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  • 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.

  • On April 29, 2024, the U.S. Department of Labor (DOL) finalized a rule reversing a Trump-era regulation designed to expand the formation and use of Association Health Plans (AHPs), without having to comply with the requirements of the Affordable Care Act (ACA). AHPs are group health plans that cover small employers and self-employed individuals in the same or different industries. AHPs, which are governed by state and federal laws, have historically varied significantly in size and membership.

    The 2018 Trump Administration Rule

    The 2018 rule from the Trump administration that expanded AHPs was struck down by a federal judge in 2019 and was never fully implemented. The DOL stated the 2018 rule expanded the definition of AHPs in a way that would have allowed some individual and small group health insurance coverage to be treated as large group coverage. This change could potentially evade critical consumer protections under the ACA, which requires coverage of essential health benefits such as emergency and maternity newborn care.

    The New Final Rule

    The new final rule from the Biden administration, issued by the DOLs Employee Benefits Security Administration, will take effect 60 days after its April 30th publication. It is intended to ensure consumers have access to quality health coverage consistent with federal law, including the ACA’s requirements for essential health benefits.

    While some proponents of the AHP argue they can provide small businesses and self-employed individuals with better bargaining power and lower prices, critics contend the 2018 rule would have undermined important ACA consumer protections. The new rule has been supported by the Biden administration but criticized by some Republican lawmakers as limiting workers’ health care options.

    Managing These Changes

    GMS can help your company stay compliant with the DOL’s new rule on AHPs and managing the associated challenges. Our team of HR and benefits experts can assist with analyzing your current health care plan offerings, determining the appropriate compliance requirements, and implementing necessary changes to ensure you are providing employees with quality, ACA-compliant coverage.

    In addition, we provide guidance on navigating legal and regulatory uncertainties, training programs for managers and employees on the new rules, and ensuring your benefits administration processes are updated. By partnering with GMS, you can confidently navigate these complex regulatory changes and avoid potential penalties or disruptions in your employee health benefits. Contact us today to learn more.

  • The expiration of COVID-19-related provisions requiring states to keep residents enrolled in Medicaid has cast a dark shadow over Texas, leaving an estimated 2.1 million individuals without health insurance. Texas, already grappling with the highest number of uninsured individuals in the country, has seen a drastic surge in the number of people being removed from coverage compared to any other state.

    The Human Toll

    The fallout of this mass loss of health coverage is dire. The state’s most vulnerable residents are now facing barriers accessing essential health care services. Not only has this negatively impacted individuals and families but also the state’s economy and fiscal health.

    Impact On Health Care Access

    The primary reason to maintain and expand health insurance access is to ensure that the state’s most vulnerable residents can obtain the care they need, thereby improving the overall well-being of individuals and families. With millions now stripped of their health insurance, accessing necessary medical care has become an increasingly arduous task, leading to detrimental effects on morbidity and mortality outcomes. In addition, the decreased productivity associated with adverse health outcomes is expected to take a toll on the state’s economic activity.

    Decrease In Health-Related Spending

    With 2.1 million fewer Texans covered by health insurance, health-related spending is expected to decrease, reducing business activity across communities and the broader economy. This decrease in spending not only affects the health care sector but also has far-reaching implications for various other industries and businesses.

    Rise In Uncompensated Care And Insurance Premiums

    Due to the surge in uninsured individuals, uncompensated care is no longer just a future possibility; it’s an imminent threat. This will place an unbearable strain on our health care providers, leading to a subsequent increase in insurance premiums. This exacerbates the financial burden on both individuals and the state’s health care system, creating a crisis that demands immediate attention.

    Economic Costs

    The Perryman Group’s estimates paint a picture of the economic costs of the mass loss of health insurance coverage. If this situation persists, the state will lose $58.9 billion in annual gross product and almost 509,200 jobs, factoring in multiplier effects. These economic harms are not confined to specific regions but are felt across the entire state, casting a wide net of distress.

    A Call To Action

    The repercussions of 2.1 million Texans losing their health insurance are far-reaching, encompassing human suffering and economic distress. Urgent and decisive action is needed to address this crisis and prevent it from spiraling further out of control.

    Policy Interventions

    Policy measures aimed at reinstating and expanding health insurance access for the affected individuals must be prioritized. These measures should focus on ensuring health care remains accessible and affordable for all Texans, regardless of their socioeconomic status.

