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  • If you’ve noticed that your family health insurance prices are on the rise, you’re not alone. In fact, the cost of family premiums for employer-sponsored coverage has jumped 47% in the last decade – which outpaces wage growth at 31% and inflation by 23% over the same period. In the last year alone, premiums for family coverage reached an average of $22,221, a 4% increase.

    Roughly 155 million people rely on employer-sponsored coverage, with 59% of employers offering health benefits. It’s no secret that the larger the company, the more likely they are to offer a health plan. That said, the looming crisis of affordability continues to be an ongoing issue throughout the country. This proves especially true for small businesses with tighter budgets and fewer management resources at their disposal. On average, small businesses pay 8-18% more than large firms for the same insurance plans. Furthermore, location and industry type can make your organization’s premiums even (you guessed it) higher. Northeast and Midwest regions of the United States typically see more expensive premiums – as do those in the transportation, utility, and construction industries.

    Outside of the cost to implement a group health plan, many small business owners are often spread too thin – thus making the cost of time to actually administer the plan yet another hurdle to overcome. Managing a group health plan can be labor-intensive because of the ongoing regulatory changes, complicated communication processes, and the dreadful renewal process.

    Still, not offering health benefits is a recruiting and retention risk that you do not want to take. “Offering a healthcare plan is one of the most effective steps you can take as we continue to witness a workforce shortage,” shared GMS VP of Benefits, Beth Kohmann. “In today’s turbulent times, people throughout the country are looking for a solid, affordable healthcare plan to give them peace of mind. As an employer, providing that to your employees is one of the most vital things you can do.”

    Given the difficulty of offering an affordable, comprehensive plan, it’s easy to see why many business owners turn to a Professional Employer Organization like GMS. When you partner with GMS, you’ll take advantage of our consultative approach, giving you plan options and savings that will benefit your organization. In fact, last year GMS family premiums were 34% lower than the U.S. average.

    Contact us today to discuss a health plan tailored to your organization’s needs.

  • New For 2022: 401(k) Contribution Limit Rises   

    The IRS announced the 2022 cost-of-living adjustments (COLAs) for employer-sponsored retirement plans. Both employee and employer limits will increase due to the continued rise of inflation. Employees under the age of 50 will now be able to max out their contributions at $20,500. This is a $1,000 increase from the cap in the years 2020 and 2021. Employees aged 50 and older will continue to be able to contribute an extra $6,500 in catch-up contributions, which has been unchanged for the last two years. 

    In addition, the employer-plus-employee contribution limit will increase to $61,000 in 2022, up by $3,000 from 2021. This is particularly beneficial for employers that make an annual profit-sharing contribution. 

    When dealing with the annual limit as a contribution goal, not all employees will be able to fund the maximum amount. However, if employees consider raising their contribution rate by even 1% each year, they will see a dramatic impact at retirement. “If your employer offers a matching contribution, it’s important to try and contribute at least that percentage as a minimum,” said Tom Smith, Manager – Executive & Retirement Benefits for GMS. “Also, striving to increase your personal deferrals each year in order to eventually reach those annual contribution limits will help increase your odds for a comfortable retirement.” 

    Employees that do want to max out their contributions should check in with their employer about reaching the annual limit prior to year-end. If this occurs, employees may lose out on employer matching contributions tied to each paycheck. Certain plans allow for a year-end “true-up” contribution, so it’s best to know your company’s 401(k) plan provisions to ensure you are receiving the maximum employer match.  

    It can be challenging for both the employer and the employee to comply with these limits. Employers must ensure that their payroll systems do not accept contributions once the limit is reached. Employees also must remember that the annual limit applies to the total contributions between all 401(k) plans. Since the contribution limit is an aggregate total, employees who work at multiple jobs over the course of a year and contribute to multiple different 401(k) plans will need to self-police how much they are contributing to each plan, so that they do not contribute more than the IRS limit. 

    How GMS can help:   

    Partnering with a CPEO (Certified Professional Employer Organization) like GMS can allow you to offer 401(k) and profit-sharing plans for your employees. It’s no secret offering retirement plans is important to recruit and retain quality employees, but they do come with a lot of complexity and risk. GMS takes on the role of the fiduciary to ensure employers maintain compliance, which means that business owners do not have to waste time trying to make sense of their legal responsibilities. When you work with GMS, we will take care of the administrative tasks, auditing, and plan management.  

