2025 W-2 Forms are now available in your GMS Connect employee portal here.

Request a call Login

  • Health insurance is one of the most sought-after employee benefits, but not all health plans work the same way. There are several different types of group health insurance that differ in terms of how the insurance is purchased and how it affects the group’s premiums and plan options.

    What Is Group Health Insurance?

    Group health insurance is a type of health care coverage that’s provided to a group of individuals, typically employees of a company or members of an organization. In these medical insurance groups, all members of the group are covered under one policy. As opposed to individual insurance policies, where each person’s risk is assessed individually, group health insurance allows for the pooling of risk across all members. This often results in more favorable premium rates for the entire group.

    One of the key advantages of group health insurance is that it can provide coverage for individuals who might otherwise struggle to obtain insurance on their own due to cost or pre-existing conditions. Employers or organizations purchase the policy and offer it to their members, often extending the coverage to include dependents.

    Benefits of Medical Insurance Groups

    Group health insurance offers numerous advantages for both employers and employees. For employers, it’s a powerful tool for attracting and retaining top talent, as it demonstrates a commitment to the well-being of the workforce. Employees benefit from lower premiums and better coverage options, often with pre-existing conditions covered. The buying power of a group ensures more comprehensive coverage at a reduced cost. In addition, group health insurance plans contribute to a healthier workplace, leading to a reduced absenteeism and increased productivity. Overall, it’s a win-win situation that fosters a supportive and healthy work environment.

    Group Health Insurance Options

    While all these health plans have certain advantages and disadvantages, it’s up to you to decide which makes the most sense for your needs. The following are some of the common types of medical insurance groups available for small businesses. 

    Fully-Insured Plans

    Of all the types of group health insurance, the fully-insured plan is one of the more traditional options. Fully-insured plans involve the insurance company taking on the risks involved with healthcare costs and charging your business an annual premium for the benefits in the insurance policy, which is partially paid for by the employees.

    The insurer uses a variety of factors used to calculate group health insurance premiums, including:

    • Size and health of the group
    • Average age of the group
    • The employer’s claims history
    • Types of occupation
    • Level of coverage and add-on benefits

    Self-Funded Plans

    While the insurance company covers the expense of employee health costs in a fully-insured plan, self-funding places that burden on the employer. This can often lead to more affordable rates and more control over a plan, with the tradeoff of your business accepting the risk of having to pay for any catastrophic claims.

    This path is often seen as an option for large businesses, but small groups can also take advantage of self-funded plans. Small businesses can opt for a partially self-funded plan with stop-loss insurance. This option limits your risk so that you can still reap some of the benefits of self-funding without taking on the entire burden in case any catastrophic claims occur.

    Level-Funded Plans

    Unlike the more traditional plans with annual premiums, level-funded plans are based on a monthly payment rate. Insurance carriers will use census information to determine the amount your small group should pay. This rate is based on factors like claims allowances, fees, and stop-loss coverage premiums. Once the year is finished, the carrier will adjust the monthly level based on group performance.

    Health Maintenance Organization (HMO)

    An HMO is a group coverage setup where group members pay for specific health services through monthly premiums. Through an HMO, you’ll have access to a network of healthcare providers and locations, but services will be limited to those that fall under that network. This arrangement allows HMOs to be more affordable than other types of health insurance plans, although seeing any physicians or facilities not included in your HMO network can result in a group member having to foot the full bill.

    Preferred Provider Organization (PPO)

    PPO plans are like HMO plans, except with more flexibility. PPOs feature a network of healthcare providers and facilities, but group members have the option to go to physicians or locations without being completely on the hook for the entire bill. Instead, these visits will result in higher co-pays and additional service costs, giving members some more freedom than HMO plans.

    High-Deductible Health Plan (HDHP) with a Savings Option (HDHP/SO)

    An HDHP is based around lower premiums and higher deductibles for group members. This means that members with this type of healthcare insurance will have to pay more out-of-pocket before the plan pays for its share. The tradeoff, however, is that this route allows monthly premiums to be lower, making it a good group health insurance option for employees who don’t use many medical services.

    In addition, HDHPs can be paired with savings options like a health savings account (HSA). These accounts allow members to make tax-free contributions to an account that can be used to pay for healthcare costs, ranging from copays to major medical services. The funds in these accounts rollover every year, making them a great retirement savings option, too.

    Health reimbursement accounts (HRAs) are another potential savings option that can be tied to an HDHP. These accounts are similar to HSAs, except employers make the contributions instead of employees.

    Choose the Right Type of Health Insurance for Your Small Business

    It can be difficult to find the right group health insurance plan for your budget. Balancing benefits administration and budget can be overwhelming for anyone without a strong grasp of the healthcare system.

    That’s why many small business owners work with a Professional Employer Organization (PEO) to help weigh their medical insurance group options and handle the administrative burden of healthcare coverage. That’s why many small business owners work with a Professional Employer Organization (PEO) to help weigh their medical insurance group options and handle the administrative burden of healthcare coverage. 

  • Employees play a massive part in the success of your company. Of course, this also means that a bad employee can also lead to potential inefficiencies and other issues. 

    Firing an employee is a difficult reality of running a business. While the situation is unpleasant for everyone involved, there are right and wrong ways to go about the termination process. In fact, there are several steps you need to take before, during, and after you fire an employee. Here’s what you need to know to take the right route during the termination process.

    An employee gathering items after being fired by a small business owner. 

    What to Do Before You Fire an Employee

    Firing an employee is typically more than a one-day process. There are several actions you’ll need to take before you effectively terminate an employee to help protect your business and provide proper feedback. Depending on the employee, some of these steps may even help you improve their performance and save you from severing the relationship.

    Distribute an employee handbook

    Long before you plan to fire someone, you should make sure that every one of your employees receives an employee handbook. An updated handbook is an official document that makes the following details very clear for your employees:

    • Company philosophy
    • Conditions of employment
    • Company policies and procedures
    • Compensation and benefits

    Your employee handbook plays an important dual role for your business. First, it’s a great way for new hires to learn more about the rules, perks, and personality of your business. Second, it’s a compliance tool to make sure that your employees know and understand internal policies and grounds for dismissal. Having these rules in place – along with documentation that your employees have received your handbook – will help protect your business in case a fired employee tries to fight their dismissal in court.

