proper protective gear and that any protective equipment is in place before tasks are carried out.

    Don’t Block Emergency Exits

    In case of an emergency, it’s important to have quick and easy access to exits. Even if it’s only for a few minutes, never place anything—ladders, forklifts, boxes, anything—in front of an emergency exit door. Furthermore, ensure pathways to the equipment for emergency shutoffs are clear in case you need to immediately stop them from functioning. These practices are basic but vital to maintaining occupational health and safety in crisis situations.

    Do Ask for Help

    It’s important for business owners to understand the proper safety precautions needed for their workplace. Group Management Services can help with onsite consulting, jobsite inspections, accident and injury investigations, workplace safety training, and education to make sure your workplace is a safe environment for employees. We help you create and maintain a workplace built around occupational health best practices.

    As you think about ways to keep operations running smoothly, you might also want to think about other ways you can make your workplace simpler, safer, and stronger. GMS offers payroll, risk management, and human resources services to help keep your business running smoothly all through the year. Contact GMS today to talk with one of our experts about how you can ensure employee safety at your workplace.

  • It’s easy to recognize certain milestones, but it’s not as simple to think ahead and avoid growing pains. Reaching the 50-employee threshold is a momentous occasion, but it also means that it’s time to consider some potential changes. Aside from taking the right steps to make sure your company is compliant with federal and state laws – don’t worry, we cover compliance considerations in another post – here are five ways to prepare your business for growth.

    A management team helping run a 50-employee business. 

    Embrace Process Documentation

    As you employ more people, it’ll be harder to keep everyone on the same page. You may know the most efficient way to complete something, but you can’t always be there to share this knowledge. Is there a specific way that something at your business should be done? Write that process down so that everyone has access to it. 

    Process documentation allows you to identify the core parts of your business and document the steps that it takes to consistently perform important tasks the right way. As you grow, these standard operating procedures can help train and guide new employees so that they know what to do and how to do it. 

    You should also document any tools or procedures that make a process more efficient. Creating operational best practices or process templates will benefit your workforce, while making your business more efficient. Make these documents available to your employees so that they save time instead of starting everything from scratch.

    Improve Company-Wide Communication

    Good communication is a crucial for any organization, but it can be hard to keep your company connected as it grows. In fact, it can become nearly impossible to keep regular face-to-face communication possible with everyone, especially if you have employees who work remotely. As a result, it’s important to give you and your employees ways to initiate company-wide conversations. For example, a cloud-based collaboration tool like Slack can help employees stay connected, while video conferencing platforms like Zoom can benefit remote employees and improve communication with clients and customers, depending on your business.

    In addition to providing more ways to communicate, you should also consider creating a comprehensive communication strategy for your business. This strategy can help your company establish a recognizable brand and consistent messaging for people outside of your business. This way, your employees have guidance not only on what to say, but also how to say it. According to the Society for Human Resource Management, a communication strategy should include the following elements:

    • Top-down strategies where senior management sets the tone for a cascading series of messages
    • A budget for various types of communication vehicles depending on need
    • An evaluation process to determine the right messaging for specific situations
    • A method for generating feedback and using it to shape follow-up messages
    • A customized delivery approach with communication materials that are easy to understand

    Entice Employees with New Benefits

    While the 50-employee threshold makes it a requirement for your business to offer health insurance, that doesn’t mean you shouldn’t consider providing other benefits as well. Finding good, new talent – as well as keeping current employees – is critical for a growing company. 

    An attractive benefits package can help you reward your current employees while enticing better candidates to your business. Aside from health insurance, Employee Benefits News found that employees looked for the following types of benefits:

    • Monetary bonuses (54 percent)
    • Paid vacation (53 percent)
    • Retirement plan with defined benefits (51 percent)
    • Flex-time (51 percent)
    • Employer matches for retirement plans (50 percent)
    • Ancillary health insurance benefits (vision, dental, etc.) (48 percent)
    • Paid sick leave and personal days (48 percent)
    • Profit sharing (40 percent)

    In addition to these benefits, consider some other options that may be especially valuable to your employees. Flexible work times and environments are a great perk for employees with young children. Roughly 80 percent of millennial employees show interest in companies that offer student loan repayment assistance. It’s hard to grow without good employees, so think about ways to make sure your benefits package matches the quality and type of job candidates you need to succeed.

