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  • During a press conference on February 2nd, 2023, President Joe Biden announced he signed a memorandum laying out a national program of paid family and medical leave for employees. The conference also marked the 30th anniversary of the Family and Medical Leave Act (FMLA). The FMLA entitles eligible employees of covered employers to take unpaid, job-protected leave for specified family and medical reasons with continuation of group health insurance coverage under the same terms and conditions as if the employee had not taken leave. Eligible employees are entitled to the following:

    • 12 workweeks of leave within 12 months for:
      • The birth of a child and care for the newborn child within one year of birth
      • The placement with the employee of a child for adoption or foster care and to care for the newly placed child within one year of placement
      • To care for the employee’s spouse, child, or parent who has a serious health condition 
      • A serious health condition that makes the employee unable to perform the essential functions of his or her job
      • Any qualifying exigency arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on “covered active duty”
    • 26 workweeks of leave during a single 12-month period to care for a covered servicemember with a serious injury or illness if the eligible employee is the servicemember’s spouse, son, daughter, parent, or next of kin (military caregiver leave)

    Improvements That Will Be Made

    As millions of workers across the country still face impossible choices between keeping a paycheck and caring for their families or themselves, the Biden-Harris Administration has taken proactive steps to assist these workers. Alongside this announcement at the press conference, they will continue to take action on national paid family and medical leave, affordable childcare, and home and community-based care so that all Americans can care for and financially support their families.

    President Biden’s memorandum will support Federal employees’ access to leave. It specifically calls on the head of Federal agencies to better support the access to leave without pay for Federal employees. In addition, it will also build on additional Administration efforts, improving access to and awareness of family and medical leave, which include the following:

    • Ensuring military personnel have access to 12 weeks of paid parental leave
    • Support paid leave efforts in states
    • Assisting employees that are impacted by cancer to understand their rights under the FMLA

    Alongside these efforts, the actions will also build on actions taken to support the economic security for women and families, which include: 

    • Protecting the health and economic security of pregnant workers
    • Extending protections for nursing employees
    • Increasing investments in early childhood education and childcare
    • Supporting women’s rights to be safe in the workplace and free from sexual harassment and assault

    Additional Steps That Should Be Taken

    While there’s still much work to do to help employees during times of need, it’s essential as a business owner to take additional steps to ensure your employees get the help they need. While laws constantly change, perhaps you focus on enhancing your benefits program offerings. Do you currently offer benefits to your employees? Are there any other benefits you could offer your employees? Do you currently provide maternity leave? The main question you should ask yourself during these unprecedented times is, how can I stand out from my competition? In a tight labor market, you must find ways to stand out from the competition, and the number one way to do that is through your benefits program. Companies that offer great compensation and benefits to employees experience 56% lower attrition.

    So, where do you begin? Partner with a professional employer organization (PEO) like GMS to help you stand out from businesses similar to yours. While we offer HR, risk management, and payroll services, we also help you choose a competitive benefits program that your employees want and need. As HR professionals, we take on the administrative burdens that companies don’t have the time or expertise to manage effectively. Contact us today to get started.

  • We all know that the COVID-19 pandemic affected individuals and families worldwide. Most recently, inflation has flooded into the daily lives of Americans, causing the price of necessities to skyrocket. It remains clear that the highest inflation we’ve seen in decades has affected individuals in ways you may not have considered. Inflation is defined as the rate at which the cost of a good or service increases. The cost of food, housing, gasoline, utilities, and other goods have skyrocketed by 7.7% over the past 12 months – nearly a 40-year-high. While inflation is hitting just about everyone, low-income households are experiencing it a little harsher than others as employee wage increases fail to keep up with inflation. This has forced families to shift their budgets to cover the necessities needed to survive these challenging times.

    Cutting Back On Retirement Savings

    Many Americans have had to reevaluate their retirement saving habits because of inflation. A survey showed that half of U.S. adults saving for retirement had to pause their saving efforts in 2022 because of inflation. On top of that, 32% withdrew from their retirement savings, and 41% indicated they stopped contributing to their retirement funds. While inflation may seem like it’s winding down ever so slightly, inflation is not going away anytime soon. Kelly LaVigne, VP of Consumer Insights, Allianz Life, expressed, “While we all hope that the pace of inflation will slow, it will take time to moderate. Consumers need to prepare themselves by talking to a financial professional and incorporating ways to help fight the effects of inflation into their portfolio so that long-term inflation doesn’t affect retirement.”