    Review past performance reviews and feedback

    Before you decide to dismiss an employee, look back to see what type of feedback he or she has received in past reviews. If your employee has only heard good feedback and received raises that correspond with exemplary performance, a dismissal would come as a huge shock. 

    Not only do employee performance reviews give you a chance to set goals and expectations for an employee, they can also help protect you against claims if you’ve shared feedback indicating that an employee needed to improve. If there are no negative reviews on record, you may want to wait until you can provide some honest feedback. This way your employee may take the review as an opportunity to improve. If he or she doesn’t, you have evidence that both you and your employee knew of the continued poor performance so that you can back up your decision to terminate an employee.

    Document violations and give official warnings

    Like performance reviews, it’s important to have a documented history of any warnings or violations for any employee you decide to fire. Once it has become apparent that an employee’s performance is simply not up to standards, call them into a private space and give that person an official warning.

    It’s important to make sure that this warning is also in writing. While you explain why you’re unhappy with your employee’s performance, there should also be a printed document that the employee can sign so that you can place it in that person’s personnel file. You can also use a performance improvement plan that lists set goals for an employee to achieve within a set period of time (30 days, 90 days, etc.). Either of these options will make it clear exactly why the employee is at risk of losing his or her job and will help you back up your case as to why they needed to be dismissed.

    What to Do On the Day of Termination

    After you’ve taken the appropriate steps to give an employee an opportunity to improve and document reasons for dismissal, it’s time to act quickly and terminate the offending team member.

    Don’t wait for Friday

    While some situations call for immediate dismissals regardless of the day, certain days can be better than others if you can plan ahead. According to The Balance Careers, it’s generally best to try and aim for sometime in the middle of the week to fire an employee, preferably on a Tuesday or Wednesday. 

    Firing someone on a Monday can lead to the terminated employee feeling as though you wasted his or her time waiting until a new week has started. Friday dismissals leave the terminated employee to stew about the decision over the weekend. Aiming for the middle of the week can help mitigate bad feelings in an already difficult situation.

    Fire employees in person

    Firing an employee is already an unpleasant situation – don’t make it worse for the employee by terminating them via phone, email, or some other electronic means. While the experience will likely always be painful, it’s important to be as humane as possible when firing an employee. That approach means giving them the courtesy of hearing the news from you or another appropriate person at your company. 

    Not only is a face-to-face firing the right thing to do, it also looks much better than the alternative. Taking a less personal approach can leave a negative impression for other employees when they learn about the dismissal, especially if someone was friends with the terminated employee. As such, a personal approach can lessen the odds of not only bad reactions from terminated employees, but also any concerns from the coworkers they left behind.

    However, an in-person approach isn’t necessarily feasible if you need to fire a remote employee. While you may not be able to sit in the same room with these people, it’s still good to break the news face-to-face through some form of video conferencing platform.

    Don’t fire employees by yourself

    It’s always a good idea to have another person in the room if at all possible. Whether it’s an HR specialist or another employee, a second person serves as a witness. Unfortunately, there’s a chance that your former employee may try and accuse you of an unjust firing. Having an HR professional in the room can help you stay on track during the dismissal process to avoid any potential issues. Even if you don’t have an HR expert available, a second person gives you another person who can attest to your side of the story in case the former employee makes any false claims during your meeting. 

    Keep it short and simple

    When it’s time to fire someone, it’s best to avoid any small talk and get straight to the point. Tell the person directly that he or she has been terminated. Make it very clear that this decision is final and give very specific feedback as to why you and the company made this decision. 

    As you may expect, this isn’t a happy occasion and the fired individual likely won’t take the news well. However, it’s important to listen to what your former employee has to say to get a better read on how he or she takes the news. Whether they’re angry, sad, shocked, or in denial, continue to repeat the message and treat them with respect.

    This is also the time to cover next steps and what will happen involving their final pay, benefits, and other details. At this point, you’ll be able to discuss any terms for severance pay, extended healthcare, or other benefits if you choose to offer them. You can also ask the individual to sign a release of liability.

    Collect any work-related items

    Depending on your business, you may have provided your former employee with equipment ranging from small supplies to extremely expensive items. You’ll want to collect any company property from them before or during the individual’s last day, unless there’s an agreement in place to allow that person to keep certain goods. These items can include:

    • Keys or key cards
    • Laptops
    • Credit card
    • Cell phone, tablet, or other mobile device
    • Company car
    • Miscellaneous office equipment

    In addition to physical items, you also need to address passwords, codes, or any other means of company access. If certain doors at your company are unlocked by keycodes or other card or keyless means, change those codes. Likewise, either you or someone else at your company should restrict any user access and change any passwords the dismissed employee may use to access your computer network.

    Likewise, your former employee likely has some personal items that he or she will want to take home as well. If you schedule the termination meeting for the end of the day when most of your other employees are gone, the dismissed employee can gather their own possessions without as much fear of embarrassment. Of course, you may want someone there to watch just to ensure that the  employee doesn’t take any company property. You can also ask terminated employees to provide a list of their personal property so that someone else can gather their possessions and return it to them there or someplace outside of work at an arranged time in the future.

    Escort them out and end on civil terms 

    After both parties have collected all the necessary items and are ready to go, it’s time to wrap up the termination meeting. Personally walk the individual to the exit and wish him or her well in the future. The dismissed individual may not be in the best mood, but it’s good to part ways on a gracious note.

    What to Do After You’ve Fired an Employee

    While the hardest part of the termination process may be over, your job isn’t quite done. There are still some very important tasks to finish that involve updating everyone else in your team and protecting yourself in case the fired employee decides that the matter isn’t over just yet.

