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  • When building a competitive benefits package, employers often hear about both group health plans and supplemental insurance, but understanding how they differ and how they work is key to creating meaningful value for employees.

    Below is a breakdown of each, their differences, and why offering a variety of cost-effective benefits is a smart move for employers.

    What Is a Group Health Plan?

    A group health plan is the foundation of most employee benefits packages by providing comprehensive medical coverage for employees. This type of plan typically includes services such as doctor visits and hospital care, preventive care like annual checkups and screenings, prescription drug coverage, and access to mental health services. In most cases, employers share the cost of premiums with employees, which helps make health care more affordable and accessible.

    What Are Supplemental Insurance Plans?

    Supplemental insurance plans are designed to fill the gaps left by group health plans, providing employees with additional financial protection based on their individual needs. These plans are often offered as voluntary benefits and may include options such as accident insurance, critical illness insurance, hospital indemnity insurance, short-term and long-term disability coverage, and life insurance. Instead of paying for medical services directly, supplemental plans typically offer cash payouts to employees when specific events occur, such as an injury, hospitalization, or diagnosis. This financial assistance helps offset out-of-pocket expenses.

    Key Differences

    1. Coverage Type: Group health plans provide comprehensive medical care, while supplemental insurance focuses on specific events or conditions.
    2. Purpose: Group health plans act as the primary source of health care coverage, whereas supplemental plans help fill financial gaps.
    3. Payment: Group health plans pay health care providers directly; supplemental plans pay employees directly.
    4. Cost Structure: Group health plans are typically shared between employer and employee, while supplemental insurance is usually employee-paid.
    5. Scope: Group health plans offer broad coverage that includes preventive and major care, while supplemental plans provide narrower, targeted protection.

    How They Work Together

    Group health plans and supplemental insurance plans are designed to complement each other, not replace one another, in order to provide more complete coverage. For instance, a group health plan may cover the cost of a hospital stay, while a hospital indemnity plan can provide cash to help with related expenses such as deductibles, childcare, or travel. Additionally, disability insurance can help replace lost wages if an employee is unable to work. When these benefits are combined, they create a more comprehensive financial safety net for employees.

    Why Offering Benefits Matters for Employers

    Providing employee benefits extends beyond compliance; it’s strategic. Continue reading to learn how both group health and supplemental plans can support your business.

    1. Attract and Retain Talent

    Today’s workforce expects more than just a paycheck; competitive benefits have become essential for attracting and retaining talent. Strong benefits packages can help your company stand out in a competitive labor market, increase the acceptance rates of job offers, and reduce employee turnover. This is especially important in industries facing labor shortages or increased competition for skilled workers.

    2. Improve Employee Satisfaction and Productivity

    When employees feel supported, it directly affects their performance and overall experience at work. Providing strong benefits can help alleviate financial stress, enhance focus and morale, and promote preventive care and healthier lifestyle choices. Consequently, employees who are not burdened by worries about medical expenses or potential income loss tend to be more engaged, productive, and better positioned to contribute to the organization’s success.

    3. Provide Financial Protection for Employees

    Health care costs can add up quickly, even for employees with insurance coverage. Supplemental insurance offers additional financial support by helping to offset out-of-pocket expenses such as deductibles and copays. It also provides income protection during times of illness or injury and offers peace of mind in unexpected situations. This extra layer of protection can significantly impact employees’ financial stability and overall well-being.

    A Health Benefits Partner For Your Company

    Understanding the difference between group health plans and supplemental insurance is crucial for developing a benefits strategy that effectively supports your workforce. Group Management Services (GMS) can play a significant role in this process. GMS assists employers in designing and managing comprehensive benefits packages by combining robust group health plan options with supplemental coverage, enhancing financial protection and flexibility.

    By partnering with GMS, businesses gain access to the expertise, resources, and ongoing support needed to provide benefits that extend beyond the basics. Offering both group health and supplemental plans isn’t merely an added perk; it’s a strategic investment in your employees, workplace culture, and the long-term success of your organization.

  • Understanding and meeting employee expectations is essential for business growth and success. One increasingly popular benefit is Earned Wage Access (EWA), a payroll solution that enables employees to access a portion of their earned wages before payday. For employers, implementing EWA not only enhances workforce retention but also alleviates financial stress for employees, leading to improved productivity and satisfaction. By streamlining payroll, businesses can attract top talent and create a more engaged workforce.

    Understanding and meeting employee expectations is essential for business growth and success. One increasingly popular benefit is Earned Wage Access (EWA), a payroll solution that enables employees to access a portion of their earned wages before payday. For employers, implementing EWA not only enhances workforce retention but also alleviates financial stress for employees, leading to improved productivity and satisfaction. By streamlining payroll, businesses can attract top talent and create a more engaged workforce.

    What Is Earned Wage Access (EWA)?

    Earned Wage Access is a financial benefit that allows employees to withdraw wages they have already earned, typically through an app or platform, before their regular payday.

    How It Works:

    Offering access to flexible financial solutions can greatly alleviate financial stress by allowing individuals to address unexpected expenses without resorting to high-interest borrowing options. This approach aligns income with real-time needs, enhancing cash flow and giving employees greater control over their finances. With increased flexibility and transparency, individuals can manage their expenses more confidently, leading to improved financial stability and peace of mind.