    Build a Management Team with Defined Roles

    It’s common for small companies to employ people who can do a little bit of everything. That goes for the owners, as well. While there’s a time where it’s fine to juggle multiple roles, you’ll reach a point where you need to build a management team and assign different responsibilities.

    It can be hard to step away from having a hand in every aspect of your company, but you can’t be an expert at everything. Consider creating an organizational chart and identifying people who can oversee key aspects of your company. This management team can take the burden off you so that you can focus on what you’re best at – the continued growth and success of your business.

    Find an HR Partner

    A good management team isn’t the only group that can help you ease your workload. A growing company has a mounting list of internal administrative responsibilities, from handling payroll for all your employees to taking the measures required to keep your business compliant with federal and local laws. Proper management of these responsibilities take both HR expertise as well as time. Fortunately, a Professional Employer Organization (PEO) can help you on both accounts.

    The right PEO allows you to cost-effectively outsource critical HR functions so that you can spend your time elsewhere. A PEO partners with your company to co-employ your workforce as it relates to payroll administration, employee benefits, and any other functions that you need managed. This process gives you access to a range of HR experts who help you make informed business decisions without losing control of your company.

    You don’t have to grow your company by yourself. Whether you just hit the 50-employee milestone or only have a few workers, Group Management Services can help you manage key administrative needs. Contact GMS today about how we can make your business simpler, safer, and stronger through comprehensive HR services.

  • Payroll management is no simple task. Regardless of whether your workforce is 50 strong or you can count the number of employees on two hands, there are lots of employees and documents to keep track of and failure to do so could result in serious penalties and fines. To help, we’ve put together a guide for better managing payroll records.

    Payroll records. 

    What Payroll Records to Keep and For How Long

    Payroll records are documents and items related to paying your employees. Similar to how a candidate’s job applications and interview records need to be kept for one year, the U.S. Department of Labor (DOL) Wage and Hour Division and Internal Revenue Service (IRS) require employers to keep payroll documents for a set amount of time. Here are the payroll records you need to keep in your files:

    Hiring documents

    Hiring documentation like an offer letter include DOL-required employee data, such as their residential address, job title, and pay rate.

    Keep for three years.

    I-9 documents

    These include information about an employee’s eligibility to work in the U.S. and DOL-required information like the employee’s full name and Social Security number.

    Keep for three years.

    Time cards

    Time cards show total hours worked, including unpaid lunch breaks and overtime pay.

    Keep for three years.

    Paystubs

    These will show payment dates and the total wages each period. Paystubs will also include any additions (like reimbursement) or deductions (like taxes and benefits) to wages.

    Keep for four years.

    Employee handbook

    Every employee should have signed your employee handbook. Employee handbooks provide information on how your employees are paid (hourly or salary) and how often you pay employees (weekly, biweekly, monthly). It also describes information regarding paid holidays, termination, and severance.

    Keep for three years.

    Compensation philosophy

    A compensation philosophy shows how you determine employee pay grades. You’ll also need to show rationale for pay increases or merit increases, as required by the Equal Employment Opportunity Commission (EEOC).

    Keep for two years.

    Tax forms

    The IRS requires employee and employer tax documents, including W-4s (employees’ withholding allowance certificates) and W-2s or W-3s (employee’s wage and tax statements). 

    You’ll also need to keep payroll tax payments, which can be found on Forms 941 (employer’s quarterly tax form, which also includes information on tipped wages) and 940 (employer’s annual federal unemployment tax return).

    Keep for four years.

    Retirement income

    Retirement income statements show 401k or profit-sharing plan details as required by the Employee Retirement Income Security Act (ERISA). You’ll also need to keep documents outlining enrollment, payment, and payroll deduction.

