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  • Navigating HR responsibilities is a complex task, and while there isn’t a perfect approach to managing them, several courses could land you in hot water. Employers often overlook their HR duties, setting up policies and procedures only to leave them for long periods without review.

    As a small business owner, you have a lot on your plate, and though you may not be intentionally neglecting your HR responsibilities, things slip through the cracks. Creating and implementing a plan for your company’s HR needs is the best way to ensure your business is protected and compliant.

    But what’s the right choice for your company – building an in-house team of HR experts or partnering with a professional employer organization (PEO) to tackle your HR needs? While only you can answer that question, we’ve compiled a short comparison of your options to help you make the best decision for you and your business.

    Cost Of A PEO VS. In-House HR

    It’s essential to understand the cost of each option to determine the best option for your business. While PEOs can offer access to various benefits, they may not be the best choice depending on your goals, business size, and current needs.

    Economies of scale vs. variable cost

    One of the most compelling financial arguments for partnering with a PEO is the benefit of economies of scale. The co-employment model allows PEOs to pool employees from multiple client companies, creating a larger collective workforce. This scale enables PEOs to negotiate better rates for health insurance, retirement plans, and other benefits compared to what a small or medium-sized business could achieve on their own. If you’re struggling to offer competitive benefits due to high costs, a PEO could be a game-changer, providing access to premium benefits packages that attract and retain top talent.

    Depending on your size and complexity, you may need to outsource certain services to third parties, such as legal counsel for compliance issues or specialized payroll services, if you opt for an in-house HR team. These variable costs can fluctuate significantly, making budgeting for HR more challenging.

    While larger companies may absorb these costs more easily, small to medium-sized enterprises (SMEs) must carefully consider these potential expenses, as they can significantly impact the cost-effectiveness of maintaining an in-house HR department.

    Fee structure vs. salaries and overhead

    PEOs typically charge businesses a percentage of the overall payroll or a per-employee per month (PEPM) fee. This structure allows PEO services to scale seamlessly with your business as it grows, with the key advantage being the bundling of services. However, for some companies, particularly smaller ones with minimal HR needs, the cost of partnering with a PEO might exceed the expense of maintaining a small, in-house HR team.

    Opting for an in-house HR department introduces different costs, primarily the salaries for your HR professionals, in addition to the overhead associated with supporting these functions internally. This includes the cost of HR software platforms, ongoing training and development for HR staff, and other resources necessary to maintain an effective HR department.

    Services Provided By PEOs Vs. In House HR

    PEOs offer comprehensive HR services, including managing payroll, administering benefits, handling workers’ compensation claims, and overseeing risk management. In other words, PEOs are a one-stop shop where the complexities of HR management can be outsourced to a team of specialists, allowing your company leaders to focus on core business strategies and growth. The breadth of services offered by PEOs can be particularly appealing if you want to streamline operations and reduce the administrative burden associated with HR tasks.

    In addition, partnering with a PEO can help ensure compliance with federal and local labor laws and implement best practices in HR management. As rules and regulations are subject to change, PEOs can give you peace of mind that your policies are up-to-date, and your business is safeguarded. PEOs offer the support needed to manage a workforce effectively, avoiding common pitfalls and legal risks, particularly for SMEs.

    Unlike the co-employment model used by PEOs, traditional HR management means that all employment tasks, responsibilities, and liabilities remain solely within your company. If you prioritize a unique company culture or have specific HR management needs, in-house HR provides the flexibility to implement customized solutions. This direct relationship between employer and employee can facilitate a closer connection and potentially more personalized management of your team’s concerns and needs. However, it also means that your business retains all legal responsibilities and risks associated with employment – so you’ll need to stay vigilant to protect your team and your business.

    Value Of PEOs Vs. Traditional HR

    Beyond the day-to-day management of HR tasks, PEOs bring a strategic edge to human resources planning. With access to extensive data analytics and industry insights, PEOs can guide businesses in making decisions that enhance HR functions. This strategic approach can lead to higher employee retention rates and increased job satisfaction, as initiatives are backed by solid data and tailored to meet your team’s and your company’s needs.

    Having an on-site HR team means employees can access HR support whenever needed. An in-house team is also deeply integrated into a company’s culture and daily operations. This proximity allows HR professionals to develop a nuanced understanding of your company’s ethos, values, and interpersonal dynamics, enabling them to tailor HR strategies and initiatives that align closely with your business goals.