    1. Employees work their scheduled hours as usual
    2. Their earnings accumulate in real time
    3. They can request access to a portion of those earned wages (often capped)
    4. The accessed amount is deducted from their upcoming paycheck

    Unlike payday loans, EWA is not a loan; there’s no interest or debt involved. Instead, it’s simply early access to wages that the employee already earned.

    Why Earned Wage Access Matters

    EWA is becoming increasingly popular because it directly addresses financial challenges many workers face.

    Key benefits for employees

    Earned wage access offers employees increased financial flexibility by enabling them to access a portion of their wages before payday. This service helps to alleviate financial stress by allowing individuals to cover unexpected expenses without resorting to high-interest borrowing. Additionally, it improves cash flow by aligning earnings with immediate financial needs and provides employees with greater control and transparency over their finances. These advantages contribute to enhanced financial stability and overall well-being.

    Benefits for employers

    Earned wage access provides significant benefits for employers, especially in attracting and retaining talent in hourly or high-turnover positions. When employees feel financially secure, they are generally more focused and engaged, leading to increased overall productivity. Additionally, offering this benefit enhances the employer’s brand by showcasing a strong commitment to employee well-being and financial support.

    The Challenges of Implementing EWA

    While the benefits are clear, offering Earned Wage Access isn’t always simple. Employers may face:

    1. Payroll system integration hurdles
    2. Compliance and tax considerations
    3. Vendor selection and management
    4. Administrative overhead

    This is where partnering with a Professional Employer Organization can make a significant difference.

    How PEOs Like GMS Support Earned Wage Access

    A Professional Employer Organization (PEO) partners with businesses to manage HR functions such as payroll, benefits, compliance, and risk management. Companies like GMS specialize in helping organizations implement modern workforce solutions, including EWA.

    Streamlined payroll Integration

    Partnering with a PEO simplifies the implementation of EWA by integrating payroll systems with EWA providers. This integration reduces the complexity of tracking real-time earnings, ensures accurate wage calculations, and automates deductions within a centralized system. With streamlined payroll administration, employers can offer advanced financial wellness benefits without increasing their administrative burden.

    Compliance management

    Earned wage access programs must comply with wage and hour laws, tax regulations, and state-specific requirements, making implementation complex. A PEO simplifies this process by ensuring adherence to federal and state labor laws, properly structuring wage access to avoid classifying it as a loan, and managing reporting requirements. With dedicated HR and compliance expertise, employers can confidently offer earned wage access while reducing regulatory risks and administrative burdens.

    Employee communication and support

    A benefit is only valuable when employees understand how to use it effectively. A PEO helps address this by clearly introducing earned wage access, providing onboarding and training resources, and offering ongoing support for any employee questions or issues. By focusing on communication and engagement, employers can ensure that employees fully utilize the benefit, ultimately enhancing overall employee experience and satisfaction.

    Integrated strategy

    Earned wage access is most effective when it is part of a comprehensive benefits strategy rather than a standalone solution. A PEO facilitates the alignment of EWA with other programs, such as financial wellness initiatives, payroll systems, and health and retirement benefits. This integration creates a more cohesive experience for employees. By connecting these components, employers can offer a seamless and supportive benefits package that enhances overall satisfaction and improves employee retention.

    Why Partnering with GMS for EWA Makes Sense

    GMS offers comprehensive PEO solutions that streamline workforce management for businesses by acting as an extension of their HR teams. This partnership allows employers to more easily adopt modern payroll innovations, such as earned wage access, while reducing administrative burdens, maintaining compliance across various jurisdictions, and enhancing overall employee satisfaction. Instead of navigating implementation on their own, businesses can take advantage of GMS’ established process, resources, and expertise to roll out programs efficiently and effectively.

    Earned wage access represents a broader shift in the workforce, as employees increasingly seek flexibility, financial stability, and benefits that meet their real-life needs. When implemented correctly, it can provide a significant competitive advantage. By partnering with a PEO like GMS, organizations can unlock the full potential of earned wage access while minimizing complexity, ultimately supporting a more engaged, resilient, and financially secure workforce.

  • Employee benefits are one of the largest investments a business makes, yet they are often misunderstood by employees. You can offer a competitive benefits package, but if your team does not fully understand it, you are not getting the return you expect, and your employees are not getting the support they need.

    Clear, consistent communication is what turns a benefits package from a line item into a true strategic advantage. Here is why it matters and how it can impact your business.

    Employees Can’t Value What They Don’t Understand

    Benefits can represent a significant portion of an employee’s total compensation. However, many employees underestimate their value simply because they do not fully understand what is available to them.

    When you clearly communicate about offerings like health insurance, retirement plans, and wellness programs, employees gain a better understanding of their total compensation. This helps them see the full picture, not just their paycheck, which can lead to increased satisfaction and appreciation.

    Strong Communication Supports Recruitment and Retention

    In today’s competitive job market, benefits are a key differentiator. Candidates are evaluating more than just salary, and current employees are paying attention to how well their employer supports their well-being.

    If your benefits are not clearly communicated during the hiring process and beyond, you risk losing talent to companies that do a better job highlighting their offerings. When employees feel informed and supported, they are more likely to stay engaged and committed to your organization.

    Better Understanding Leads to Better Utilization

    Offering strong benefits is only part of the equation. Employees need to know how and when to use them.

    When employees understand options such as preventive care, telehealth services, or wellness programs, they are more likely to use them. This can lead to healthier outcomes and more efficient use of health care dollars.

    Without proper communication, employees may avoid using benefits or use them incorrectly, resulting in unnecessary costs for both the employee and the employer.

