2025 W-2 Forms are now available in your GMS Connect employee portal here.

Request a call Login

  • Paid time off (PTO), while an attractive employee benefit, can present some challenges for small business owners. From determining the number of PTO days to creating an employee leave policy to tracking time off, there’s a lot that must be taken into consideration. Use this guide to determine how much PTO your employees should receive.

     Woman travelling on PTO.

    Benefits of Paid Time Off

    There are many benefits small businesses can use to their advantage by offering PTO. Perhaps the best part is that it’s one of the least expensive benefits for employers to offer when compared with health insurance, retirement plans, and other benefits. 

    When putting together an employee’s compensation package, PTO can be a great benefit to attract and retain top talent. According to Glassdoor, PTO stacks up as the second most important benefit to employees, following health insurance. With 73 percent of small businesses offering PTO to full-time employees, according to the National Federation of Independent Business (NFIB), it’s almost critical to stay competitive in the labor market.

    Studies also show that PTO has the power to make employees more productive, engaged, and relaxed. The American Psychological Association says that taking time off can help employees relieve stress, prevent job burnout, and even cure headaches and backaches. An Ernst & Young study also found that for every 10 hours of PTO taken, employee performance ratings improve by 8 percent.

     

    Average Paid Time Off

    According to the U.S. Bureau of Labor Statistics (BLS), the average employee receives 10 days of paid time off per year, not including sick days and holidays. However, the average number of PTO days can vary depending on company size and years of service:

      1-99 employees 100+ employees All companies
    PTO after 1 year 9 days 12 days 10 days
    PTO after 5 years 13 days 16 days 15 days
    PTO after 10 years 15 days 19 days 17 days
    PTO after 20 years 17 days 23 days 20 days

    Consider using these averages as a benchmark when determining your paid time off policy. 

     

    Do Employers Have to Give Paid Time Off?

    The Fair Labor Standards Act (FLSA) does not require employers to pay for time not worked. However, employee leave laws for holidays, sick leave, jury duty, and bereavement can vary by state. Be sure to understand whether you’re required to pay employees during their time off in each of these circumstances.

     

    Accruing Paid Time Off

    Once you’ve determined how much PTO you want to offer employees, you’ll need to determine how it will be accrued. Will full PTO be given to employees immediately upon being hired? Or will PTO be accrued by the number of hours worked? Additionally, some employers require newly hired employees to wait a set amount of days before being offered PTO. Keep in mind that some states regulate PTO accruals, so it’s best to first check your PTO payout laws first.

     

    How to Create a Paid Time Off Policy

    After hammering out all the details of your PTO offerings, you’ll need to create a written policy detailing:

    • Number of PTO days offered.
    • How PTO will be accrued.
    • How much notice must be given before taking PTO.
    • How much PTO can be taken at a time.
    • How many employees can take off on the same day.
    • How employees will be compensated for any time left on the table in the event an employee quits or is terminated.

    Make sure your PTO policy is documented in your employee handbook and signed by all employees.

     

    Paid Time Off Management

    For many small and mid-size businesses, managing and tracking PTO for each employee can be challenging. As a Professional Employer Organization (PEO), GMS can help with paid time off management. Through our online HR portal, GMS offers a paid time off tracking system to approve PTO requests and track time off. We can also help craft a comprehensive PTO policy and ensure your handbook is updated accordingly to protect your business best.

    In addition, GMS can help save you time and stress by managing key business functions like payroll, human resources, benefits administration, and other important services. Contact us today to request a consultation.

  • Personality tests can be an effective tool in employee recruitment, training, and development. As your business grows and becomes more diverse, a one-size-fits-all approach to employee management won’t work well on a team made up of different personality types. Company leaders will need to have a better understanding of what makes employees tick and how to encourage everyone to play nice in the workplace.

    Managing different personality types in the workplace can present its challenges. As a result, you’ll need to be flexible with your employee management style. Using Deloitte’s Business Chemistry, here’s how to manage employees with these four different personalities.

     Managing different personalities in the workplace.

    How to Manage the “Pioneer”

    Pioneers are the wheels set in motion. You never know when or where their next big idea will come from, but you can be sure they’ll want to give it a try. Business Chemistry describes pioneers as:

    • Outgoing
    • Spontaneous
    • Risk-takers
    • Adaptable
    • Imaginative

    Pioneers are the social butterflies and adventurous spirits in the workplace. When managing this type of employee, it’s important to give them the creative freedom to explore new ideas. They don’t like being confined by rules or structure and may have a hard time focusing on the smaller details of a project, so don’t try to micromanage them.

    Lean on your pioneers to think out-of-the-box and come up with creative new ideas, perhaps in a group brainstorming session, but then shift the project details and execution to your drivers and guardians.

     

    How to Manage the “Driver”

    If pioneers are the wheels, then drivers are the fuel that keeps it going. Ambitious and efficient, drivers are motivated by results and will always rise to meet a challenge. Drivers are described as:

    • Logical
    • Focused
    • Competitive
    • Quantitative
    • Deeply curious

    Drivers are laser-focused and work quickly, so they need to be continuously fed new challenges or they risk getting bored or frustrated by delays or long processes. When you come to them with new assignments, they’ll appreciate clearly defined plans and processes and will work tirelessly to meet and exceed your expectations and goals.

    Because of their workaholic tendencies, drivers may also struggle with work-life balance, as they can easily be consumed by the tasks at hand. Reinforce good habits, like taking lunch breaks, not responding to emails after hours, and delegating tasks when their plate is full.

     

    How to Manage the “Integrator”

    Integrators are best at bringing everyone together. If pioneers are the wheels, drivers are the fuel, then integrators are the ones who makes sure everyone gets a seat in the car. They see the value in workplace culture and understand how it can affect employee happiness and performance. The Integrator is:

    • Diplomatic
    • Empathetic
    • Nonconfrontational
    • Team player
    • Intrinsically motivated

    As intrinsically-motivated employees, integrators thrive when they can really get behind your cause. As a business owner, be sure to clearly define and communicate your company mission. 

    Similar to pioneers, it’s best not to micromanage your integrators. It’s important to show these employees that you trust and respect them, whether it’s allowing them to work remotely or believing in their idea. Finally, when assigning projects, don’t isolate your integrators. They work best in group settings, where they can bounce ideas off one another and play to each other’s strengths.