    Interested in cutting costs and reducing stress? Contact GMS today to get your customizable 401(k) or profit-sharing retirement plan started. 

  • Why Certified Professional Employer Organizations Are Critical To Franchises

    Franchising has proven to be an extraordinarily successful business model for hundreds of thousands across the country, as it delicately blends entrepreneurship with tailored guidance. For most successful franchisees, their strength lies in the structure of their business operations. So, it makes perfect sense that adding a Certified Professional Employer Organization (CPEO) further increases a franchise’s operational efficiencies – especially considering that effective employee management is ranked #2 in the three biggest challenges that franchises face.

    Franchise owners are exceptionally fond of the CPEO model because they maintain control of all organizational decision-making, while HR burdens and liabilities are shifted to the CPEO.

    CPEOs manage a plethora of duties within the employment process – from benefits to HR services, and even payroll and tax, thus providing an extra layer of safety by ensuring regulatory compliance. Having undergone rigorous background, financial, and reporting requirements set by the IRS, fewer than 7 percent of PEOs in the U.S. are currently certified.

    Partnering with a CPEO offers your franchise:

    Benefits: Benefits administration can be tolling, especially when you consider onboarding, claims, and most importantly… rates. Because the CPEO model aggregates the employees of its clients, they then having the buying power of large corporations. In turn, your franchise and its employees enjoy competitive rates and solid coverage.

    HR Services: Whether it’s employee handbooks, onboarding, drug testing services, or employment verification – amongst other things, your CPEO helps you simplify your HR plans. Now more than ever, as the country faces a workforce shortage, finetuning your employee experience is vital for your recruiting and retention.

    Payroll and Tax: CPEOs assume the responsibility for federal tax liability and penalties and are required to post an annual bond of up to $1 million guaranteeing payment of its federal employment tax liabilities. CPEOs ensure financial protections and tax benefits that non-certified PEOs do not necessarily have. This means paying your employees, record keeping + management reports, PTO accruals, and more, are no longer on your plate.

    Compliance: The co-employment relationship allows your franchise to substantially mitigate the risk associated with being an employer. A CPEO will provide guidance and support on new hire reporting, Employment Practices Liability Insurance (EPLI), unemployment and workers’ compensation insurance filings.

    A good CPEO can ease the mind of franchise owners while helping to reduce both their cost and liability. Contact us today to see how your franchise could benefit from with a CPEO.

  • New Jersey Secure Choice Savings Program   

    State-mandated retirement plans are increasingly popping up across the country. Currently, California, Illinois, Massachusetts, Oregon, and Washington already have retirement legislation active. Other states, such as Colorado, New Jersey, New Mexico, Seattle, Virginia, and Vermont have similar legislation passed. While their requirements are not yet active, implementation is scheduled – some beginning at the end of this year, and others not taking place until 2023. Finally, the states of Connecticut, Maryland, Maine, and New York also have legislation passed – but no clear implementation dates have been outlined.  

    Why Require A State-Ran Retirement Plan? 

    According to the National Institute of Retirement Security, 57 percent of working-age households have no retirement assets. Moreover, of those that do, only half an adequately prepared for a comfortable retirement – thus relying on Social Security for half of their retirement income. It’s no surprise that the looming retirement savings crisis exists for these reasons. 

    How Do These Plans Work? 

    There is a common misconception that plans must be offered as a 401(k). However, the majority of these plans will serve as Roth IRAs, which have a few key differences with a 401(k): 

    • 401(k)s have a higher annual contribution limit vs Roth IRAs 
    • Roth IRAs are after-tax, whereas 401(k)s offer pre-tax & after-tax contribution options 
    • Employers cannot match Roth IRA contributions, but can match 401(k) contributions 

    California, Illinois, New York, and Oregon are offering these Roth IRAs.  

    The New Jersey Secure Choice Program:  

    NJ Secure Choice is a state-sponsored retirement plan, aimed to close the retirement savings gap. The Program allows employees to contribute a portion of their pretax earnings to an individual retirement account (IRA) via payroll deductions. They are automatically enrolled at a 3% contribution rate, unless the employee changes said rate or opts out. Kulzer & DiPadvoa P.A. explained, “The program gives workers in New Jersey the option to invest the amounts withheld by their employers and remitted to New Jersey in a state-administrated Individual Retirement Account”. Contributions are capped at $6,000 annually, as required by IRS guidelines.  