    Improves Engagement During Open Enrollment and Beyond

    Open enrollment can feel overwhelming, especially when employees are faced with multiple plan options and unfamiliar terminology.

    Clear communication helps simplify the process by breaking down complex information into easy-to-understand details. When employees feel confident in their decisions, they are more likely to choose plans that fit their needs.

    Ongoing communication throughout the year is just as important. Employees need ongoing access to information to adjust their benefits according to life changes.

    Transparent Communication Builds Trust

    Employees want to feel that their employer is invested in their success and well-being. Regular and transparent communication about benefits reinforces that message.

    When businesses take the time to educate employees and provide clear guidance, they build trust and strengthen workplace culture. Employees are more likely to feel valued and supported when they understand the resources available to them.

    Reduces Confusion and Administrative Burden

    When employees do not understand their benefits, HR teams often spend valuable time answering repetitive questions and resolving avoidable issues.

    Effective communication provides employees with the tools and resources they need to find answers on their own. This reduces confusion, helps prevent costly mistakes, and allows HR professionals to focus on higher-level initiatives.

    Using Technology to Strengthen Benefits Communication

    Modern technology plays a major role in how employees access and understand their benefits. Digital platforms make it easier to deliver information in an accessible, personalized, and easy-to-navigate way.

    With the right tools, employees can review plan details, compare options, and access important documents whenever they need them. This creates a more seamless experience and encourages ongoing engagement with benefits.

    Simplify Benefits Communication with GMS

    Managing employee benefits and ensuring they are communicated effectively can be challenging, especially for small and midsize businesses. Group Management Services (GMS) helps simplify both the administration and communication of your benefits.

    Through GMS Connect, our all-in-one HR technology platform, employees have 24/7 access to their benefits information in one convenient place. They can review plan options, access important documents, and make informed decisions without confusion or delays. This level of accessibility improves understanding and reduces the need for constant HR support.

    In addition to technology, GMS provides access to comprehensive group health insurance and benefits packages, along with expert guidance to help you communicate those offerings clearly and effectively.

    When you partner with GMS, you are not just offering benefits. You are ensuring your employees understand, appreciate, and use them to their full potential. Contact GMS today to learn how we can help you strengthen your benefits strategy and support your workforce.

  • Health insurance is one of the most valuable yet complex benefits that a business can offer. Unfortunately, the terminology used by insurers and benefits providers can often feel like a foreign language. By understanding common health plan terms, business owners can make more informed decisions, manage costs effectively, and communicate benefits clearly to their employees.

    Continue reading to learn more about health care plans and the common benefits terms providers and brokers use.

    Core Health Insurance Cost Terms

    What are premiums?

    A premium is the amount paid, usually monthly, to maintain health insurance coverage. Employers often split the premium cost with employees, either by covering a percentage or a fixed dollar amount. Premiums affect your total benefits budget and employee paycheck deductions, so business owners need to keep track of premium amounts and monitor them for swings in pricing.

    What is a deductible?

    The deductible is the amount an employee must pay out of pocket for covered services before the insurance plan begins paying. For example, if a plan has a $2,000 deductible, the employee must pay the first $2,000 of eligible medical expenses before insurance coverage kicks in.

    High-deductible plans typically have lower premiums, but require employees to pay more upfront. When picking your employees’ plan options, keep in mind their affordability, flexibility, and overall coverage.

    What is a copayment?

    A copayment, or copay, is a fixed amount an employee pays for a covered health care service, such as $25 for a primary care visit or $50 for a specialist visit. Copays make costs more predictable and often apply even before the deductible is met, depending on the plan. They typically apply to office visits, urgent care, or prescription medications and generally do not count toward the deductible, though they often count toward the plan’s out-of-pocket maximum.

    What is coinsurance?

    Coinsurance refers to the percentage of covered healthcare costs that an employee must pay after they have met their annual deductible. Once the deductible amount is met, both the insurance plan and the employee share the costs of services. For example, if the coinsurance rate is 20%, the employee is responsible for paying 20% of the medical bill, while the insurance plan covers the remaining 80%.

    This coinsurance arrangement continues until the employee reaches the plan’s out-of-pocket maximum. After that point, the insurance plan typically covers 100% of eligible costs for the remainder of the year.

    What is an out-of-pocket maximum?

    The out-of-pocket maximum is the most an employee will pay in a plan year for covered health care services. This total includes eligible expenses such as deductibles, copayments, and coinsurance. Once the employee reaches this limit, the health plan pays 100% of covered, in‑network expenses for the remainder of the plan year.

    Health Plan Structure Terms

    What is a Preferred Provider Organization (PPO)?

    A PPO plan provides flexibility by allowing employees to visit both in-network and out-of-network health care providers without needing a referral from a primary care physician (PCP). Generally, using in-network providers results in lower out-of-pocket costs, while out-of-network care is typically more expensive and may involve higher deductibles. This type of plan is ideal for employees who want the freedom to choose their own doctors, see specialists directly, or receive care while traveling.

    What is a Health Maintenance Organization (HMO)?

    An HMO plan requires employees to receive care from providers within the plan’s network and typically select a primary care physician to manage their overall care. The PCP serves as the main point of contact and coordinates treatment, including providing referrals when an employee needs to see a specialist. Except in emergencies, services received outside the network are usually not covered. Because HMOs focus on coordinated care and network use, they often have lower premiums and more predictable out-of-pocket costs.