     

    How to Manage the “Guardian”

    Guardians are the employees who make sure you reach your destination on time and in one piece. They value stability and order and have great attention to detail. According to Business Chemistry, Guardians are:

    • Reserved
    • Detail-oriented
    • Practical
    • Structured
    • Loyal

    Guardians are practical and structured, which means they can easily become impatient with seemingly wacky ideas or meetings that get off topic, but you may not notice.

    Guardians are quiet and reserved, so they may not always speak up in meetings and can be easily forgotten. They need time to process, digest, and formulate a well-thought-out response. When managing this type of employee, it’s best to follow up with them the next day to ask for their thoughts or opinions. Because they’re fiercely loyal to their employers, you know your company’s best interests will be at the heart of all their decisions.

     

    Employee Management Assistance

    While no single workplace personality is “the best,” managing these different workplace personalities can be challenging for business owners and managers. Need assistance? Outsourcing human resources to a professional employer organization (PEO) like Group Management Services (GMS) can help with employee management. From employee recruitment and retention to performance management, GMS can guide you through any issues you’re faced with, while you keep full control of your employees.

    In addition to human resources, GMS offers a full suite of HR services, including payroll, risk management, employee benefits, and more. Contact GMS today to request a consultation.

  • Starting a new business is an exciting endeavor, but it also requires a lot of preparation. Part of this process includes taking measures to make sure the business is set up properly so that you can legally conduct business. Here’s what you need to do to make sure that your new business is ready for success according to federal, state, and local regulations.

    An owner starting a new business that follows state and federal regulations. 

    Register Your Business

    Registration is the first step toward making your business a distinct legal entity. The rules on what you need to do to register your business vary depending on two factors: your location and business structure. 

    State registration

    Depending on where you conduct business, you may only need to register your business name with your state and local government. This can be as simple as providing an entity name to your state and county clerk’s office, along with a Doing Business As (DBA) name if you conduct business under a different term than your personal or entity names. However, a registered agent that will receive official legal documents or other papers is required for any new LLC, corporation, partnership, or nonprofit corporation. This agent must be in the same state as where you register.

    When it comes time to register in your state, you’ll need to provide some basic information and pay a fee. The cost of business registration varies, but it’s typically somewhere around a few hundred dollars. The information you provide typically includes your business name and location, registered agent information (if required), and details on ownership, directors, and management structure. Certain states may also require some additional documents based on your business structure. Per the Small Business Association (SBA), these can include:

    • For LLCs
      • Articles of organization
      • LLC operating agreement
    • For limited partnerships
      • Certificate of limited partnership
      • Limited partnership agreement
    • For limited liability partnerships
      • Certificate of limited liability partnership
      • Limited liability partnership agreement
    • For corporations
      • Articles of incorporation
      • Bylaws of resolutions
      • Number and value of shares

    If you plan to operate in states outside your registered location, you’ll need to file for foreign qualification. This requires filing a Certificate of Authority with the state office in question and paying any related fees. According to Forbes, foreign qualification is required if you can answer “yes” to any of the following questions.

    • Do I have a physical presence (e.g., office space or retail store) in the state?
    • Did I apply for a business license in the state?
    • Do I often conduct face-to-face (not just email/phone/Skype) meetings with clients in the state?
    • Does a substantial chunk of my company’s revenue come from the state?
    • Are any of my employees working in the state? Am I paying state payroll taxes there?

    Federal registration

    Unlike state and local governments, it’s not necessarily required for a business to register with the federal government to be considered a legal entity. However, there are some business statuses that do require federal registration. These include filing form 2553 with the IRS to create an S corporation or registering your business for tax-exempt status for nonprofit corporations.

    While not required, businesses can also register with the federal government for trademark protection. This act can help prevent other businesses from using your trademarked terms – or to help you act in case anyone infringes on your business, brand, or product names. You can start this process by filing to trademark your business name or any other related terms with the U.S. Patent and Trademark Office.

    Follow Tax Requirements

    Once you’ve registered your business, it’s important to make sure your business is set up to meet federal and state tax requirements. While you may not need to federally register your business, it is necessary for most new businesses to file for an Employer Identification Number (EIN) with the IRS. This unique nine-digit number is essentially a federal tax ID that allows you to set up your business’ payroll and identify your business when you send required payroll documents to the IRS and state agencies. Some locations also require businesses to have employer ID numbers for state and local governments as well. 

    In addition, businesses will need to register for an Electronic Federal Tax Payment System (EFTPS) account. This account allows business owners to pay federal taxes online or over the phone. There are also many other steps involved with setting up and handling payroll. To learn more about what it takes to make sure your payroll process is in a good place, check out our detailed guide on how to manage payroll for a small business.

    Obtain Any Necessary Business Permits and Licenses

    Depending on what your business does, you may need to apply and pay for federal or state permits and licenses. According to the SBA, any business that deals with any of the following activities are regulated on the federal level and require special licenses or permits:

    State licenses and permits are dependent on your location. Individual states tend to require permits and licenses for a broader spectrum of business activities than what’s federally required, which can mean you may need to obtain approval to operate in anything from construction to food service. In some cases, such as businesses that manufacture, import, or sell alcohol, you may need to acquire permits or licenses from both federal and state sources. Unfortunately, you’ll need to visit your state’s website to determine which permits and licenses are required and how to apply for any that pertain to your business. 

    Get Business Insurance

    Business insurance isn’t only a way to protect your business, it’s also mandatory in some cases. Federal law requires that every business has workers’ compensation, unemployment, and disability insurance, while some states require additional insurance policies. 

    Another factor is that certain types of businesses may need to carry specific types of insurance. Whether it’s mandated by local laws or you just want to protect your business against potential risks, different types of insurance can include:

    • Product liability insurance for manufacturers, wholesalers, distributors, and retailers
    • Professional liability insurance for service-based businesses
    • Commercial property insurance for businesses with property and/or physical assets
    • Home-based business insurance for businesses run out of the owner’s personal home
    • Business owner’s policy for small business owners looking for bundled coverage

    Prepare Your Business with Professional HR Management

    Opening a new business is a big investment, but it can succeed with the right team behind it. However, the administrative responsibilities of owning a business can dominate your schedule if you don’t have the right people to help you manage your business’ HR processes. That’s where a Professional Employer Organization like GMS can help.