    Tom Smith, Director of Retirement Services at GMS, stated, “With inflation increasing and the cost of living rising, it’s essential you are saving in your 401(k), especially if your company offers an employer match. You’re leaving free money on the table if you stop contributing altogether. If you’ve exhausted all options for cutting back on spending and are still looking to dial back your deferral amount, try and take full advantage of the employer match. This means if you’re contributing eight percent right now, but the match requires you to contribute at least five percent, don’t decrease your contribution to less than five percent. If you want to retire at some point, you need to have a variety of sources to draw income. It’s important to pay yourself first, and a 401(k) is a great option to do that with convenient payroll deductions and tax advantages.”

    How You Can Step In As An Employer

    As we all remain concerned about the economy and how it could affect you, it’s essential as a business owner to ensure you take every step to help your employees. For starters, if you don’t already offer a retirement plan for your employees, consider doing so. From there, consider matching your employee’s contributions. Employee matching is the best way to maximize your retirement savings while also receiving benefits for your business. If you’re unsure where to start, contact Group Management Services (GMS). GMS is a professional employer organization (PEO) that helps small businesses by taking on the administrative burdens you don’t have the time or expertise to handle. We help in all areas of your business, whether it be risk management, HR, benefits, or payroll, we do it all. We can help you set up a fully customizable retirement savings plan that makes your company more attractive to quality employees. When you partner with GMS, you can easily establish the following:

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

    Contact us today so, you can begin helping your employees during these challenging times.

  • As the state of Michigan anxiously awaited the decision on minimum wage, the Michigan One Fair Wage v. Attorney General case results are in. On January 26th, 2023, the Michigan Paid Leave Medical Leave Act (PMLA) and Michigan Improved Workforce Opportunity Wage Act implemented in 2019 will remain in place. They found that the Michigan Legislature needed more constitutional authority to adopt and subsequently amend two 2018 ballot initiatives. If this had passed, the minimum wage would have increased to $12 per hour in 2023 and increase tipped wages to the full minimum wage. In addition, it would have enacted one of the country’s most extensive paid sick leave laws. These would have significantly impacted business owners, forcing them to make drastic changes to their paid time off policies (PTO) and procedures.

    What This Means For Business Owners In Michigan

    The good news is that because the lower court’s decision was reversed and given immediate effect, businesses are no longer forced to make significant changes to their PTO policies and wage schedules beginning February 19th, 2023. The minimum wage will stay the same at $10.10 an hour. However, there will most likely be an appeal, so employers will want to keep an eye out for any further developments relating to this case.

    How GMS Can Help

    Everchanging rules and regulations are constant battles business owners have to juggle. However, when you partner with a professional employer organization (PEO) like GMS, you no longer have to carry the weight on your shoulders. We take on all the administrative burdens you don’t have the time or expertise to manage. GMS experts keep you up to speed with new laws and regulations you should be aware of for your business. Save yourself time and contact us today.

  • Unfortunately, diabetes is increasing across the U.S. at an alarming rate. According to the Diabetes Research Institute, 34.2 million individuals, or 10.5% of the U.S. population, have diabetes. Diabetes is a chronic (long-lasting) health condition that affects how your body turns food into energy. Your body breaks down most of the food you eat into sugar (or glucose) and releases it into your bloodstream. When your blood sugar increases, it signals your pancreas to release insulin. Insulin acts as a key to letting the blood sugar into your body’s cells for use as energy. If you have diabetes, your body doesn’t make enough insulin or can’t use it as well as it should. If there isn’t enough insulin or your cells stop responding to insulin, blood sugar builds up and stays in your bloodstream. Over time, this build-up can cause serious health problems, such as heart disease, vision loss, and kidney disease.

    Alongside diabetes, hypertension, or high blood pressure, is a common disease among employees. Nearly half of the adults in the U.S. (47%, or 116 million) have hypertension. Hypertension is when your blood pressure, the force of blood flowing through your blood vessels, is consistently too high. The main way that high blood pressure causes harm is by increasing the workload of the heart and blood vessels, making them work harder and less efficiently. Over time, this force and friction of high blood pressure damage the delicate tissues inside the arteries.