    Inform the office

    While it may seem easier to not address the departure of an employee, it’s best to be honest to your team. If you don’t say anything, other employees may lose trust in management and start to fear that there are more dismissals in store for the future. Word will quickly spread on it’s own, so you can shape the conversation and get ahead of the gossip with a quick message.

    Fortunately, your message to the rest of your company doesn’t need to be long and complicated. Instead simply you’ll want to focus on the following:

    • That the dismissed employee no longer works at your company
    • The transition plan for handling the former employee’s departure
    • That anyone with questions should feel free to speak to you or another relevant person

    Avoid saying that the employee was fired. It’s best to just say that the person in question is no longer at the company and shift toward the future. Also, refrain from making any critiques about the former employee. These comments may not sit well for his or her former coworkers, so it’s best to move forward.

    It’s also important to determine the right method and timing for sharing this information. If you have a smaller company or the former employee workerd with a close group of associates, an in-person company meeting is best. If your company is larger or the former employee didn’t work as closely with others, a termination email should be enough to suffice. You can also hold an in-person meeting with closer associates and follow up with an company-wide email as well if you want to break the news to a certain group first.

    Reassign duties

    Part of the transition plan for handling your former employee’s departure involves addressing how that employee’s duties will be handled in the short- and long-term future. This can involve delegating who will pick up the slack until you have a more permanent solution in place. If the employee received regular emails or calls from clients or customers, have those messages forwarded to someone else in the organization.

    You also want to be careful about how you split up these duties – you don’t want to make a good worker bitter because she or she has to do the work of two people because of someone else’s dismissal. If you plan to hire someone new or put new processes in place to ease the overall burden of these duties, let your employees know. A bit of transparency will help reassure concerned employees and let them look ahead to the future instead of dwelling on the downsides of the dismissal.

    Be prepared for unemployment claims

    If the employee didn’t sign some form of liability preventing them from doing so, there’s always a chance that they may file a claim against your business. Unemployment taxes can cost your business thousands of dollars, and a claim against your company may lead to even more financial burden. 

    Fortunately, there are ways to protect your business from the claims and unruly taxes. A combination of maintaining good company policies and record keeping can improve your chances of winning unemployment claim cases. It also helps to have a dedicated company like a Professional Employer Organization on your side that can reduce your tax risks and help you fight against unwarranted claims.

    Consider a PEO for Employee Performance and Risk Management

    The firing process isn’t an enjoyable one, but it helps to have trustworthy, experience HR professionals by your side when you do need to dismiss an employee. Group Management Services can help you manage the entirety of the employee lifecycle, including employee recruiting and training, performance management, and unemployment claims management.

    Whether you’re dealing with employees, benefits, or payroll, HR management can eat up the majority of your schedule. GMS can help you take your time back while providing your business with professional services that protect and strengthen your business. Contact GMS today to talk to one of our experts about how we can help you support your business.

  • Changes in healthcare are prompting many small business owners to rethink the role of employee benefits like health insurance at their companies. According to PricewaterhouseCoopers, health insurance premiums are expected to rise by 6 percent in 2020, which can weigh heavily on your bottom line. Below, we explored some of the top health insurance trends that will impact small businesses and how you can adapt in the ever-changing benefits landscape.

     Small business health insurance is changing in 2019.

    Small Business Health Insurance Trends

    In order to stay competitive in an ever-tightening market, small business owners must develop savvy benefits strategies to attract and retain top talent. From trending workplace initiatives to increases to federal regulation changes, here’s how small business healthcare is changing in 2020.

    Increase Deductibles

    To combat rising premium costs, many small businesses are switching their insurance offerings to high deductible health plans (HDHPs). HDHPs can be paired with health savings accounts (HSAs), which allows employers to make tax-free contributions to their employees’ accounts and receive tax benefits. Additionally, the funds rollover every year, making them a great supplement for retirement savings accounts and an attractive employee benefit.  

    According to the Society of Human Resource Management (SHRM), 56 percent of employers offer HSAs as a benefit—a percentage that is expected to see rapid growth in the coming years. According to Devenir, HSAs have risen 12 percent year-over-year, with assets growing by 20 percent annually. The investment advisory and consulting firm projects that by the end of 2021, the HSA market will approach $88 billion in assets held by more than 30 million accounts.

    Prioritize Preventive Care

    With rising health care premiums, unhealthy habits can further drive up small business healthcare expenses. As a result, preventive care will become a larger priority for small business owners in the coming years.

    Already, the Centers for Disease Control and Prevention reports that almost half of U.S. businesses offer some type of wellness program. Moving beyond counting steps or logging water intake, initiatives like gym memberships, screening tests, and smoking cessation programs will be commonplace among small businesses in 2020. 

    Benefits PDF

    Offer Virtual Care

    Seeing a doctor in person can be inconvenient and costly when you factor in scheduling issues and co-pay fees. Many small businesses have found telemedicine, also referred to as telehealth or virtual care, to be a good solution. According to the National Business Group on Health, 56 percent of the companies surveyed currently offer telemedicine services to employees. NBGH projects nearly all companies offering group health care plans will also provide telemedicine by 2020.

    Telemedicine allows a patient to have a consultation with a medical provider via a computer, smart phone, or tablet. It’s an attractive benefit that allows patients to see a doctor around the clock, saving you and your employees time and money. In fact, insurance broker firm Willis Towers Watson found that employers could save up to $6 billion per year by providing telemedicine.

    Utilize Benefits Technology

    Small firms are increasingly looking to better utilize technology for help managing employee benefits. A Guardian Life Insurance study found that nearly half of all small businesses are more digital than paper-based—a percentage that will continue to grow as more business owners realize the low cost and high potential. 

    Migrating benefits administration to a web-based portal offers a simpler and more efficient way for employers to manage their back office in one place. In addition to managing benefits, small businesses can look to digitize payroll, employee reviews, timekeeping, PTO requests, and company communication.

    Improve Compliance

    As a small business owner, you know your employees, business, and industry like the back of your hand, yet when it comes to federal regulations, you’re likely left scratching your head. After all, it can be challenging for small businesses to stay up to speed on regulations and the changes made to them each year. 