    Keep for six years.

    Leave documentation

    The Family Medical Leave Act (FMLA) requires payroll records regarding your leave policy, requests for leave, leave balances, and leave payments. This information is typically found in your employee handbook or on employee paystubs.

    Keep for three years.

    Termination information

    A termination letter outlines an employee’s end date and any final payments, such as unused paid time off or severance.

    Keep for three years.

    Keep in mind that anytime you have a dispute relating to payment or employment with an employee, it’s best practice to keep all payroll records until the dispute has been resolved.

    State-Specific Payroll Records Retention

    Most states abide by the payroll records retention guidelines provided by the U.S. Department of Labor and IRS, as detailed above. However, a few states have further legislation that affects what payroll records to keep and for how long. These include the following exceptions:

    • New York requires payroll records to be kept for six years.
    • California requires that all payroll records be retained for six years.
    • Illinois requires employers to keep all payroll records for five years.
    • Washington has more specific requirements of what payroll records to retain.

    Destroying Payroll Records

    Keep in mind that holding onto payroll records for longer than required can put business owners at risk. Financial and personal information related to payroll, such as bank account information, credit reports, and photocopies of social security cards, should be destroyed after the retention time frame to prevent confidential data from being misused. In case any questions about destroyed documents arise, you’ll also want to keep track of which payroll records you’ve destroyed and when.

    How to Store Payroll Records

    As you can see, there are lots of payroll records to manage. Business owners will need a good filing system to keep track of these documents. 

    Think twice before storing paper records in filing cabinets or boxes. Often, these records are forgotten about and kept for longer than needed. It’s also time-consuming to manually file each document and can be even more tiresome should you need to refer back to certain records. Security can also be an issue, as these filing systems are often easily accessible.

    Rather, savvy business owners have found that it’s much more efficient to digitally store these important documents in a payroll management system. This ensures that records are securely stored and can be readily available from anywhere there’s an internet connection. Additional online payroll software benefits include:

    • Payroll processing. Ensure employees are paid on time every pay period and electronically store information regarding paystubs, payroll deductions and time tracking.
    • Payroll tax. Streamline filing and ongoing maintenance of tax records.
    • Employee self-service. Give employees 24/7 access to their payroll and tax information.

    Outsource Payroll Records Management

    When it comes to payroll records, there’s a lot of information to process—mentally and literally. Outsourcing payroll records management through a professional employer organization (PEO) like Group Management Services can help business owners save time and worry. We take on the burden of payroll records management, so you can put your focus back on client relationships, building and effective team, and growing your profits. In addition, GMS provides human resources, risk management, employee benefits services to help make your business simpler, safer, and stronger.

    Stop wasting time on payroll records management. Contact us today to talk to one of our experts about our payroll services.

  • The 50-employee mark is more than just a milestone; it’s also an important number for some major regulation requirements. Once your business has 50 full-time employees, various federal and state laws become mandatory, which can wreak havoc on your business if you don’t prepare for them. Here’s what your business needs to do to stay compliant once it reaches 50 full-time employees.

    Multiple employees during a training session at an applicable large employer.

    Health Insurance

    While smaller businesses can choose to offer health insurance, it becomes a requirement once your business reaches 50 or more full-time or full-time equivalent employees. At that point, the Affordable Care Act designates your business as an applicable large employer (ALE).

    Any ALE is required to meet the employer shared responsibility provisions found in the Affordable Care Act. These provisions give ALEs two options:

    • Offer health coverage that the ACA deems “affordable and provides “minimum value” to full-time employees and their dependents
    • Make a payment to the IRS any of the ALE’s full-time employees receive a premium tax credit for purchasing individual coverage on a Health Insurance Marketplace

    In addition to offering coverage – or opting to not offer coverage and pay penalties – ALEs are required to report to the IRS about their health care coverage. This means every ALE must file both Form 1095-C and Form 1094-C to the IRS, as well as a similar statement for each full-time employee.