    This Program applies to for-profit and non-profit employers in the public sector who have 25 or more employees and have been in business for more than two years. While businesses with fewer than 25 employees are not required to participate, they may choose to do so.  

    As it currently stands, this law is set to begin in March 2022, after a brief extension was granted due to COVID-19. Roll out is expected to take nine months – employers thereafter will have a grace period of 12 months if needed. This program imposes penalties on non-complying employees with a warning of up to $500 per employee.  

    Three Subjects Employers Must Follow Are:  

    1. Notice Requirement: For the first six months the board will have a process in which employers can register for the program and employers must have a packet to give to their employees that was prepared by the board.  
    2. Payroll Processes: Employers must have a retirement savings arrangement more than nine months after the board opens for enrollment. Any employees must be opted in unless they have opted out of the program. 
    3. Enrollment Of Employees: No later than three months following the date of hire, employers must enroll an employee hired more than 6 months after the Board opens the Program for enrollment.  

    GMS believes that employees should have options to receive a great retirement plan no matter how big or small your wage is. Our office in Cherry Hill, New Jersey is ready to help small businesses receive the best plan catered to their needs. We know that figuring out which plan is best for you can be stressful but offering a retirement plan is important when recruiting and retaining quality employees.  

    To learn more about our savings plans, contact us today.  

     

  • According to a Wells Fargo study, 37% of people expect to work until they die. That’s an alarming number, but one that you can use to your advantage.

    Most people would rather spend their later years comfortably enjoying their retirement, so by offering a quality 401k plan, you give your business a step up in attracting and retaining quality employees.

    Avoid Financial Confusion: Educate Your Group

    Before we give you the key elements to a great 401k plan, it’s worth taking a moment to remind you that financial choices can be intimidating and confusing for many employees. One way you can help is by making an effort to ensure employees are educated about their choices. These resources will help make sure everyone is on the same page.

     

    What Employees Look for in a 401(k) plan. Image 401K by 401(k) 2013 is licensed under CC by 2.0

    What is a 401(k) Plan? [Infographic]  

    Guide to your 401(k): Everything you need to know about 401(k)s. 

    Retirement Guide

    A handy guide from CNN Money that shares:

    • Top things to know about 401(k)s
    • The virtues of a 401(k)
    • How to invest in a 401(k)
    • Early withdrawals and loans
    • Rollovers
    • Taking distributions in retirement

    7 Things Employees are Looking for in a Good 401(k) Plan

    1. Generous Employer Match

    According to findings from a 2013 survey by trade publication PlanSponsor.com, the common match amount increased to be $1 per $1 on the first 6% of employee deferrals, with 19% of employers reporting this formula, which is up from 10% in 2011. 
     
    Previously a match of $0.50 per $1 on the first 6% was the most popular.Increasing the amount employers are willing to contribute may help encourage those employees to save at more robust rates, and shows employees you care about investing in their future. 

    2. “Day One” Eligibility

    The PlanSponsor.com survey also showed that 76% of plans now allow workers to begin making pre-tax contributions immediately upon hire, which is up from 71% in 2011. In addition, 53% of plans have corresponding immediate eligibility for employer-matching contributions, while 50% of plans that offer a non-matching employer contribution allow immediate eligibility. Providing new hires with immediate eligibility helps ensure they don’t lose ground in terms of saving.  

    3. Immediate Vesting Schedule

    The best plans offer immediate vesting of employer contributions, according to the Bureau of Labor Statistics only 22% of employers offer immediate full vesting. Nearly half of those use a graded vesting schedule in which the employees’ right to company contributions increases gradually (say, 20% per year) until they are fully vested. 

    4. Low, Transparent Plan Fees

    Administrative fees cover record keeping, accounting, legal services, marketing and investor education services.  Typically employees will see these fees in a hard dollar amount on their statement.

    Investment fees cover expenses associated with managing the plan’s funds. Investment Managers usually report their performances net of these fees. Both types of fees are taken from your employees’ 401k assets.
     
    Finding plans with lower fees and educating your employees on what the fees are being applied to can help set your company’s 401k package apart from your competition.

