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  • It’s no secret that health insurance is one of the most important employee benefits. Insurance is also one of the most expensive benefits, forcing small business owners to balance an attractive benefits plan with the costs of offering different medical plans.

    While it can be easy to focus on group health insurance, it’s essential to remember another critical benefit – dental insurance. Let’s break down what types of dental plans employers can offer and how they can benefit your small business.

    What Dental Insurance Options Are Available For Small Businesses?

    There are various options for employer-sponsored dental coverage available for small businesses. These types of dental insurance plans include:

    • Preferred provider organizations (PPO) – Users can visit a network of providers for dental care. Individuals will have co-payments for procedures and can meet a deductible.
    • Dental health maintenance organizations (DHMO) – Users pay their dental network a set monthly fee for preventative care whether they use it or not. A set amount of annual services are covered within that fee, while others require copays or are not covered.
    • Discount or savings plans – Users pay a monthly premium to receive discounts on dental services, whether they are in network or not.

    How Much Does Small Business Dental Insurance Cost For Employers?

    It’s no secret that offering certain benefits is an ample expense for small business owners. Group health insurance alone can cost a business thousands of dollars per employee as premiums continue to rise. Fortunately, dental insurance is a much smaller investment than some other types of benefits.

    As with group health coverage, the exact cost of dental insurance will change for each employer. Dental insurance costs typically vary from $15 to $20 per employee per month depending on the plan of choice and whether an employee needs single or family coverage. Several factors will affect your overall dental premiums, such as your group size, the overall wellness of that group, and other criteria. Once you have your per-employee premium, you can extrapolate that monthly rate to determine your annual expected dental insurance costs.

    Four Reasons Why Small Businesses Should Offer Dental Insurance

    Employees aren’t the only people who benefit from dental coverage. Below are four key reasons why group dental insurance is advantageous for both employers and their workers.

    Recruitment and retention

    According to MetLife’s 2022 Employee Benefit Trends Study, 72% of employees named dental insurance as a must-have benefit. That placed dental insurance as the third-most desired benefit behind group health insurance and a 401(k) or some other form of retirement savings.

    While small business group dental insurance isn’t required by law, it has become a staple for competitive benefits packages across the U.S. That makes offering dental insurance an important, relatively cost-effective benefit that can help your business attract and retain talent.

    Overall employee health

    Dental coverage does more than just help your employees address their oral health. Regular dental visits also play an important role in helping employees stay healthy from head to toe. According to the Mayo Clinic, poor oral health has been linked to several chronic diseases and other serious health issues, including:

    • Diabetes
    • Heart disease
    • Endocarditis
    • Stroke
    • Pneumonia
    • Osteoporosis
    • Pregnancy and birth complications

    By giving your employees the opportunity to receive regular cleanings and other dental care, you can help them maintain their overall health. Healthier employees tend to not only be happier employees but also people who are less likely to use their group health plans for various other ailments.

    An employee covered by small business dental insurance at a routine cleaning.

    Employee productivity and availability

    Simply put, employees who have to take more sick days are likely to be less productive than workers who are in good health. Offering dental insurance is another way that employers can support the overall health of their company.

    Even if your employees are able to come in and work while dealing with tooth pain and other issues, poor health can make employees less effective. Aches, pains, and stress can cause employees to lose focus on the job. According to the Centers for Disease Control and Prevention, personal and family health problems cost U.S. employers $1,685 per employee per year in productivity losses.

    Long-term savings

    Investing in dental insurance for a small business can make a direct impact on your bottom line. To start, healthier employees are less likely to take time off because they’re sick or for additional doctor’s appointments. That added productivity alone can help you get the most out of your workforce.

    Preventative treatment allows you to get ahead of health issues in the long run. Reducing an employee’s chances of developing more severe conditions can save you from costly claims and productivity losses in the future. Research published in the National Library of Medicine suggests that health-related productivity costs are 2.3 times greater on average than medical and pharmacy costs alone. That number alone can make the added investment worth bolstering your benefits plan.

    Help Your Employees Stay Healthy And Productive

    A healthy workforce is happier and more productive workforce. Giving your employees supplemental plan options such as dental insurance is one way that you can strengthen your business. Of course, it’s not always easy to manage benefits administration and every other critical HR function on your own.

    As a Professional Employer Organization (PEO), GMS can leverage its collective buying power to help you offer quality health care benefits at better, more affordable rates. We also give your business access to proprietary technology and dedicated customer service to save you valuable time that you can focus on your business.

    Ready to offer dental coverage to your employees? Contact GMS today to learn how we can help you get the most out of your benefits package.

  • Retirement planning is the process of setting income goals, followed by the actions and decisions necessary to achieve those goals. This includes classifying sources of income, sizing up expenses, implementing a savings program, and managing assets and risk. Retirement planning is the financial strategy you take in saving, investing, and ultimately distributing money meant to sustain oneself during retirement. Planning prepares individuals for life after their income ends.

    Depending on where you are in your life, whether you’re a recent college graduate or five years into your career, your retirement plan will constantly change. If you’ve just entered the workforce, your main goal will be to save a certain percentage of your income. Once you reach the median portion of your career, you may want to consider increasing your specific income or target goals and take steps to achieve them.