    This past year was no exception, as we saw a few legal changes to health insurance. For businesses with at least 50 employees, business owners must offer the minimum essential health coverage that’s affordable or pay a penalty. In deciding whether to pay or play, keep in mind that penalties will increase by nearly 30 percent in 2020. 

    Outsource Benefits

    Managing healthcare is a timely chore for small business owners that takes them away from focusing on client relationships and workplace satisfaction. Perhaps that’s why so many small businesses have found that the best option is to outsource benefits management to a professional employer organization (PEO). 

    PEOs take on the responsibility of providing and managing things like health insurance, so employers can focus on growing their business. Not to mention, PEOs will also take on the regulatory liability of your employees, so small business owners can have better peace of mind. Working with a PEO also allows small business workers to gain access to big-business employee benefits like wellness programs and health, dental, life and other insurance offerings.

    Get Small Business Health Insurance

    With each passing year, healthcare will only become more complex. Small business owners will need greater support to navigate the changes and develop benefits strategies. 

    Group Management Services (GMS) provides a Master Health Plan, offering small business owners the best healthcare benefits at lower premium costs. We leverage our buying power through mass policies, so small businesses can purchase multiple policies like health, vision, dental and other types of supplemental insurance coverage. Additionally, GMS provides payroll and tax, human resources, and risk management services to further meet your small business needs. 

    Contact GMS today to talk with one of our experts about how your small business can offer quality health insurance at a lower cost.

  • The state of family medical leave has been in flux in New Jersey over the past year. In February, Governor Phil Murphy signed an amendment to expand both New Jersey’s Family Leave Act (NJFLA) and Family Leave Insurance law (NJFLI). Those changes went into effect back on June 30, 2019, but they wouldn’t be the only adjustments to leave laws during the years.

    As of Oct. 7, 2019, business owners have a pair of new laws to plan for when it comes to how the state processes leave applications. With so many changes, it can be hard to keep all the new family leave updates straight. To help, here’s a breakdown of what business owners need to know about the changes to family leave in New Jersey over the course of 2019 – and why it might be important to business outside the Garden State as well.

    A mother taking family medical leave from work after the birth of her new child.

    What’s Going on with Family Leave Laws in New Jersey?

    Changes to the NJFLA and NJFLI

    While New Jersey previously had the NJFLA and NJFLI both in place, the new amendments essentially increased the level of benefits and protections for any eligible employees who wish to use family leave. As was the case before, New Jersey employers must provide family leave to eligible workers and cannot terminate them as a result of this leave. These employees must meet the following requirements to be considered eligible for family leave. 

    • Their employer has at least 30 employees (it was 50 employees prior to June 30, 2019) or is a government entity of any size
    • The employee has worked for that employer for at least a year, amassing at least 1,000 hours over the course of the last 12 months
    • The family leave is used to care for a child of younger than 1 year old or to care for a family member, or someone equivalent to family, with a serious health condition

    In addition to reducing the employer size threshold found in the federal Family and Medical Leave Act (FMLA), many other changes went into effect for both NJFLA and NJFLI in June. Here are some of the more notable differences that directly impact employers.

    Reduced notice requirements

    The FMLA requires advance notice of 30 days for leave requests. However, New Jersey’s amendment drops the advance notice requirement to 15 days for an intermittent leave request for family members with serious health conditions.

    Additional time for paid leave benefits

    Originally, New Jersey employees were only allowed six weeks of paid family leave within a 12-month period. The amendments double that amount to 12 weeks. It also increased intermittent paid leave benefits from 42 to 56 days in that same 12-month period, while extending intermittent use to foster care placement in addition to care for newborns or adopted children.

    Higher weekly benefit amount cap

    Employees taking paid leave earn a portion of their weekly salary. Currently, that rate is two-thirds of an employee’s weekly salary, with weekly payments capped at 53 percent of New Jersey’s statewide weekly remuneration. As of July 1, 2020, that pay will increase to 80 percent of a weekly salary, with weekly payments capped at 70 percent of the statewide remuneration.

    No more PTO mandates

    Previously, employers had the option to require employees to use up to two weeks of PTO in place of paid leave time. The new amendment bars employers from mandating PTO use, although it still gives employees the option to do so at their own discretion.

    October amendments

    While the latest amendments don’t offer as many changes as the ones that took effect in June, they do institute a pair of notable updates that aim to speed up the leave application process for people with new children.

    The first change saves employees the trouble of completing multiple applications for leave. With the new rules, the state will automatically process applications for leave insurance after an employee applies for temporary disability. The second update allows employees to submit pregnancy-related temporary disability claims up to 60 days ahead of the actual claim period as long as they know when they’ll expect to start their period of leave.

    Why Family Leave Changes Matter to Business Owners

    As with any legislative changes that affect businesses, the updates to NJFLA and NJFLI mean that business owners in New Jersey need to take precautions to make sure that their company is compliant with the new family leave rules. If your company falls in the 30-employees or more threshold, you’ll need to abide by all the new rules listed above. You’ll also want to update your employee handbook to include these new policies.

    If your company employs fewer than 30 people, you don’t have to follow the same details. However, you can mirror the new family leave laws even if you aren’t legally required to do so. Matching the new family leave rules can serve as a sign of good faith to your current employees – and help you stay competitive with bigger companies that have to honor the new rules. Whether you decide to modify your family leave policy or not, it’s important to document it in your handbook as well. 

    While these new updates only affect business owners in New Jersey, they may serve as a sign of things to come for people in other states. It’s not uncommon for New Jersey to act as a testing ground for legislative changes. As such, other states may mimic similar changes to their Family Medical Leave Act laws in the future.

    Whether it’s family leave or something else, it’s never easy to stay on top of all the legislative changes that can impact your business. At GMS, our team of experts can help you stay compliant with any new rules and regulations while helping your business simplify key HR functions like payroll and risk management. Contact our New Jersey office or one of our other locations today to talk to one of our experts about how we can help you save time and money through professional HR administration.