    Every company needs proper HR management, no matter how big or small it is or how long it’s been in business. GMS can partner with you to build a strong HR foundation for your business and give you access to payroll, benefits, and other HR experts who can manage your business’ administrative needs and keep you up to date with any new business laws and regulations. In turn, you can focus your time on whatever it takes to grow your business.

    Ready to build toward a bright future for your business? Contact GMS today to talk to one of our experts about how we can support you and your company.

  • Hiring the right person isn’t an easy task. It’s even harder to do so in a timely fashion. When your business is ready to hire, it benefits you to do so quickly. Not only do long hiring processes cost you time and money, they also delay you from filling a needed role on your team (and that’s not including your onboarding process).

    Every hour spent during the hiring process is an hour taken away from other essential business tasks. However, it’s also vital to recognize that rushing a hire can lead to other costly issues. Settling for a bad fit – or worse, dealing with negligent hiring – will only set your business back even further. Hiring means you need to perform an important balancing act – speed up the hiring process while finding the right candidate.

    While tricky, it’s not impossible to speed up the hiring process without rushing. Here are ways you can streamline your hiring process to get the candidates you need quicker than before.

    A job candidate interview by a company that wants to quickly hire employees. 

    Templatize Your Job Descriptions

    Every job description you write from scratch is extra time and effort you can avoid. Using a consistent format for new postings will not only help you draft descriptions quicker than before, but it can also make them easier to scan for potential applicants. 

    In terms of what format you should use, it can depend on exactly what type of position you need for your business. If you had a past job description that worked out well, you can use that as a base and modify it as necessary. If not, the following format is a good start:

    • Job summary (what it is and why it’s appealing)
    • Qualifications for the ideal candidate (both mandatory and ones that would be beneficial)
    • Company benefits
    • Clear call to action for how to apply and next steps

    From there, you can add in different sections based on what’s important to you and your business. Is company culture a huge part of your hiring process? Include a section about it in the format. You can also fill in specific parts of each description ahead of time, such as specific benefits that would apply to every potential employee. Adding these details to a base template now will only save you time on every description in the future.

    Write Clear Job Descriptions

    While a template will help, it’s important to make sure that your descriptions are specific enough to weed out certain applicants. One way to sidetrack your hiring process is to accidentally attract the wrong types of candidates. It’s important to be very clear about exactly what you want in a potential new employee to clear up any confusion from people who either aren’t right for the job or simply don’t have the qualifications. That means thinking very carefully about the following factors:

    • Which objectives the position should achieve
    • The core skills required to meet these objectives
    • Description of a typical day in the position, including regular duties, occasional tasks, etc.

    By spending a little extra time going into detail about necessary skills and objectives, you can signal to unqualified applicants that the job isn’t right for them. This in turn will save you from going through these applications (and potentially interviewing extra unqualified candidates).

    Be More Selective About the Candidates You Bring in for an Interview

    While a good description can cut out some less satisfactory applicants, you’ll still likely receive some resumes that don’t quite meet your standards. However, some people are tempted to still interview some of these applicants to try and reach a nice, round number of candidates. 

    The problem with this approach is that it’s more important to interview the right candidates instead of trying to hit a quota. If you’re only impressed by two or three candidates, focus on just them instead of hoping that a fringe applicant might exceed expectations. This also applies to people during the first-round interviews as well. If someone isn’t impressive, it’s best not to give them more of your time just because you had hoped for a certain number of finalists. In the end, being discerning will save you hours of wasted time, especially if you have a more rigorous hiring process.

    Cut Out Unnecessary Steps

    Speaking of a rigorous hiring process, try and see if you truly need every step to find the right candidate. The hiring process is different for every company, so you may be able to eliminate some measures that aren’t as important for you.

    A good example of this is the traditional request for references. If you don’t find that much value in talking to a candidate’s references, don’t include it in your process. You could also wait to ask for references for a few key candidates after you’ve interviewed them. This will cut down on the amount of calls you need to make or having to wait for these contacts to respond to your message – and that’s if you decide you need to talk to them at all. Try and identify which steps are really important for your search. If you find some are just there for show, get rid of them and use that time for something else.

    Have a Prepared List of Interview Questions

    Like your job description, it’s good to have a base list of interview questions made ahead of time. This list will make sure you’re asking the right questions every time to quickly see if a candidate is right for your position. It can also help you from going into an interview and asking all your questions off the cuff – nobody wants to accidentally bring up a taboo interview topic that can lead to problems.

    In terms of which questions to include, you’ll want to focus on inquiries that will identify certain skills and behaviors. Monster.com suggests breaking questions down into a few different groups:

    • Icebreakers to build rapport and help candidates relax
    • Traditional questions to gather general information about a candidate’s skills and experience
    • Situational questions to understand what a candidate would do in a specific, relevant situations
    • Behavioral questions to learn about how a candidate handled a past experience.
    • Culture fit questions to gauge whether a candidate would thrive in your workplace environment.

    Consider Group Interviews

    Sometimes, you have openings with several qualified candidates, but it’s hard to devote enough time to give every person a one-on-one interview. Instead of cutting a few promising people because of a time crunch, consider having multiple people participate in one interview at a time. 

    Not only will this create massive time savings, but it also has some interesting advantages. For one, multiple candidates mean that you’ll get different perspectives (and the opportunity to see how other candidates react to those perspectives). In addition, group interviews can help interviewers from getting too comfortable with a candidate. While it’s good to feel relaxed with a candidate, that newfound comfort level can prevent some people from asking some of the tougher questions that will help you gather information. 

    A Better, More Efficient Hiring Process

    When it comes to hiring, you don’t need to choose between hiring quickly or finding the perfect person. By tweaking your approach, you can achieve both goals for your business.

    Need some help streamlining your hiring efforts? Contact GMS today to talk to one of our experts about how we can save you time and money by managing your employee recruitment and onboarding processes.

  • It’s not easy running a business. In trying times, it becomes even harder. Disasters, pandemics, and other events can wreak havoc on your business. While property damage and other issues can be calculated, it’s difficult to measure the impact these events have on a key element of your business – your employees. 

    Difficult times can have a direct impact on your employees both professionally and personally. Supporting them during these times can help ease your employees’ situation, which can both resonate with your workforce and help improve productivity. Here are five steps you can take to make a difficult situation better for you and your employees.