    As a small business owner, you may have never thought about offering retirement plans to your employees. If nothing else, consider it as a recruiting tool – employees are concerned about their future and are looking for employers to provide peace of mind. The purpose of offering retirement benefits is to increase the economic security of your employees. Offering one has numerous benefits:

    • Attract and retain quality employees
    • Lower income taxes
    • Supersize retirement returns
    • Payroll deductions
    • Long-term compounding
    • Creditor protection
    • Pre-tax contributions
    • Employer contributions 
    • Roth contributions

    If you are wondering if you should begin offering this type of benefit to your employees, you first want to explore the different options available. Continue reading to see which option(s) might be the best fit for your business.

    Retirement Plan Options

    Traditional IRA

    A traditional IRA is available to anyone offering a wide range of plans and investment options. IRA stands for individual retirement account – meaning, they are tax-favored savings plans that are, for the most part, opened and managed by individuals themselves. Any individual who has taxable income can contribute to a traditional IRA.

    When making contributions to a traditional IRA, it reduces your taxable income while the money grows tax-free until you withdraw it. It is very similar to a 401(k) plan; however, the contribution limits are much lower in a traditional IRA. As of 2022, the contribution limits are $6,000 if you are under the age of 50 or $7,000 if you’re 50 or older. Individuals do not pay income taxes on their contributions, but instead, you pay taxes when you withdraw the money from your account at a specified time.  

    Roth IRA

    The main differentiator between a traditional IRA and a Roth IRA is when you receive the tax benefits. For a Roth IRA, you pay taxes on the money you contribute. This means that when you withdraw your money, you withdraw it tax-free at the time of retirement.

    To decide which plan to go with, the traditional or Roth IRA, experts have said to determine whether you expect to be taxed at a higher or lower rate when you retire. Many individuals create their retirement plans assuming that they’ll fall into a lower tax bracket once they retire. If you feel that you won’t be in a lower tax bracket when you retire, you could pay less income tax with a Roth IRA.

    When contributing to a Roth IRA, you are allowed to withdraw money after the age of 59 ½. However, there are several exceptions to the early withdrawal penalty. Should you purchase your first home, have an extensive amount of college expenses, or have a child, you might be able to withdraw from your Roth IRA with no penalty. With that being said, you are only able to contribute to a Roth IRA if your annual income is below a specific threshold.

    SEP IRA

    A SEP IRA stands for a simplified employee pension. This type of retirement plan is used mainly by self-employed individuals or small business owners. If you’re a business owner, this plan may be cheaper and easier to operate as opposed to a 401(k) plan.

    With a SEP IRA, you have the capability to put away a greater amount of savings each year. An employer can contribute up to 25% of each employee’s income, up to a maximum amount of $61,000, as of 2022. If you’re self-employed, you’re able to contribute up to 25% of your net income up to $61,000. With a SEP IRA, individuals are 100% vested in employer contributions. However, the immediate vesting of employee benefits may be a disadvantage for employers since the employee will take the money with them when they leave.

    Simple IRA

    A simple IRA is a retirement plan option for small businesses with 100 employees or less. Simple stands for savings incentive match plan for employees – meaning, employers must do one of two things:

    1. Match employee contributions up to 3% of the employee’s salary
    2. Contribute 2% of an employee’s salary regardless of any contribution from the employee

    Simple IRA plans offer a substantial source of income at the time of retirement by allowing employers and their employees to set aside money within retirement accounts. The main differentiator between conventional retirement plans is that with a simple IRA, there are no start-up and operating costs.

    With this type of retirement plan, employees are always fully vested which means no matter when the employee leaves the company, they can keep all the employer’s contributions. In 2022, employees can contribute a maximum amount of $14,000 of their annual salary or if they’re over the age of 50, they can contribute up to $17,000.

    401(k)

    The most popular option for a retirement plan is a 401(k). According to the Internal Revenue Service (IRS), a 401(k) is a feature of a qualified profit-sharing plan that allows employees to contribute a portion of their wages to individual accounts. The plan can be a profit-sharing, stock bonus, pre-ERISA money purchase pension, or a rural cooperative plan.

    An employee who signs up for a 401(k) agrees to have a portion of each paycheck paid directly into an investment account. Some employers may decide to match part or even all the employee’s contributions. There are two basic types of 401(k) plans – Traditional and Roth.

    The money in your 401(k) grows tax-free until you withdraw it. Once you choose to withdraw it, you’ll pay income tax on the money you take out. However, you must be 59 ½ or older to withdraw your money from the 401(k) plan without a penalty. You are also required to start withdrawing money from your plan at the age of 72.

    Most employers tend to offer 401(k) plans because they have fairly high contribution limits. In 2022, you can contribute up to $20,500 or $27,000 if you’re over the age of 50.

    Tom Smith, Director of Retirement Services at GMS, stated, “For employees, a 401(k) holds numerous benefits. Contributions are deducted directly out of their paycheck versus the employee having to send money to an account themselves. If their employer matches contributions, then it becomes a no-brainer for the employee to participate because they leave free money on the table if they do not.”

