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  • Open enrollment can be a source of stress and confusion for many, with only a small percentage of people feeling confident in their ability to choose the right plan. If your employees are feeling anxious about this process, they are not alone. Let’s break down the essentials of open enrollment so your team can approach it with confidence. 

    What Is Open Enrollment? 

    Open enrollment is the designated time each year when employees can enroll in or make changes to their health insurance plans. Outside of this period, changes can only be made if you experience a qualifying life event (QLE), such as marriage, the birth of a child, or moving to a new location. These events allow for a special enrollment period, providing flexibility when significant life changes occur. 

    Choosing The Right Plan 

    Selecting the right health insurance plan involves evaluating your current and anticipated health care needs. Ask yourself if your current plan met your needs last year, whether your preferred doctors are within the network, and if your family circumstances have changed. Consider whether you expect to use more or fewer medical services in the coming year and whether you prioritize lower monthly costs or a broader network of providers. If you’re uncertain, seeking advice from a third-party resource, like a health advocate, can offer valuable insights. 

    Understanding Health Insurance Terms 

    Health insurance terminology can be complex, but understanding key terms is crucial for making informed decisions. Here are a few important concepts: 

    • Deductible: The amount you pay out-of-pocket before your insurance begins to cover expenses. 
    • Copay: A fixed fee you pay for specific health care services. 
    • Coinsurance: The percentage of costs you share with your insurer after meeting the deductible. 
    • Out-of-pocket maximum: The maximum amount you’ll pay in a year for covered services. 
    • Preferred provider organization (PPO): A type of health plan that offers a network of health care providers but allows for out-of-network care at a higher cost. 

    Can You Change Your Plan After Enrollment? 

    During the open enrollment period, you can make changes to your plan. However, once this period ends, changes are only possible if you experience a QLE. For new employees, benefits typically start on the first of the month following enrollment, while existing employees’ coverage begins according to the employer’s plan year. 

    Open Enrollment In 2024 

    Under the Affordable Care Act (ACA), employers with 50 or more full-time employees or the equivalent must provide health care to their team. Regardless of your team’s size, health care is a leading benefit that can assist with hiring and retention efforts due to the rising cost of personal health expenditures. While businesses have different renewal periods throughout the year, Q4 is a common time for many companies to conduct open enrollment. It’s important to stay informed with your company’s schedule to know when it’s time to elect benefits. For 2024, the open enrollment period for HealthCare.gov begins on November 1st and extends until January 15, 2025, in most states. This timeframe allows individuals to enroll in or make changes to their health insurance plans for the upcoming year. 

    Navigate Open Enrollment With GMS 

    It can be difficult for employees to make informed decisions regarding benefits due to the complex array of options available. When you partner with GMS, we shoulder the responsibilities of the open enrollment period, allowing you to concentrate on other aspects of your business. Your dedicated benefits account manager closely collaborates with you and your team to offer top-notch benefit plans and educate your employees effectively. Gain access to a team of specialists who can train your employees on plan details and address challenging coverage inquiries. We understand the complexities of health insurance. Let us guide you on how to maximize your plans, ensure compliance, and stay updated on regulations. Connect with us today. 

  • New York businesses are bracing for significant health insurance premium increases in 2024. The New York State Department of Financial Services (DFS) has approved average rate hikes of 13.5% for individual plans and 7.4% for small group plans. While these increases are lower than insurers initially requested, they still represent a substantial burden for businesses and employees alike. 

    Three Factors Driving Premium Increases: 

    1. Rising medical costs: The cost of medical care, including hospital stays, physician services, and pharmaceuticals, continues to rise. This is compounded by increased utilization of these services as patients seek more care post-pandemic. 
    2. Economic inflation: Broader economic inflation has put additional upward pressure on health care costs, including administrative expenses for insurers. 
    3. End of public health emergency (PHE): The unwinding of the PHE has led to changes in coverage, such as the reintroduction of cost-sharing for COVID-19 testing and the commercialization of COVID-19 vaccines, which increase insurers’ costs. 

    What This Means For Business Owners: 

    Increased costs 

    Higher insurance premiums will impact New York businesses’ overall operating costs. This is particularly challenging for small businesses, which may struggle to absorb these increases. 