    An employee working from home during a pandemic.

    Frequent, Clear Communication

    During difficult times, a lack of information will only create bigger problems. It’s important to act as a voice of reason, providing a clear sense of what’s going on at the office, what’s expected of employees, and providing comfort as necessary.

    While disasters, pandemics, and other events may create unusual working situations, good communication can help ease concerns and restore some sense of normalcy. Trying times call for straightforward messages that should be supportive and convey both confidence and security. Be open about the situation, tell them how your business will adapt, and make yourself and other company leaders available for questions. You also want to be very specific about next steps for the company. You may not be able to address everyone’s  concerns immediately communicating these next steps can keep everyone on the same page and eliminate confusion that will only lead to other problems.

    In terms of how to communicate these messages, there are a variety of means at your disposal. Certain channels may be more realistic than others depending on the size and nature of your business, but consider using several of these methods to make sure you can reach everyone in your company.

    • Company-wide and department-level emails
    • Posts on company intranet and internet sites
    • Updates on internal communication apps like Slack or HipChat
    • Video meetings through platforms like Zoom or Microsoft Teams
    • Personalized emails or texts
    • Signs posted onsite

    Connect with the Team

    While it’s helpful to let employees know that you or a relevant team leader is available for questions, don’t be afraid to take the first step as well if you see individuals who need help. Check in with your employees to see how they’re doing. Even if there’s no update, it’s good to show employees that they’re not alone and that their input is valued.

    It can also be beneficial to try and connect the rest of your team when separated due to disaster, pandemic, or other unexpected reasons. Video conferencing and group chat technology can help employees keep in contact and feel less isolated, so utilizing these means for business meetings or even social events like work happy hours can help improve morale in trying times.

    Mitigate Risks if Necessary

    While clear communication plays a big role in easing concerns, it’s also important to take any necessary actions as well. This includes taking measures to let your employees know that you’re taking their safety seriously. 

    Mitigating risks can take many different forms depending on the nature of your business. For a pandemic, this could involve providing facemasks, creating hand-washing stations, and adding measures to enforce social distancing. For a disaster, it could mean fixing any property damage and putting in additional safeguards, such as reinforced windows or other preventative means. Safety training can also educate employees on ways to protect themselves while showing your support for their wellbeing.

    Create Flexible Working Situations

    In a time when people may be worried about working in close proximity or need to be closer to their loved ones, a little flexibility can go a long way. If employees are concerned about coming into work, consider letting them work from home if it’s feasible. You could also loosen up restrictions on work hours so that employees could shape their schedules around personal needs. Not only can these accommodations help create a more family-friendly working environment, it can help alleviate anxiety for any concerned employees.

    Don’t Rush a Return to “Normal”

    After an event changes the way you do business, it can be tempting to try and get everything back to normal as soon as possible. However, it’s important not to force the situation until you reach a point where you can return to business as usual. 

    A disaster, pandemic, or some other trying event is a stressful, even traumatizing time for you and your business. Rushing everyone back in the office before you’re ready can lead to unfocused, upset employees who won’t be able to do their jobs appropriately. It’s best to take everything one step at a time until you can finally return to normal working conditions.

    Difficult times make hard choices even harder. Fortunately, you don’t have to navigate through these decisions alone. As a PEO, Group Management Services can take the administrative burden off your shoulders and provide guidance through pandemics, disasters, and other events. Contact GMS today to talk to one of our experts about how we can support both you and your employees.

  • With small businesses still feeling the impact of COVID-19, the New Jersey Economic Development Authority (NJEDA) is attempting to help employers ease their financial burden. Applications for the NJEDA Small Business Emergency Assistance Grant Program may be closed, but the organization still has several other initiatives available for Garden State employers. Here’s a breakdown of some various programs and loans that will be available as of May 18, 2020 or in the near future.

    Small Business fund money for organizations in New Jersey. 

    Direct Loans

    If conventional financing is unavailable, NJEDA may provide loans up to $2 million for fixed assets and $750,000 for working capital. To qualify, a business must commit to create or retain one full-time job for every $65,000 of NJEDA exposure within a two-year period.

    Learn more about NJEDA’s direct loans.

    Micro Business Loan Program

    NJEDA’s Micro Business Loan Program allows for-profit businesses in New Jersey to access up to $50,000 for working capital or to purchase equipment. These loans are available to businesses with annual revenues of less than $1,500,000 in the most current fiscal year and have 10 or fewer full-time employees.

    Learn more about the Micro Business Loan Program.

    Small Business Fund

    If you’re struggling to get bank financing, NJEDA’s Small Business Fund offers some financial resources for creditworthy small, minority-owned, or women-owned businesses. The fund offers loans of up to $500,000 for businesses with up to $3 million in revenue. In addition, these businesses must have operated for at least one full year, while not-for-profits require at least three full years in operation.

    Learn more about the Small Business Fund.

    NJ Entrepreneur Support Program

    NJEDA’s Entrepreneur Support Program is a $5 million program aimed to help out entrepreneurial companies impacted by COVID-19 in the Garden State. The program encourages private sector investors to provide continued capital flows to companies they have provided funding to in the past. To help encourage these continued capital flows, NJEDA will guarantee up to 80 percent of the total investment amount, with a cap of $200,000 per company.

    Learn more about the NJ Entrepreneur Support Program.

    Small Business Emergency Assistance Guarantee Program

    NJEDA’s $10 million Small Business Emergency Assistance Program allows qualifying businesses to access working capital loans NJEDA’s existing Premier Lenders or Premier CDFI programs. The program provides 50 percent guarantees on these – along with waived fees – as long as the business or non-profit organization uses them to cover operating expenses while they were impacted by COVID-19. Each qualifying business or organization is eligible to receive relief up to an NJEDA exposure of $100,000.

    Learn more about the Small Business Emergency Assistance Guarantee Program.

    Emergency Technical Assistance Program

    While not a direct relief fund, NJEDA’s $150,000 Emergency Technical Assistance Program is designed to provide technical assistance to New Jersey-based companies applying for other State and U.S. Small Business Administration programs. NJEDA has partnered with four organizations to offer support through this program:

    • African American Chamber of Commerce of New Jersey (AACCNJ)
    • New Jersey State Veterans Chamber of Commerce
    • Rising Tide Capital
    • Statewide Hispanic Chamber of Commerce of New Jersey (SHCCNJ)

    As part of the program, the above organizations provide application assistance in a variety of ways, including preparing financial information, packaging application documentation, and other aid. In turn, these organizations will be based on completed and submitted SBA applications for the businesses they’ve helped.