    Your Responsibility As A Business Owner

    Chances are high that you have employees with diabetes. As a business owner, it’s your job to ensure your employees feel safe and comfortable in their work environment and, ultimately, outside of work. For employees that have health conditions such as diabetes, it’s even more important to ensure they have everything they need should an emergency take place. You must create a supportive culture for your employees with diabetes and create health benefits that include a more personalized approach to their care. Giving your employees access to affordable care and tools is essential to attract and retain the talent you need. The following are practices you can take to create a safe environment for employees who have diabetes:

    • Create a private or dedicated space for blood glucose monitoring or insulin delivery 
    • Have on-site educational programs that promote awareness of diabetes 
    • Offer workday flexibility for employees that need to make in-person or virtual health appointments
    • Promote a healthy workplace by encouraging and supporting health-related activities throughout the day (taking walks, adding a workout area in your building, offering gym membership reimbursement, and more)
    • Offer healthy and diabetic-friendly snacks and meals

    When you help your employees who suffer from this disease, it can ultimately help save your company money in health care costs, increase productivity, and reduce absenteeism. Providing your employees with the resources they need to achieve their wellness goals can, in turn, improve your bottom line.

    Diabetic Management With GMS

    At GMS, we understand how challenging it can be to wear multiple hats simultaneously. However, when it comes to your biggest asset, your employees, it’s essential that you do everything you can to make them happy and create a healthy environment. When it comes to employees with a disease such as diabetes, you may have to reconsider what you’re currently doing and determine how you can improve your efforts to support these specific individuals better. When you partner with GMS, you gain access to our diabetic management program as part of our premier employee benefits administration. We help employers and their employees transform their health, change lives, and create new opportunities for everyone through diabetic management with OneDrop. The artificial intelligence-powered program associated with diabetic management adapts to every participant’s specific conditions, including:

    • Diabetes
    • Prediabetes
    • High Cholesterol 
    • High Blood Pressure 

    Through OneDrop, it supports individuals on their journey to better health by providing diabetes testing supplies and blood pressure monitors. When you offer a diabetic management program to your employees, you’re providing them with the tools to, ultimately, transform their lives. They’ll have access to living healthier lives and regain their time and power. The program provides online health data tracking, health coaching, and other resources to access from anywhere.

    “Diabetes is one of the most expensive conditions for employees and their family members, directly impacting employers and productivity. The indirect cost equals $3.3 billion in absenteeism from the workplace, with an average of $26.9 billion annually. Furthermore, living with chronic conditions predisposes people to a greater risk of cardiovascular disease. Multi-condition programs such as OneDrop help make the connection between chronic conditions rather than treating each as a competing health narrative,” expressed Beth Kohmann, Vice President of Benefits at GMS. 

    Reimagine possible and contact us today to get started.

  • Trying to balance raising a family, especially young children, and working a full-time job is quite challenging, especially amidst the COVID-19 pandemic. As schools were shut down and children had to learn remotely, parents had to figure out how to teach their children while working their full-time jobs. In addition, if parents couldn’t work remotely during the very beginning of the pandemic due to their occupation, trying to find a quality, affordable childcare added a whole new layer of stress. However, don’t forget that daycare centers and other childcare resources had to shut down for an extensive amount of time or reduce their hours, making it even more challenging for parents.

    In response to these unprecedented times, parents had to leave or at least consider leaving the workforce as they struggled to meet their employer’s work-from-home demands while helping their children through school. As a business owner who may face the same challenges as your employees, what can you do to help them and their families?

    Consider Offering Childcare Benefits

    From a survey that was conducted by 2,500 working parents, it was found that 20% of the working parents had to leave their job or reduce hours simply because of the lack of childcare. So, while business owners still face challenges attracting and retaining employees, adding childcare benefits could be your best solution. While you might not be able to add a daycare center within your business, there are plenty of other steps you could take to try and help your employees that have families, including the following:

    • Create support structures for women at work
    • Offer flexible work schedules and remote work for all parents
    • Increase childcare support as an employee benefit
    • Provide on-site or local childcare space and supervision
    • Be understanding
    • Provide what they need to succeed
    • Figure out their availability for meetings
    • Encourage transparency and communication

    Studies show that 64% of employees suffer from stress relating to balancing work and family commitments. If you recognize their feelings of stress and anxiety and take steps similar to the above, you can ultimately reduce the stress levels and prevent your employees from burning out or, worse, developing further mental or physical health issues. Reducing the feeling of stress amongst your employees will create a more positive work environment and more productive employees.

    Additional Steps You Can Take

    At the end of the day, offering childcare services within your business or providing employees with additional income to pay for these services probably isn’t within your budget. Alongside the list of steps you can take to make your employees feel heard and valued, you can partner with Group Management Services (GMS). GMS partners with business owners to make their jobs simpler, safer, and stronger. While we can’t build a child daycare center in the basement of your business, we can help by creating a benefits package that reflects these enhancements. We work with you to develop a plan so your employees can have the work-life balance they need to juggle the constant battle of their kids and careers. Whether it’s adding more paid time off days or providing them with resources to support their need, we’ve got you covered. Your employees are your biggest asset. The last thing you want is for them to leave your company because they don’t have the flexibility they need. Contact us today to learn how we can help you thrive and stand out during these challenging times.