    Administrative challenges 

    The process of navigating these changes and ensuring compliance can be administratively burdensome. This includes managing renewals and understanding new coverage options for employees. Businesses may need to invest more time and resources into understanding the changes and communicating them effectively to their employees. 

    Employee impact 

    Rising premiums may lead to higher contributions from employees or reduced benefits, potentially affecting employee satisfaction and retention. Employees may also face increased out-of-pocket costs, which could affect their financial well-being and job satisfaction. 

    Strategic decisions 

    Business owners may need to revisit their benefits strategy. This could involve considering different insurance carriers or plans, exploring self-insurance options, or increasing the focus on preventative care and wellness programs to help control costs. 

    Navigating Changes In Health Insurance Premiums 

    As businesses face rising health insurance premiums, it’s crucial to explore various options to manage costs while still providing quality coverage for employees. Here are some strategies to consider: 

    1. Explore GMS’s master health plan:
    • GMS offers an in-house master health plan that helps businesses avoid large swings in usage trends and renewal rates. 
    • Our plan provides access to one of the largest national networks. 
    1. Leverage group buying power:
    • By partnering with GMS, small businesses can access the buying power of a large corporation. 
    • GMS represents more than 50,000 employees, allowing for more competitive rates. 
    1. Consider different plan options:
    • Evaluate various plan types, such as preferred provider organizations (PPOs), health maintenance organizations (HMOs), or high-deductible health plans paired with health savings accounts (HSAs). 
    • Each option has different cost structures and benefits that may better suit your business and employees. 
    1. Implement cost-sharing strategies:
    • Adjust deductibles, copayments, or coinsurance to balance costs between the employer and employees. 
    • Offer voluntary supplemental insurance plans to cover gaps in primary coverage. 
    1. Promote wellness programs:
    • Implement wellness initiatives to improve overall employee health and potentially reduce long-term health care costs. 
    1. Educate employees:
    • Provide comprehensive education on plan options and how to use the benefits effectively. 
    • Help employees understand how these changes might affect their contributions and benefits. Transparency can build trust and reduce anxiety. 
    • GMS offers a dedicated team of experts to assist with employee training and answering complex health plan questions. 
    1. Regular plan reviews:
    • Conduct annual reviews of your health insurance plans to ensure they still meet your business needs and budget. 

    By exploring these options, particularly GMS’s master health plan, businesses can work towards managing premium increases while still offering competitive benefits to their employees. 

    Navigate Change With GMS: 

    As New York businesses navigate these challenging premium increases, GMS offers a valuable solution. Our in-house master health plan helps businesses avoid large swings in usage trends and renewal rates. By leveraging the collective purchasing power of over 50,000 employees, GMS enables small businesses to access group health insurance at significantly lower rates—24% lower for employee premiums and 21% lower for family premiums compared to the U.S. average.  

    By working with GMS, you can navigate these challenges more effectively, ensuring that your business remains competitive and your employees are well supported. Partner with GMS to better manage your health care expenses, support your employees, and maintain a competitive benefits package that supports employee retention. 

  • Seasonal workers play a crucial role in many industries, from retail and hospitality to agriculture and tourism. Currently, there are more than 73,000 seasonal employees working in the United States. While the number of seasonal job openings shrunk after the COVID-19 pandemic, they’re finally beginning to creep back up.

    As businesses gear up for peak seasons, attracting and retaining skilled seasonal employees becomes essential for maintaining smooth operations and delivering excellent customer service. Offering competitive compensation and benefits tailored to meet the needs of seasonal workers not only attracts top talent but also enhances employee satisfaction and productivity, ensuring they feel valued and motivated throughout their tenure.

    What Is A Seasonal Job?

    A seasonal job refers to temporary employment during specific times of the year when businesses experience increased demand or require additional staffing. These jobs are typically tied to recurring cycles or events, such as holidays, seasons, weather patterns, tourism peaks, or agricultural harvests.

    Seasonal employment can be found in various industries, including retail, hospitality, tourism, agriculture, event planning, landscaping, and outdoor recreation. The duration of seasonal employment can range from a few weeks to several months, depending on the industry and specific seasonal demand.