    Consumer-Directed Health Plan Terms

    What are High-Deductible Health Plans?

    A High Deductible Health Plan (HDHP) has a higher annual deductible than traditional health plans, but it typically comes with lower monthly premiums. Because employees pay more out of pocket before coverage begins, these plans are often paired with Health Savings Accounts (HSAs), which allow employees to set aside pre‑tax dollars to pay for qualified medical expenses.

    What is a Health Savings Account?

    A Health Savings Account (HSA) is a tax‑advantaged savings account that employees can use to pay for qualified medical expenses, such as doctor visits, prescriptions, and other eligible health care costs. HSAs are available to employees enrolled in an HDHP. Contributions can be made by the employee, the employer, or both, and the funds belong to the employee, not the employer. HSAs can be used to help manage current medical expenses or saved for future health care needs, including costs in retirement.

    What are Flexible Spending Accounts?

    A Flexible Spending Account (FSA) enables employees to set aside pre-tax dollars from their paycheck to cover eligible health care or dependent care expenses. These can include medical copays, prescriptions, childcare, or elder care costs. By contributing pre-tax funds, employees can reduce their taxable income, resulting in savings on everyday expenses. FSAs are sponsored by employers, who determine the types of FSAs offered and how they are managed.

    Why Understanding Health Benefits Terminology is Crucial for Business Owners

    Understanding health benefits terminology is vital for business owners aiming to make strategic decisions that impact both their workforce and their profitability. When employers have a solid understanding of health plans, they can effectively compare coverage options, control health care costs, clearly communicate benefits to their employees, ensure compliance, and develop a more attractive benefits package.

    Navigating health insurance doesn’t need to be confusing. By collaborating with a Professional Employer Organization (PEO) like Group Management Services (GMS), business owners unlock access to expert insights, competitively priced health plans, and reliable compliance support. GMS streamlines the process by managing benefit plan administration, employee education, and regulatory obligations. This partnership empowers business owners to offer top-notch benefits confidently while allowing them to focus on growing their business and enhancing employee well-being.

  • Employee mental health is an essential aspect of a healthy and productive workplace. Employee stress, anxiety, and burnout can significantly affect employee engagement, absenteeism, turnover, and overall performance. By proactively supporting mental well-being, employers can build a stronger workplace culture and set their organizations up for long-term success.

    Prioritizing mental health doesn’t require a one-size-fits-all solution. From benefit offerings to workplace culture, there are many meaningful ways employers can show employees that their well-being truly matters.

    Normalize Mental Health Conversations

    One of the most impactful and cost-effective steps employers can take is to help remove the stigma surrounding mental health. Employees are much more likely to seek help when they feel safe discussing their challenges without the fear of judgment or retaliation.

    Leaders and managers play a crucial role in this process. By openly acknowledging issues such as stress, burnout, or the importance of mental health awareness days, they can set the tone for the entire organization. Providing mental health education, sharing available resources, and encouraging honest conversations can help employees realize they are not alone and that support is accessible.

    Offer Meaningful Mental Health Benefits

    Access to quality mental health care is crucial. Employers can assist employees by offering benefits that make care more accessible and affordable.

    Common mental health-focused benefits include:

    1. Employee Assistance Programs (EAPs)
    2. Access to counseling or therapy services
    3. Telehealth options for online therapy

    When selecting or evaluating benefits, employers should also focus on communication. Benefits don’t help employees if they don’t understand what’s available or how to use them.

    Promote Work-Life Balance

    Burnout often stems from prolonged stress and a lack of work-life balance. Employers who encourage reasonable workloads and respect personal time send a clear message that employees are more than just their job.

    Ways to promote a healthier work-life balance include:

    1. Encouraging employees to use their paid time off (PTO)
    2. Setting realistic deadlines and expectations
    3. Discouraging after-hours emails or messages
    4. Offering flexible scheduling when possible

    Even small changes can make a big difference in helping your workforce recharge and maintain their mental well-being.

    Embrace Flexible Work Options

    Schedule flexibility has become a key factor in employee satisfaction and mental health. When possible, offering remote, hybrid, or flexible scheduling options can reduce stress related to commuting, childcare, and work-life conflicts.

    While not every role offers complete flexibility, many employers find that even providing limited options, such as flexible start times or occasional remote days, can positively impact their workplace.

    Build a Supportive Workplace Culture

    Company culture has a direct impact on mental health. Employees who feel valued, supported, and included are more likely to be engaged and resilient.

    A supportive culture includes:

    1. Recognition and appreciation for employees’ contributions
    2. Opportunities for feedback and open communication
    3. Clear expectations and transparency from leadership

    When employees feel heard and respected, they’re better equipped to manage stress and face challenges at work.

    Regularly Check in with Employees

    Mental health support shouldn’t be reactive. Proactive check-ins help identify concerns early and show employees that leadership genuinely cares about their well-being. This may include employee surveys, one-on-one meetings between managers and employees, and open forums or town halls for feedback. These efforts give employees a voice and provide employers with insight into what’s working and what may need improvement.

    Making Mental Health a Long-Term Priority

    Prioritizing employee mental health requires more than just a one-time initiative; it demands an ongoing commitment. By investing in mental well-being, employers can strengthen their workforce, enhance productivity, and create a healthier workplace culture based on empathy, flexibility, and open communication.

