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  • Selecting the right retirement plan for your small business is a crucial decision that can impact your ability to attract and retain talent. It’s essential to carefully evaluate your business’s needs and goals to choose the most suitable retirement plan. Numerous options are available, each with its own rules, benefits, and limitations. Knowing the pros and cons of each one can help you make an informed decision.

    Why Offer A Retirement Plan?

    The Center for Retirement Research found that only 46% of small businesses offered a retirement plan. A 2023 Capital Group survey reported that 40% of small business owners didn’t believe their company was large enough for a retirement plan option. The same study found that 32% of small business owners feel they lack the knowledge to offer retirement plans while keeping their businesses afloat.

    However, despite these hesitations, there are several compelling reasons why offering a retirement plan will benefit your small business:

    • Attract and retain talent: A competitive retirement plan can help you stand out to potential employees and retain current ones. Many job seekers consider retirement benefits a key factor when evaluating job offers.
    • Tax advantages: Retirement plans can provide significant tax advantages for both employers and employees. Employer contributions are typically tax-deductible, and employees can defer taxes on their retirement savings until withdrawal. Additionally, the SECURE Act of 2022 offers a tax credit to small businesses that offer retirement plans and a bonus credit if that plan offers automatic enrollment.
    • Employee financial security: Helping employees save for retirement can increase their economic security and overall job satisfaction, leading to a more motivated and productive workforce.
    • Owner benefits: As a business owner, you can also personally benefit from a retirement plan by saving for your retirement in a tax-advantaged manner.

    Types Of Retirement Plans For Small Businesses

    Choosing the right plan for you and your team can be a complex process; the most common options include:

    Simplified Employee Pension (SEP) Individual Retirement Account (IRA)

    SEP IRAs are designed for self-employed individuals and small business owners. They are easy to set up and maintain, with low administrative costs. Only the employer contributes to the plan, and contribution limits are high. Employers can contribute up to 25% of each employees’ compensation, up to a maximum of $69,000 for 2024. Contributions are tax-deductible for the employer, and employees are immediately 100% vested in their SEP IRAs.

    Pros:

    • Simple to administer.
    • Flexible annual contributions, allowing adjustments based on your business profitability.
    • High contribution limits.

    Cons:

    • Only the employer can contribute.
    • Contribution amounts must be the same percentage for all eligible employees.

    Savings Incentive Match Plan For Employees (SIMPLE) IRA

    SIMPLE IRAs are ideal for businesses with 100 or fewer employees. They are relatively easy to set up and administer. Both employers and employees can contribute to the plan. Employees can contribute up to $16,000 annually for 2024, with an additional $3,500 catch-up contribution for those aged 50 and over.

    Employers must match employee contributions dollar-for-dollar up to 3% of compensation or make a 2% non-elective contribution for all eligible employees. Employer contributions are tax-deductible.

    Pros:

    • Easy to set up and manage.
    • Encourages employee participation through matching contributions.
    • Lower administrative costs compared to 401(k) plans.

    Cons:

    • Lower contribution limits compared to SEP IRAs and 401(k) plans.
    • Employer contributions are mandatory, which can financially burden some businesses.

    401(k) Plan

    401(k) plans are one of the most popular retirement plans for businesses of all sizes. These plans can include features such as Roth contributions, loan provisions, and automatic enrollment. They offer flexibility and higher contribution limits.

    Both employers and employees can contribute to the plan. Employees can contribute up to $23,000 annually for 2024, with an additional $7,500 catch-up contribution for those aged 50 and over. Employers can choose to match employee contributions or make non-elective contributions. All employer contributions are tax-deductible. Employers can also set up profit-sharing contributions.

    Pros:

    • High contribution limits.
    • Flexibility in plan design and employer contributions.
    • Encourages significant employee participation and savings.
    • Attractive to potential employees.

    Cons:

    • Higher administrative and compliance costs.
    • It is more complex to set up and maintain than SEP and SIMPLE IRAs.

    Defined Benefit Plan

    Defined benefit plans, or pension plans, promise a specific retirement benefit amount based on a formula considering factors such as salary history and years of service. In this plan, the employer contributes enough to fund the promised benefit. According to the IRS, this amount is “100% of the participant’s average compensation for his or her highest three consecutive calendar years or $275,000 for 2024.” This plan’s higher contribution limits allow for potentially substantial retirement savings.

    Pros:

    • Provides a guaranteed retirement benefit.
    • High contribution limits.
    • Attractive to employees seeking retirement security.

    Cons:

    • Complex and costly to administer.
    • Employer bears investment risk and funding responsibility.
    • Less flexibility in adjusting contribution amounts.