    In addition, collaboration between government agencies, health care providers, and community organizations is essential to formulate comprehensive strategies that can effectively mitigate the impact of the mass loss of health insurance coverage.

    A Ray Of Hope For Small Business Owners In Texas

    In the midst of a health care and economic crisis that has left millions of Texans uninsured, there is light at the end of the tunnel – Group Management Services (GMS), a professional employer organization (PEO). As experts in providing comprehensive HR solutions, GMS can play a pivotal role in helping these businesses navigate through these challenging times.

    As a small business owner, you must step in now more than ever to support your employees. By offering tailored employee benefits management, including affordable health insurance options, GMS helps small businesses attract and retain talent. GMS is the only PEO that provides an in-house master health plan that helps you avoid large swings in usage, trends, and renewal rates. In addition, our benefits experts provide guidance on how to best utilize your plans, maintain compliance, and stay on top of ever-changing rules and regulations.

    At the end of the day, you want what’s best for your employees. Partnering with GMS is not just supportive; it’s transformative. Contact our experts today to learn more.

  • Offering competitive benefits is a crucial strategy for employers in a competitive job market, as it helps them meet the needs of a diverse workforce. Employers strive to pinpoint adaptable and attractive benefits to a diverse employee base while considering the related expenses.

    Employees often prioritize benefits such as health insurance, paid time off (PTO), retirement plans, and flexible work schedules. These are not perks, but essential elements that cater to their unique needs and significantly enhance their quality of life. Recognizing this, many forward-thinking employers are now incorporating lifestyle spending accounts (LSAs) into their voluntary benefits plans. This innovative benefit allows employees to personalize their perks, further enriching their work-life balance and overall job satisfaction.

    What Is An LSA? 

    A lifestyle spending account (LSA) is a new benefit that has caught the attention of many employers. LSAs are employer-sponsored accounts that enable employers to reimburse employees for merchandise and activities that promote physical, financial, and emotional well-being. Unlike health savings accounts (HSAs), LSAs are not tied to tax advantages and are free from similar constraints, offering a more flexible approach to employee well-being. 

    Why Should My Business Utilize This Account? 

    LSAs offer employers the flexibility to select the benefits they wish to provide, ranging from gym memberships and nutritional services to sports and dance classes. They can also cover home office necessities, technology needs, eco-friendly activities, and family support or pet care expenses. Employers allocate an annual contribution of $850 per employee to these accounts, but the funds are only disbursed when the employee uses them.

    LSAs Unique Appeal

    The rising popularity of LSAs can be attributed to the flexibility they offer employees in choosing benefits that align with their personal values. Employers, too, are finding these accounts to be a compelling tool for retaining high-quality talent and fostering employee satisfaction. The unique appeal of LSAs lies in their ability to empower employees with the choice of benefits that hold the most value for them compared to their peers. This customization makes LSAs a desirable plan. Employers have found that while the voluntary benefits they currently offer are valuable to those who use them, their overall utilization is low, leading to questions about where best to allocate resources.

    Allocation Of Resources 

    A growing number of employers are reevaluating their benefits portfolio, trimming back on offerings that they see limited use to accommodate the introduction of LSAs. This shift allows employers to focus on benefits that genuinely resonate with their employees. For instance, if a benefit such as adoption assistance is only utilized by two percent of your workforce, it might be time to reconsider your investment. LSAs, with their broad appeal, are likely to cater to a wider demographic within your employee base.

    LSAs see an impressive uptake, with about 80 percent or more employees using them. Employees enjoy the personalization and adaptability offered by these plans. Given the diverse lifestyles, family situations, and preferences of your workforce, LSAs present a unique opportunity for everyone to benefit. Redirecting your benefits expenditure could be the strategic shift your company needs to keep its top performers on board.

    Partner For Sucess

    At GMS, our comprehensive benefits package provides employers and their employees with a wide selection of benefits options. Our team of benefits specialists is dedicated to delivering the most appealing benefits packages, encompassing everything from employee assistance programs (EAPs) to health and wellness programs. Your employees are your biggest asset – provide them with resources and coverage that make them their happiest. 

    By leveraging the assistance of a professional employer organization (PEO) and integrating in-demand benefits, small business owners can draw in and retain exceptional talent, cultivate a positive work environment, and propel their organizations toward growth and success. Contact us today to discover how we can assist you in managing employee benefits for your expanding business.