    Solo 401(k)

    A Solo 401(k) assists in maximizing retirement savings for individuals who are self-employed and business owners that don’t have employees. These plans are also known as individual or one-participant 401(k) plans. A Solo 401(k) is very similar to a standard 401(k) plan, except for the ability to boost your savings by contributing as both the employer and employee. 

    Individuals can contribute up to 100% of self-employment income with a maximum amount of $20,500 or $27,000 if you’re over the age of 50. In addition, you can act as the employer since you’re self-insured and contribute up to 25% of your business’ income. This may be the best option for those who are self-insured as you may be able to contribute more with this dual contribution formula.

    Partner With GMS Today

    No matter which retirement plan you choose, they all provide tax advantages as incentives to save for retirement. Now, you may still have a handful of questions and are still hesitant if you should offer a retirement plan to your employees. GMS is here to help. A PEO like GMS can leverage group buying power to reduce plan costs for small businesses and take on the fiduciary burden to ensure you remain compliant. As a business owner, you can stop wasting time trying to make sense of your legal responsibilities when you partner with GMS. With GMS, you easily establish: 

    • 401(k) eligibility requirements 
    • Vesting schedules
    • Tax-deductible matching
    • Profit-sharing contributions

    For more information about offering retirement plans to your employees, contact our experts today.

  • Running a business involves countless moving parts, from managing payroll and taxes to ensuring compliance with federal and state employment regulations. Professional employer organizations (PEOs) exist to ease this burden, handling administrative and human resource (HR) functions so employers can focus on growth. Now, certified professional employer organizations (CPEOs) take this service to another level by meeting stringent requirements set by the Internal Revenue Service (IRS) and offering clients unique financial protections and tax benefits. PEO companies that are not certified typically do not have these financial protections.

    CPEO vs. PEO: What’s the difference?

    A CPEO is a PEO that successfully completes the IRS’s voluntary certification process, an extensive evaluation that examines a PEO’s history, financial responsibility, and compliance record. While standard PEOs can offer many benefits, CPEOs stand out because:

    1. They assume full liability for federal employment tax payments on wages paid to worksite employees.
    2. They must post an annual bond (up to $1 million) that guarantees payment of federal employment tax liabilities.
    3. They undergo rigorous and ongoing IRS reviews and financial reporting requirements.

    By contrast, in a typical PEO relationship, both the client and PEO share liability for certain tax obligations. When partnering with a CPEO, the liability may fall solely on the CPEO for federal employment tax on wages they pay to your employees. That’s a significant peace-of-mind factor for business owners.

     

    IRS guidelines and processes

    Thanks to the Tax Increase Prevention Act of 2014, the IRS established a formal CPEO program. This was recently clarified by Revenue Procedure 2023-18, which replaced earlier guidance and laid out steps, processes, and requirements in more detail. Key points for PEOs aiming to become or remain CPEOs include:

    • Maintaining proper bonding.
    • Ensuring continual compliance with federal, state, and local tax laws.
    • Submitting annual financial reports and IRS verifications.
    • Verifying ownership and management meet all criteria (e.g., U.S. citizenship/residency and extensive knowledge of employment tax requirements).

    With these enhanced guidelines, businesses can now easily verify a CPEO’s status by checking the IRS’s public listings of active, suspended, or revoked CPEOs.

     

    Requirements to become (and stay) a CPEO

    The IRS lays out clear prerequisites to qualify as a CPEO:

    1. Be a business entity with at least one physical location in the United States.
    2. Demonstrate a history of financial responsibility, organizational integrity, and federal/state tax compliance.
    3. Be managed by individuals (mostly U.S. citizens or residents) who have knowledge and experience in employment tax compliance.
    4. Maintain certification annually through online verification, financial reporting, and compliance monitoring.

    Failure to meet these standards could result in losing the CPEO designation.

     

    Why partner with a CPEO?

    1. Stronger financial protections: As noted, a CPEO can take on sole liability for federal employment taxes on wages they pay, backed by a significant surety bond, helping protect you from potential tax risks.
    2. Clear tax benefit retention: If you’re claiming tax credits, a CPEO relationship can help ensure you retain those credits without interruption.
    3. Enhanced compliance: CPEOs are regularly monitored and regulated by the IRS, which can give you extra assurance that payroll, HR, and tax compliance issues are handled accurately.
    4. Administrative relief: The day-to-day HR and administrative tasks (payroll, benefits, compliance, risk management) are managed by a professional entity, freeing you up to drive strategy, revenue, and team building.

     

    Special note for the transportation industry

    Many businesses in transportation must partner with a CPEO if they choose to outsource certain HR functions, specifically due to the liability implications tied to compliance rules. If your sector requires or strongly recommends partnering with a CPEO, understanding these benefits becomes even more crucial.

     

    A CPEO you can count on

    At Group Management Services (GMS), we’ve taken the extra steps to become a CPEO recognized by the IRS. What does that mean for you?

    • Reduced risks: We assume the primary liability for federal employment taxes for our clients’ worksite employees.
    • Time and cost savings: From payroll administration to benefits management and HR compliance, we handle the details, allowing you to focus on growing your business.
    • Ongoing compliance expertise: We stay on top of 2025 IRS regulations and beyond, ensuring your organization meets updated standards.

    Contact us today to learn more about how GMS can deliver peace of mind and improve your bottom line.