  • The first day at a new job is always a little nerve-wracking. There is pressure to get to know your surroundings and meet your new colleagues. Then, there’s also the pressure of trying to figure out what’s happening next. Do I need to fill out lots of paperwork? Where are my parking passes? Will I have time to get an apartment before the weekend?

    When you start a new job, it’s also extremely important to learn your medical benefits. Your benefits are the set of terms and conditions surrounding your health insurance and other benefits. These often include employee costs, company contributions, and other factors related to your overall employee package.

    But what are classified as “job benefits?” Let’s take some time to explore exactly what job benefits are, looking at both monetary and non-monetary benefits.

    What Falls Under Job “Benefits?”

    You’ve just accepted a new job, congrats! One of the first things you plan to do is tour your new office and meet your co-workers, but before that can happen — you’ll need to read and understand a variety of documents. Understanding how benefits work will help you get off on the right foot.

    Although your new job is exciting, there are a handful of tasks that you need to take care of. One of the most important aspects beyond starting your task is understanding your new employee benefits and insurance plans. These benefits and plans can get quite complex, so you will have to do research in order to fully understand them.

    Most of us are probably aware of traditional benefits, such as health insurance, vision, dental, and more. But there are several options when it comes to these benefits, as well as ones that fall outside of the scope of your normal job perks.

    Types Of Job Benefits 

    Work benefits are one of the foundational elements of every organization. These benefits sustain and enrich employees by providing them with various types of services for their day-to-day life. A company that invests in its employees’ well-being is a company that will be more successful. In fact, employees are 70% more likely to remain loyal to their employer if they’re satisfied with their benefits. Let’s go over some of the common types:

    • Disability insurance: Disability insurance is a form of coverage that helps you in case you’re unable to work due to an illness or injury. It typically pays out about 60% of your income for up to two years, with some policies offering longer coverage periods and higher payouts.
    • Health insurance: Health insurance covers medical expenses for employees covered under a plan. As an employee at a company with its own health plan, you may pay part of your medical bills yourself (through co-pays) but will also receive reimbursements from your employer for other expenses related to receiving treatment for an illness or injury during work hours, such as prescriptions.
    • 401(k) retirement plans: Retirement plans are offered by some companies so that employees can save for their future after they retire from working there. Or, so that they have a way to support themselves when they quit working altogether because they no longer feel able to do it anymore due to age or health reasons.
    • Dental insurance: Dental insurance is a form of health insurance that covers most or all of the cost of dental care. It’s a type of indemnity coverage where the policyholder pays a fixed amount to receive medical treatment and reimbursement for covered medical expenses. Dental insurance may also include coverage for routine check-ups and cleanings, as well as basic orthodontics and dentures.
    • Vision care insurance: This pays for eye care services such as glasses and contacts. Similar to health insurance, there is usually an office co-pay, but most of the balance is covered through your insurance plan.
    • Life insurance: Life insurance is a contract between you and an insurance company that will pay out a specific amount of money if you die while covered by your policy. The money is paid out to your beneficiaries (usually family members) as a lump sum—it’s not an income stream they’ll receive over time like social security or disability benefits.
    • HSA and FSA plans: A Health Savings Account (HSA) allows you to pay for medical expenses with pre-tax money, so you can save some money on taxes. An FSA stands for Flexible Spending Account, and it lets you set aside money from your paycheck before taxes are taken out so that when the time comes for medical costs, you’ll have extra cash available without being taxed on it (just like an HSA).

    • Paid time off: Paid time off is one of the most common types of job benefits available for employees today. This benefit allows employees to take time off from work without having to worry about losing their position or salary. This benefit also helps employers because it means they don’t have to find replacements for people who are taking time off from work due to illness or vacation plans.

    • Paid family leave: When someone has an illness or injury in their immediate family, they can take time off of work without losing pay or risking their job. This can be used for illnesses such as cancer or mental health issues. if your child gets hurt or sick, you can also use the benefit for them!

    • Tuition reimbursement programs: Tuition reimbursement programs allow employers to pay for courses or classes taken by their employees while they are working at that company. This type of program can help workers advance their careers by learning new skills or taking classes in fields related directly to their current jobs (such as marketing classes if they work in marketing).