    Key characteristics of seasonal jobs include:

    • Temporary nature: Seasonal jobs are intended to meet short-term demands and are not permanent positions. They are often filled to handle peak periods or specific events.
    • Predictable cycles: These jobs follow predictable cycles based on calendar events (e.g., summer vacations, winter holidays), natural occurrences (e.g., agricultural seasons), or business trends (e.g., retail sales seasons).
    • Varied industries: Seasonal work spans across different sectors, each with its own peak seasons and staffing needs. For example, retail sees high demand during the holiday shopping season, while tourism peaks during summer or winter vacations
    • Flexibility: Seasonal jobs may offer flexibility in scheduling, making them attractive to students, retirees, or individuals seeking supplementary income.
    • Role variety: Depending on the industry, seasonal jobs can range from customer service and sales positions to roles in agriculture, hospitality, event management, and more.

    Understanding The Needs Of Seasonal Workers

    Overall, seasonal jobs serve a crucial function in supporting businesses during busy periods and providing employment opportunities that align with specific times of increased demand or activity within the economy.

    Before delving into compensation and benefits packages, it’s crucial to understand what seasonal workers prioritize. Many seasonal workers are looking for:

    • Schedule flexibility
    • Fair pay for their work
    • Opportunities for additional hours or overtime
    • Access to essential job benefits that enhance financial security and well-being

    Competitive Compensation Strategies For Seasonal Workers

    First and foremost, businesses should offer competitive hourly wages that align with industry standards and local cost of living. Employees will quickly find new jobs if your pay rate does not meet their needs. Be upfront about this number. Additionally, overtime policies should be clearly outlined, and compliance with labor laws regarding overtime pay should be ensured.

    Clearly communicate how pay rates are determined and potential wage increases based on performance or tenure. Transparency builds trust and helps manage expectations among seasonal employees. Beyond pay, to help make your business attractive to seasonal workers,consider the following:

    Performance-based incentives

    To motivate seasonal workers, recognize and reward exceptional performance. Implement discretionary bonuses or incentives based on achieving sales targets, customer satisfaction scores, or productivity metrics.

    Seasonal premiums

    Consider offering seasonal premiums or a sign-on bonus for workers who commit to the entire season or specific high-demand periods. This can incentivize reliability and encourage workers to return in subsequent seasons.

    Benefit Offerings For Seasonal Workers

    Seasonal workers need to take care of themselves and their families. Providing access to essential benefits such as workers’ compensation insurance, which covers work-related injuries or illnesses, is one way to give your business a competitive edge. In addition, you can offer unemployment benefits for seasonal workers who meet eligibility requirements, including:

    • Flexible scheduling: Allow flexibility in scheduling to accommodate availability and personal commitments. Consider offering shifts that align with school schedules for students or parents.
    • Training and development: Invest in training programs that enhance seasonal workers’ skills and knowledge, improving job satisfaction and performance. Provide opportunities for cross-training in different roles or departments to broaden their experience.
    • Discounts and perks: Offer employee discounts on products or services to reward and enhance their overall experience. Consider also providing perks such as free meals during shifts or access to company facilities on off-time.

    Ensuring Fair Treatment And Compliance

    Compliance with labor laws is crucial to protect your business from fines and penalties. Adhere to local, state, and federal labor laws regarding minimum wage, overtime pay, and working conditions for all employees, including seasonal workers. Regularly review and update policies to ensure compliance with evolving regulations.

    Additionally, it’s essential to foster an inclusive workplace culture that values diversity and prohibits discrimination based on race, gender, age, or other protected characteristics. Ensure equal opportunities for seasonal workers to advance or transition to permanent roles based on merit.

    Retention Strategies For Seasonal Workers

    One way to help keep seasonal workers around is to include and consider them during company decisions.  Regular communication keeps seasonal workers informed about company updates, policies, and upcoming events. Encourage feedback and suggestions to improve their experience and engagement with the business. Just because an employee is seasonal does not mean they don’t have valuable insight to share.

    Additionally, aside from financial compensation and bonuses, acknowledge the contributions of seasonal workers through verbal recognition, certificates of appreciation, or thank you notes. Celebrate milestones or achievements as a team to foster a sense of belonging and loyalty.

    Lastly, provide information about potential long-term opportunities within the organization, encouraging seasonal workers to consider future roles. Make it a point to promote career growth and offer long-term opportunities to motivate seasonal workers to stay on or come back for another season. To go the extra mile, offer career development resources or mentorship programs to support their professional growth.

    The Importance Of Competitive Compensation

    Offering competitive compensation and benefits for seasonal workers is not just about meeting regulatory requirements but also about fostering a positive work environment where seasonal employees feel valued and motivated.