    When you partner with Group Management Services (GMS), you gain access to comprehensive health care offerings, including a top-tier Employee Assistance Program, as part of a broader HR and benefits strategy. With over 25 years of experience supporting small and midsize businesses, GMS tailors solutions to meet the unique needs of your employees while aligning with your business goals.

    From managing program administration to integrating voluntary benefits with wellness initiatives and performance management, our team handles the details so you can stay focused on running your business.

    Partner with GMS to build a supportive workplace that prioritizes your people and delivers meaningful, measurable outcomes. Contact us to learn more!

  • Offering robust health benefits and investing in employee health and wellness is a growing priority among organizations. While employers aim to attract top talent to enhance productivity, employees seek companies that provide a diverse range of health benefits. One effective solution is telemedicine, which allows both employers and employees to meet their goals. Initially implemented as a response to the COVID-19 pandemic, virtual care has now become a fundamental aspect of health care. Today, it is not merely an add-on; it is an expected service.

    The Rise of Telemedicine in Employee Benefits

    Telehealth is a method of receiving health care that eliminates the need to travel to a doctor’s office or endure long wait times. With telehealth, you can easily consult a health care provider remotely. During these virtual appointments, providers can prescribe medications, diagnose illnesses, and address any questions the patient may have. This flexibility and accessibility to quality care make telehealth a great resource for busy employees.

    Why Telemedicine Matters to Employees

    Better access to care

    Long wait times, inconsistent travel times, and the need to take paid time off (PTO) are significant barriers for employees trying to attend scheduled doctor appointments, same-day visits, medical tests, and screenings. Telemedicine significantly enhances flexibility and accessibility, allowing employees to receive care within minutes or on the same day. This is especially crucial for rural employees, those with mobility challenges, and individuals with demanding work schedules.

    Mental health support

    Mental health is a crucial aspect of overall employee health and wellness. By offering mental health support, employers not only provide essential resources to assist their employees but also demonstrate their commitment to the well-being of their workforce. Virtual therapy eliminates obstacles such as stigma, scheduling conflicts, and long wait times. By implementing resources like employee assistance programs (EAPs), flexible scheduling to attend their online visits, and hybrid work arrangements, employers can support their employees, ultimately enhancing morale, productivity, and long-term loyalty.

    Control over care

    A 2024 survey found 85% of employees prefer virtual consultations for nonemergency care because they can manage urgent or chronic conditions directly from a smartphone or computer. Employees increasingly value benefits that offer them flexibility and autonomy, and telehealth provides both. With telehealth, individuals can focus fully during their visits without worrying about travel time, time off from work, or how their boss might react. This gives them the ease and control over their health care that they deserve.

    Why Telemedicine is a Strategic Advantage for Employers

    Reduced Absenteeism and Improved Productivity

    Virtual visits reduce commute times and shorten appointment wait times, allowing employees to proactively address and manage their medical needs, often without needing to take full days off work. Telemedicine allows for timely treatment, leading to quicker recovery times and minimizing disruption to productivity.

    Significant cost savings

    Telemedicine helps reduce health care claims by offering lower‑cost virtual visits that replace more expensive urgent care and ER visits. Because employees can get care quickly (sometimes within minutes), issues are treated earlier, preventing complications that could lead to high‑cost medical services. Employees also turn to telehealth rather than urgent care or emergency rooms for common minor conditions, which further reduces costly claims on the employer’s plan.

    Stronger engagement and retention

    Modern, flexible benefits such as telemedicine show employees that the organization values their well-being. Employers who showcase their dedication to employee wellness, health, and work-life balance can boost employee morale, loyalty, and retention.

    The Bottom Line: Telemedicine Is No Longer Optional

    Telemedicine has transformed from an add-on benefit to a must-have in today’s employee benefits package. With telehealth, employees can expect convenient, accessible, and flexible care while employers benefit from healthier teams, lower costs, improved productivity, and stronger retention.

    Although providing health benefits is an attractive option, it can also be confusing for business owners. This is where a third-party administrator like Group Management Services (GMS) can assist you. As part of our premier employee benefits administration services, we help employers by offering telehealth services through Teladoc.

    Our benefits administration services help business owners manage their health care plans, supplemental insurance offerings, and retirement plans. Additionally, we provide support for Affordable Care Act (ACA) compliance, consolidated billing, and in-house claims processing. At GMS, we strive to simplify benefits administration as much as possible, guiding you through every step of the process. Our offerings are cost-effective and can positively impact your bottom line while supporting your long-term growth. Contact us to learn more!

  • Affordable Care Act (ACA) reporting is a yearly responsibility that can feel increasingly complex, especially as rules, thresholds, and penalties continue to change. For the 2026 ACA reporting season, which covers the 2025 calendar year, Applicable Large Employers (ALEs) must prepare for updated affordability standards, rising penalties, and new options for delivering required forms to employees.

    Understanding what is due, what has changed, and how to streamline the process can help employers stay compliant and avoid costly mistakes.

    What’s Due for the 2026 ACA Reporting Season

    Employers classified as ALEs are required to report health coverage information to both employees and the Internal Revenue Service (IRS) using Forms 1094-C and 1095-C.

    Here are the key deadlines for the 2026 reporting year:

    Form 1095-C to employees

    Must be furnished to full-time employees by March 2, 2026. This form outlines the health coverage that was offered during the 2025 calendar year.

    Forms 1094-C and 1095-C to the IRS

    Electronic filings are due by March 31, 2026.

    Electronic filing requirement

    Employers filing 10 or more information returns must submit forms electronically, per IRS requirements.