  • Back in 2018, Florida voted to ban vaping in enclosed workplaces. The new law went into effect in July of 2019, but Florida isn’t alone in its ban on vaping in the workplace. Several other states, including California, New Jersey, and New York, all prohibit the practice in any place where smoking is not permitted, while other states have bans for specific settings, such as in enclosed workspaces or schools.

    As more states take action to prevent vaping in workplaces, it’s a good time for business owners both in Florida and outside the state to figure out what they need to do to prepare their company from past and future legislation.

    An employee vaping in the office before Florida’s ban on vaping in the workplace.

    What Does Florida’s Workplace Vape Ban Mean for Business Owners?

    There are a couple of different takeaways for Florida’s ban on vaping in the workplace. The first perspective is what it immediately means for business owners in The Sunshine State. In short, the state now prohibits both vaping and smoking in “enclosed indoor workplaces.” This term is a technical way of saying the ban exists for any workspace that is predominantly closed in by walls or other physical barriers, regardless of whether they have windows or any other uncovered openings. Private residences used for work are exempt from the ban, except in limited exceptions where the residence acts as one of the following:

    • A childcare, adult care, or health care provider
    • A retail tobacco or vape shop
    • A bar that does not serve food

    The other perspective involves businesses outside of Florida that either have some form of workplace vape ban in place or operate in a location without any such legislation. For the former group, it’s important to look up the details of your state’s laws. For the latter, Florida’s ban is yet another example of a state cracking down on vaping. In fact, you may want to be proactive about establishing vaping policies in your workplace.

    What Should Business Owners Do About Vaping?

    For businesses in Florida and other states with vape bans, the answer is simple: Set clear guidelines regarding smoking and vaping prohibitions. This policy should clearly state that employees are prohibited from smoking or vaping in enclosed workspaces per your local laws. In addition, the Society of Human Resource Management (SHRM) suggests taking the following steps:

    • List the procedures for when the proprietor or other person in charge witnesses or is made aware of a violation
    • Post signs to indicate that smoking or vaping, or both, are prohibited

    As for business owners in locations without any vaping-related regulations, they need to decide if they want to treat vaping the same way as traditional smoking. While allowing employees to vape in the workplace will help limit time lost from smoke breaks and keep those who vape pleased, this decision can come at the cost of another employee’s happiness. It also doesn’t help that the Centers for Disease Control deems e-cigarettes as potentially unsafe.

    Ultimately, the decision to have a vaping policy is up to the business owner if there’s no existing legislation that dictates otherwise. If a decision is made to prohibit vaping in the workplace, SHRM suggests doing the following:

    • Evaluate existing smoking policies and clarify what smoking products are covered what areas of the worksite are non-smoking spaces
    • Make it clear whether employees can bring e-cigarettes into certain areas when not in use or if they’re completely banned from the property
    • Update the company’s clean-air policy to reference e-cigarettes and other vaping products (if a clean-air policy exists)
    • Inform employees of any workplace policy changes before they take effect (60 to 90 days’ notice is good except in the case where the state stipulates rollout times)

    Keep Your Business Prepared for the Future

    No matter where your business is located, it’s important to keep up to date on key legislation that can make your current workplace policies go up in smoke. As a Professional Employer Organization, GMS has the experts on hand to make sure your business stays compliant with new laws while also saving you time and stress by managing key functions like payroll, benefits administration, and other important services.

    Ready to make managing your business a lot simpler? Contact our Florida office or one of our other locations today to talk to one of our experts about how we can help your business prepare for the future.

  • Paid time off (PTO), while an attractive employee benefit, can present some challenges for small business owners. From determining the number of PTO days to creating an employee leave policy to tracking time off, there’s a lot that must be taken into consideration. Use this guide to determine how much PTO your employees should receive.

     Woman travelling on PTO.

    Benefits of Paid Time Off

    There are many benefits small businesses can use to their advantage by offering PTO. Perhaps the best part is that it’s one of the least expensive benefits for employers to offer when compared with health insurance, retirement plans, and other benefits. 

    When putting together an employee’s compensation package, PTO can be a great benefit to attract and retain top talent. According to Glassdoor, PTO stacks up as the second most important benefit to employees, following health insurance. With 73 percent of small businesses offering PTO to full-time employees, according to the National Federation of Independent Business (NFIB), it’s almost critical to stay competitive in the labor market.

    Studies also show that PTO has the power to make employees more productive, engaged, and relaxed. The American Psychological Association says that taking time off can help employees relieve stress, prevent job burnout, and even cure headaches and backaches. An Ernst & Young study also found that for every 10 hours of PTO taken, employee performance ratings improve by 8 percent.

     

    Average Paid Time Off

    According to the U.S. Bureau of Labor Statistics (BLS), the average employee receives 10 days of paid time off per year, not including sick days and holidays. However, the average number of PTO days can vary depending on company size and years of service:

      1-99 employees 100+ employees All companies
    PTO after 1 year 9 days 12 days 10 days
    PTO after 5 years 13 days 16 days 15 days
    PTO after 10 years 15 days 19 days 17 days
    PTO after 20 years 17 days 23 days 20 days

    Consider using these averages as a benchmark when determining your paid time off policy. 

     

    Do Employers Have to Give Paid Time Off?

    The Fair Labor Standards Act (FLSA) does not require employers to pay for time not worked. However, employee leave laws for holidays, sick leave, jury duty, and bereavement can vary by state. Be sure to understand whether you’re required to pay employees during their time off in each of these circumstances.

     

    Accruing Paid Time Off

    Once you’ve determined how much PTO you want to offer employees, you’ll need to determine how it will be accrued. Will full PTO be given to employees immediately upon being hired? Or will PTO be accrued by the number of hours worked? Additionally, some employers require newly hired employees to wait a set amount of days before being offered PTO. Keep in mind that some states regulate PTO accruals, so it’s best to first check your PTO payout laws first.