    By understanding their needs, implementing fair pay practices, providing essential benefits, and investing in their development, you can attract talented seasonal workers and build a reliable workforce for peak seasons. Remember, treating seasonal workers well enhances business operations and strengthens your overall reputation as an employer in the marketplace.

    How GMS Can Help

    It can feel overwhelming to manage full-time employees, let alone create a new list of benefits and programs designed for seasonal workers. However, every employee is important and deserves appropriate recognition and compensation. The good news: You don’t have to do it alone.

    GMS provides a variety of services that can be tailored to meet the needs of seasonal employees, including benefits management, employee development programs, and essential HR functions. GMS works with businesses to help them retain top talent and stay compliant with labor laws. Contact us today to talk to one of our experts about how we can help you revamp your approach to seasonal employee management.

  • As health care costs continue to rise, more people are looking for ways to save on medical expenses. One powerful tool that can help is a health savings account (HSA). This unique type of account allows you to set aside money specifically for qualified health care costs while providing triple tax advantages.

    An HSA allows you to put money away and withdraw it tax free, as long as you use it for qualified medical expenses, like deductibles, copayments, coinsurance, and more. (Generally, insurance premiums aren’t considered qualified medical expenses.) You’re eligible to contribute to an HSA when you’re covered by an HSA-eligible plan (sometimes called a High Deductible Health Plan (HDHP)).

    Who Is Eligible For An HSA? 

    To be eligible for an HSA, you must be enrolled in a high-deductible health plan (HDHP). An HDHP has a higher annual deductible than traditional plans but comes with lower monthly premiums.

    The maximum amount you’re allowed to contribute to an HSA in 2024 is $4,150 if you participate in the HDHP as an individual or $8,300 if you participate in the HDHP as a family.

    If you are an HSA holder aged 55 or older, you may also contribute an extra $1,000 annually as a catch-up contribution. The maximum contribution amount allotted for an HSA in 2024 is $1,600 for individual coverage or $3,200 for couples or family coverage. Please note that HSA contribution maximums are adjusted annually for inflation.

    Any eligible individual can contribute to an HSA. For an employee’s HSA, the employee, the employee’s employer, or both may contribute to the employee’s HSA in the same year. For an HSA established by a self-employed (or unemployed) individual, the individual can contribute. Family members or any other person may also make contributions on behalf of an eligible individual. The funds grow tax-deferred, similar to a traditional individual retirement account (IRA) or 401(k) contributions. Best of all, withdrawals from your HSA are completely tax-free when used for qualified medical expenses.

    Opening a Health Savings Account 

    Opening an HSA is easier than you may think. In most cases, your employer will offer you an HSA if you take advantage of their medical coverage. However, if your employer does not offer an HSA as a part of your benefits package, you can open one yourself. Banks, credit unions, and investment brokerages provide these accounts. You can also get coverage by visiting HealthCare.gov. You will not be eligible to open an HSA if you’re enrolled in Medicare or a health care plan that doesn’t require you to pay deductibles or copays before receiving coverage.

    Contribute Or Withdraw From Your HSA

    Once you are enrolled in your HSA, you can start contributing to your account immediately. Deposits can be made by you, your employer, or your spouse, but you must ensure that any contributions made do not exceed the annual limit. If you withdraw money from your HSA for non-medical expenses before you turn 65, you must pay the federal income tax and a 20% penalty.

    Benefits Of An HSA 

    Qualified expenses cover a wide range of health care costs, including deductibles, copays, prescriptions, dental treatment, vision care, and even insurance premiums if you receive federal or state unemployment benefits. The funds can be used to pay expenses for yourself, your spouse, or your tax dependents, even if they’re not covered by your HDHP.

    One of the biggest advantages of HSAs is that the money is yours to keep indefinitely. Unlike flexible spending accounts (FSAs), unused HSA funds roll over from year –to –year without expiring. The money you invest is not taxed; interest and investment earnings are tax-free, and you won’t pay taxes on eligible purchases.

    You can continue using the account to pay for medical costs after changing jobs or retiring. After age 65, you can withdraw HSA funds for non-medical purposes without a penalty (though subject to income tax).