  • Prior to the pandemic in 2020, research showed that one in five adults struggled with mental health issues. Post pandemic has triggered a 25% increase in anxiety and depression, according to the World Health Organization (WHO). With this drastic increase in the past couple of years, employers need a plan of action to increase the health and wellbeing of their employees.

    With employees returning to the workplace, it can be stressful and overwhelming. Individuals are still adjusting to the “new normal” and need support and resources. With all the changes in the work environment, many individuals have started prioritizing mental health within the workplace.

    A survey conducted by the Employee Benefit Research Institute (EBRI) showed that in response to the pandemic, 50% of employees believe mental health wellness programs are more important than ever. Unfortunately, cost continues to be a concern for many individuals. The survey also found that three in four people trust their employer to offer quality benefits and offerings that will improve their overall well-being.

    The following will help to create a safe work environment and ensure the welfare of all employees:

    Promote Health And Well-being

    Employee wellbeing refers to the state of employees’ physical and mental health and focuses mainly on factors including mood and perception. The leadership of your organization needs to create a healthy culture and supportive environment for their employees. Educating leaders on how to recognize the signs of stress and mental health issues will help reduce turnover and absenteeism. Poor mental and physical health ultimately leads to lower moods, poor concentration, difficulty making decisions, and inadequate performance. Ideas that you can utilize to promote employee well-being in the workplace include the following:

    • Ensure recognition is a part of your company culture
    • Practice mindfulness
    • Create impactful mentoring programs
    • Promote mental health awareness

    Workspace/Work Flexibility 

    Your work environment can affect your mental wellness. On average, individuals spend 90,000 hours at work which is nearly one-third of our lives. How work affects us is directly related to our physical environment. Since the beginning of the pandemic, hybrid work became a new concept where employees worked from home two to three days per week and physically entered the office the remaining one to two days. Allowing flexibility like this in your business allows your employees to have a wider range of freedom. If the employees have children, they have adequate time to drop them off at school or take care of loved ones. A study found that 72% of employees report that work-life balance is especially important when considering a new position.

    When individuals think of office work, they probably think of people sitting at a desk all day. Sitting at a desk for an extensive period of time takes a toll on your body and mind. It goes hand in hand with the risk of anxiety and depression. Research is still being conducted to determine the reasoning behind it, but it’s most likely related to lack of exercise. Once an hour, individuals should get up from their desks to take a break physically and move around, stretch, get some water, clear your head, etc.  

    Communicate

    Communication is a valuable tool in managing many aspects of mental health and the well-being of your employees. As there are a handful of ways to communicate with team members, it’s important to determine the most effective way your team communicates. Understanding your team member’s communication styles is important to succeed. If they prefer face-to-face conversations over email or video, meet with them in person. Effective communication between your leaders and your employees strengthens relationships and ensures everyone is on the same page. This will create a positive working environment and improves motivation and productivity. Remember to always check in with your colleagues. Encourage a happy and motivating workplace. 

    What Is Your Company Doing To Address The Well-being Of Your Employees?

    Your employees’ career is a vital part of their life. Increased mental well-being is connected to happier work, more effective collaboration, and increased productivity. When partnering with GMS, we offer a wide range of benefits to your employees. Through our employee assistance program (EAP), our clients have access to free confidential services including legal and financial consultation, childcare, special needs, counseling, and more. If you choose to utilize free counseling, you have up to four sessions, per problem for face-to-face counseling with 24/7 access. To learn more about our benefits offerings, click here. 

  • As a benefit that many companies offer to their employees, paid time off (PTO) policies constantly evolve to accommodate changes in the working world. However, many employers fall into the trap of overly complicated policies that are not only difficult for employees to understand, but also difficult to track.

    It’s important to find a policy that will make employees happy and maintain effective workplace attendance within the workforce. The good news is that implementing a good PTO policy doesn’t have to be complicated. Here’s what you need to know in order to build the right PTO policy for both you and your employees.

    How Does PTO Work?

    PTO can work in different ways depending on your exact policy. Each option boils down to giving every eligible employee an allotment of time that they can use to take off work for various reasons.

    The exact way that those paid days off are granted depends on the type of policy. Common PTO policy examples include:

    • Traditional leave
    • PTO banks
    • Unlimited PTO
    • PTO donation

    Traditional leave

    A traditional PTO policy gives employees a set number of days for different types of time off, such as vacation time, personal days, sick days, and holidays. These days can be used over the course of a year and renewed once the employee hits a certain date. New employees typically start with a set number of days and can earn more after being with the company for a certain number of years.

    PTO banks

    PTO bank policies revolve around giving employees access to a pool of paid time off that they can use for any reason. As with traditional plans, employees can use these days over the course of the year until they run out or when their pool renews at a certain date. This type of plan gives employees more flexibility when it comes to needing days off

    Unlimited PTO

    Unlimited PTO plans allow employees to take as many days off as they need, as long as the manager approves them. This option is less common than other PTO policies, but has grown steadily in popularity because of its flexibility and freedom. However, these plans can also require a well-written policy to avoid both overuse and underuse.