     

    How to Create a Paid Time Off Policy

    After hammering out all the details of your PTO offerings, you’ll need to create a written policy detailing:

    • Number of PTO days offered.
    • How PTO will be accrued.
    • How much notice must be given before taking PTO.
    • How much PTO can be taken at a time.
    • How many employees can take off on the same day.
    • How employees will be compensated for any time left on the table in the event an employee quits or is terminated.

    Make sure your PTO policy is documented in your employee handbook and signed by all employees.

     

    Paid Time Off Management

    For many small and mid-size businesses, managing and tracking PTO for each employee can be challenging. As a Professional Employer Organization (PEO), GMS can help with paid time off management. Through our online HR portal, GMS offers a paid time off tracking system to approve PTO requests and track time off. We can also help craft a comprehensive PTO policy and ensure your handbook is updated accordingly to protect your business best.

    In addition, GMS can help save you time and stress by managing key business functions like payroll, human resources, benefits administration, and other important services. Contact us today to request a consultation.

  • Retirement plans are one of the most valuable employee benefits offered by organizations today. According to the Society for Human Resource Management (SHRM), the vast majority of workers say having a retirement plan is critical to their overall job satisfaction. Perhaps that’s why this benefit is such a deal breaker for job hunters and one of the main reasons why so many workers stay with their current employers. 

    It can be challenging for small businesses, however, to manage the administrative costs and compliance requirements associated with offering retirement savings plans. Only 53 percent of small-to-mid-sized businesses offer a retirement plan, with approximately 38 million private-sector employees without access to one through their employers.

    The good news is that may be about to change. In July 2019, the Department of Labor (DOL) clarified the definition of “employer” within the Employee Retirement Income Security Act (ERISA) in sponsoring a multiple employer contribution pension plan. In establishing the ‘final rule’, which goes into effect Sept. 30, 2019, the DOL has made it easier and more cost-effective for small businesses to offer retirement plans to employees through Association Retirement Plans (ARPs).

     Retirement savings.

    What is an Association Retirement Plan?

    Per the final rule, ARPs allow small and mid-size businesses to band together to offer joint 401(k) retirement plans. By using the purchasing power of the combined businesses, they can bargain for lower administrative and investment fees that would otherwise prevent them from offering retirement savings plans.

    “Many small businesses would like to offer retirement benefits for their employees but are discouraged by the cost and complexity of running their own plans,” Acting Secretary of Labor Patrick Pizzella, said in a statement. “Association Retirement Plans offer valuable retirement security to small businesses’ employees through their retirement years.”

    According to the DOL’s final rule, ARPs can be offered by associations of employers in a city, county, state, multi-state metropolitan area, or nationwide industry. ARPs can also be sponsored through a Professional Employer Organization (PEO), which is a company that provides comprehensive HR services for businesses. While many PEOs have been sponsoring retirement plans for some time, this final rule provides the validation needed to continue doing so.

    What it Means for Small Business Owners

    Prior to this rule, such retirement plans were limited to employers with an affiliation or connection, such as a shared owner or being members of an industry trade group. However, these changes now mean that, for example, a landscaping company and a marketing agency located in the same area could create a joint retirement plan.

    With a more cost-effective solution, small business owners can reap the benefits of offering retirement plans, including:

    • Attracting quality talent.
    • Improving employee satisfaction.
    • Reducing new employee training.
    • Retaining high performers.

    Additionally, businesses can also receive tax credits from the IRS for starting a retirement plan. 

    Retirement Plans Assistance

    Offering retirement plans is important to attracting and retaining quality employees, but it’s a benefit with a lot of complexity and risk. Need assistance? A PEO like Group Management Services (GMS) can help cut costs, reduce stress, and save time when it comes to establishing retirement plans. We can help you set up fully customizable plans to easily establish eligibility requirements, vesting, profit-sharing contributions, and more.

    In addition, GMS offers comprehensive services, including human resources, payroll, risk management, employee benefits, and more. Contact GMS today to request a consultation.

  • Promoting safe behaviors in the workplace is crucial for creating a secure environment for employees. It goes beyond mere compliance with safety regulations and involves fostering a positive safety culture. Unsafe behaviors and poor decisions are significant contributors to workplace accidents. In fact, approximately 90% of workplace incidents result from unsafe behavior and human error. If employees are unaware of the hazards or aren’t motivated to follow safety procedures, their subsequent behavior will expose them to risks.

    While it is a legal obligation to implement safety protocols and provide necessary safety equipment, such as personal protective equipment (PPE), establishing a culture that prioritizes safety is essential for protecting your team. Ensuring safety is not just about compliance; it’s about fostering an environment where every team member is committed to maintaining a safe workplace.

    Promoting safe behaviors and creating a secure environment is a gradual process that requires continuous effort and dedication. It involves regular training, clear communication of safety standards, and encouraging open discussions about safety concerns. While a significant lift, cultivating a culture that prioritizes safety can significantly reduce workplace injuries, boost morale, and minimize productivity disruptions.

    Seven Ways To Promote Safe Behavior

    Workplace injuries require extensive documentation and reporting, diverting time and energy away from projects. This administrative burden can slow down operations and detract from overall productivity. Moreover, the absence of an injured team member places additional strain on the remaining staff, who must cover for their injured colleague. This added pressure can lead to increased stress and fatigue, potentially compromising the safety and efficiency of the entire team.

    Building a culture that values safety also means leading by example. When management demonstrates a commitment to safety, it sets a standard for the entire team to follow. The actions of your leadership team not only reinforce the importance of safety but also encourage employees to adopt and maintain safe practices.