    Outside of these traditional benefits are more modern options. These are more consumer-oriented and go above and beyond. Some of these benefits include:

    • Wellness stipends: The wellness stipend is an additional benefit that your company can offer to employees. It’s typically a monthly amount of money that you receive from your employer in order to use on health-related expenses, such as gym memberships or fitness trackers.
    • Mental health days/programs: Mental health days are an important part of any work environment. They allow employees to take time off when they’re feeling overwhelmed or burned out, and they also help employers make sure that their employees are healthy and safe in the long term.
    • Home office stipends: This is a lump sum of money that will go towards furnishing and decorating your office space so that it’s comfortable, efficient, and functional.
    • Flexible work schedule: You can work from home and set your own hours, or you can work remotely on a project that does not require your physical presence. This flexibility allows you to do other things like spend time with family, take care of yourself, or pursue personal interests.
    • Summer Fridays: Some companies allow their employees to take Fridays off during the summer months when most people are just looking to get out of the office and enjoy the sun. It’s a great perk for those who want to spend time with friends or family, or just need to get away from the daily grind for a bit.
    • Stock in the company: Stock in the company is a great benefit to consider. It gives you a stake in the company’s success, and it ensures that you’re working hard to make sure it succeeds. If you want to be an entrepreneur and build your own business, then having stock in the company is a great way to get started.
    • Free lunches: This is an easy way to save money at work, but you don’t want to get stuck eating the same thing every day. Make sure your employer offers a variety of options so you can mix up your lunch routine while still saving money on food costs.

    How To Choose The Right Benefits

    Once you’ve got a good idea of what the company offers, start thinking about what kind of plan would work best for you and your family. For example, if you have a spouse or children who are covered under your health insurance policy, it might make sense for both of them to use your policy. Not all benefits require you to make a decision, such as free meal plans and stipends. However, deciding on how to best utilize those perks can help you save money. Some questions you could ask yourself when deciding what benefits to accept are:

    • What kind of coverage do I need? Do I need dental, vision, or life insurance? 
    • How much does it cost?
    • How much will I have to pay out of pocket for each type of benefit? What about prescriptions?
    • How much will my insurance cover?
    • What’s covered under each plan? You should know what’s covered and what isn’t before you sign up for a plan. 

    Ultimately, job benefits matter because they help you to find the right job and also because they can influence your level of satisfaction with the position once you start working there.

    GMS Offers Quality Benefits And Support

    As a business owner, it’s crucial to keep and attract quality employees so you can continue to grow your business. Offering a quality benefits package is one of the best ways to retain and hire top talent. With GMS, our benefits outsourcing services allow your company to offer competitive, cost-effective benefits while you focus on what you do best – running your business. Let’s chat!

  • If you’re a business owner, you know how hard it is to keep up with all aspects of your business. You have to manage your employees, ensure the product is coming in on schedule, and keep track of all the different projects you’re working on. In addition, then there’s the day-to-day work of running your business-managing your employees’ paychecks, paying bills and taxes, and keeping track of inventory. The list goes on and on!

    However, if you’re like most business owners, you don’t have time to take care of your retirement savings on your own. That’s where a 401(k) plan comes in—they make managing these savings easy! Many business owners choose to offer 401(k) plans to their employees without considering the intricacies. Many resources are available to help you understand 401(k) plans, but they aren’t always easy to understand. This guide is designed to help business owners better understand how 401(k) plans operate, including the main benefits offered by this type of retirement account.

    Why Should My Company Offer A 401(k) Plan?

    If you’re a business owner, you may be wondering what a 401(k) is and how it can benefit your company. A 401(k) is an employee benefit plan that allows employees to save money for retirement. When you contribute money to a 401(k), it’s usually taken out of your paycheck before taxes are calculated. This means that the amount of money actually deposited into your account is lower than the amount of money being withheld from your paycheck.

    While there are many different types of 401(k) plans, the most common type is called a defined contribution plan. In this type of plan, you choose how much money you want to contribute to the plan each year—and how much will be deducted from each paycheck. Then, when employees reach the retirement age of roughly 60, they can begin withdrawing funds from their accounts without incurring penalties or taxes on those withdrawals (unless they withdraw more than they’ve contributed).

    How Does A 401(k) Work?

    You set up an employee contribution plan with the financial institution that manages your company’s 401(k) plan, typically called an “investment manager.” The employee contribution plan will tell them how much money to take out of each paycheck and put in their account each month.

    The investment manager will then invest that money for you based on certain parameters set by you and/or your company, such as what kind of investments to make. They’ll then give you periodic reports about how much money has been contributed.