    Learn more about the Emergency Technical Assistance Program.

    —

    Trying to navigate through these uncertain financial times? Contact GMS to talk to one of our experts about any HR, payroll, or other important questions you have today.

  • Whether your business is facing a difficult financial situation or hit a slow season, it may seem like layoffs are your only option. However, there is another way that you can reduce payroll costs without completely cutting jobs: furloughs. 

    Furloughs are a cost-saving measure that can provide employers with financial flexibility without completely severing ties with employees. Of course, you’ll need to ask yourself a few questions to figure out if furloughs make sense for your business. 

    An empty workplace after a business furloughed its employees. 

    What is a Furlough and How is it Different Than Laying Someone Off?

    In short, a furlough is time off without pay. Unlike an employee who is laid off, people who are furloughed are still technically employed by your company. Instead of completely severing ties with employees, furloughs allow you to temporarily part with workers and send them home without pay. Once the furlough is over, the affected employees can return to work and resume their normal duties.

    During this time, furloughed employees cannot do any work on behalf of their employer – even a short phone call or a half-hour of work is considered a violation of the no-work rule. As such, even small tasks can result in you having to pay furloughed employees for their time (or the whole day for exempt workers).

    How Long Do Furloughs Last?

    The length of the furlough can be as short or long as you need. That means that furloughs could range anywhere from a week to several months. Indefinite furloughs are also an option if you’re unsure of how long you’ll need to maintain a lower payroll. If you plan to furlough employees, you’ll want to find a balance between the needs of your business and an amount of time that won’t drive your valued employees to find employment elsewhere.

    How Do Furloughs Affect Hourly vs. Salaried Employees?

    Employers have the right to impose furloughs on both exempt and nonexempt employees, although there are some key differences in terms of cost savings. With hourly employees, you can calculate the total number of hours saved with a furlough and evaluate savings. You can also furlough salaried employees, as these workers are only entitled to pay during weeks in which they work. As such, a long-term furlough won’t change their exemption status. 

    How Do Furloughs Impact Employee Benefits?

    While your employees won’t be paid during a furlough, they are still technically employed by your company. As such, there is some expectation that these employers are entitled to group health coverage, retirement plans, and other such benefits offered by your business. 

    Despite this expectation, you still may have the option to discontinue or reduce the benefits of furloughed employees. However, you’ll want to communicate this with your employees ahead of this decision. Of course, you’ll also need to check your state’s employment laws to see if there are any stipulations about the treatment of employee benefits during furloughs. The Society for Human Resource Management (SHRM) suggests considering the following points:

    • Your group health plan may dictate if coverage continues or ends during a furlough. Certain plans extend active coverage during short-term leaves of absence, while others set minimum hour requirements.
    • You typically must offer affordable COBRA continuation coverage for all group health plans if coverage ends because of termination or a reduction in hours. Also, an increase in the employee’s share of the premium because of the furlough is a loss of coverage for this purpose.
    • Terminating group health plan coverage for furloughed employees may lead to ACA penalties.
    • Covered employees must still pay monthly premiums/contributions to maintain coverage during a furlough. Make arrangements with employees in advance of the furlough to avoid lapses in coverage or invalidated plans. Payment arrangements for allowable coverage should be made in advance with employees and can include payments via mail, ACH, or a COBRA vendor.
    • Evaluate 401(k) and other retirement plan implications. For example, a furlough may trigger a “partial termination” clause, which may lead to 100 percent vesting for affected participants.

    Can Furloughed Employees Get Unemployment?

    While furloughed employees are still technically employed by your company, they will still typically qualify for unemployment benefits. In fact, the CARES Act expanded unemployment benefits for furloughed employees. According to CNBC, these employees are now “eligible to receive their state-administered benefit, based on previous earnings, for up to 39 weeks.”

    Can Furloughed Employees Work Elsewhere?

    Yes, furloughed employees can find alternative employment. In addition, certain states allow furloughed workers to pick up part-time jobs and stay eligible for partial unemployment.

    Determine the Right Path for Your Business

    Furloughs or layoffs are never an easy decision, but it’s important to decide the right route for your business. Need an HR partner to help you plan ahead and stay compliant with local, state, and federal regulations? Contact GMS today to talk to one of our experts about the future of your business.

  • Over the past few years, a growing number of states and cities have banned the practice of using salary history to screen potential new employees. If you’re an employer in New Jersey, you’re now included in that trend. 

    Starting in 2020, it’s not a good idea for New Jersey employers to ask job applicants how much they made. The Garden State is now one of 17 states and multiple cities to outlaw pay history questions. While similar in many aspects, New Jersey’s version of the law does have some key differences that can help employers avoid potential penalties.

    A New Jersey employer asking for salary history, which is now banned in the state. 

    The Impacts of New Jersey’s Salary History Ban

    As with other states with salary history bans in place, Bill A1094 prohibits New Jersey employers from using past wages, benefits, and other salary history-related information to vet potential job applicants. The law also prevents employers from requiring an applicant’s salary history to satisfy any minimum or maximum criteria.

    If by chance an employer breaks the rules set in Bill A1094, the law has set penalties in place. Any employers who violate salary history ban are subject to civil penalties. These penalties scale based on the number of times an employer breaks the rules:

    • Up to $1,000 for the first violation
    • $5,000 for the second violation
    • $10,000 for each subsequent violation

    Exceptions

    Unlike other state and city bans on salary history inquiries, there are a few exceptions where employers are protected in New Jersey. The state’s ban includes a couple of examples of expressly permitted activities where the employer would not be in violation of the law.

    Voluntary release

    The law does not penalize employers if applicants voluntarily provide their salary history. Of course, this disclosure must be done by an applicant’s choice alone – it cannot be prompted or coerced at all. If this information is provided, the employer may then verify that the information provided is accurate and use it to determine compensation.

    Post-offer requests

    If an employer makes an offer of employment to an applicant that includes an explanation of the overall compensation package, the employer may request that the applicant provide a written authorization to confirm their salary history. If the authorization is given, this information can include both compensation and benefits.