    5. Investment Options-But Not Too Many

    Select only a handful of solid investment options. This can include individual mutual funds, asset allocation funds, and target-date funds, many of which automatically become more conservative as the employees approach retirement. 

    “Study after study shows the more investment choices a company gives their employees, the less likely they are to participate because they feel overwhelmed,” says Veronica Lee, Senior Vice President of Client Services with 401k Advisors in Aliso Viejo, Calif., an independent consulting firm. 

    6. Automatic Enrollment & Raises

    91% of plans offer automatic enrollment to new employees, unless they opt out, which helped boost participation rates in 401(k) plans nationwide. Especially among younger workers who may not feel an urgency to contribute. 

    Automatic escalation provisions, in which the amount of pretax money that employees contribute toward their 401(k) plan automatically increases annually, also shows that a company is looking out for their employees. 

    7. Give Employees Access to Expert Financial Resources

    Many employees have limited investment knowledge, so employers have significantly increased the availability of outside investment advisory services. Three out of four plan sponsors now offer access to such services, the most popular being one-on-one financial counseling (59%), online guidance (55%), managed accounts (52%) and online advice (46%) according to a survey from PlanSponsor.com.

    What else do you look for when considering the 401k plan you’d like to offer your employees? Let us know your thoughts in the comments below.

  • Good businesses need good employees, and good employees look for good opportunities. A competitive benefits package plays a major part in attracting quality talent to your company, as well as retaining current workers. 

    Employee benefit administration can be a time-consuming and costly endeavor for a small- to mid-size company, especially one that wants to offer a complex benefits package. Instead of just accepting the hassle as a necessity, you should consider the possibility of teaming up with a Professional Employer Organization (PEO) like Group Management Services (GMS) to benefit your benefits.

    Employee benefits administration is yet another service provided by a PEO.

    Many Parts, One Partner

    A good benefits package in a pretty complex affair. Some elements of a package may include:

    • Health insurance

    • 401k retirement plans

    • Profit sharing

    • Supplemental insurance plans

    • Benefit administration

    • Group life

    • COBRA

    • Disability

    • Dental

    • Vision

    That’s a lot of information to have to focus on and administer out to your employees. Fortunately, a PEO has trained professionals that can manage your business’ benefits package.

    This also leaves you with one point of contact for your benefits package needs, instead of needing to deal with multiple providers when you have questions.

    Saving Time and Money

    Another advantage of partnering with a PEO is that it allows you more time to focus on your business. While you handle your area of expertise, GMS’ experts can streamline your employee benefits administration. In fact, we help out so many employers and their employees that we have greater buying power through economy of scale.

    The Right Fit

    A good benefits package can help you attract and retain talented employees. If you’re looking to save some time and money on employee benefits administration, contact us today to see if a PEO is the right fit for you and your company.

  • Why did you start your business? Maybe because you are good at doing something. Maybe because you can offer a service that not many others can.

    You worked hard to grow your business, to show everyone why they should use your company for their needs. You are a professional, and nobody knows your business better than you do. So why would you ever consider outsourcing back office tasks to a PEO if you can do them yourself?

    At the end of the day, we all want the same thing: to be successful. Sometimes, to succeed we need to embrace the fact that we can’t always do everything ourselves.

    Image of a human resources outsourcing company.

    Why it Can Pay to Outsource to a PEO

    PEO stands for Professional Employer Organization. Just like you are a professional in your industry, GMS is a professional in ours. If you care about your business and your employees, you want to make sure that your company is a well-oiled machine! That’s why our team of well-versed, educated, and honest specialists help small to mid-sized businesses thrive every day. 

    We believe that just because you don’t have thousands of employees doesn’t mean you shouldn’t have access to the same buying power or experts! 

    As a business owner, doing everything yourself can be overwhelming, especially when you find that some areas are getting neglected or are distracting you from the business. 

    By outsourcing basics like payroll management, workers’ compensation claims, benefits administration, and any human resource function to GMS, you can acquire better, less expensive services than if you were to go hire an individual to do that for you. 

    A PEO can help you go back to focusing on your business knowing that these things aren’t just being done, but that they’re being done right. Contact us today to talk to a GMS representative about how we can help you and your business.

  • From payroll to benefits to recruitment, human resources is an important function that keeps a business running. And like any other business function, the management and implementation of these HR responsibilities all incur costs that you’ll need to factor into your budget as you plan for the new year.