    Types Of 401(k)Plans

    Traditional: This option allows you to deduct contributions from your taxable income, which means that your contributions will lower your overall tax bill at the end of the year. Traditional funds can also be rolled over into an IRA when you retire or leave your job.

    Roth: With this option, you pay taxes now but can withdraw funds tax-free when you retire or leave your job. You cannot roll over Roth funds into an IRA once they’ve been deposited into the account; however, there are some exceptions based on age and other factors.

    Profit sharing plans: These are plans where the employer contributes a set percentage of its profits into each employee’s 401(k) account on an annual basis, usually four or five percent. The employee doesn’t get to choose how much money goes into their own account; instead, they take home whatever amount is left over after all contributions have been made by the employer and employee combined together.

    Defined contribution plan: This is the most common type of 401(k) plan. The employer decides how much money to contribute, and each employee can also choose to make voluntary contributions.

    Defined benefit plan: In this type of plan, the employer agrees to pay a specific amount of money to the employee at retirement based on their number of years of employment, salary level, and other factors. The amount that an employee receives from a defined benefit plan will depend on their age and salary at retirement.

    How Do I Choose The Right Plan?

    401(k) plans are an important option for business owners, but they can also be very confusing. There are many different types of 401(k) plans, and each one has its own set of rules and requirements. If you’re a business owner and you want to start offering a 401(k) plan for your employees, it’s important to choose the right one. Here are some tips on how to do that:

    1. Find out if your state requires a certain type of 401(k) plan. If it does, then you’ll need to make sure that the plan you choose matches those requirements. Otherwise, your employees won’t be able to participate in the plan if it doesn’t meet state standards. You can find out what types of plans are available in your state by contacting your local Department of Labor or Small Business Administration office.
    2. Make sure that any fees associated with managing your 401(k) plan are reasonable compared with other plans offered by other companies in your area (or even across state lines). If not, then look into other options until you find something more affordable for you and your employees!
    3. Make sure that the investment options available through this plan will allow you to grow your money without risking too much—but also without taking too much risk!

    How Do I Start?

    401(k) plans are an important part of ensuring your workers have a secure retirement. They’re also a great way to attract and retain talented employees. Below is a step-by-step guide to getting started:

    • Start by contacting a broker or financial advisor for help setting up the plan. They can help you determine what kind of plan is best for your company, including whether or not you should include matching contributions. You may even choose to work with a professional employer organization (PEO) to handle all of these logistics for you.
    • Next, determine how much money you want to contribute to the plan each year. You can decide on any amount, but it’s recommended that you contribute at least enough so that each employee receives at least three percent of their annual salary as a contribution from their employer.
    • The next step is to determine whether or not you want employees to be able to contribute on their own. If so, make sure they understand the limits that apply and how much they can contribute without penalty (in most cases, it’s $18,500).
    • Finally, decide how much money will be taken out of each paycheck towards paying into the plan each month, quarter, and/or year, depending on what works best for your company’s budgeting cycle.

    During this process, you need to decide whether or not to hire a professional employer organization (PEO). A PEO will take care of many of the administrative tasks involved in setting up and managing a 401(k) plan for you—including payroll processing, tax filing, and benefits administration—so that you can focus on running your company.

    Let’s Talk About Your 401(k) Options

    Introducing 401(k) plans to your employees can be one of the best decisions you make as a business owner. Not only is it a great benefit for your employees, but it’s also an excellent way to attract new talent and keep your existing team happy.

    But if you’re unsure how to get started, we’re here to help!

    GMS offers a variety of 401(k) plans that are customizable and easy to use. We’ve been helping small businesses similar to yours get their feet wet with this exciting new benefit for years, and we’d love to help you, too. Contact us today!

  • The Illinois legislature passed the Paid Leave for All Workers (PLFAW) Act on January 10th, 2023. The passing of this law makes Illinois the third state in the U.S. to require private employers to provide earned paid leave to employees to be used for any reason. Maine and Nevada are the other states who have implemented similar laws.

    The act will take effect on January 1st, 2024, and will provide nearly all Illinois employees with a minimum of 40 hours of paid leave or a pro-rata number of hours throughout a 12-month period. Leave accrues at the rate of one hour of paid leave for every forty hours worked. In addition, the law will consider exempt employees to have worked 40 hours in each workweek for purposes of the PLFAW Act accrual unless their regular workweeks are less than 40 hours. It permits employees to use their leave after 90 days on the job unless an employer allows them to utilize leave earlier. Employers can set a minimum increment of no less than two hours per day.