    If you have an HDHP, opening an HSA is a smart way to build up a dedicated health care savings fund while reaping significant tax benefits along the way. With triple tax advantages and funds that are yours for life, HSAs provide a powerful way to prepare for current and future medical costs.

    GMS Can Help Guide You

    At GMS, we understand the value of an HSA in helping our clients save money while preparing for health care expenses. That’s why we offer HSA administration services alongside our comprehensive suite of PEO solutions. Our team of experts are here to guide you through the process of setting up and managing an HSA that works seamlessly with your HDHP, providing you with the support and guidance you need.

    With GMS as your partner, you can maximize the tax advantages of an HSA while streamlining compliance and strengthening your overall employee benefits program. By collaborating with a PEO like GMS, business owners can ensure their workforce gains access to HSAs and other benefits plans. Through tailored guidance, support, and an array of benefits options, GMS empowers businesses to enhance their offerings, fostering satisfaction and financial security. To learn more about our benefits offerings, contact us today.

  • The United States health care system has undergone significant changes over the past few decades. While it was once viewed as a global leader, rising costs and strained resources have created challenges in providing accessible, affordable care for Americans.

    Many individuals face long wait times to receive treatment and lack convenient access to providers, especially in rural or underserved areas. This further escalates the situation, creating disparities in health outcomes across different communities. Turn to innovative solutions like telehealth to address these issues and meet your employees’ evolving needs.

    Telehealth offers a promising approach to delivering quality care directly to members, regardless of their financial situation or geographic location. By leveraging virtual consultations, remote monitoring tools, and digital resources, you can enhance health care accessibility while controlling costs.

    Enhancing Accessibility And Reducing Wait Times

    Healthy employees are good for every business. Telemedicine allows employees to contact doctors for a free consultation, allowing them to connect virtually with providers within hours instead of weeks or months. Telemedicine also allows you to avoid time-consuming visits to the doctor or unnecessary trips to the emergency room.

    For those managing chronic conditions in rural areas with few specialists, telehealth provides a convenient alternative with the use of virtual consultations. Insurers can leverage remote monitoring tools to help members control chronic issues. Telehealth also increases access to mental health resources that were previously limited, especially in underserved areas.

    Making Health Care More Affordable

    In addition to accessibility, telehealth supports proactive, preventative care that reduces long-term costs and burdens on the system. During virtual visits, you can gather real-time health data to identify risk factors early. With this data, providers can give personalized care plans, routine check-ins, and guidance to help members make cost-effective decisions, preventing conditions from worsening and avoiding expensive treatments.

    The convenience of telehealth saves you and your employees time by eliminating travel and sitting in waiting rooms. It also limits the need to take time off work to fit an employee’s ailments into a doctor’s schedule. Telehealth allows insurers to be proactive rather than reactive.

    Quick, Convenient Telehealth Access For Employers

    At GMS, we recognize the potential of telehealth to transform health care accessibility and affordability for our members. Our telehealth services connect members with providers virtually for urgent care, primary care, mental health support, chronic condition management, and more.

    We leverage real-time health data to provide proactive, personalized care plans that prevent issues from escalating. Our goal is to empower our members with the resources and guidance they need to make informed, cost-effective decisions about their care.

    As we continue investing in telehealth, GMS is committed to driving the evolution of the health care industry. We aim to deliver a truly accessible, affordable, and high-quality virtual care experience that improves outcomes and reduces burdens on the system. Partner with GMS to stay ahead of the digital health care curve; contact us today!

  • South Carolina recently became the fifth state to enact a law regulating earned wage access (EWA) providers. The new law, signed by Governor Henry McMaster, takes effect on November 21, 2024.

    The Rise of Earned Wage Access

    Earned wage access allows employees to access wages they have already earned before their next payday. This helps employees meet unexpected expenses without having to pay late fees, overdraft fees, or resort to predatory payday loans.

    As EWA grows in popularity, some states and the federal government have considered enforcing stricter regulations that would classify it as lending. However, the industry has successfully advocated for laws like those in South Carolina that provide oversight without the burdens of lending laws.

    Key Provisions Of The South Carolina EWA Law

    • EWA is not considered a loan under the law
    • EWA providers must register annually with the SC Department of Consumer Affairs (DCA)
    • EWA providers must offer employees at least one no-cost option to access earned wages
    • Employees can discontinue EWA services at any time without penalty
    • EWA providers must disclose all fees associated with the service
    • Providers must report annual data like revenue, complaints, and transaction volume to the DCA

    South Carolina joins Kansas, Missouri, Nevada, and Wisconsin in implementing EWA regulations that avoid treating these services as loans subject to lending laws.