    Factors To Consider When Choosing A Retirement Plan

    1. Business size and structure: The number of employees and your business structure (e.g., sole proprietorship, partnership, corporation) can influence the suitability of different plans. However, don’t let size be your reason for avoiding a plan altogether. The Employee Benefit Research Institute found that a business that is too small or not established enough was the most cited reason for not offering a plan. In many cases, this isn’t true.
    2. Employee needs and preferences: Understanding your employees’ retirement goals and preferences can help you choose a plan that meets their needs and encourages participation.
    3. Budget and administrative capacity: Consider the costs of setting up and maintaining the plan, including administrative fees and required employer contributions.
    4. Tax benefits: Assess the tax advantages of different plans for the business and employees.
    5. Flexibility and customization: Some plans offer more flexibility regarding contributions, investment options, and plan features. Determine how much flexibility you need to meet your business and employee needs.

    By understanding the different types of retirement plans available and their respective benefits and limitations, you can select a plan that not only helps you attract and retain top talent but also provides valuable financial security for you and your employees.

    The good news is you don’t have to do it alone.

    A professional employer organization (PEO), like GMS, can transform your small business’s retirement plan offerings. With a proven track record of helping over 3,500 companies with p and 401(k) plans, GMS delivers cost-effective solutions that rival larger firms.

    Ready to elevate your retirement benefits? Click here to learn more about how GMS can help you set up a retirement plan best suited for your small business.

  • While it’s crucial to foster a positive work culture and build a reputation as a caring employer, evaluating the benefits you offer is equally important. With inflation and the rising cost of living, nearly 79% of Americans believe the country is facing a retirement savings crisis, and 55% are concerned with securing enough financial stability for their retirement.

    Financial insecurity can be a major stressor. It can affect productivity, leading to disengagement and absenteeism in the long term. You can alleviate some of this stress by offering a 401(k) plan to help your team prepare for retirement. Most people aim to spend their later years comfortably enjoying their retirement, so providing a quality 401(k) plan can help your business attract and retain quality employees.

    Avoid Financial Confusion: Educate Your Group

    Retirement is not always straightforward, as financial choices can be intimidating and confusing for many employees. However, understanding retirement plans like a 401(k) is critical. Ensure you’re taking the time to review educational resources or training with your team to eliminate confusion and simplify choices.

    What is a 401(k) Plan?

    Seven Elements Of A Competitive 401(k) Plan

    1. Generous employer match

    A generous employer match is one of the most sought-after features in a 401(k) plan. An employer match is when an employee contributes a portion of their salary to their retirement account, and the employer matches a certain percentage of that contribution, effectively adding free money to the employee’s retirement savings. According to Vanguard’s annual report on investing behavior, employers’ average match was 4.6% of pay, while the highest percentage was 6.99%.

    A higher match not only demonstrates that you value the long-term financial wellness of your workforce but also serves as a powerful incentive for employees to contribute more to their retirement accounts. It effectively doubles the impact of their contributions, making it a highly attractive benefit. Employees view a strong match as a direct investment in their future, which can be a critical factor in recruitment and retention. By offering a generous employer match, you can differentiate your company in a competitive job market and build a stronger, more loyal team.

    2. “Day one” eligibility

    “Day one eligibility” refers to a policy where employees are eligible to participate in certain benefits, such as a 401(k) plan from their first day of employment. This means that new hires do not have to wait through a probationary period or a set number of days before they can begin contributing to a retirement plan. Providing new hires with immediate eligibility helps ensure they don’t lose ground in terms of saving. Seventy-four percent of plans now allow workers to make pretax contributions immediately after hire. In addition, 53% of plans have corresponding immediate eligibility for employer-matching contributions, while 50% of plans that offer a non-matching employer contribution allow immediate eligibility.

    3. Immediate vesting schedule

    An immediate vesting schedule allows employees to gain full ownership of employer contributions from the moment they are made. Unlike traditional vesting schedules, which may require employees to stay with a company for several years before they can access the full benefits of their employer’s match, immediate vesting grants instant control over contributions. It gives employees the peace of mind that the contributions made on their behalf are truly theirs to keep, regardless of their tenure with the company.

    While it might seem counterintuitive, offering an immediate vesting schedule can be a powerful tool to attract top talent, especially in competitive industries. It signals a commitment to your team’s financial security. It shows that you’re confident in your business’s value without the need to tie employees down with restrictive vesting terms. Additionally, it can lead to greater employee satisfaction and loyalty, as workers feel more secure in their financial planning and more appreciated by their employer.