    Missing deadlines or filing incorrect information can result in significant penalties, making accuracy and preparation critical.

    What’s Changed for ACA Reporting in 2026

    Several notable updates will affect how employers approach ACA compliance for this reporting cycle.

    Higher affordability threshold

    The IRS has increased the ACA affordability percentage to 9.96 percent, up from 9.02 percent in 2025. This percentage determines whether an employer’s lowest-cost, self-only coverage option is considered affordable for employees.

    While the higher threshold provides more flexibility for employer contributions, it still requires careful calculations and documentation to maintain compliance.

    Increased penalties for non-compliance

    ACA penalties continue to rise. Projected Employer Shared Responsibility Payment amounts include:

    • Section 4980H(a) penalties exceeding $3,340 per employee, after the first 30 employees, for failing to offer coverage.
    • Section 4980H(b) penalties exceeding $5,010 per affected employee for offering coverage that is unaffordable or does not meet minimum value.

    These increases heighten the need for accurate tracking, reporting, and timely coverage.

    New alternative furnishing method

    For the first time, employers may use an Alternative Furnishing Method instead of mailing paper copies of Form 1095-C. Employers can post a clear and accessible notice on their website explaining how employees can obtain their form.

    The notice must be easy to find and remain available through October 15, 2026. When implemented correctly, this option can significantly reduce printing and mailing costs.

    Potential impact of expiring subsidies

    Enhanced premium subsidies are scheduled to expire, which could result in more employees seeking coverage through the Health Insurance Marketplace. This may increase the likelihood of employer penalty notices, making accurate ACA reporting and coverage offers even more important.

    How Employers Can Simplify ACA Reporting

    As requirements expand and penalties rise, simplification is key. Employers can take several steps to reduce risk and administrative burden.

    Leverage technology and automation

    ACA reporting software can help track employee hours, monitor eligibility, generate forms, and flag potential issues before deadlines arrive. Automation reduces manual errors and saves time during the reporting season.

    Use IRS safe harbors

    Applying one of the IRS affordability safe harbors can simplify calculations and provide added protection. Employers may use the Form W-2, Rate of Pay, or Federal Poverty Line safe harbor to demonstrate affordability without relying on household income data.

    Monitor eligibility throughout the year

    Waiting until the end of the year can lead to compliance gaps. Regularly reviewing employee classifications, especially for variable-hour and seasonal employees, helps ensure coverage is offered to at least 95% of full-time employees, which is critical for avoiding the most severe penalties.

    Take advantage of digital delivery options

    The new electronic furnishing method provides an opportunity to streamline distribution while remaining compliant. Employers must comply with IRS visibility and accessibility requirements, but when implemented correctly, this option can simplify administration and reduce costs.

    How GMS Helps Employers Stay ACA Compliant

    ACA reporting is just one piece of a much larger compliance puzzle. At Group Management Services (GMS), we help employers manage ACA requirements with confidence through expert guidance, technology-driven tracking, and end-to-end reporting support.

    From monitoring employee eligibility and applying affordability safe harbors to preparing and filing required forms accurately and on time, GMS helps businesses reduce risk and stay focused on growth.

    If ACA reporting feels overwhelming or if you want a more efficient approach for 2026 and beyond, GMS is here to help.

  • Although health care costs are continually rising in today’s economy, the importance of offering health care and health benefits cannot be overstated. Employee health benefits have shifted from being a bonus to a fundamental requirement, no longer seen as a luxury but an essential part of a job. Therefore, employers who invest in comprehensive, high-quality health benefits for their employees often see higher productivity, loyalty, and morale, all of which contribute to a company’s long-term success.

    In recent years, a growing number of companies have begun offering a greater variety of health benefits to their employees. However, many still wonder what benefits they should offer and wonder how much health care offerings can really contribute to employee satisfaction, engagement, and productivity. Continue reading to discover how health benefits contribute to employee performance and what benefits are among the most popular.

    What Are Health Care Benefits?

    Health care benefits are medical services and items that are covered by an insurance plan. This can include doctors’ visits, access to certain medications, hospital care, and more. Employers offer insurance plans to their employees to help pay for these expenses and treatments. Employers provide insurance plans to help their employees manage these expenses and treatments. While the Affordable Care Act (ACA) has certain requirements about what employers should offer, the plan type and extent of coverage vary by employer.

    How Health Benefits Impact Productivity and Performance

    Access to quality health benefits has a significant impact on employee performance in several ways. Companies that offer health benefits report that their employees are over one and a half times more productive and more likely to remain loyal to the organization. Higher productivity can manifest differently in various industries; for manufacturers, it may mean increased output, for entrepreneurs, it can translate to higher sales, and for construction workers, it might involve taking on more bids and jobs.

    When employees have access to preventive care, can manage chronic conditions, and seek timely medical attention, they are less likely to miss work due to illness or injury. Benefits such as telemedicine, disability coverage, and wellness programs empower employees to address health concerns early, which reduces absenteeism and minimizes downtime. Furthermore, employees who feel physically and mentally supported can concentrate better on their work. Reduced stress related to medical costs or access to care enables employees to be more consistent and focused, ultimately leading to improved performance across teams.

    Employee Engagement and Success

    Robust health benefits play a significant role in employee morale. When workers feel that their employer genuinely cares about their health, it fosters increased trust and loyalty. Benefits packages that extend beyond basic medical coverage, such as dental, vision, and mental health support, signal that the organization values employees as individuals, not just as workers.