    Determining full-time equivalent employees

    You may have noticed that threshold to be considered an ALE was set at 50 full-time or full-time equivalent employees. This means that you don’t need 50 strictly full-time employees to meet ALE designation if you have enough part-time individuals to qualify.

    Full-time employees include any worker who averages at least 30 hours of service per week in a calendar month. Full-time equivalent employees are a combination of individuals who do not meet full-time specifications, but whose combined work is determined to equate to that of a full-time worker.

    Per the IRS, there is a two-step process to determine the number of full-time equivalent employees at your business.

    1. Combine the number of hours of service of all non-full-time employees for the month (do not include more than 120 hours of service per employee)
    2. Divide the total by 120

    The total number represents a company’s number of full-time equivalent employees. That total would then be added to the number of regular full-time employees. If the combined number is at least 50 – for example, 40 full-time employees and 10 full-time equivalent employees – your business is considered an ALE.

    Family Medical Leave Act (FMLA)

    Unlike the Affordable Care Act, the Department of Labor (DOL) does not look to full-time and full-time equivalent employees to determine which businesses must comply with FMLA. Instead, the DOL simply writes that “private employers with at least 50 employees are covered by FMLA.” FMLA also applies to businesses with fluctuating workforces as long as they had at least 50 employees for 20 or more total workweeks in the current or previous year. These employees must then meet the following stipulations to be eligible for FMLA:

    • Work for the employer for at least 12 months
    • Work at least 1,250 hours during the 12 months before the start of leave
    • Work at a jobsite where the employer has at least 50 employees within 75 miles

    If eligible, employees are entitled to take unpaid, job-protected leave for various permissible reasons. These include taking up to 12 weeks of leave in a 12-month period for the following:

    • The birth of a child and to bond with the newborn child within one year of birth
    • The placement with the employee of a child for adoption or foster care and to bond with the newly placed child within one year of placement
    • A serious health condition that makes the employee unable to perform the functions of his or her job
    • To care for the employee’s spouse, son, daughter, or parent who has a serious health condition

    FMLA Compliance requirements

    Covered employers must also take steps to notify employees about FMLA rights. The first step is to display an FMLA poster prepared by the DOL at all locations. The next is to provide general notice with the same information as the poster in the employee handbook. If no handbook exists – and it absolutely should – employers must distribute a general notice to all employees and any new individuals when hired.

    As expected, the FMLA has penalties in place for any employers who meet the 50-employee threshold who deny or interfere with permitted leave or fail to meet notification requirements. Updated penalty amounts can be found on the DOL website.

    Miscellaneous State Laws

    Only looking to federal requirements can land your business in hot water. Certain states have their own regulations for businesses once they reach the 50-employee threshold. One of the more notable examples is that New York employers with 50-plus full-time employees must give at least 90 days’ written notice for mass layoffs, employment losses, or relocations. This law is a variation of the federal Worker Adjustment and Retraining Notification Act (WARN), which only applies to businesses with at least 100 employers. As a result, you’ll want to consult with your state government’s site to review any local laws that go into effect at the 50-employee threshold.

    Prepare Your Growing Business

    Growth is great, but it can become a major problem if you aren’t prepared for the additional compliance concerns and internal responsibilities. More employees mean more time spent handling payroll management, benefits administration, and other key HR needs – unless you find a partner that can manage these critical functions and save you much-needed time.

    Whether you’re a startup or a 50-plus employee business, Group Management Services provides professional HR management to help you make your business simpler, safer, and stronger while you focus on ways to grow your company. Contact us today to talk to one of our experts about what we can do to help you protect your company now and prepare for the future.

  • Broken bones, muscle strains, burns, cuts, and lacerations—injuries at work happen all too frequently. According to the National Safety Council, a worker is injured on the job every seven seconds.

    Does your organization have a workers’ compensation strategy? As a small or mid-size business, you might think you have it under control and can brush it under the rug until the unfortunate happens. Or, perhaps the very fear of “what if” keeps you up at all hours of the night.