    EWA Benefits For Small Businesses

    EWA provides valuable financial flexibility for employees while helping small businesses attract and retain top talent. EWA is a beneficial tool that small businesses can leverage to foster a financially healthy, engaged, and loyal workforce. By providing employees with the financial flexibility they need, employers create a supportive and attractive work environment. With GMS’ payroll and human resources expertise, we can provide resources to integrate an EWA solution for your workforce.

    GMS stays up to date on rapidly evolving regulations like South Carolina’s new EWA law. We ensure your business remains compliant while offering benefits that give you a competitive edge in recruitment and employee satisfaction. Contact our team of HR experts today to learn more about how we can support your small business needs.

  • It’s clear that employee burnout and mental health issues have been an ongoing problem in the last several years. 76% of respondents in a Mental Health America and FlexJobs study agreed that workplace stress affects their mental health and 75% experienced burnout. Despite employees investing in programs to address stress and improve emotional well-being, a significant number of employees are still struggling with high levels of anxiety and burnout.

    According to a recent report from Aflac, 57% of employees are experiencing at least moderate levels of burnout. There has also been a decline in employees’ confidence that their employers truly care about their well-being.

    Aflac’s Chief Human Resources Officer, Jeri Hawthorne, notes that factors such as the upcoming presidential election, financial worries, long work hours, and other stressors could heighten the burnout issue even further this year.

    The Importance Of Employer Action

    Hawthorne stresses that the burden falls on small business owners to be at the forefront of addressing employee burnout and improving their situations. Burned-out employees are less productive, more likely to be absent or have behavioral issues, and more inclined to leave their jobs if they don’t feel their employer cares about them. Burned-out employees are also less likely to go above and beyond for clients, which can lead to a negative impact on your company’s performance.

    To combat this, Hawthorne recommends that employers take a proactive and engaged approach:

    • Regularly remind employees about available benefits, time off, and wellness programs, making them easy to access and understand.
    • Provide opportunities for employees to give back or volunteer, as this can boost their sense of purpose and well-being.
    • Continuously communicate about benefits and wellness offerings, not just during open enrollment periods.
    • Tailor communications and programs to specific employee demographics and their unique needs.
    • Solicit regular feedback from employees on what additional support they require.

    By taking these steps, employers can demonstrate their genuine care for employee well-being and work to reverse the troubling trends around burnout and declining confidence. Prioritizing mental health and emotional wellness will be crucial for organizations looking to support their workforce and maintain high performance.

    Show Your Employees You Care

    Remind your employees about taking paid time off (PTO) and about available benefits. Encourage employees to use the PTO they’ve earned, whether it’s for a vacation, personal matters, or simply to recharge. Employees proved that they could successfully work from home during the pandemic. Giving employees the opportunity to work and taking time off when needed is important.

    In addition, navigating employee benefit offerings during open enrollment can be overwhelming. It’s crucial to make these offerings, tools, and programs understandable and readily available for when employees need them and can easily access that information.

    Employers should also talk with their employees and ask for their feedback on their benefits packages and conduct surveys. Ask your employees what they are looking for and what they value. Act on their feedback and implement new strategies.

    Prioritize Employees’ Mental Health With GMS

    By partnering with GMS, you can demonstrate your commitment to your employees’ well-being and create a workplace culture that prioritizes mental health. This not only benefits your team, but also contributes to improved productivity, engagement, and overall business success. When you partner with GMS, we provide you with mental health benefits for your employees, such as:

    • Affordable health insurance plans through our group health insurance
    • Employee assistance programs (EAPs)
    • Access to our learning management system (LMS), where employees can partake in mental health training
    • Access to wellness programs
    • And more!

    Take the final step towards empowering your workforce. Contact GMS today to learn how we can help you implement a comprehensive mental wellness program that meets the needs of your employees and your organizations.

  • For small business owners, providing comprehensive employee benefits is vital to attracting and retaining employees. Whether it’s health insurance, paid time off (PTO), or retirement plans, these perks can make a big difference in an employee’s decision to join or stay with a company. Among these benefits, Flexible Spending Accounts (FSAs) stand out as a valuable tool for employees to manage their health care expenses. Complementing health insurance coverage, FSAs give employees greater flexibility and control over their medical spending.