    Whether you’re basing your budget on last year’s expenditures or planning every budget item from scratch, it’s important to review your different HR needs, so you don’t come up short in the places where you need extra funds. The better you can understand these HR costs, the better you can plan what the next year will look like for your company. Done well, an HR budget will help to prevent over-hiring and understaffing and ensure you have the resources to keep your team engaged on the job. Here are some key HR components that you should consider when planning a yearly budget.

    Image of money set aside for HR budgeting items for next year.

    Recruitment

    There is one big question when it comes to employee recruitment: How many people do you expect to add next year? The answer to that question will dictate how much you’ll need to put into recruitment efforts for your business.

    Employee recruitment can be expensive. The Society for Human Resource Management (SHRM) writes that companies spend an average of $4,129 per hire in recruitment costs. These costs include attempts to find candidates and actions to help qualify those targeted recruits, such as:

    • Advertising
    • Travel and events (e.g., College job fairs)
    • Drug testing
    • Background checks
    • Agency fees
    • Relocation

    Not to mention, you’ll have to account for the time it takes to screen and interview candidates, which could take anywhere from a couple of weeks to a few months. Every hour spent during the hiring process is an hour taken away from other essential business tasks. 

    Whether you’re looking to expand your staff or work in a high turnover industry, you should create a budget for your planned recruiting efforts. If you’ve been keeping track of how much you’ve spent on recruiting in past years, extrapolate that number based on how many candidates you want to hire in the coming year so that you don’t come up short when you need to fill an important position.

    Training and Development

    Once you hire new employees, you’ll need to train them. Not only can training better prepare your new employees for their positions, “95 percent of hiring managers considered employee training as a key retention tool,” according to a study conducted by the Chartered Institute of Personnel and Development.

    Of course, training and development costs money. According to the Association for Talent Development, the average cost of training is $1,888 per employee for businesses with fewer than 500 workers. These costs can include:

    • Internal training programs
    • Event registration fees
    • Travel expenses
    • Educational materials
    • Consulting fees

    Employee Wages and Salaries

    Payroll is one of the biggest items that you’ll have in your HR budget. The Houston Chronicle estimates that the average business spends somewhere between 15 to 30 percent of its gross revenue on payroll, although companies in the service industry may be closer to the 50 percent range. Regardless of your industry, make sure to take employee salaries into account, plus any estimated costs for any new employees you expect to add on in the coming year.

    While salaries are a huge part of your compensation budget, there are other considerations as well, such as payroll management costs, potential overtime hours, and any incentive programs. This also includes any raises, whether you give employees raises that coincide with performance evaluations or annual cost of living raises to account for inflation.

    Employee Benefits

    In addition to employee pay, there’s also a wide variety of benefits, such as health insurance, 401(k) contributions, and any other ancillary benefits, that you may offer as part of your overall employee compensation package. These costs will require a portion of your HR budget, too. 

    If you offer health insurance, as many small businesses do, it will likely take up a sizable portion of that budget. According to SHRM, the “average cost of providing healthcare makes up 7.6 percent of a company’s annual operating budget.” As an employer, you can control some of these costs by electing how much of the health insurance premium you’ll contribute and how much will be your employees’ responsibility. As you go through the budgeting process, you’ll want to account for any possible increases for next year’s health insurance premium, as well as review your contribution strategy. Keep in mind, these healthcare costs don’t necessarily include other insurance benefits you may offer, such as dental, vision, and life insurance. 

    Additionally, if you contribute to your employees’ 401(k) retirement plans, you’ll need to factor these amounts in to your budget as well. Fortunately, this should be an easy line item to budget for next year. Since it’s a fixed percentage, you can estimate that all employees will receive a specific amount.

    Employee and Labor Relations

    While compensation, benefits, and training can go a long way toward improving employee morale, there are some other measures you can take to reward workers. These include:

    • Service awards
    • Recognition efforts
    • Performance and attendance incentives
    • Company events
    • Employee birthday perks and gifts

    These items may not make up a massive part of your budget compared to other key HR needs, but they can be important additions to your company culture. Also, you never want to find out that you have to cancel those service awards because you forgot to plan ahead for them in past budgeting meetings. 