    Hiring internal or past employees

    The law does not extend to any internal applicants with regards to promotions or transfers. As such, employers may consider salary information for applicants who already work at their company. In addition, employers may consider past salary history information if an applicant used to work for them, but only the information that they already have on file.

    Federal law exclusions

    If a federal law requires an applicant to disclose their salary history (or requires an employer to verify that history), an employer will not be penalized for collecting and using that information.

    Incentive or commission plans

    If an applicant is applying for a position with commission or incentive-based compensation components, an employer may inquire about past incentive and commission terms. However, these inquiries cannot extend to what the applicant’s earnings were under a previous employer’s plans.

    Collective bargaining agreements

    Employers may communicate with applicants about wages or salary rates if the job has certain salary guidelines set by collective bargaining agreements or laws.

    Evaluate Your Hiring Process to Protect Your Business

    While the salary history ban is a more recent law, it’s not the only regulation that employers need to consider during the hiring process. There are a variety of illegal interview questions that are off-limits for employers, such as inquiries about national origin and pregnancy status. As such, it’s important for employers to take the following steps to examine their internal processes to prevent possible violations.

    • Evaluate job applications, recruiter instructions, and background-check instructions to eliminate improper information requests
    • Examine interview templates or guidelines (and establish them if they do not already exist)
    • Treat every candidate the same during the interview process
    • Have more than one interviewer in the room and take notes to document the results

    Need an HR partner to prepare your business for new laws and other business administration headaches? Contact GMS’s New Jersey office or one of our other locations today to talk to one of our HR experts.

  • As a business owner, you want your employees to come into work with enthusiasm and motivation to take on the day. After all, employee engagement can be very beneficial to a business in a number of ways. Yet, it’s not often that companies prioritize it. According to Gallup’s State of the American Workforce Report, only one in three employees are engaged at work. Below, we shared some ideas to improve employee engagement within your small business as well as a few key benefits.

     A group of coworkers are enjoying a pizza together at the office during lunch.

    Why is Employee Engagement Important?

    Employee engagement equates to more than just workplace happiness. According to Willis Towers Watson, employee engagement is an “employee’s willingness and ability to contribute to company success.” By this definition, high employee engagement can mean significant growth for your business. Specifically, here are a few key benefits that high engagement can bring:

    • Increased productivity. Engaged employees have the ability and motivation to outperform those who are disengaged. According to Gallup, highly engaged workforces were 17 percent more productive than those with less engagement. 
    • Greater profitability. Inc magazine reports that increasing employee engagement investments by 10 percent can increase profits by $2,400 per employee per year.
    • Improved retention. Employees who are invested in their employers won’t want to look elsewhere for work. The same Gallup report found that companies reduced employee turnover by 90 percent when engagement increased.
    • Better customer service. A business’s employee experience can directly impact customer experience. According to research by Temkin Group, companies whose customer experience is significantly better than their competitors have more engaged employees.
    • Reduced absenteeism. Low job motivation can cause employees not to show up for work. Gallup also found that companies were indicated to experience 37 percent less absenteeism as a result of increased employee engagement.

    How to Improve Employee Engagement

    Considering the many benefits that high employee engagement can provide, there are many different approaches you can take to improve engagement within your organization. According to an article by The New York Times, employees are more engaged when four of their core needs are addressed:

    • Physical – when employees can renew and recharge at work.
    • Emotional – when employees feel valued and appreciated for their contributions.
    • Mental – when employees have the time to focus on their most important tasks and define when and where they accomplish their work.
    • Spiritual – when employees can do more of what they do best and enjoy most.

    With these core needs in mind, here are some cost-effective ideas to improve employee engagement within your small business.

    Lunch and Learn

    Consider this an upgrade from your typical meeting. As the name suggests, lunch and learn sessions are casual training or informational meetings hosted by a fellow employee during lunchtime. During a lunch and learn, an employee shares a short presentation on a business-related topic, such as how to use marketing automation software or a case study on an exceptional project they worked on. Participants bring their lunches, listen in, and ask questions while enjoying their lunch. Lunch and learn sessions are a great way for your employees to learn about different sides of your business and the types of projects their colleagues are working on.

    Innovation Days

    Innovation days can be a day, or a half day, where employees are allowed to use company hours to work on special projects that matter to them. It allows employees to be creative, learn new things, and try new ideas, and they will certainly appreciate you for that. As a result of setting aside time dedicated to innovation, your employees may uncover ways to reduce costs, streamline processes, and make your business even stronger.

    Team Outings

    Company culture is an important aspect of any employee’s life. According to Glassdoor, 58 percent of workers say that company culture is more important than salary when it comes to job satisfaction. Hosting work outings can make your employees want to stay for who you are and what you do, and not for just a paycheck. Consider creating a culture committee focused on planning regular team outings and office activities, such as team lunches, happy hours, picnics, sporting events, and volunteer opportunities.

    Work Clubs

    Shared hobbies can certainly bring people together. Consider creating work clubs, such as fantasy football leagues, running clubs, softball teams, and book clubs, for likeminded employees. Clubs can be a great way to change the conversation from work to personal life and can serve as a prime environment for co-workers to develop camaraderie. According to the Society for Human Resources Management (SHRM), the more friends an employee has at work, the more likely they are to reject another job offer.

    Wellness Programs

    For employees to be engaged on the job, mental and physical health can play a significant role. That’s where implementing a workplace wellness program can help. Consider wellness programs beyond smoking cessation and drug and alcohol abuse prevention. Additional workplace wellness activities could be stress management and workout sessions. Wellness challenges, such as a step count challenge or water drinking challenge, can also be a great way to add some friendly competition into the mix.

    Performance Reviews

    Providing regular feedback is crucial to keeping employees engaged. Research shows the value of feedback: four out of 10 workers become disengaged when they receive little to no feedback, 82 percent of employees appreciate feedback, and 43 percent of highly engaged employees receive feedback at least once a week. 

    Regular check-ins―whether weekly, monthly, or quarterly―allow management to acknowledge an employee’s efforts and discuss opportunities for development and growth. These discussions can help employees feel more connected to the business, as they will gain a better understanding of the individual role they play in meeting your business goals and develop a sense of purpose that will keep them engaged on the job. 