    PTO donation

    PTO donation is less of an overall plan and more of an add-on to other policies with set allotments of paid leave. Organizations that allow for PTO donation give employees the ability to give some of their days to a coworker if they need them, such as if an individual needs extra time to take care of a loved one. This option keeps the organization’s overall pool of paid leave the same but gives employees some added flexibility.

    What Are The Benefits Of A PTO Policy?

    While the U.S. does not federally mandate paid vacation or holiday time, there are plenty of good reasons to provide this form of benefit. PTO is regularly among the most desired benefits for job seekers, which is a big reason why roughly 80% of private businesses offer some form of PTO. In turn, these businesses enjoy the following advantages:

    • Reduced absenteeism – According to SHRM, more than half of employers who combined sick time and vacation time in the same PTO plan reduced absenteeism by up to 10%.
    • Employee performance – Burnout is a real problem. Giving employees the ability to take meaningful vacations and mental health days helps them stay more productive in the long run.
    • Employee morale and trust – A PTO policy is a way to show employees that you care about their personal lives and let them use their time as they see fit. In return, those employees are more likely to be happy at work and stay with the company.

    What Factors Impact Which PTO Policy Is Best For My Business?

    There are several variables that your business needs to address when it comes to providing PTO. This process involves asking a few key questions that will play a major role in how you’ll shape your PTO policy.

    How many days off should employees have?

    The right amount of time off can vary greatly depending on a business and its employees. According to Indeed, the average amount of paid vacation days can range from 11 to 20 depending on an employee’s service length.

    The best place to start is to review your business’ internal staffing needs to identify a comfortable range of days that accommodate workloads and employee satisfaction. You can also check industry and regional averages to stay competitive with the competition.

    Does it matter how employees use their time off?

    The answer to this question will likely dictate whether you opt for a traditional policy or something more flexible. If it’s important to separate vacation days from sick leave and other time off, a traditional PTO policy is a natural choice.

    Should employees accrue PTO over time or receive a lump sum?

    The exact timing of how and when employees receive their allotment of time off can vary. Some businesses keep this process simple by giving employees access to their entire pool of PTO days on their anniversary date or at the beginning of the calendar or fiscal year. Other businesses may opt for a slower accrual system where employees earn time off by pay period, month, or a set number of hours. Each method is valid, so it depends on how your organization prefers to dole out and track this time.

    Can employees roll over unused time?

    It’s important to address what will happen to any unused PTO time. Studies show that Americans only end up using 54% of their eligible vacation time. Some companies try to encourage PTO usage through a “use it or lose it” policy, while others allow workers to roll some or all their remaining time over.

    How do I track PTO?

    While businesses in the past relied on manual documentation for PTO tracking, employers can rely on technology to ease this burden. Software like a human resources information system (HRIS) can streamline the management and tracking of personal time, accruals, limits, payouts, and other details. Businesses can try and utilize software in house or work with a Professional Employer Organization (PEO) or another HR partner to handle these keys responsibilities.

    Do local and state regulations impact my policy?

    While employers play a major role in shaping their company’s PTO policy, it’s also essential to keep compliance in mind. Certain states and regions have laws in place that direct your policies. For example, some states may require businesses to roll time over or compensate employees for unused payout if they leave the company. These laws vary greatly, so make sure you review local and federal laws when it’s time to draft or update a policy.

    PTO Policy Best Practices

    No matter how you shape your PTO policy, it’s important to take some measures to maximize their effectiveness.

    Clearly outline your PTO policy in your company handbook

    Your employee handbook is an essential compliance tool, so it’s only natural to use it to document your PTO policy. Make sure to outline the following details to give employees a clear understanding of how they can follow your policy:

    • Who is eligible for PTO (full-time employees, part-time employees, etc.)
    • How much time off they receive and how it’s accrued
    • Paid and unpaid leave options
    • The differences between vacation time, sick time, and more (if necessary)
    • The process for requesting time off (and how it’s reviewed)
    • Instances where time off requests may be denied
    • Payout practices
    • Consequences for violation

    Set some limits on usage to protect your business

    While it’s natural for employees to take time off when they want to, there are some scenarios that can pose problems for employers. Consider implementing the following measures to avoid internal issues caused by short notice, unfortunate timing, and more.

    • Place a cap on the number of days that employees may request during a vacation leave.
    • Regulate the number of employees from within a department that may be out at any given time.
    • Mandate how much notice employees must provide prior to taking vacation.
    • Create a waiting period for new employees before they can start using or accruing PTO.

    Openly encourage employees to take time off

    While being a hard worker is a great quality, there’s only so much that most employees can go through without a break. Studies have shown that taking time off from work not only improves employee performance and productivity, but also reduces stress and the risk for heart issues.

    Having a PTO policy is one step, actively encouraging employees to use it is another. It’s critical to make employees comfortable with taking time off to maximize the benefits of your policy. SHRM recommends using the following strategies:

    • Give employees verbal or written permission to take time off, even if they’re worried about who will pick up the slack.
    • Encourage employees to take off half days or shorter breaks if they don’t want to utilize a full day or other extended periods.
    • Make time off a topic of conversation during employee reviews or other conversations.
    • Lead by example and make it known when managers are taking time off and that it’s encouraged that all employees do so as well.