    4. Low, transparent plan fees

    Typically, 401(k) plans have administrative fees that charge you to maintain the account. Admin fees cover record keeping, accounting, legal services, and investor education services. Investment fees on the other hand cover expenses associated with managing the plan’s funds.

    Both types of fees are deducted from your employees’ 401(k) assets. Finding plans with lower fees and educating your employees on how the fees are being applied can help set your company’s 401(k) package apart from your competition.

    5. Investment options

    When finding a 401(k) plan, select only a handful of investment options. This can include individual mutual funds, asset allocation funds, and target-date funds, many of which automatically become more conservative as the employees approach retirement.

    While offering choices is beneficial, it’s important not to overload your team. It’s possible to present employees with too many options. Researchers have found that for every 10 options added to your plan, participation drops by 1.5-2%. To avoid overwhelming your employees, be selective in the choices you put in front of your team.

    6. Automatic enrollment and raises

    Automatic 401(k) plan enrollment has gained popularity for its ability to simplify retirement savings. With automatic enrollment, employees are enrolled in the company’s 401(k) plan by default, often with a pre-set contribution rate, unless they choose to opt-out.

    Automatic enrollment can significantly increase participation rates in 401(k) plans by nearly 15%, particularly among younger or new employees. It eliminates common barriers to entry, such as the initial sign up or the uncertainty about how much to contribute. By making retirement savings the default option, you can help your staff build financial security from day one.

    In addition to automatic enrollment, including automatic contribution raises (often referred to as automatic escalation) further enhances the effectiveness of a 401(k) plan. Automatic raises typically increase an employee’s contribution rate by a set percentage each year, usually aligned with annual salary increases or at the start of a new plan year.

    7. Give employees access to expert financial resources

    Providing employees with access to expert financial resources is essential to a well-rounded 401(k) plan. Many employees, especially those new to investing or retirement planning, may feel overwhelmed or uncertain about maximizing their 401(k) options. By providing access to financial advisors, educational workshops, and online tools, employers can empower their workforce to make informed decisions about their financial future.

    401(k) Plans With GMS

    If you’re looking to offer a competitive retirement plan but don’t have the time or energy to dedicate to finding one, we can help. Partnering with a professional employer organization (PEO), like GMS, ensures you can offer the best plan for your team without the hassle. Our retirement experts will help you find the best options for you and your team to remain competitive in today’s tightening labor force. Contact us today and connect with one of our experts!

  • Retaining top talent is crucial for the success of any small business. High employee turnover leads to increased costs, operational disruptions, and a negative impact on both productivity and workplace morale. Of the average 3.8% turnover rate, more than half are employees voluntarily leaving their positions. Common reasons for voluntary departures include inadequate benefits, limited career growth opportunities, and poor work-life balance.

    As a business owner, you have significant influence over employee retention. A comprehensive benefits plan can address key turnover-related factors, providing more financial support and nurturing a more stable workforce. By incorporating options like Flexible Spending Accounts (FSAs) into your benefits package, you offer employees a valuable tool to manage their expenses with tax advantages. This financial benefit not only reduces out-of-pocket costs but also boosts overall job satisfaction and loyalty.

    How Do FSAs Work?

    FSAs enable employees to reserve a portion of their paycheck into a tax-free account used for eligible expenses, such as medical treatments, dental cleanings, and more. Additionally, employers can contribute to their employees’ FSAs, but it is not a requirement.

    There are different types of FSAs tailored to specific needs:

    The Advantages Of Offering FSAs

    Integrating FSAs into your plan provides a range of benefits for both your business and your employees, including:

    Enhanced benefits package

    While health insurance is a valuable benefit, it can still leave gaps in coverage. FSAs strengthen your benefits package by providing employees with extra financial support for costs not fully covered by standard health insurance plans. Not only does this offer employees a practical way to manage their expenses, but it also helps your business remain competitive in attracting and keeping top talent. Adding FSAs to your benefits package shows your commitment to addressing the diverse needs of your workforce, fostering a greater sense of company loyalty.

    Cost savings

    FSAs can lead to significant cost savings for both employees and employers. Employees can reduce their taxable income by contributing pre-tax dollars to an FSA, resulting in lower taxes and higher take-home pay. Since employee contributions are deducted before taxes are applied, employers can also benefit by saving on payroll taxes. Additionally, FSAs are a cost-effective way to support employees’ medical and dependent care needs, which can help reduce your overall benefits costs.