    There are a few things you can implement to help build a safety-based culture, including:

    1. Involve employees in the identification and correction of hazards. Have them participate in the development of job hazard analyses (JHAs), which should consist of critical behaviors as well as hazards.
    2. Periodically audit your operation to assure compliance with OSHA regulations and industry standards like the American National Standards Institute (ANSI) by conducting detailed walk-through surveys of your work area and, if possible, the entire plant. 
    3. Perform safety observations to encourage safe behaviors. This can include supervisory observations or, ideally, peer-to-peer safety observations after employees have received training. 
    4. Give recognition to employees who perform tasks safely and demonstrate proper behaviors. 
    5. Ensure that training builds awareness of the critical safety behaviors for each task. In addition, training should be conducted immediately following significant job task modifications. Refresher training should also be provided during employee meetings to guarantee everyone receives the same instruction.
    6. Make sure that appropriate controls are in place and operational. Periodic inspection and maintenance are critical.
    7. Investigate every incident and near miss for root causes, communicate the findings, and correct deficiencies. If a safety procedure is challenging to follow, analyze and modify the procedure or task as needed so that employees will not be tempted to break the rules and work unsafely.

    Behavior-Based Safety

    Behavior-based safety (BBS) is a proactive approach that focuses on observing behaviors and their consequences to enhance workplace safety. Although it requires considerable effort to maintain, when implemented effectively, BBS can significantly mitigate the risks of accidents. A successful BBS approach relies on everyone agreeing and consistently practicing safe behaviors for all identified hazards.

    Employees can implement the straightforward process of JHAs to ensure comprehensive awareness of hazards and their respective controls for each task. The development of JHAs begins with performing thorough hazard assessments. These assessments identify both the dangers inherent in tasks and the critical behaviors needed to prevent unwanted outcomes. Utilizing a Hazard Assessment Form can aid in evaluating tasks, identifying hazards, and determining the necessary controls.

    A Hazard Assessment Form engages with staff purposefully and critically examines unsafe conditions. Observing employees and discussing their tasks can help identify the behaviors needed to prevent mishaps and situations that might lead employees to make dangerous choices. For example, if using a piece of safety equipment is required for a task but it is not readily accessible, a team member may choose to make an unsafe decision for the sake of getting the job done quickly.

    Protect Your Business Today

    To truly enhance workplace safety, consider strategies that simplify processes, increase safety, and strengthen overall operations. Partnering with a professional employer organization (PEO), like GMS, can provide comprehensive support in these areas.

    GMS offers various services, from on-site training to consulting and OSHA compliance. Our workplace safety experts are ready to assist you in addressing your team’s questions and building a robust culture of safety. By leveraging our expertise, you can ensure your workplace adheres to the highest safety standards while streamlining processes and enhancing overall strength and efficiency.

    Contact GMS today to talk with one of our experts about how you can ensure workplace safety at your organization.

  • Personality tests can be an effective tool in employee recruitment, training, and development. As your business grows and becomes more diverse, a one-size-fits-all approach to employee management won’t work well on a team made up of different personality types. Company leaders will need to have a better understanding of what makes employees tick and how to encourage everyone to play nice in the workplace.

    Managing different personality types in the workplace can present its challenges. As a result, you’ll need to be flexible with your employee management style. Using Deloitte’s Business Chemistry, here’s how to manage employees with these four different personalities.

     Managing different personalities in the workplace.

    How to Manage the “Pioneer”

    Pioneers are the wheels set in motion. You never know when or where their next big idea will come from, but you can be sure they’ll want to give it a try. Business Chemistry describes pioneers as:

    • Outgoing
    • Spontaneous
    • Risk-takers
    • Adaptable
    • Imaginative

    Pioneers are the social butterflies and adventurous spirits in the workplace. When managing this type of employee, it’s important to give them the creative freedom to explore new ideas. They don’t like being confined by rules or structure and may have a hard time focusing on the smaller details of a project, so don’t try to micromanage them.

    Lean on your pioneers to think out-of-the-box and come up with creative new ideas, perhaps in a group brainstorming session, but then shift the project details and execution to your drivers and guardians.

     

    How to Manage the “Driver”

    If pioneers are the wheels, then drivers are the fuel that keeps it going. Ambitious and efficient, drivers are motivated by results and will always rise to meet a challenge. Drivers are described as:

    • Logical
    • Focused
    • Competitive
    • Quantitative
    • Deeply curious

    Drivers are laser-focused and work quickly, so they need to be continuously fed new challenges or they risk getting bored or frustrated by delays or long processes. When you come to them with new assignments, they’ll appreciate clearly defined plans and processes and will work tirelessly to meet and exceed your expectations and goals.

    Because of their workaholic tendencies, drivers may also struggle with work-life balance, as they can easily be consumed by the tasks at hand. Reinforce good habits, like taking lunch breaks, not responding to emails after hours, and delegating tasks when their plate is full.

     

    How to Manage the “Integrator”

    Integrators are best at bringing everyone together. If pioneers are the wheels, drivers are the fuel, then integrators are the ones who makes sure everyone gets a seat in the car. They see the value in workplace culture and understand how it can affect employee happiness and performance. The Integrator is:

    • Diplomatic
    • Empathetic
    • Nonconfrontational
    • Team player
    • Intrinsically motivated

    As intrinsically-motivated employees, integrators thrive when they can really get behind your cause. As a business owner, be sure to clearly define and communicate your company mission. 

    Similar to pioneers, it’s best not to micromanage your integrators. It’s important to show these employees that you trust and respect them, whether it’s allowing them to work remotely or believing in their idea. Finally, when assigning projects, don’t isolate your integrators. They work best in group settings, where they can bounce ideas off one another and play to each other’s strengths.

     

    How to Manage the “Guardian”

    Guardians are the employees who make sure you reach your destination on time and in one piece. They value stability and order and have great attention to detail. According to Business Chemistry, Guardians are:

    • Reserved
    • Detail-oriented
    • Practical
    • Structured
    • Loyal

    Guardians are practical and structured, which means they can easily become impatient with seemingly wacky ideas or meetings that get off topic, but you may not notice.

    Guardians are quiet and reserved, so they may not always speak up in meetings and can be easily forgotten. They need time to process, digest, and formulate a well-thought-out response. When managing this type of employee, it’s best to follow up with them the next day to ask for their thoughts or opinions. Because they’re fiercely loyal to their employers, you know your company’s best interests will be at the heart of all their decisions.