    Simplify Your PTO Process

    While PTO has several benefits, it is yet another process to add to an ongoing list of administrative responsibilities. Fortunately, employers have options to simplify PTO and strengthen their business.

    GMS partners with businesses to support their employees while saving employer’s valuable time. We provide our clients with resources like GMS Connect to help them track time off, automate accruals, and streamline the approval process. In addition, our HR account managers can help you design a policy tailored to your company’s needs.

    Taking time off shouldn’t take a lot of work. Contact GMS today to talk to one of our experts about how we can enhance your employees’ experience and increase your operational efficiencies.

  • Do you enjoy the benefits of partnering with a PEO, but you aren’t sure you’re getting everything you were promised in the beginning? If you currently partner with a PEO, you know there are a wide array of benefits you gain through the partnership. When you partner with GMS, you will receive access to our experts in the fields of payroll, employee benefits, human resources, and risk management.

    Making the switch to a different PEO may seem mundane, but it’s important to ensure the partnership with a new PEO is the right fit. Continue reading to learn how simple it can be to switch from one PEO to another.

    Step 1 – Define Your Reasons For Switching PEOs

    The most important step in switching from one PEO to another is determining the reason why you want to switch. Make a list of pros and cons of your current PEO. The types of services and support you want not only have a direct effect on which PEO is right for you but also impact the transition process. 

    Consider asking yourself the following questions to fully understand your reason(s) for switching.

    • Are you receiving everything you were promised at the beginning of your partnership?
    • What services is your current PEO offering you? 
    • What services do you feel are lacking (if applicable)?
    • How fast do they respond to your correspondence and through what channels are they accessible – email only, phone, fax, and so forth. 
    • What red flags, if any, have you experienced that need to be addressed?
    • How often does your HR account manager facilitate onsite visits?
    • Do your employees have easy access to their payroll information?
    • How flexible is your medical plan for your employees?
    • Are your claims being handled properly and in a timely manner?
    • How often do you review your workers’ compensation rate?

    Step 2 – Find The Right Fit

    If you’re considering switching PEOs, you may ask yourself how beneficial it will be for your business to continue a partnership with a PEO. When determining the right PEO for your business, consider your ever-changing business needs. What are your current challenges? Do you anticipate any changes to your business that could impact which services you need? 

    Not all PEOs are created equal. Some are brand new to the PEO market, while others have been around for quite some time. With that said, every PEO offers different services, and some may be a better fit than others. Do your research and ask questions to grasp a better understanding of each business.

    Step 3 – Cost And Value

    PEOs are dedicated to helping businesses grow, so we understand the commitment involved in a partnership. However, having already worked with a PEO, you understand the value a PEO can offer your business. Most PEOs have an enrollment fee that can run up to a couple of thousand dollars for your company. Consider looking for a PEO that is transparent about pricing. You will most likely have a first meeting with each PEO you are interested in. If they aren’t upfront and honest and can’t give an explanation behind the pricing, that’s a red flag right away. Your costs of doing business may be increased unintentionally due to ineffective HR processes. Decreased productivity, high employee turnover, less impressive employee benefits, and more, are ways your ineffective HR practice could be hurting your bottom line. 

    Step 4 – Partnership Overview

    Since you’ve gathered information about top PEOs you are interested in partnering with, it should be clear which organization you want to work with. It’s important to consider the conversation that will be had with your current PEO about parting ways and switching to another PEO. Your previous PEO may require a written notice of termination – a 30-day notice is typical. Create a plan with your team members to ensure a smooth process for the transition of services.

    Your new PEO will provide you with a documented plan of what the partnership will look like. They will show you how the transition and onboarding process will look and how they will get your employees settled in with the new PEO.

    Step 5 – Onboarding

    While PEOs save companies time in the long run, the process of onboarding with a PEO can be time-consuming in the beginning. You must get through the growing pains first before taking advantage of the amazing benefits. There will be multiple steps in the onboarding process consisting of a pre-launch meeting, HR and benefit meetings, and a conversation about payroll. Depending on the PEO you decide on, you should have the option to sign physical documents or submit them electronically if the company is paperless. Once the documents are completed and filed, the implementation process will begin. At the end of the onboarding process, you will have a faster, smarter, and more efficient HR administration process. 

    Find The Right PEO To Help Your Business

    Finding the right PEO to assist with your administrative functions is vital to the success of your business. Managing the many HR functions is the backbone of your business. Researching a variety of different PEOs and choosing the right one can be time-consuming, but in the long run, will provide you with more free time so you can focus on growing your business. A PEO provides you with the administrative support you deserve.

    At GMS, our team of experts works diligently with you and your employees to make your business simpler, safer, and stronger. To learn more about how GMS can benefit your business, contact us today.  

  • When considering partnering with a professional employer organization (PEO), many questions may cross your mind. If you’re just now learning about a PEO, you’ve taken the first step toward providing your company with more efficient and unique practices for handling your most precious assets: your employees. You may be asking, what exactly is a PEO? A PEO enables companies to cost-effectively outsource the management of human resources, employee benefits, payroll, and workers’ compensation. As a PEO, GMS leverages its collective buying power to act as one large company. A PEO works diligently with small business owners to provide them with the same buying power as a larger business through a co-employment relationship. By working with a PEO, you gain access to more cost-effective options regarding healthcare, dental, vision, and workers’ compensation.