    FSAs offer more versatility than just paying for doctor’s visits and medications. While many people use FSAs to cover general health care costs, there are creative ways to use these accounts that are often overlooked. From chiropractic treatments to sunscreen for vacation, various health care services and products are eligible for reimbursement through FSAs. By exploring the full range of eligible expenses, you can maximize the benefits of FSAs for both you and your employees.

    How FSAs Work

    An FSA is a type of savings account that allows employees to allocate a portion of their paychecks for designated expenses. By depositing pre-tax funds, FSAs help you and your employees save money. Additionally, as an employer, you have the option to contribute to your employees’ FSA, but it is not mandatory.

    To utilize FSA funds, individuals must submit a claim along with proof of an eligible expense, such as a receipt, in order to be reimbursed.

    Different types of FSAs determine how FSA funds can be spent:

    • Health Care FSA: The accounts can be used to pay medical costs not covered by insurance, including deductibles, copayments, prescription medications, over-the-counter health care items, and more.
    • Dependent Care FSA (DCFSA): A DCFSA is used to pay for costs associated with care for children or a dependent adult, enabling parents and caregivers to work with less financial strain.
    • Limited Purpose FSA (LPFSA): Funds in an LPFSA are designated for dental and vision costs. This type of account is a favorable choice for individuals with a High Deductible Health Plan (HDHP) and a Health Savings Account (HSA).

    Common Uses Of An FSA

    FSAs are valuable because they can address a variety of medical expenses that may not be fully covered by health insurance. They can assist with the following costs:

    • Medical: You can use an FSA to pay for doctor’s visits, procedures, surgeries, and treatments, as well as cover co-pays and deductibles.
    • Vision: FSAs can cover eye exams, prescription glasses and sunglasses, contact lenses, and even corrective procedures like LASIK.
    • Dental: An FSA can be used for routine teeth cleanings, fillings, braces, and other necessary dental treatments.
    • Prescription medications: FSAs can help with the costs of both prescribed brand-name and generic drugs, including insulin, antidepressants, birth control, and more.
    • Over-the-counter health care items: Bandages, antibiotic ointments, allergy medications, and pain relievers are items frequently purchased with an FSA.

    Creative Ways To Use FSAs

    The funds held in an FSA do not roll over and must be used by the end of the calendar year. From stocking up on first aid supplies to trying out alternative therapies, there are many ways your employees can make the most out of their FSA funds.

    By offering creative suggestions for how your employees can use their FSA funds, you not only help them maximize their benefits but also demonstrate your commitment to their well-being. The potential uses of FSAs extend far beyond conventional health care needs and can be used for the following:

    Mental health and self-care

    FSAs can support numerous mental health and self-care needs. Employees can use the money in their FSAs to cover various costs related to mental health services, such as therapy appointments, counseling sessions, or psychiatric care. In addition, FSAs can be used to purchase self-care items such as skincare products, acne treatments, or even relaxation aids including essential oils.

    Health and fitness

    Employees can use their FSAs to aid in their health and fitness journeys. Gym memberships, health clubs, and weight loss programs can be reimbursed through an FSA with a letter of medical necessity, allowing individuals to prioritize their fitness goals. Health trackers and nutritional supplements such as vitamins and minerals can be purchased with FSA funds to further assist in maintaining physical health. Items that support recovery and pain relief, such as orthopedic shoe inserts and knee braces, can also be covered by an FSA.

    Professional services

    Whether an employee is seeking treatments for pain relief or pursuing a holistic approach to health, there are numerous professional services that can be paid for with an FSA. Physical therapy, chiropractic care, and acupuncture are all FSA-eligible services that can help manage chronic pain and improve overall wellness. An FSA offers employees a range of options to address their individual health needs.

    Travel essentials

    An FSA can offer unexpected benefits when it comes to purchasing travel-related items. For example, travel essentials such as sunscreen, insect repellent, and travel-sized first aid kits are eligible purchases. Using an FSA to buy necessary supplies for travel not only ensures a safe and healthy trip but also helps with spending FSA funds before they expire.