    On the flip side, you may also want to consider setting aside a small portion of the budget in case you face any labor relations issues. Budgeting for outplacement or legal fees can help your business prepare in case you have any unexpected issues in the upcoming year. 

    Health, Safety, and Security

    HR budgeting also gives you a chance to invest in the well-being of your employees by making your work environment a safer, healthier place. By putting aside some of the budget for certain programs or initiatives, your business can reap the rewards of focusing on health, safety, and security.

    In terms of workplace safety, GMS’ own Jeff Costin notes that workplace safety programs can increase workplace productivity, improve retention rates, and reduce costs affiliated with injuries at work. Budgeting for safety training programs, new safety manuals, regular inspections, and other strategies can help you manage workers’ compensation claims costs and make your workplace safer in the coming year.

    Budgeting for health-related programs can also be a worthwhile expense to plan for the next year, as 75 percent of all healthcare costs are attributed to preventable conditions. A workplace wellness program can help your employees develop a healthier lifestyle through a variety of initiatives, such as:

    • Smoking cessation programs
    • The addition of a fitness facility or space
    • Health screenings
    • Lunch and learn events

    An HR Budgeting Partner

    Once you have your HR budget in place, you’ll need to have the support to move forward with all your plans and manage your HR administration needs. A Professional Employer Organization (PEO) like Group Management Services (GMS) can help businesses manage these HR functions, including payroll and benefits administration. 

    If you have any questions about how to get the most out of your HR budget or are worried about any compliance concerns associated with managing HR, contact GMS today to talk with one of our experts about how we can help your business prepare for the future.

  • Managing the operations of a small business is costly and requires time away from more valuable projects. That’s why many small and mid-size businesses outsource human resources, payroll, employee benefits, and risk management services. A PEO (Professional Employer Organization) can help take these responsibilities off the plate of business owners, so they can focus on the growth and success of their business.

    We’ve put together a guide to understand what PEO services entail and how to choose the right PEO for your business.

     PEO services help small and mid-size businesses with employee management.

    What is a PEO?

    A PEO provides comprehensive business solutions and services. Through the co-employment model, PEOs work with small and mid-size businesses to:

    • Manage payroll and tax administration
    • Manage human resources and risk management functions
    • Provide employee benefits
    • Stay compliant

    By providing these services, PEOs help make the companies they serve a better place to work and conduct business. This typically translates into faster growth, higher retention rates, and increased success for businesses. The National Association of Professional Employer Organizations (NAPEO) found that businesses working with a PEO:

    • Grow 7 to 9 percent faster
    • Have 10 to 14 percent lower employee turnover
    • Are 50 percent less likely to go out of business

    PEOs help businesses grow by allowing them to spend more time improving productivity and profitability while focusing on their core mission. Additionally, employees benefit by gaining access to big-business employee benefits such as 401(k) plans, wellness programs, and health, dental, life and other insurance offerings. All of this contributes to the success of a company.

     

    How to Choose a PEO

    There are more than 900 PEOs in the U.S., according to NAPEO. With so many options, it can be hard to know which one to choose. Follow these tips to help you to choose the right PEO for your business.

     

    Assess Your Business Needs

    Before talking to a PEO, you should take stock of your business needs. What current challenges does your business face? Do you anticipate any changes to your company that could impact the services you need? Look at facets of your business, such as:

    • Payroll: Between managing payroll and filing taxes, small and mid-sized companies spend an average of $2,000 per employee each year to handle payroll and many incur IRS penalties each year due to compliance issues. Outsourcing payroll services to a PEO can save you time and money by providing you with a simplified, online payroll system.
    • Human Resources: From recruiting and retaining employees to tracking vacation time, managing your company’s HR responsibilities takes a lot of time. Outsourcing these HR functions to a PEO can help you save time and money, while growing your business.
    • Risk Management: Managing your company’s risk on your own can be time-consuming and costly. Instead, you can build toward a more secure future by outsourcing to experts at a PEO. PEOs can help you qualify for workers’ compensation discounts, keep unemployment tax rates down, and create a safer environment for your employees.

    Identifying your needs within each of these categories will help you better determine how your business will use a PEO and set the stage for choosing a qualified partner.

     

    Build Your Benefits Package

    Employee benefits will make your business a great place to work and help retain talent. While you’ll be hard pressed to find a PEO that doesn’t offer access to health insurance, the providers they work with and the amount of coverage their plans provide will vary. In addition to assessing your business needs, you’ll need a good sense of what types of health coverage your current and future employees will require and what you’re willing to spend on it.