    Flexibility in spending

    With FSAs, employees can direct pre-tax funds to a range of eligible expenses, including medical treatments, dependent care, and other essential costs. FSAs aren’t limited to just health and care costs; they can also cover creative uses such as travel-related items and various professional services. This flexibility allows employees to better manage their spending based on their own individual needs. By providing greater control over expenses, FSAs can make employees feel better supported in handling their financial responsibilities, increasing overall satisfaction and morale.

    How To Implement FSAs Into Your Business

    Establishing FSAs in your benefits package calls for careful planning and structure to promote a smooth implementation. Consider the following to achieve an effective rollout and deliver meaningful support to your employees:

    Select an administrator and ensure compliance

    Begin by choosing a reputable professional employer organization (PEO) or third-party administrator (TPA) with expertise in FSA management. Your selected administrator will manage critical functions, including claims processing, account management, and adherence to Internal Revenue Service (IRS) regulations. This choice is essential to uphold legal standards and maximize the benefits of your FSA program.

    Establish guidelines and communication

    Work closely with your selected administrator to formulate clear guidelines and establish communication channels. This step clarifies roles and responsibilities during the transition, simplifying the implementation of the FSA program. Transparent communication will address concerns and questions promptly while also keeping everyone updated on the program’s features and benefits.

    Customize your FSA program

    To make the most of your FSA program, adapt it to fit the particular needs and goals of your business. Evaluate your employees’ demographics and preferences to decide which FSAs to offer. Depending on your assessment, you might consider including different types of FSAs, such as . Customization is key to making the program effective and relevant, encouraging employee engagement and satisfaction.

    Provide training and information

    Deliver thorough training to your HR team to ensure they are well-versed in the nuances and features of your FSA program. Next, hold informative sessions with employees to outline the advantages and practical use of FSAs. By offering detailed resources such as brochures and FAQs, you can further assist employees in optimizing their FSA benefits and enhance the program’s overall success.

    Measuring The Success Of Your FSA Program

    To determine how well your FSA program is performing, focus on key metrics that reflect its impact. Track employee satisfaction through surveys and feedback to see if the program meets their expectations and specific preferences. Check utilization rates to determine how frequently employees use their FSAs and if they are benefiting from it. Leveraging data and feedback to make informed adjustments will ensure the FSA program continues to align with your employees’ needs and reinforces its role in your retention strategy.

    Boost Your Benefits Management With A PEO

    Incorporating FSAs into your comprehensive benefits package offers you and your employees significant advantages, such as increased flexibility and potential cost savings, setting your business apart from competitors and demonstrating your commitment to your workforce.

    To streamline the management of FSAs and other benefits, partner with a professional employer organization (PEO) like GMS. A PEO provides expert guidance, handles administrative responsibilities, and ensures regulatory compliance. Additionally, employees with FSAs can visit our FSA Store to browse eligible products that can be purchased with their accounts. Contact us today to learn how our services can enhance your benefits program and promote retention.

  • Accidents and illnesses can occur without warning, despite our best efforts to avoid them. While health insurance covers many medical expenses, it may not cover everything, especially during extended recoveries. Supplemental insurance is an option for individuals seeking more peace of mind and assured support during a crisis. While employees can find this insurance on their own, adding them as options to your benefits package can benefit your business in the long term. It not only supports your employees but also enhances productivity and retention and reduces absenteeism.

    What Is Supplemental Insurance?

    Supplemental insurance is an additional type of insurance that provides coverage beyond a standard health insurance plan. Some of the main benefits for your employees are financial protection from out-of-pocket costs like deductibles and copayments, flexibility in choosing plans that fit individual needs, and peace of mind knowing there’s extra coverage for unexpected health issues or accidents.

    There are also benefits for you as an employer. Supplemental insurance enhances your benefits packages and helps attract and retain top talent. Today, 46% of professionals are considering quitting their roles. Of course, it takes more than monetary benefits to attract and retain top employees. For the best results, supplemental insurance should work in tandem with other nonmonetary initiatives.

    Enhancing Employee Financial Security

    While you may offer your employees the best health care, oftentimes, employees must cover themselves. Supplemental insurance for small businesses helps cover gaps in primary health insurance, providing financial support for medical expenses not covered by standard plans.

    In the event of a severe health condition, supplemental insurance, such as critical illness insurance, can offer lump-sum payments, providing financial aid for recovery and rehabilitation. Additionally, supplemental insurance ensures continued income for employees during long-term medical leave, bridging the divide between short-term and long-term disability benefits.

    This reduces financial stress during recovery periods, helping employees maintain economic stability while they focus on getting better. This support gives employees and their families peace of mind, knowing they have additional resources to cope with critical illnesses and accidents.