    Either way, business owners have a lot to lose when they don’t have the resources to properly handle a workers’ compensation claim. See what you can learn from these two real-life stories involving workers’ compensation claims below.

     Construction worker suffers a workers’ compensation injury.

    [more]

    Names have been changed to protect identities.

     

    The Case of the Missing Workers’ Compensation Policy

    Mary was the owner of a security camera company. She had been in business for 29 years, and one employee named Jack had been with the company for 25 of those years. Jack drank, consuming a daily liquid diet of whiskey and beer.

    One day, he was 20 feet up on a ladder, putting together a security camera at a school during recess. His shakes from alcohol withdrawal caused him to lose control of the ladder and fall, breaking both of his arms.

    An ambulance transported Jack to the hospital where they tested his blood. The first time, his test results detected MRSA. The second time, the doctors found both cocaine and marijuana in his system.

    Jack filed a workers’ compensation claim, but Mary wasn’t worried. She figured that between the drinking and illicit substances found in her employee’s blood, she could go to court without representation and the judge would easily rule in her favor.

    Unfortunately for Mary, that wasn’t the case. Mary didn’t have an employee handbook. She simply never had time to put any real policies in place. When the judge asked about Mary’s post-accident policy, her makeshift handbook of sorts was found unacceptable. 

    The workers’ compensation claim cost Mary $85,000. On top of that, Mary had to pay Jack 14 months of unemployment.

    Let that sink in. The real kicker, though, is Jack then sued Mary for $5,000 for not having rules or an employee handbook to protect him.

    Workplace injuries used to keep Mary up at night. Fast-forward six years later, and that’s no longer the case. Mary sought the expertise and protection of Group Management Services and was quickly onboarded with a risk and safety team to create policies and offer protection should the unfortunate happen again. As a business owner, she now says she sleeps better at night knowing GMS is protecting her business.

    Had Mary worked with GMS from the start, she would have been equipped with an employee handbook featuring a workplace injury policy that would’ve protected her from her employee’s alcohol consumption and drug use. She also would have had a human resources, safety, and legal team behind her to handle the claim efficiently and successfully in court.

    Mary is just one story of the millions of workers’ compensation cases that happen each year throughout the U.S. However, not all workers’ compensation cases are quite as horrific.

     

    The Case of the Fraudulent Workers’ Compensation Claim

    Sam headed a construction group that his family had owned for over 60 years. The company had been passed down through generations, and Sam worked hard to protect the business.

    One Saturday, an employee named Tom was working at one of the construction sites and fell 15 feet through an opening in the ceiling. He went to the hospital and stayed overnight.

    Meanwhile, Sam notified his risk manager at GMS right away and she worked with him over the weekend to report it to the Occupational Safety and Health Administration (OSHA). 

    By Monday, a field case manager at GMS met with Tom to gather his medical documentation. Together, the risk manager, field case manager, and legal team at GMS worked with Tom to sort out the facts of the case. They put together an investigation to uncover what actually happened during the time of the alleged accident, interviewing several witnesses.

    Six hours later, GMS got to the bottom of the case. One of the witnesses reported that Tom intentionally fell through the ceiling in hopes of putting the money he would earn from the workers’ compensation claim toward an “early retirement.” 

    As a result, Tom’s workers’ compensation claim was denied. GMS is now preparing to take it to hearing, armed with enough evidence to report the claim to the Bureau of Workers’ Compensation (BWC) fraud unit and open a fraudulent case claim.

    Thanks to the quick action, constant communication, and solid teamwork, this workers’ compensation claim was handled efficiently and successfully, and Sam was able to protect his family business.

    Lower Your Workers’ Compensation Claims

    If you spend a lot of time—or not enough time—trying to find ways to lower workers’ compensation costs and keep your business safe, a professional employer organization (PEO) might be a good fit for you.