    There are many reasons why employers use a PEO. As a business owner, you’re already aware of the amount of time and energy that goes into each aspect of managing your business. What can a PEO do for your business that will save you time and money? Continue reading to see how GMS can make your business simpler, safer, and stronger.

    Payroll

    Managing payroll and tax filings can be one of the most time-consuming and costly tasks there is within your business. Small and mid-sized companies spend an average of $2,000 per employee per year to handle payroll. When you outsource payroll with us, you gain access to:

    • Taxes & tax filing
    • Electronic onboarding
    • Pay card options
    • Garnishment administration 
    • Customized payroll reports
    • Employee documentation
    • Time clock integration
    • GMS Connect: advanced online payroll system
    • New hire reporting
    • Employee self-service portal and app
    • Compliance advice and assistance 

    Human Resources

    There are many functions when it comes to human resources management – from recruiting and retaining employees to payroll to tracking vacation time. Focusing on your company should be your number one concern. Your employees are the backbone of your business. HR management plays a role in instituting and suggesting strategies for individuals that impact the growth of your business. Creating an environment that encourages employees to do their best increases longevity in the workplace. Below are the advantages of outsourcing your human resource functions to a PEO:

    • HR audit
    • Human resources information system (HRIS)
    • Recruitment services 
    • Onboarding
    • Compliance assistance
    • Training & development programs 
    • Retention strategies
    • Recognition programs 
    • Employee relations guidance 

    Risk Management

    There are many risks associated with workers’ compensation and workplace hazards. The majority of work-related deaths, injuries, illnesses, and consequential workers’ compensation costs are preventable. With the right risk management solution, you’ll be able to create a safer work environment for your employees, which ultimately results in fewer claims and a lower workers’ compensation insurance rate. Below are benefits you gain when outsourcing risk management:

    • Claim(s) management
    • PEO discount programs
    • Drug testing
    • Workers’ compensation management 
    • Claim investigation
    • Hearing representation
    • OSHA walk-throughs
    • Safety programs & audits
    • Trainings, webinars, and more

    Benefits

    Attracting and keeping quality employees is the number one concern in today’s workplace. As many individuals are looking for new jobs, standing out from your competitors is key. One of the best ways to do this is by offering a benefits package. Offering a benefits package to your employees, show them you are invested in not only them but their future with your business. Below are examples of benefits you can offer your employees:

    • PEO benefit program
    • TPA services
    • Claims administration
    • Wellness programs 
    • Supplemental insurance programs
    • ACA compliance
    • ERISA compliance
    • RX specialist & assistance 
    • 401(k) 
    • Benefit plan offerings/administration
    • Benefit compliance reporting
    • Claim audits/case management 

    As the list of services that GMS can offer your business is extensive, our experts are here to help with any area of your business that is struggling. By choosing to partner with us, we can better understand what services will be of benefit to your business. We work with you to create a plan that’s designed specifically for the size and needs of your business. Contact us today to learn more!

  • The U.S. House passed a bill on a bipartisan 232-193 vote that would limit the price of insulin for Americans with health insurance. Democratic Senators Warnock of Georgia and Patty Murray of Washington state held a round table virtually consisting of residents from both states to push for capping the cost of insulin at $35. Both parties argued that insulin is a life-saving drug, and there should be no reason for the cost of this medicine to rise the way it is. The senators were joined by citizens who have experienced diabetes firsthand.

    Initially, this provision was incorporated in the President’s “Build Back Better” social spending and climate package sent to Congress that was delayed in Senate. Having insulin rationed because it’s too expensive poses a direct threat to people’s health. That’s why there is an effort to cap insulin costs.

    The Kaiser Family Foundation (KFF) is a nonprofit organization that focuses on national health issues. The organization conducted research and found that Medicare spending on insulin increased 840%, from $1.4 billion to $13.3 billion. Kevin Wren, a Type I diabetes patient from Washington state, announced that the cost of his insulin was sometimes more than his rent. This bill will lower costs for nearly 40 million Americans and save lives.

    A press conference was held by Craig and Democratic Reps. Lucy McBath of Georgia and Dan Kildee of Michigan, and Majority Whip Jim Clyburn of South Carolina, to advocate for the measure passed by the House, the “Affordable Insulin Act.” This bill would ensure that no patient will pay more than $35 for a 30-day supply of insulin. A total of 12 Republicans voted with the Democrats for the bill.

    Members who attended this conference hope that Congress will send the legislation to President Joe Biden for his signature. His signature will lower drug costs for millions of American families. One in four Americans who need insulin has stated they needed to cut back or have skipped doses because the price is too high.

    GMS Helps You Live A Healthier Lifestyle

    When partnering with GMS, you can utilize our buying power through economies of scale to access more affordable and comprehensive healthcare options. GMS’ savings, on average, are 23% lower for employee premiums and 34% lower for family premiums. We recently launched our diabetic management program with One Drop, which helps employers and their employees transform their health, change lives, and create new opportunities. Learn more about how GMS can provide you with the resources to save you and your employees time and money. 