     

    Employee Management Assistance

    While no single workplace personality is “the best,” managing these different workplace personalities can be challenging for business owners and managers. Need assistance? Outsourcing human resources to a professional employer organization (PEO) like Group Management Services (GMS) can help with employee management. From employee recruitment and retention to performance management, GMS can guide you through any issues you’re faced with, while you keep full control of your employees.

    In addition to human resources, GMS offers a full suite of HR services, including payroll, risk management, employee benefits, and more. Contact GMS today to request a consultation.

  • Starting a new business is an exciting endeavor, but it also requires a lot of preparation. Part of this process includes taking measures to make sure the business is set up properly so that you can legally conduct business. Here’s what you need to do to make sure that your new business is ready for success according to federal, state, and local regulations.

    An owner starting a new business that follows state and federal regulations. 

    Register Your Business

    Registration is the first step toward making your business a distinct legal entity. The rules on what you need to do to register your business vary depending on two factors: your location and business structure. 

    State registration

    Depending on where you conduct business, you may only need to register your business name with your state and local government. This can be as simple as providing an entity name to your state and county clerk’s office, along with a Doing Business As (DBA) name if you conduct business under a different term than your personal or entity names. However, a registered agent that will receive official legal documents or other papers is required for any new LLC, corporation, partnership, or nonprofit corporation. This agent must be in the same state as where you register.

    When it comes time to register in your state, you’ll need to provide some basic information and pay a fee. The cost of business registration varies, but it’s typically somewhere around a few hundred dollars. The information you provide typically includes your business name and location, registered agent information (if required), and details on ownership, directors, and management structure. Certain states may also require some additional documents based on your business structure. Per the Small Business Association (SBA), these can include:

    • For LLCs
      • Articles of organization
      • LLC operating agreement
    • For limited partnerships
      • Certificate of limited partnership
      • Limited partnership agreement
    • For limited liability partnerships
      • Certificate of limited liability partnership
      • Limited liability partnership agreement
    • For corporations
      • Articles of incorporation
      • Bylaws of resolutions
      • Number and value of shares

    If you plan to operate in states outside your registered location, you’ll need to file for foreign qualification. This requires filing a Certificate of Authority with the state office in question and paying any related fees. According to Forbes, foreign qualification is required if you can answer “yes” to any of the following questions.

    • Do I have a physical presence (e.g., office space or retail store) in the state?
    • Did I apply for a business license in the state?
    • Do I often conduct face-to-face (not just email/phone/Skype) meetings with clients in the state?
    • Does a substantial chunk of my company’s revenue come from the state?
    • Are any of my employees working in the state? Am I paying state payroll taxes there?

    Federal registration

    Unlike state and local governments, it’s not necessarily required for a business to register with the federal government to be considered a legal entity. However, there are some business statuses that do require federal registration. These include filing form 2553 with the IRS to create an S corporation or registering your business for tax-exempt status for nonprofit corporations.

    While not required, businesses can also register with the federal government for trademark protection. This act can help prevent other businesses from using your trademarked terms – or to help you act in case anyone infringes on your business, brand, or product names. You can start this process by filing to trademark your business name or any other related terms with the U.S. Patent and Trademark Office.

    Follow Tax Requirements

    Once you’ve registered your business, it’s important to make sure your business is set up to meet federal and state tax requirements. While you may not need to federally register your business, it is necessary for most new businesses to file for an Employer Identification Number (EIN) with the IRS. This unique nine-digit number is essentially a federal tax ID that allows you to set up your business’ payroll and identify your business when you send required payroll documents to the IRS and state agencies. Some locations also require businesses to have employer ID numbers for state and local governments as well. 

    In addition, businesses will need to register for an Electronic Federal Tax Payment System (EFTPS) account. This account allows business owners to pay federal taxes online or over the phone. There are also many other steps involved with setting up and handling payroll. To learn more about what it takes to make sure your payroll process is in a good place, check out our detailed guide on how to manage payroll for a small business.

    Obtain Any Necessary Business Permits and Licenses

    Depending on what your business does, you may need to apply and pay for federal or state permits and licenses. According to the SBA, any business that deals with any of the following activities are regulated on the federal level and require special licenses or permits:

    State licenses and permits are dependent on your location. Individual states tend to require permits and licenses for a broader spectrum of business activities than what’s federally required, which can mean you may need to obtain approval to operate in anything from construction to food service. In some cases, such as businesses that manufacture, import, or sell alcohol, you may need to acquire permits or licenses from both federal and state sources. Unfortunately, you’ll need to visit your state’s website to determine which permits and licenses are required and how to apply for any that pertain to your business. 

    Get Business Insurance

    Business insurance isn’t only a way to protect your business, it’s also mandatory in some cases. Federal law requires that every business has workers’ compensation, unemployment, and disability insurance, while some states require additional insurance policies. 

    Another factor is that certain types of businesses may need to carry specific types of insurance. Whether it’s mandated by local laws or you just want to protect your business against potential risks, different types of insurance can include:

    • Product liability insurance for manufacturers, wholesalers, distributors, and retailers
    • Professional liability insurance for service-based businesses
    • Commercial property insurance for businesses with property and/or physical assets
    • Home-based business insurance for businesses run out of the owner’s personal home
    • Business owner’s policy for small business owners looking for bundled coverage

    Prepare Your Business with Professional HR Management

    Opening a new business is a big investment, but it can succeed with the right team behind it. However, the administrative responsibilities of owning a business can dominate your schedule if you don’t have the right people to help you manage your business’ HR processes. That’s where a Professional Employer Organization like GMS can help.

    Every company needs proper HR management, no matter how big or small it is or how long it’s been in business. GMS can partner with you to build a strong HR foundation for your business and give you access to payroll, benefits, and other HR experts who can manage your business’ administrative needs and keep you up to date with any new business laws and regulations. In turn, you can focus your time on whatever it takes to grow your business.

    Ready to build toward a bright future for your business? Contact GMS today to talk to one of our experts about how we can support you and your company.