    Group Management Services is a PEO that provides cost containment and loss prevention strategies to help lower workers’ compensation claims. When you partner with GMS for workers’ compensation claims management, you’re getting more than just a cost savings; you’re also getting a partner that oversees the process of claims management and works closely with insurance carriers to ensure that your best interests are always at the forefront. 

    In addition, GMS provides comprehensive risk management, human resources, payroll, and benefits services to help your business run smoothly.

    Put your mind at ease. Contact GMS today to talk with one of our experts to see how we can make your business simpler, safer, and stronger.

  • When Donald Trump ran for the Presidency in 2016, a major plank of his platform was the repeal and replacement of the Affordable Care Act. In fact, pretty much every Republican in 2016 ran on that promise.

    In the summer of 2017, several Republican Senators and every Democrat Senator torpedoed that promise by not agreeing to a plan. Since then, this administration has made several attempts to sink the ACA where they could.

    A gavel of a judge blocking new association health plan rules meant to sink the affordable care act.

    The Trump Administration’s Attempts to Sink the ACA Through AHPs

    The first, and perhaps most powerful as far as Washington D.C. is concerned, attempt is the decision to no longer enforce the individual mandate. If you recall, there was supposed to be a financial penalty on any individual who didn’t have an insurance plan through an employer or on their own. The problem with that plan was always twofold:

    • If you weren’t working or weren’t filing taxes, there was no way for the IRS to collect that penalty.
    • In many instances, the penalty was less costly than the insurance itself.

    The administration began creating new rules for Association Health Plans (AHPs). These AHPs allowed “businesses and individuals [to] band together to create group health plans that offer less expensive coverage than the ACA.” In other words, Associations could pull together multiple employers and individuals into a larger group, offering better rates. In most cases, the trade-off was no protections for what was deemed “minimal coverage.”

    Recently, a federal judge ruled that the Trump Administration attempted an “end run” around the ACA and, in effect, violated the Affordable Care Act.

    Affordable Healthcare Options for Business Owners

    If you are a business owner and you thought these plans were a way to get out from under the considerable financial burdens of the ACA, you may be back at square one.

    Well, there may still be a multiple-employer healthcare option for you. If you would like to learn more about the large group buying power of a Professional Employer Organization (PEO), as well getting additional HR services and regulatory and tax protections, please contact GMS to talk to one of our experts today.

  • As an employer, understanding how to calculate payroll tax and income tax deductions is essential to running a compliant and efficient business.. A major part of that is making sure every employee’s paycheck has the correct taxes and other deductions withheld. Below is an overview of some of the most important payroll deductions for 2025, along with pointers on how to calculate them.

    Calculating Payroll Taxes for Employees

    The term payroll tax typically refer to Federal Insurance Contributions Act (FICA) taxes, which include both Social Security and Medicare contributions. For 2025, the employee-share rates remain:  

    • Social Security: 6.2% of gross wages
    • Medicare: 1.45% of gross wages

    This totals 7.65% for most employees, withheld each pay period. For example, if someone’s gross pay is $1,000:

    • Social Security withheld = $1,000 x 6.2% = $62
    • Medicare withheld = $1,000 x 1.45% = $14.50
    • Total Payroll Tax withheld = $76.50

    Meaning every paycheck for that employee will have $76.50 withheld.

    How to Calculate Federal Income Tax Deductions

    Unlike the flat rates for Social Security and Medicare, income tax deductions are determined by the employee’s Form W-4 and IRS tax tables. The IRS has 2025 Form W-4 instructions and updated tables in Publication 15-T. You can generally calculate withholding using either the wage bracket method or the percentage method.

    Wage bracket method

    This method uses easy-to-read tables. You simply:

    1. Look up how frequently you pay employees (weekly, biweekly, semimonthly, monthly, etc.).
    2. Choose the correct table based on the employee’s filing status (from the Form W-4) and whether they’ve checked the Step 2 box.
    3. Find the wage range in the table; the table cross-references the amount of tax to withhold based on any additional adjustments entered on the W-4.