    This sense of support strengthens engagement and creates a positive workplace culture. Employees who are satisfied with their benefits are more likely to advocate for their employer, collaborate effectively, and stay motivated. Over time, this results in lower turnover.

    Popular Health Benefits Employees Want

    Recently, employees have been flocking to companies that promote flexibility and employee health. The workforce wants a job that offers schedule flexibility, comprehensive health coverage, and future career growth opportunities. For employers, this can look like offering:

    Dental and Vision Coverage

    Dental and vision benefits help employees maintain overall wellness while addressing everyday care needs. Offering vision and dental benefits can reduce health care costs through preventative care and provide your employees with access to medical professionals. These benefits are common among health care plans because of the diverse benefits they provide and the wide range of employees who utilize and need this type of care.

    Access to an HSA or FSA

    Offering a Health Savings Account (HSA) or a Flexible Spending Account (FSA) is beneficial to the employer and employee. The employee receives access to medical services and products at a lower cost through their employer’s plan. Both accounts offer tax-free contributions and withdrawals for qualified costs, but each have their own advantages depending on the individual’s needs. The employer enjoys lower payroll taxes and showcases their dedication to employee well-being.

    Telemedicine Services

    Telemedicine provides employees with convenient access to health care professionals, reducing the time and cost associated with traditional office visits. This gives the employer and employee time back by missing out on the travel and wait time associated with visits. Telemedicine can also reduce appointment stress for employees, as they don’t have to worry about timing, traffic, or any surprises as they head to their appointment, improving their focus and productivity. This flexibility supports faster care, fewer missed work hours, and improved work-life balance.

    Retirement Plans

    A great way to recruit and retain employees is through offering a retirement plan. This allows employees to invest in themselves and focus on their financial future, allowing them to be more focused and productive at work. Employers can choose a plan that works best for them and can decide how large of a contribution they want to make to their employees’ plan. This allows for greater flexibility for the employer and better financial security for the employee.

    Health Care Plans and GMS

    Robust health benefits are a powerful investment in employees and the long-term success of your company. By supporting physical, mental, and financial well-being, employers can boost productivity, strengthen morale, and improve employee loyalty. While offering health benefits to your employees is an attractive option, it’s a complex and confusing process.

    That’s where a third-party administrator like Group Management Services (GMS) can help. With our benefits administration services, we help business owners with their health care plans, supplemental insurance offerings, and retirement plans. We also offer ACA support, consolidated billing, and in-house claims processing. With GMS, we work to simplify benefits administration as much as possible, holding your hand every step of the way. Our offerings are cost-effective and can contribute to your bottom line and your long-term growth.

    Discover more about our benefits administration services here!

  • Colorado is the first state to offer employees paid leave to care for a hospitalized infant in the neonatal intensive care unit (NICU). This law went into effect on January 1 of this year and allows eligible employees to take paid leave to support a newborn or an infant receiving intensive care. This new benefit, Neonatal Care Leave, was created through Senate Bill 25-144 and expands the state’s existing Family and Medical Leave Insurance (FAMLI) program. While this legislation is groundbreaking for parents and qualifying employees, it comes with various implications that business owners need to understand.

    Family and Medical Leave Insurance

    FAMLI is a government program that ensures Colorado workers have access to paid leave to care for themselves or their family during certain life events. Paid leave through FAMLI has been available since January 1st of 2024. Eligible Colorado employees can take up to 12 weeks of paid leave per year in order to:

    1. Care for themselves or a family member experiencing a serious health condition.
    2. Make arrangements for a family member’s military deployment.
    3. Address the safety needs and impact of domestic violence or sexual assault.
    4. To bond or care for a new child, including fostered or adopted children.

    FAMLI Vs. FMLA

    FAMLI and the Family and Medical Leave Act (FMLA) are similar pieces of legislation that focus on job-protected sick leave. While they are similar, there are notable differences that Colorado business owners need to be aware of. For example, FMLA is unpaid, job-protected leave, while FAMLI is paid, job-protected leave. Employees are eligible for FAMLI from the first day of employment if they meet the wage requirement, while FMLA only allows employees who work a certain number of hours before providing leave. Finally, FMLA is a federal law, meaning it applies to the entire country, while FAMLI applies to Colorado employees only.

    Neonatal Care Leave Overview

    Neonatal Care Leave is a new and additional type of paid leave under the FAMLI leave law. This leave allows eligible employees to take up to 12 weeks of paid time off while their newborn is receiving inpatient treatment in a NICU or a higher level of neonatal care. This leave only lasts the duration of the child’s NICU stay. Neonatal Care Leave is available to a broad range of caregivers, including biological, adoptive, step, and foster parents.

    Eligibility extends to parents whose infants were born before January 1, 2026, as long as the child remains hospitalized in a NICU on or after the law’s effective date.

    How Neonatal Care Leave Fits Within FAMLI

    Neonatal Care Leave isn’t the only type of leave parents can utilize for paid leave. Under FAMLI, eligible employees can qualify for:

    1. 12 weeks of Neonatal Care Leave (while the infant is hospitalized)
    2. 12 weeks of bonding leave after the child is discharged
    3. Up to four additional weeks if the birthing parent experiences pregnancy or childbirth complications

    As a result, some employees may be eligible for up to 24–28 weeks of paid FAMLI leave in connection with the birth of a child requiring NICU care.