    When you work with a PEO, instead of directly with insurance companies, you’ll be able to leverage buying power through mass policies, which lets you take advantage of purchasing multiple policies at typically lower premiums. 

    Speaking of multiple policies, you’ll also want to consider other benefits like dental, vision, and life insurance as well as 401(k) retirement savings programs to make your business more attractive to quality candidates. Additionally, wellness programs can help manage your premiums, while keeping your business running like a well-oiled machine. Whichever benefits are most appealing for your business, you’ll want to do your research to make sure you find a PEO that has everything you require.

     

    Perform a PEO background check

    When vetting PEOs, it’s important to look at their history, experience, and qualifications. Ask questions, such as: 

    • How many companies do they partner with? 
    • Do they have experience working in your industry? 
    • How many employees do they represent? 
    • What is their client retention rate? 

    And don’t forget to look at reviews from places like Google and Facebook. These are all telling signs of whether a PEO will be able to properly handle your business needs.

    Additionally, accreditations from organizations like the Better Business Bureau (BBB) and certifications, such as the Certification Program for Professional Employer Organizations (CPEOs) from the IRS, help demonstrate trustworthiness and reliability in a PEO. CPEO certification affects the employment tax liabilities of both the CPEO and its customers. To become and remain certified under the CPEO program, CPEOs must meet tax status, background, experience, business location, financial reporting, bonding, and other requirements. With only 37 CPEOs in the country, small businesses know they are working with a trusted partner.

     

    Evaluate a PEO’s Technology

    The purpose of PEO is to make your life easier. If the technology platform that a PEO offers isn’t simple to use, then the PEO is going to be more of a burden than an asset to your company. Web-based payroll portals benefit employers by compiling everything they need to manage their back office in one place. They also help employees get paid on time, track time, and access W-2’s and paystubs. 

    Your PEO’s online payroll system should help employers:

    • Manage and access payroll information
    • Complete payroll in minutes, not hours
    • Easily keep track of deductions
    • Simplify workers’ compensation calculations and payments
    • Generate on-demand payroll reports

    These payroll functions streamline the process for employers and keep employees satisfied. 

    Beyond payroll, any other administrative functions a PEO can digitize is only to your advantage. Your PEO should offer online data collection services for:

    • Employee reviews
    • Timekeeping and PTO requests
    • Health insurance and employee benefits
    • Company communication
    • Employee handbooks

    Being able to store these types of files in an online portal makes it easier for you to access, edit, and track.

     

    Focus on Your Business

    The point of working with a PEO is to ease your workload. A PEO that you have to manage is only going to add to your stress and laundry list of tasks and responsibilities. Knowing your PEO is taking care of your more administrative needs while you focus on the core of your business is comforting to business owners.

    Your PEO should provide you with designated HR, payroll, and benefits specialists to meet all of your needs. Additionally, your PEO should have a comprehensive risk management team, from  safety specialists that keep your workplace and employees safe, to unemployment and workers’ compensation experts to investigate and help process claims.

    By having a PEO handle the HR, payroll, benefits, and risk management side of your business, you’ll be able to focus on what really matters: building your business. 

     

    Work With a PEO

    When you work with a PEO, you need to make sure all your needs will be met. Group Management Services offers payroll, human resources, employee benefits, and risk management services to help your business succeed. With our proven history, easy-to-use online payroll portal, and dedicated team of experts, GMS is proud to take on your administrative burdens. When you work with us, you can put your focus back on client relationships, building an effective team, and growing your profits, while we help you reduce costs, limit risk, and save time and money.

    Ready to work with a best-in class PEO? Contact GMS today to talk with one of our experts to see how we can make your business simpler, safer, and stronger.

  • Changes in healthcare are prompting many small business owners to rethink the role of employee benefits like health insurance at their companies. According to PricewaterhouseCoopers, health insurance premiums are expected to rise by 6 percent in 2020, which can weigh heavily on your bottom line. Below, we explored some of the top health insurance trends that will impact small businesses and how you can adapt in the ever-changing benefits landscape.

     Small business health insurance is changing in 2019.