    Percentage method

    This approach involves a bit more math, but it may be more flexible if your payroll amounts frequently exceed the ranges in the wage bracket tables. You will:

    1. Convert allowances (if you still have employees on 2019 or earlier W-4s) or interpret the relevant steps if they’re using a 2020 or later W-4. (For 2019/pre-2020 forms, note that the IRS publishes a “computational bridge.”)
    2. Subtract any allowances (or standard W-4 adjustments) from gross wages to get the taxable portion for that pay period.
    3. Apply the percentage method table.
    4. Add or subtract any additional amounts indicated on the employee’s W-4.

    Understanding State and Local Payroll Tax Withholding

    State And Local Taxes

    Federal income taxes aren’t the only concerns; many states and local governments require payroll tax withholding for state and local income tax deductions.. The method differs from state to state:

    • Some states (e.g., Florida, Texas) do not impose state income tax, meaning you only handle federal deductions.
    • Others (e.g., Ohio, New York) require both state and sometimes local income tax withholdings.
    • Check your state government’s website or official documentation for the 2025 rates and instructions.

    Additional (Voluntary) Paycheck Deductions

    In addition to required taxes, some income tax deductions are voluntary and may be either pre-tax (which reduce taxable income) or post-tax: These can include:

    1. Health insurance premiums for medical, dental, vision, etc.
    2. Retirement contributions (e.g., 401(k), IRA) chosen by the employee.
    3. Life insurance premiums paid via payroll deduction.
    4. Job-related expenses if you have agreed to recoup certain business expenses through paychecks (where legal).

    Ensure that these are set up correctly in your payroll system. Some might be pre-tax (reducing taxable wages), while others are post-tax.

    Why Payroll Tax Compliance Matters

    Staying accurate and up to date on payroll laws and tax tables is vital. Miscalculating payroll tax or income tax deductions can result in underpayment or overpayment, leading to potential penalties from the IRS or your state’s tax authority. It also impacts employees directly; over-withholding means smaller paychecks, while under-withholding can mean a big tax bill in April.

    • You’re responsible for timely depositing withheld taxes with the IRS, as well as filing the proper forms (like Forms 941 or 944 for federal payroll taxes).
    • For 2025, be sure you’re referencing the latest versions of IRS Publication 15 (Circular E) and Publication 15-T (2025) for the updated wage bracket or percentage method tables.

    Let GMS Simplify Your Payroll Tax Process

    Handling small business payroll taxes can be daunting, especially as forms and laws evolve each year. Group Management Services (GMS) can take the guesswork out of payroll tax and income tax deductions, ensuring accurate withholdings, filings, and tax deposits. If you’re:

    • Worried about maintaining compliance for 2025.
    • Unsure how to handle different forms (e.g., older 2019 W-4 forms vs. new 2025 W-4 forms).
    • Concerned about multi-state or local tax withholding.

    Group Management Services (GMS) can help streamline all aspects of your payroll tax management, from accurate withholdings to timely tax filings, allowing you to focus on growing your business. Contact GMS to learn more about our payroll tax services and how we can help you navigate the complexities of income tax deductions.

  • The Department of Labor announced a proposal in early March to change the salary-level threshold for white-collar exemptions. This move comes more than two years after a federal judge blocked another attempt to update the threshold for overtime eligibility, although the details of the proposal differ from the 2016 proposal.

    The current salary-level threshold for white-collar exemptions is $23,600 annually, which equates to $455 per week. The DoL’s new proposal seeks to increase the threshold to $35,308 annually ($679 per week) – nearly halfway to the DoL’s 2016 target threshold of $47,476 ($913 per week).

    While the new proposal is notably lower than the blocked attempt, it still marks a nearly 50 percent increase from the current wage threshold. As a result, the DoL “estimates that 1.1 million currently exempt employees who earn at least $455 per week but less than the proposed standard salary level of $679 per week would, without some intervening action by their employers, become eligible for overtime.” That’s a notable change that can have a direct impact on your employee’s compensation.