    What Employers Should Do Now

    Employers in Colorado, or those with employees in Colorado, should take proactive steps to ensure compliance with the Neonatal Care Leave policy. These steps could include updating employee handbooks and company leave policies to reflect these regulatory changes. Employers could also provide training and education for employees, so they understand their rights, the policy details, and eligibility requirements. Colorado employers should also consider working with a third-party partner to assist and consult on Neonatal Care Leave compliance efforts.

    A First-in-the-Nation Policy With Broader Implications

    For families facing the stress of a NICU stay, the new law provides meaningful financial stability and time to focus on their child’s health during a critical period. Colorado’s Neonatal Care Leave underscores the state’s commitment to supporting working families during some of their most challenging moments.

    Group Management Services (GMS) can help Colorado business owners navigate Neonatal Care Leave and FAMLI obligations by providing expert guidance, HR support, and compliance assistance. GMS acts as a partner in compliance, HR, employee management, and business efficiency by consulting on regulatory changes, updating employee handbooks, and hosting training sessions on new laws. Employers should take action now and review existing leave policies, educate their teams, and partner with a trusted HR expert like GMS to ensure they are fully compliant and prepared for this expanded leave benefit. Take your first step towards compliance with GMS. Contact us today!

  • As the new year approaches and labor market fluctuations continue, it’s more important than ever for business owners to focus on improving employee retention and implementing wellness initiatives. Employee retention rates and wellness policies often go hand in hand; prioritizing employee wellness can lead to better retention and increased loyalty.

    Essentially, the more you prioritize your employees and their happiness, the more likely they are to engage at work and remain with the company long-term. A great way to prioritize employee wellness and retention is by investing in benefits and offering health care plans. Continue reading to discover more about what benefits business owners should provide and how they can benefit your employees and company.

    The Advantages of Offering Employee Benefits

    Recruitment

    One of the greatest advantages of offering your employees robust benefits is that it makes your company more attractive to potential employees. People want to work for a company that genuinely cares about them and provides them with access to resources that can improve their lives. According to Aflac, 77% of organizations that offer supplemental insurance report that it helps with recruitment efforts. By offering employee benefit plans, business owners can attract top talent, helping them achieve business growth and success.

    Retention

    Given the uncertainty in the labor market and the economy, retaining top talent can be challenging. Retaining your current workforce not only improves operational efficiency but also reduces recruitment and hiring costs. Offering employee benefits plans is one of the most effective strategies for improving employee retention. When organizations provide comprehensive benefits, they show their employees that their long-term health, security, and well-being matter. This support fosters loyalty, making employees less likely to seek opportunities elsewhere. In a competitive job market, strong benefits packages can differentiate a company, turning satisfied employees into long-term team members and advocates for the organization.

    Trust and productivity

    Offering employee benefit plans can significantly boost productivity and trust within an organization. When employees feel secure about their health, finances, and overall well-being, they are less distracted by personal worries and more focused on their work. Benefits such as health insurance, retirement plans, and wellness programs demonstrate that the company values its workforce, fostering a deeper sense of loyalty and commitment. This trust develops greater engagement, reduces turnover, and creates a stronger workplace culture and long-term organizational success.

    Employee Benefits That Make a Difference

    Health Insurance

    Health insurance plans are the most critical benefit for employees. They provide peace of mind and ensure access to necessary medical care, reducing stress and improving overall well-being. For employers, healthier employees mean fewer sick days and higher productivity. Offering comprehensive health coverage demonstrates that you care about your team’s health and financial security. Employers should also consider offering access to supplemental benefits plans, including dental, vision, and disability insurance. This enables employers to tailor their health benefits to meet the specific needs of their employees.

    Retirement Plan

    Retirement plans, such as a 401(k) with employer matching, are another top priority for employees. These plans help employees plan for their future and build financial stability. Employers are able to match employee contributions, effectively adding to the employee’s nest egg. When employers contribute to retirement savings, it shows a long-term commitment to their workforce, which fosters loyalty and reduces turnover. Additionally, employer contributions are often tax-deductible, making this a smart financial move for businesses.

    Paid Time Off (PTO)

    Paid time off is essential for maintaining work-life balance. Employees need time to recharge, and when they do, they return more focused and productive. PTO also signals that your company values mental health and personal time, which is increasingly important in today’s workplace culture.

    Work From Home

    Flexibility is an increasingly important perk that employees look for in a role and with a company. Providing resources that give your employees the ability to exercise work-life balance highlights your company’s dedication to employee health and happiness. By developing policies for work-from-home days or flexible scheduling, you’re investing in your employees and their long-term employment.

    Mental Health Support

    Mental health is just as important as physical health. Providing access to counseling services, therapy sessions, or Employee Assistance Programs (EAPs) helps employees manage stress and maintain emotional well-being. This leads to higher morale, better focus, and reduced burnout.

    Streamlined Benefits

    Offering employee benefits is not just about compliance or perks—it’s about building a thriving, loyal workforce that drives your business forward. By investing in benefits, you invest in your people, and ultimately, in your company’s success. There are a myriad of benefits and health insurance plans to offer your employees, but enrollment and employee education can be overwhelming for business owners.

    Luckily, there are companies like Group Management Services (GMS) that can assist companies with benefits administration, health care plans, and supplemental benefits. As a professional employer organization (PEO), we help you offer cost-effective, high-quality benefits that can compete with those of larger companies, all while saving you time and money. By partnering with GMS, you receive streamlined, all-in-one employee benefits solutions. Learn more about our offerings here!