    Small Business Health Insurance Trends

    In order to stay competitive in an ever-tightening market, small business owners must develop savvy benefits strategies to attract and retain top talent. From trending workplace initiatives to increases to federal regulation changes, here’s how small business healthcare is changing in 2020.

    Increase Deductibles

    To combat rising premium costs, many small businesses are switching their insurance offerings to high deductible health plans (HDHPs). HDHPs can be paired with health savings accounts (HSAs), which allows employers to make tax-free contributions to their employees’ accounts and receive tax benefits. Additionally, the funds rollover every year, making them a great supplement for retirement savings accounts and an attractive employee benefit.  

    According to the Society of Human Resource Management (SHRM), 56 percent of employers offer HSAs as a benefit—a percentage that is expected to see rapid growth in the coming years. According to Devenir, HSAs have risen 12 percent year-over-year, with assets growing by 20 percent annually. The investment advisory and consulting firm projects that by the end of 2021, the HSA market will approach $88 billion in assets held by more than 30 million accounts.

    Prioritize Preventive Care

    With rising health care premiums, unhealthy habits can further drive up small business healthcare expenses. As a result, preventive care will become a larger priority for small business owners in the coming years.

    Already, the Centers for Disease Control and Prevention reports that almost half of U.S. businesses offer some type of wellness program. Moving beyond counting steps or logging water intake, initiatives like gym memberships, screening tests, and smoking cessation programs will be commonplace among small businesses in 2020. 

    Benefits PDF

    Offer Virtual Care

    Seeing a doctor in person can be inconvenient and costly when you factor in scheduling issues and co-pay fees. Many small businesses have found telemedicine, also referred to as telehealth or virtual care, to be a good solution. According to the National Business Group on Health, 56 percent of the companies surveyed currently offer telemedicine services to employees. NBGH projects nearly all companies offering group health care plans will also provide telemedicine by 2020.

    Telemedicine allows a patient to have a consultation with a medical provider via a computer, smart phone, or tablet. It’s an attractive benefit that allows patients to see a doctor around the clock, saving you and your employees time and money. In fact, insurance broker firm Willis Towers Watson found that employers could save up to $6 billion per year by providing telemedicine.

    Utilize Benefits Technology

    Small firms are increasingly looking to better utilize technology for help managing employee benefits. A Guardian Life Insurance study found that nearly half of all small businesses are more digital than paper-based—a percentage that will continue to grow as more business owners realize the low cost and high potential. 

    Migrating benefits administration to a web-based portal offers a simpler and more efficient way for employers to manage their back office in one place. In addition to managing benefits, small businesses can look to digitize payroll, employee reviews, timekeeping, PTO requests, and company communication.

    Improve Compliance

    As a small business owner, you know your employees, business, and industry like the back of your hand, yet when it comes to federal regulations, you’re likely left scratching your head. After all, it can be challenging for small businesses to stay up to speed on regulations and the changes made to them each year. 

    This past year was no exception, as we saw a few legal changes to health insurance. For businesses with at least 50 employees, business owners must offer the minimum essential health coverage that’s affordable or pay a penalty. In deciding whether to pay or play, keep in mind that penalties will increase by nearly 30 percent in 2020. 

    Outsource Benefits

    Managing healthcare is a timely chore for small business owners that takes them away from focusing on client relationships and workplace satisfaction. Perhaps that’s why so many small businesses have found that the best option is to outsource benefits management to a professional employer organization (PEO). 

    PEOs take on the responsibility of providing and managing things like health insurance, so employers can focus on growing their business. Not to mention, PEOs will also take on the regulatory liability of your employees, so small business owners can have better peace of mind. Working with a PEO also allows small business workers to gain access to big-business employee benefits like wellness programs and health, dental, life and other insurance offerings.

    Get Small Business Health Insurance

    With each passing year, healthcare will only become more complex. Small business owners will need greater support to navigate the changes and develop benefits strategies. 

    Group Management Services (GMS) provides a Master Health Plan, offering small business owners the best healthcare benefits at lower premium costs. We leverage our buying power through mass policies, so small businesses can purchase multiple policies like health, vision, dental and other types of supplemental insurance coverage. Additionally, GMS provides payroll and tax, human resources, and risk management services to further meet your small business needs. 

    Contact GMS today to talk with one of our experts about how your small business can offer quality health insurance at a lower cost.