    The PLFAW Act does not require employees to provide a reason to their employer for taking leave. Employers will not be permitted to require documentation or certification of the need to take this leave. However, employers may require their employees to give at least seven days’ notice of foreseeable leave if they have a written policy that outlines the notice requirements and procedures. Foreseeable leave can include the following:

    • Expected birth
    • Placement for adoption or foster care
    • Planned medical treatment for a serious health condition of an employee or family member
    • Planned medical treatment for a serious injury or illness of a covered service member

    Employees must provide notice of leave as soon as possible if leave is foreseeable.

    Additional Considerations You Should Be Aware Of

    Leave under the PLFAW Act will be paid at the employee’s hourly rate of pay for the hours of paid leave they take. If you have employees who make tips and commissions, they must be paid at least the full minimum wage for the jurisdiction, or their hourly rate, whichever is higher. Any unused accrued leave will carry over every year; however, employers will not be required to provide more than 40 hours of paid leave for an employee in the 12-month period. Should you allocate the 40 hours upfront, you will not be required to carry over unused paid leave for the following 12-month period.

    As with many aspects of running a business, you must keep records documenting the following under the PLFAW Act:

    • Hours worked
    • Leave accrued and taken
    • Remaining paid leave balances

    These records should be kept for at least three years and allow the Illinois Department of Labor (IDOL) to have access to these records. If you don’t comply with the recordkeeping requirements, employers can face penalties of $2,500 per offense. Finally, employers must post a notice summarizing the requirements of this act. This should be posted in a common area where other workplace posters are hung. Should you not comply with the posting requirements, employers can face a penalty of $500 for the first violation and $1,000 for any other violations.

    The law does not apply to the following:

    • School districts or park districts
    • Students employed on a part-time or temporary basis by the college or university they attend
    • Short-term employees of higher education institutions who are employed for less than two consecutive calendar quarters during a calendar year without a reasonable expectation that they will be rehired in a subsequent year
    • Employees working in the construction industry are covered by a bona fide collective bargaining agreement
    • Employees covered by a bona fide collective bargaining agreement with an employer that provides national or internal services of delivery, pickup, and transportation of parcels, documents, and freight
    • Employers covered by municipal or county ordinances in effect on January 1st, 2024, that provide for paid leave or paid sick leave

    Start Preparing Now!

    While a year may seem like a long time to get ready to ensure you comply with the new law by January 1st, 2024, it’s essential that you start preparing now. This will be a significant change for most business owners in Illinois. With ever-changing rules and regulations, it’s vital that you remain compliant. When you partner with GMS, we ensure you comply with all federal and state laws and regulations. In addition, when providing your employees with paid time off (PTO), we work with you to create a program that ensures your employees feel heard and valued. Allowing employees to take time away from work is essential to create a productive workplace.

    Lisa Dassani, GMS’ Internal HR Manager, reflected, “Research consistently shows the health benefits of taking time off, such as improved productivity, reduced levels of unscheduled absenteeism, lowered stress levels, and improved mental health. Time off helps employees reset, which in turn, results in fewer errors on the job. We encourage our employees to take time off and even require that they take at least two weeks off per year. GMS offers unlimited PTO to employees that have reached their fifth year anniversary.”

    Contact us today to learn more.

  • As of January 1st, 2023, employees in California whose employers do not offer retirement plans now have access to an optional retirement savings plan. This plan will be a state-facilitated retirement savings program through the Colorado SecureSavings Program. The Colorado SecureSavings provides businesses with a convenient way to help their employees save for their future. If you’re a business owner who:

    • Has been in business for two or more years
    • Has five or more employees
    • Does not have a retirement savings plan in place

    You are now required by law to offer a retirement savings plan. Should you fail to provide your employees with one of these plans, you will face hefty fines levied by the state of Colorado.

    Who Qualifies For This Program?

    Any employee who is at least 18 years of age and has earned wages in Colorado for at least 180 days is eligible and automatically enrolled in the program. Employees will have 30 days following the enrollment date to opt-out or customize their contribution amounts, investment options, and beneficiaries. Suppose your employees choose not to opt out within this 30-day time frame. In that case, they will automatically have five percent of their compensation withheld on an after-tax basis and contributed to a Roth Individual Account (Roth IRA). A Roth IRA is an individual retirement account that offers tax-free growth and tax-free withdrawals in retirement. In addition, every January, contributions will automatically increase by one percent up to a maximum of eight percent unless the employee adjusts it.