    Training and Mentorship Programs

    Employee training shouldn’t end after onboarding is complete. For your employees to stay engaged, it’s important not to let them fall into a rut. Without opportunities to develop and learn professionally, employees are more likely to lose motivation and start to look elsewhere for work. According to a Korn Ferry survey, the majority of those changing jobs said boredom and the need for new challenges were the top reasons they were leaving. 

    Employee training programs can be an effective way to not only teach new employees but also develop existing workers’ skillsets. Additionally, mentorship programs can serve as a great way to help young employees grow within your organization.

    Regular Breaks

    Regular breaks offer employees time to reset and refocus. The New York Times reports that employees who take a break every 90 minutes experience a 30 percent higher level of focus than those who don’t, as well as a 50 percent higher ability to think creatively. A survey by Staples echoes these findings, with 80 percent of respondents saying that breaks make them feel more productive. As these findings show, when breaks are encouraged, employees feel like they can have better work-life balance, which can lead to greater engagement.

    Employee Recognition Programs

    Research has found that employees not only want but expect to be recognized when they do good work. As a result, Glassdoor found that more than 80 percent of employees are motivated to work harder when shown appreciation. Employee recognition programs are a great way to accomplish that. Consider building recognition programs that are aligned with your purpose, values, and goals as a way to show appreciation, encourage positive behavior, and keep engagement levels high.

    Need more employee engagement ideas? Contact GMS today to learn how our employee performance management services can help.

  • Addressing common questions and concerns from clients and employees impacted by the coronavirus.

    Group Management Services Inc., a Certified Professional Employer Organization based in Richfield, Ohio, assures clients access to the same level of support and resources throughout the Coronavirus pandemic.  

    “Our number one priority is getting employees paid and maintaining benefits for those employees,” GMS President Mike Kahoe said. “As such, we are offering our customers grace period on all benefits, state unemployment, and workers’ comp billings.”

    GMS wants to address all concerns, starting with the list of common questions we anticipate from our clients and employees.

    GMS Operations

    Q: How will GMS employees be able to continue to work to ensure that my employees get paid during this crisis? 

    A: GMS has taken the precaution of instituting a company-wide work-from-home policy. In fact, a large percentage of our company already works from remote locations several days per week. This gives us a great deal of confidence in our ability to support you without disruption. Additionally, all GMS employees have access to all GMS systems, including phones and video conferencing, from wherever they work, and these systems are built on highly redundant platforms. 

    Technology

    Q: How is GMS protecting my data during this crisis? Aren’t allowances being made that could reduce the cyber protections in place to allow your employees to work from home?

    A: GMS has invested in cyber security improvements over the last 18 months that are effective at protecting our Clients’ data regardless of where you, or our staff, interact with it. All these safeguards remain in place, and we will maintain a high level of vigilance to ensure that your data and your employees’ payroll is secure. 

    Health Insurance

    Q: Will my GMS plan pay for the COVID-19 testing (Codes U0001 and U0002)?

    A: Yes. GMS will waive member cost share for these tests when administered by in-network providers in accordance with the CDC guidelines.

    Q: Will my GMS plan cover the treatment for COVID-19?

    A: Yes. Treatment for COVID-19 is eligible under the normal provisions of the plan when following CDC guidelines.

    Q: If I lay off part of my workforce in response to the COVID-19 crisis, can the company continue to cover those employees?

    A: Yes. As long as you continue to pay premiums, you may continue to cover laid-off employees even though they are not actively at work. Please note that you must administer the plan on a uniform, non-discriminatory basis. In other words, you may not choose to pay premiums for only certain people.

    Q: If I have to lay off my entire workforce in response to the COVID-19 crisis, can the company continue to cover those employees?

    A: Yes, as long as one person remains actively employed by the group. If you continue to pay premiums, you may continue to cover laid-off employees even though they are not actively at work. Again, this must be administered on a uniform, non-discriminatory basis.

    Q: What about continuation of coverage?

    A: As long as one person remains actively employed, employees may be offered COBRA and may elect to continue coverage under COBRA under the normal notice and election procedure.

    * If the plan has no active employees, the plan is terminated and COBRA is not an option. In that case, employees would have a special enrollment period to enroll in individual coverage or could purchase a short-term plan that is subject to medical underwriting.

    Q: If I have to terminate coverage for my employees in the middle of a month, will I receive a refund of my premium for the rest of the month?

    A: While your contract states that GMS will not refund a partial month’s premium, we will refund the proportional amount of premium should you terminate your coverage before the end of the month given the gravity of the current situation.

    Q: In light of the COVID-19 crisis, can I get a grace period extension on paying my premium?

    A: Yes. GMS is offering to extend the grace period for your next monthly premium payment by up to 60 days.

    Q: Will employees who are laid off temporarily as a result of COVID-19 concerns be permitted to rejoin the plan without a waiting period when they return to work?

    A: Yes. There will be no waiting period for current employees who are rehired by May 31, 2020. New hires are subject to any waiting period the plan requires.

    Q: Will I lose my job-based group-health coverage? 

    A: You may qualify for tax credits that can lower your monthly premiums and for lower out-of-pocket costs. Please inquire with your Benefit Account Manager if you have any questions.

    Q: Is our GMS pharmacy plan through MedTrakRx going to allow early re-fills on prescriptions if necessary?

    A: MedTrak has relaxed its refill-too-soon edits for non-opioid and non-specialty medications. These are not changes that will happen automatically and will occur at the discretion of dispensing pharmacists.

    Q: What does the Families First Coronavirus Response Act mean to covering testing for Covid-19?

    A: On March 18, 2020, President Trump signed the second coronavirus relief measure into law – the Families First Coronavirus Response Act (Act). Effective immediately, the Act requires group health plans and health insurance issuers to cover COVID-19 testing without imposing any cost sharing (such as deductibles, copayments, or coinsurance) or prior authorization or other medical management requirements. During this public health emergency, health plans and issuers must cover FDA-approved diagnostic testing products for COVID-19, including any items or services provided during a visit to a provider (in-person or telehealth), urgent care center or emergency room that relate to COVID-19 testing. This coverage cannot be subject to any plan deductible, copayment, or coinsurance. This coverage mandate does NOT require health plans and issuers to cover COVID-19 treatment at no charge. Exact coverage details for COVID-19 treatment, including any cost-sharing amounts, will vary by plan.

    Q: Will private health plans cover the cost of COVID-19 diagnostic testing that occurs prior to April 2?