    Advantages For Small Business Owners

    Small business owners can gain numerous benefits by offering FSAs to their employees. Since FSAs allow employees to use pre-tax dollars to cover specific costs, payroll taxes are reduced for both employers and employees. Contributions made to an FSA are also tax-exempt for employees and tax-deductible for employers, offering mutual benefits.

    Providing your employees with the option to enroll in an FSA can also enhance employee satisfaction and retention, as it is a valuable perk on top of health insurance. By offering this benefit, you not only save money on taxes, but you also display your commitment to your employees’ health and overall well-being.

    Employee Benefits With A PEO

    As a small business owner, it’s crucial to offer a benefits package that’s appealing to current and prospective employees. However, administering benefits can be costly and time-consuming. Partner with a PEO like GMS to save money and streamline your benefits management. We can assist in processing group health insurance, retirement plans, wellness programs, and more. Additionally, individuals with an FSA can visit our FSA Store to explore eligible products that can be purchased with their accounts. Contact us today to optimize your employee benefits offerings and ensure your business stays competitive in attracting top talent.

  • New York has always been at the forefront of progressive legislation, and this time, it has set a benchmark poised to change the landscape of working families’ lives. April 19, 2024, marked a historic moment for pregnant employees in New York state. Governor Kathy Hochul signed into law an unprecedented amendment to the New York Labor Law  § 196-b, establishing a standalone entitlement to paid prenatal leave, the first of its kind in the United States.

    Understanding The Paid Prenatal Leave Amendment

    Under this new law, expectant mothers can now use up to 20 hours of paid leave within a 52-week period to attend prenatal medical appointments and procedures. This initiative is part of New York’s final budget for fiscal 2025 and is a significant stride in supporting prenatal health and well-being.

    Key Features Of The Law

    • Immediate availability: The 20 hours of paid prenatal leave is immediately available upon employment, ensuring that pregnant employees don’t have to accrue this benefit over time.
    • Hourly increments: Leave can be taken in hourly increments, offering flexibility to pregnant employees.
    • Compensation: Employees will be compensated at their regular pay rate or the applicable minimum wage, whichever is greater, for the duration of the leave.
    • Additional leave: This paid prenatal leave is in addition to existing paid sick and family leave entitlements.

    The Impact On Employers And Employees

    Employers must update their leave policies to reflect this change by January 1, 2025. This law not only benefits employees but also encourages employers to cultivate a supportive workplace culture that values family and health.

    Employers should revise their leave policies to incorporate the new paid prenatal leave. In addition, it’s crucial for HR and benefits teams to be well-informed about the law and its implications. Pregnant employees now have a more robust safety net for their prenatal care without worrying about financial repercussions. This law emphasizes the importance of health and family, enabling expectant mothers to prioritize prenatal care.

    The Sunset Of COVID-19 Paid Sick Leave Law

    Coinciding with this development, the final budget also sets July 31, 2025, as the end date for the COVID-19 Paid Sick Leave Law that has been in effect since March 2020. The COVID-19 Paid Sick Leave Law provides employees who are subject to a COVID-19 mandatory, precautionary quarantine, or isolation order, with immediate paid or unpaid time off specific to the current crisis. Initially, Governor Hochul proposed that it end a year earlier, but the extension provides a transition period for employers and employees to adjust to post-pandemic norms.

    Looking Ahead: A Progressive Future For Work And Family

    New York’s paid prenatal leave law is not just a legislative win; it’s a societal advancement. It reflects a growing understanding that the health of future generations starts with the care we provide today. Employers and employees are stepping into a future where work-life balance is not just an ideal but a practical reality that supports family planning and prenatal health.

    On top of all the other hats you wear as a small business owner, it’s important to stay on top of ever-changing laws and regulations. Fortunately, GMS, a certified professional employer organization (CPEO), is here to help. GMS’ HR experts ensure that small business owners not only comply with the new paid prenatal leave mandate but also thrive under it. By managing human resources, employee benefits, regulatory compliance, and payroll, GMS provides the expertise and peace of mind that allows business owners to focus on their core operations. We offer a buffer against potential administrative pitfalls and inform businesses of evolving legislation. In essence, a partnership with GMS equips small businesses with the tools and support necessary to foster a supportive work environment that values the health of employees and their families, all while maintaining the business’s bottom line. With the assistance of GMS, small businesses in New York can seamlessly integrate this new law into their policies. Interested in learning more? Contact us today to learn more.