    Should an employee not make an election on how their Roth IRA is to be invested, it will automatically be invested in the Capital Preservation Option. Capital preservation refers to an investment strategy where the main objective is to preserve capital and avoid losses in an investment portfolio. In utilizing this strategy, investments typically comprise the safest short-term investment products, including fixed deposits and bonds. It will then be transferred to the Target Retirement Date Option with a target date closest to the employee’s expected year of retirement.

    What You Should Know As A Business Owner In Colorado

    As with any law, as a business owner, you must know what every law entails and how it affects you, your business, and your employees. With this new law in Colorado, you will face hefty penalties if you don’t comply. It’s essential that you understand the following components of the law:

    • If you don’t sponsor a retirement savings plan for your employees, you must provide your payroll vendor’s name, payroll schedule, company bank information, contact information, and employee roster
    • Employees will then be automatically enrolled in the SecureSavings program
    • Employees hired after the date of registration must be enrolled in the SecureSavings program within 180 days of their hire date
    • You must update participating employees’ contribution rates within your payroll system
    • Contributions must begin with the payroll immediately after the 30-day opt-out period has passed
    • You must keep employee rosters and payroll contribution information updated
    • You are prohibited from setting up or managing employees’ accounts, managing investment options, or answering questions about the program
    • You are not permitted to provide any tax, legal, or other financial advice
    • Your employees will receive a Form 5498 directly from the trustee of the program no later than May 31st every year

    Save Yourself The Headache, Partner With GMS

    We understand that staying on top of, yet another law is a lot to take on. You wear many hats as a business owner and don’t have the time or money to manage every aspect of your business. When you hand off the administrative burdens of your business to GMS, you can finally focus on what you do best – growing your business. GMS helps with profit sharing and 401(k)s for small businesses. In serving as the plan’s co-sponsor, PEOs can leverage group buying power to reduce plan costs for small businesses and take on the fiduciary burden to ensure you remain compliant with your 401(k). We can help you set up fully customizable retirement savings plans that make your company more attractive to quality employees. When you partner with GMS, you can easily establish the following:

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

    Check this off your to-do list for the week. Contact us today to learn more.

  • As 2023 is in full throttle, it’s time to start thinking about your new year’s business resolutions. Whether you’ve started prepping for this year’s goals or not, it’s time to consider how to enhance your business functions. As a small business owner, you may want to start by providing your employees with a retirement savings plan. This can be intimidating, and you might not know where to start. However, we’ve provided you with a variety of different ways in which you can offer your employees a retirement plan to set them up for success.

    Let’s Start With The Basics

    An individual retirement account (IRA) is a long-term savings account that individuals with earned income can utilize to save for the future while enjoying certain tax advantages. Money held in an IRA typically cannot be withdrawn before the age of 59 ½ without incurring a significant tax penalty of 10% of the amount withdrawn. In addition, there are a variety of IRAs individuals can utilize, including:

    • Traditional IRAs
    • Roth IRAs
    • Simplified Employee Pension (SEP) IRAs

    For a deeper dive into these various retirement plan options, click here. 

    Is The Safe Harbor 401(k) The Right Fit For Your Business?

    When it comes to retirement plans, not all are inexpensive to establish, nor are they easy to maintain. Recently, businesses have begun implementing a Safe Harbor 401(k). A Safe Harbor Plan 401(k) is similar to a traditional 401(k) plan; however, it must provide for employer contributions that are fully vested when made. These contributions may be employer-matching contributions that are limited to employees who accept, or employer contributions made on behalf of all eligible employees, regardless of whether they make elective deferrals. You can forgo annual nondiscrimination testing in exchange for required contributions, which ultimately helps reduce your duties as the plan administrator.

    While a Safe Harbor plan offers many benefits, it makes it easier to save for your own retirement while also helping your employees become ready for their retirement. Business owners may contribute up to $20,500 tax deferred, lowering their personal tax liability. On top of that, the employer-matching contribution you provide for your employees is a tax deduction.

    Partner With GMS

    Offering a retirement plan to your employees is essential to recruiting and retaining quality employees, but it’s a benefit with a lot of complexity and risk. Yes, all of these plans sound great, but do you really want to take the time out of your already busy schedule to implement this? Fortunately, when you partner with GMS, we’ve made it easy for you to give your employees what they want and need, all while doing what you do best – growing your business. Our partnership provides you access to our small business 401(k) plan administration services. You can also offer your employees a profit-sharing 401(k) plan!

    By implementing a profit-sharing plan, you can show employees they are critical to your company’s success by rewarding them for their hard work. Partnering with a PEO like GMS helps you with the following:

    • Cut costs and reduce stress
    • Save time
    • Offer benefits your employees want the most

    To learn more, contact us today.