    A: Yes, this section of the legislation is effective from the date of enactment, March 18, 2020, through the end of the national emergency period. The Act states that “a group health plan and a health insurance issuer offering group or individual health insurance coverage  shall provide coverage, and shall not impose any cost sharing (including deductibles, copayments, and coinsurance) requirements or prior authorization or other medical management requirements” for specific items related to testing or related health care provider visits.

    HR

    Q: What should Employers do if an employee discloses they have been in close contact with a person who tested positive or who is awaiting test results for COVID-19?

    A: According to the CDC, individuals who have had close contact with a person diagnosed with COVID-19 should self-quarantine. Employers can require an employee who has been exposed to the virus to stay home. Your HR Account Manager would be happy to help you navigate through these types of situations.

    Q: If an Employer is considering a temporary or permanent lay off what steps should be considered?  

    A: Employers should work closely with their HR Account Manager who will help guide them through this process. Items to consider include how to appropriately select employees for lay off, necessary documentation to provide to the employee, COBRA and Health Care Benefits (if applicable), and assisting with unemployment benefits.

    Q: If my state has instituted a “Stay at Home” order allowing only Essential Businesses to continue operation, what qualifies as an “Essential Business?” 

    A: In Ohio, for example, essential businesses are allowed to continue to operate, but must comply with social distancing requirements. A few examples of these are: 

    • Healthcare and public health operations
    • Human services operations
    • Essential infrastructure
    • Essential government functions
    • Stores that sell groceries and medicine
    • Food and beverage production and agriculture
    • Charitable and social services
    • Gas stations and businesses needed for transportation
    • Critical trades
    • Restaurants for off-premise consumption
    • Transportation
    • Professional services
    • Hotels
    • Home-based care

    For the full order and list, please reference the following link – Order to Stay at Home. 

    The Governor of Ohio has issued a Stay at Home Order effective March 23 at 11:59 p.m. and lasting for the next two weeks. Group Management Services is considered an Essential Business. All our services will continue as normal. We will also continue to monitor developments and recommendations from the CDC, Federal, State, and Local government. We hope you are doing well. Please let us know if there is anything we can do to help.

    Q: What are my next steps?

    A: If you are considered an essential business, we are happy to help guide you through the social distancing requirements. If you are unable to continue business because of the Stay at Home Order, we are happy to help you navigate next steps. If you have positions that have the ability to work from home, we are happy to help create a work from home policy. In the unfortunate event your business requires layoff of some or all of your workforce at this time, we can assist in documentation, communication, and next steps.   

    Q: President Trump signed the Families First Coronavirus Response Act (FFCRA) on March 18, 2020, so its provisions go into effect no later than April 2. Will the leave provisions, Emergency FMLA (EFMLA) and Emergency Paid Sick Leave (EPSL) be applied retroactively?

    A: When a law is to be applied retroactively it will typically state so in plain language, which this legislation does not. Therefore, the law will likely not be enacted retroactively. GMS will alert you of any change to this.

    Q: From now until April 2, how should we handle employees who need time away from work for COVID-19 related reasons? What documentation should we require?

    A: Until the legislation takes full effect, continue handling these situations as you have been on a case by case basis. Work with your HR Account Manager for assistance. Rely on current employment policies, including but not limited to paid time off, paid vacation, sick leave, or other leaves of absence policies. Certification for certain absences (advisement by health care provider to self-quarantine, experiencing symptoms, seeking diagnosis) may be hard to obtain due to doctors not seeing patients, providing notes, or conducting full testing. GMS has created the attached Documentation on a COVID-19 Absence that may be used to gather facts and communicate details of a potential leave of absence. This would be filed in the employee’s confidential personnel file. 

    Q: Do you have the forms necessary for employees to file for EFMLA and EPSL?

    A: No, official forms or documentation have not been released yet by the Federal government. We will provide if, and when, they become available.  

    Q: Do we have to offer EFMLA and EPSL to employees who are already or who will be laid off prior to April 2?   

    A: No, if employees are laid off, they become eligible for unemployment compensation under the Emergency Unemployment Insurance Stabilization and Access Act. This is handled separately from EFMLA and EPSL. 

    Q: If I cut an employee’s hours, can they apply for partial unemployment?

    A: Yes, an employee experiencing a reduction in hours may apply for and obtain unemployment benefits. In Ohio, if the reduction in hours is due to COVID-19, employee should provide Mass Layoff ID# 2000180. These layoffs will not affect your unemployment rate as all coronavirus layoffs will be charged to the Ohio Unemployment Mutual Fund and will not be charged to your account.

    Q: If an employee is CHOOSING to stay home out of fear of exposure, how do you recommend we handle this scenario?

    A: Evaluate the safety precautions you, as a business, have taken to protect employees and prevent the potential spread of COVID-19. If you feel that you have taken all preventative measures within reason, review your current time off policies and available time off balances with the employee, or explain the unpaid model you have been utilizing. 

    Q: How can an employer apply for and receive the small business exemption to the leave provisions of the FFCRA?

    A: Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave in cases where the viability of the business is threatened. That said, it remains to be seen how to request an exemption and for which provisions of the legislation the exemption will apply to. Please note the FFCRA allows tax credits up to 100 percent of the cost of paid leaves. Under guidance that will be released this week, eligible employers who pay qualifying sick, childcare, or other leave will be able to retain an amount of the payroll taxes equal to the amount of qualifying leave paid, rather than deposit them with the IRS. Per the legislation and the IRS, the payroll taxes that are available for retention include withheld federal income taxes, and both the employee and employer share of Social Security and Medicare taxes. 

    We will be covering tax credits and small business relief on Friday, March 27, 2020 during the next webinar in our COVID-19 webinar series. Please join us. You may register here: https://attendee.gotowebinar.com/rt/6872645169703825931 

    Unemployment

    Q: Will Coronavirus related layoffs affect my unemployment rate?

    A: Every state is different. In Ohio (where we are headquartered), these layoffs will not affect your rate. All coronavirus layoffs will be charged to the Ohio Unemployment Mutual Fund and will not be charged to your account.

    Q: Will my employees have a waiting week before their unemployment starts?

    A: No, Governor DeWine (Ohio) has waived the waiting period for all lack of work claims so employees can start collecting as soon as the claim has been processed.

    To learn more about GMS, visit https://www.groupmgmt.com/about-us/.