    Improving Organizational Productivity

    Many employers struggle with absenteeism. While you know your team best and the specific reasons that might be hindering full engagement, a common reason for absenteeism is financial stress. When employees face financial stress due to unexpected medical expenses, it can lead to increased absences as they struggle to manage their health and economic situations simultaneously. By providing supplemental insurance, you can minimize these financial stress-related absences.

    This support enables employees to access necessary medical care without worrying about the costs, leading to quicker recoveries and a faster return to work. As a result, employees can remain more present and productive, contributing to your organization’s overall efficiency and performance.

    Reducing absenteeism not only benefits individual employees but also helps maintain smooth operations and reduces the burden on other team members who might otherwise need to cover for absent colleagues.

    Additionally, offering supplemental insurance can:

    Enhance employee focus and performance

    Financial and health-related worries can be significant distractions for employees, impacting their ability to concentrate on tasks. Supplemental insurance alleviates these concerns by providing a safety net that covers additional medical expenses and supports income protection during illness or injury.

    Employees who are less preoccupied with personal financial issues can dedicate their energy and attention to their professional responsibilities, fostering a more productive and high-performing work environment.

    Strengthen employer-employee relationships

    Providing these benefits demonstrates your commitment to your workforce’s well-being and financial security. This commitment helps build trust and loyalty among employees, who feel valued and supported.

    Additionally, supplemental insurance encourages open communication and support within the workplace. Employees are more likely to express their needs and concerns when they know you’re invested in their overall health and well-being. This open communication fosters a positive and productive work environment where employees feel comfortable and motivated to perform at their best. By creating a supportive and inclusive workplace culture, you can cultivate long-term relationships with your team, boosting retention and establishing a cohesive workforce.

    Enhance corporate reputation

    Providing supplemental insurance also enhances the corporate reputation of your organization. Employees are looking for companies that prioritize the well-being of their team, and word travels fast. While there are many ways to improve your organizational culture, offering comprehensive benefits, including supplemental insurance, signals that your organization cares about your team. This positive perception can improve employer branding and enhance customer loyalty and stakeholder trust. Overall, investing in supplemental insurance not only benefits employees but also strengthens your business’ standing in the market and community.

    Types Of Supplemental Insurance

    There are many kinds of supplemental insurance to consider. Individuals will likely have different needs and can select the right options for them and their circumstances. Continue reading to learn about the types of supplemental insurance.

    • Accident insurance: Accident insurance provides benefits in case of accidental injuries. It covers medical treatments, hospital stays, and accident recovery costs, reducing the insured’s financial burden and helping them recover more comfortably.
    • Critical illness insurance: Critical illness insurance offers a lump-sum payment if an employee is diagnosed with a specified critical illness such as cancer, a heart attack, or stroke. The funds can be used for medical expenses, travel for treatment, or everyday living costs.
    • Disability insurance: Disability insurance replaces a portion of an employee’s income if they are unable to work due to injury or illness. This coverage ensures financial stability during recovery periods, helping employees manage their living expenses and maintain their standard of living while they are unable to work. Separate from short-term and long-term disability benefits, it helps offer continuous support throughout recovery.
    • Hospital indemnity insurance: Hospital indemnity insurance pays a fixed amount for each day an employee spends in the hospital. This coverage helps cover costs like deductibles, copayments, and other non-covered expenses that can accumulate during a hospital stay. By providing a daily benefit, hospital indemnity insurance alleviates the financial burden of hospitalization, allowing employees to focus on getting well.
    • Dental and vision insurance: Dental and vision insurance covers routine dental and vision care, which standard health plans may not fully cover. This includes benefits for exams, treatments, and corrective lenses.
    • Cancer insurance: Cancer insurance often provides a lump sum to cover expenses related to cancer treatment. In most cases, primary health insurance does not cover all associated costs, so cancer insurance can be an invaluable resource for some individuals.
    • Life insurance: This isn’t always considered supplemental; however, it provides financial protection for beneficiaries in the event of your death. Many options include term life, whole life, and universal.

    Supplemental Insurance With GMS

    Offer your team the best resources possible with GMS. Navigating supplemental insurance can be confusing. Juggling multiple vendors and price points when you have a business to run is not always possible, but you need to provide exceptional benefits to remain competitive.

    Partnering with a professional employer organization (PEO) like GMS is one way to offer the best benefits without all the stress. Supplemental health insurance helps employees find health coverage that meets their specific needs, which is why GMS offers a variety of health coverage options. Contact us today to speak with one of our HR and Benefit experts.

  • 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.