    Businessman contemplating options regarding the new salary-level threshold proposal from the Department of Labor. 

    Breaking Down the New Overtime Salary-Level Threshold

    The quick explanation of the new proposal is that employees who make less than $35,308 annually or $679 per week may be eligible for overtime pay. Overtime applies to any hours worked past 40 in a given week and will be compensated at a rate of one-and-a-half times an employee’s standard rate of pay. 

    Not all employees would be eligible for overtime pay, however. The job duties of an employee play a major part in deciding whether someone is eligible. As with the current salary-level threshold, employees must pass three tests to qualify for a white-collar exemption from overtime pay:

    • The salary basis test – Exempt employees must be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed
    • The salary level test – Exempt employees must be paid at least a specified weekly salary of $679 per week
    • The duties test – Exempt employees must primarily perform executive, administrative, or professional duties as defined by DoL regulations (duty definitions can be found on the DoL website)

    The new proposal also increases the salary level for “highly compensated employees” (HCE) from $100,000 to $147,414 per year. This group faces what the Society for Human Resources Management (SHRM) calls a “relaxed” duties test. As such, these employees are exempt from overtime if their primary duty is office or nonmanual work and routinely “perform at least one of the bona fide exempt duties of an executive, administrative, or professional employees.”

    It’s important to note that the term “white-collar exemptions” is used, as the new proposal maintains overtime protections for “blue collar” workers who perform tasks that involve “repetitive operations with their hands, physical skill and energy.” This includes no changes in overtime eligibility for any of the following professions:

    • Police officers
    • Fire fighters
    • Paramedics
    • Nurses
    • Laborers
    • Non-management employees in maintenance, construction, and similar occupations (carpenters, electricians, mechanics, etc.)

    Another difference with the new proposal is that there are no plans to make automatic threshold updates in the future. This is a notable departure from the 2016 proposal, in which the threshold would change every three years to match the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census Region. This means that if the proposal were to go into effect, it would only lead to the $35,308 ($679 per week) threshold and not any pre-planned adjustments.

    What Can Small Business Owners Do About the New Overtime Proposal?

    It’s currently a waiting game to see whether this new DoL proposal will go into effect or not. Like the 2016 proposal, the new salary-level threshold could run into some roadblocks. Despite this, it’s best to plan ahead just in case the proposal becomes reality. 

    Your options are largely the same as they were back in 2016, some of which may be more feasible than others for your company. The first is to pay newly-eligible employees overtime pay for applicable hours. Another is to limit employee hours to 40 per week to stop any chance of overtime pay. Each route has drawbacks, as paying overtime will increase your payroll and limiting hours may lead to decreased productivity thanks to change in overall work hours. 

    If neither of those ideas sound appealing, there are some other alternatives. One possible way to mitigate the impact of overtime pay is to raise the wage of workers who are close to the salary-level threshold. For example, if an employee regularly worked extra hours makes $34,000 per year, you could increase his pay to $36,000 per year. You’ll need to do the math to see if the change in pay outweighs the potential costs of overtime, but this method can help you control costs while still offering some reward to an employee.

    A more cost-effective, but less popular, alternative is to lower the salaries of newly-eligible overtime employees. This will help you account for overtime costs, but employees won’t approve of decreased pay if they’re eligible for overtime.

    Protect Your Business Through Preparation

    It’s important to take any proposed regulations seriously, especially when you can face a civil monetary penalty of $2,014 for repeated or willful violations of overtime rules occurring after Jan. 24, 2019. There are still plenty of steps the DoL’s new proposal needs to take, but it’s always good to have a plan in place just in case.

    Unfortunately, there’s not always the time or means to stay ahead of new regulations or other changes that could impact your business. That’s why small business owners turn to GMS to help them stay compliant with current laws and prepare for future legislation and regulations. Our team of experts and integrated HR system allows us to take on the administrative burden of small business payroll management and other crucial human resources tasks.

    Ready to prepare for your business’ future. Contact us today to talk to one of our experts about how we can help.