  • The Illinois Secure Choice Savings Program (Secure Choice) allows workers to save money for retirement on their own. This is required for any business in the state of Illinois that has at least five employees, has been in business for two or more years, and does not currently offer a retirement plan. Businesses who fall into this category must begin offering a qualified plan to their employees, or automatically enroll their employees into Secure Choice.

    Program Overview 

    Participants of the Secure Choice Program are enrolled in a default target-date Roth IRA with a default five percent payroll contribution. However, participants can change their contribution level or fund option at any time or choose to opt-out of the program. Employers register their employees for this program so that accounts can be created, and payroll contributions can be made.

    The Illinois Secure Choice Program differs from a traditional retirement plan. When enrolled in the Secure Choice Program, employers are not considered plan fiduciaries, they do not pay fees, they do not make contributions into their accounts, and they’re not responsible for plan paperwork or administration. Instead, the Secure Choice is run by a seven-person Board with Treasurer Michael Frerichs serving as Chair. Frerichs office administers Secure Choice on behalf of the Board, and then partners with private-sector financial service firms for a variety of services.

    The Secure Choice Savings Program launched in 2018 with a phased implementation that’s based on employer size. The next phase in this program begins in November of 2022 for businesses that consist of 16-24 employees.

    Employer Registration Deadlines

    Depending on the size of the employer, program deadlines vary. The deadline for businesses with 16-24 employees is November 1st, 2022, and the deadline for 5-15 employees is November 1st, 2023. Any employer who does not meet their required deadline may be subject to enforcement which could consist of financial penalties. The Illinois Secure Choice Program has over 97,200 participants as of December 1st, 2021. Altogether, these participants have saved nearly $80 million for retirement.

    Partner With A PEO Today!

    Employers face a constant challenge today in retaining good talent. It’s more important than ever for employers to offer their employees a retirement plan, in order to attract good talent. The constant change in legislation adds strenuous time and energy to your business. When you partner with GMS, our experts help you navigate through these changes and assist in the process of enrolling your new employees. Do what you do best and outsource the rest!

  • In March of 2019, Governor Phil Murphy signed the New Jersey Secure Choice Savings Program Act to close the retirement savings gap. This Act created the Secure Choice Savings Program which was designed to provide a private path for employees to save for retirement. This means that certain employers are required to establish a payroll deposit retirement savings plan that permits eligible employees to take part in the program.

    Although the implementation of the program remains in the works, the new website is now operational as of April 2022. More information is expected soon which will include the next steps concerning how to implement this program in your business. To keep up to date on this Act, visit their website today.

    Employers Subject To The Act:

    The Secure Choice Savings Program applies to any person and entities that are engaged in a business, industry, profession, trade, or other enterprise within the state of New Jersey that:

    • Have not employed fewer than 25 employees in the state the previous calendar year
    • Have been in business for at least two years
    • Have not offered a qualified retirement plan in the past

    Qualified Retirement Plans:

    There is a common misconception that plans must be offered as a 401(k). However, there are a variety of qualified retirement plans offered to an employer, to avoid complying with the Act. These include Sections: 401(a) and (k), 403(a) and (b), 408(k) and (p), 457(b), or a plan sponsored by a PEO.

    How Employers Will Comply:

    To comply, covered employers must follow the steps below: 

    • Establish a payroll deposit retirement savings arrangement no more than nine months after the Board opens this program for enrollment. Each employee that will enroll in the program will be able to choose their individual contribution level.
    • Each employee who has not opted out will be automatically enrolled in the program.
    • Deposit deductions from employees’ payroll into the program.

    As this new Act rules out, employers are permitted to contract with a third party. A third party means partnering with a Professional Employer Organization like GMS, who will perform the tasks listed above on behalf of the employer.

    What This Act Means for Employees:

    Employees that were hired more than six months after the Board opens the program for enrollment and have not opted out, will be automatically enrolled. New employees who are eligible to enroll, will be automatically enrolled. New employees will be eligible to enroll annually. Employers are required to have an annual open enrollment period where eligible employees are able to change their elections under the Program. That also means that any employee who opted out in the previous year will be able to opt in during the new enrollment period.

    Penalties for Employers:

    Any employer who fails to enroll any employee without a reasonable cause in a timely manner is subject to the penalties listed below:

    • A written warning for the first calendar year in which a violation occurs.
    • For the second calendar year, there will be a $100 fine when a violation occurs.
    • For the third and fourth calendar year, there is a $250 fine for each employee who was not enrolled in nor opted out of participation in the program.
    • For the fifth calendar year and the years to follow, there will be a fine of $500 for each employee who wasn’t enrolled in nor opted out of participation in the program.
    • There will be a first offense penalty of $2,500, and a $5,000 fine for the second offense and each offense following when the employer collects employee contributions but fails to remit any portion of the contributions to the fund.

    Be Proactive And Partner With A PEO Today!

    As the board is still working on the implementation of this program, employers have time to figure out a game plan for their business. When partnering with a PEO like GMS, our experts will keep you up to date on these changes and assist in the process of enrolling your employees into this program. Offering a retirement plan is more important than ever to retain quality employees. However, at GMS, we know how challenging it can be to decide which plan is best for you and your employees. Are you looking for proactive ways to ensure your business’ success? Contact us today to learn more!