It’s expensive to pay employees, and I’m not just talking about salaries and benefits.
The payroll process is pricier than many business owners realize. It costs an average of $2,000 per employee per year for a small or mid-sized company to handle payroll. In addition, up to 40 percent of businesses in the United States are given an average of $845 in IRS penalties each year.
These costs add up and can really hurt a company’s cashflow. We’ve already discussed how loss prevention and cost containment can help your business, but a professional employer organization (PEO) can also save you money and time by handling your payroll.
Accidents happen, which is why workers’ compensation is a mandatory expense. Still, high rates can destroy your cashflow.
In my last post, I talked about how loss prevention strategies help prevent accidents in the first place, which can lower your rates. Today, I’d like to explain how an effective Cost Containment strategy can cut your costs, even if a claim is filed.
Cashflow is key for any business. That’s an easy concept. What’s more difficult to understand is how to effectively manage all the things that pose a risk to that precious cashflow.
As a business owner, one of your biggest risks is workers’ compensation. According to the Liberty Mutual Workplace Safety Index, workers’ compensation cost business owners nearly $60 billion in 2012. That’s a lot of money!
The good news is that you don’t have to accept rising costs – and a strained cashflow - as a fact of business life.
The Equal Employment Opportunity Commission (EEOC) has begun commission meetings under its new chair, Jenny R. Yang, this month. The newest commissioner was also sworn in at this time bringing the board back to its full strength of five members.
This month, they have also begun hearings on workplace harassment. What they have learned from experts in the field is that workplace harassment is still a major problem.
So you have that “bad apple” employee that you have to get rid of. He’s a pain in your side. Your management team spends an inordinate amount of time dealing with him and frankly, his co-workers don’t like him either. Sounds like a no-brainer, right?
When letting an employee go for cause, you need to make sure that you’re protecting yourself from the liability of:
- An unemployment claim that will drive your unemployment insurance up, cutting into your margins or putting you in a competitive disadvantage with your competitors
- A potential discrimination lawsuit filed by the employee
- A possible violation of either the FMLA or ADA that will have the federal government breathing down your back
How do you avoid these pitfalls? As with all things, there’s an easy way and a hard way.
Choosing to partner with a professional employer organization (PEO) is a great decision for your business. If you’re like most business owners who are considering a PEO, you have done a lot of research and have tons of questions and concerns.
Below, we’ve debunked four of the most common PEO myths to make your decision a little easier.
Losing weight is one of the most popular New Year’s Resolutions. After a holiday season filled with cookies, candy, and booze, it’s easy to understand why.
Unfortunately, most people don’t stick to their resolutions. In fact, so many people fail at keeping them that January 17th has become known as National Ditch Your Resolution Day.
How Does This Impact Me?
It’s simple. Unhealthy employees cost more to employ. They are less productive, more likely to miss work, increase insurance premiums, and drive up workers’ compensation costs.
We have all heard the phrase, “there are two types of people in the world. Those who… and those who…” The blank spot is usually then filled in with whatever point someone is trying to make.
In the world of business, you can make a strong case that the old adage that holds truest is “those who are union and those who are not”.
Well, many “who are not” maybe counting down the days to when they will be.
We're proud to announce that GMS was listed #29 in the inaugural Crain's Cleveland Business FAST 50 program!
FAST 50 recognizes Northeast Ohio businesses that:
- have achieved the most substantial margins of revenue growth between 2009 and 2013.
- are at least 5 years old.
- have accrued at least $5 million in revenue at the end of 2013.
Read more about the FAST 50 program and see photos from the event on the Crain's Cleveland Business website.
If pressed, most employers would say that having a “rich benefits package” is a great way to attract and retain top quality employees. The more perks the better, right?
Those same employers would also probably say that they can’t afford the richest of plans, but try to offer the best that they can afford. Well, if you believe those two statements, you’re going to love reading this.