    Ultimately, a thorough cost-benefit analysis should guide you in choosing between partnering with a PEO or hiring in-house HR professionals. Your decision should not only fit within your financial framework but also align with your long-term business objectives. In other words, consider the immediate costs and savings in addition to the broader impact this decision will have on your company’s operations, culture, and growth potential.

    How GMS Can Help

    GMS provides comprehensive HR solutions to small, medium, and large companies throughout the United States. As HR professionals, we take on the administrative burdens that companies don’t have the time or expertise to manage effectively, including:

    If you haven’t made up your mind and are still turning over that question of which option is the best one for you, GMS can help. Our primary goal is to help you navigate your options with clarity and confidence. Contact us today, and let us help you make the most informed decision possible.

  • California has recently made updates to two crucial pamphlets that employers are required to provide to new hires. These changes aim to ensure that workers are well-informed about their rights, benefits, and the procedures to follow in the event of workplace-related issues.

    Understanding The Updates

    The California Department of Industrial Relations Division of Workers Compensation has revised the “Time of Hire” pamphlet. Employers must provide this document to all newly hired employees. The pamphlet serves as a comprehensive guide, explaining the intricacies of workers’ compensation, including the process of filing claims and accessing medical care. This update showcases the state’s commitment to ensuring employees are equipped with the necessary knowledge to navigate the complexities of workers’ compensation.

    The ”For Your Benefit” pamphlet

    In addition, the Employment Development Department (EDD) updated its “For Your Benefit” pamphlet, which must be provided to new hires and employees upon discharge. This document outlines the various benefits that the state provides to employees in the event of termination or when they’re on specific types of leave. It also offers valuable insights into obtaining unemployment insurance, tax requirements related to unemployment benefits, eligibility criteria for state disability insurance, and a list of workers who may not qualify for unemployment benefits.

    Compliance And Accountability For Business Owners In California

    These updates remind employers of their legal obligations to provide accurate and updated information to their employees. By complying with these regulations, employers contribute to a more transparent and accountable work culture where employee rights are respected and upheld.

    In light of these updates to mandatory pamphlets for new hires in California, professional employer organizations (PEOs) can play a pivotal role in assisting businesses in the state. PEOs can provide invaluable support by ensuring businesses remain compliant with the updated regulations and offer expert guidance on workers’ compensation, state-provided benefits, and other related matters. GMS’ HR experts are here to take on the administrative burdens of small business owners in California. Contact us today to learn more!

  • If you’re like most Americans, you’ve probably changed jobs several times in your career. And each time, you may have left behind a small retirement account with your former employer. But what happens to those accounts when you move on? Do you keep track of them? Do you roll them over to your new employer’s plan or an Individual Retirement Account (IRA)? Or do you cash them out and spend the money?

    According to the U.S. Department of Labor (DOL), millions of workers lose track of their retirement savings when they change jobs. This can result in lower retirement income, higher fees, and more taxes. To address this problem, the DOL recently proposed a rule that would facilitate automatic portability of retirement accounts for workers who switch jobs.

    What Is Automatic Portability?

    Automatic portability is a feature that allows your retirement savings to follow you from one employer to another without any action required from you. It works like this:

    • When you leave a job with a retirement plan with savings totaling $7,000 or less, the plan can automatically roll the money into a Safe Harbor IRA if the plan document allows it and you do not take action after receiving the required notices.
    • When you start a new job with a retirement plan, the Safe Harbor IRA provider can automatically transfer your savings to your new employer’s plan if the plan document allows it and you do not opt out after receiving required notices.

    The DOL’s proposed rule would allow vendors to charge reasonable fees for processing these transactions, which are currently prohibited by law. It would implement provisions of the federal SECURE 2.0 Act that allow automatic portability providers to receive reasonable fees in connection with executing automatic portability transactions through a new exemption in the Internal Revenue Code. In addition, the rule would also impose certain safeguards to protect workers’ interests, such as disclosure of fees, fiduciary responsibility, data security, and record keeping.

    What Are The Benefits Of Automatic Portability?

    Automatic portability can help you save more for retirement by:

    • Keeping your retirement savings consolidated in one place, making it easier to manage and monitor your investments
    • Reducing the risk of losing track of your retirement accounts or forgetting your passwords and login information
    • Avoiding the temptation of cashing out your retirement savings and paying taxes and penalties
    • Saving on fees and expenses that may be higher in Safe Harbor IRAs than in employer-sponsored plans
    • Taking advantage of the higher contribution limits and employer-matching contributions that may be available in employer-sponsored plans

    How Can You Take Advantage Of Automatic Portability?

    To benefit from automatic portability, check with your current and former employers to see if their retirement plans offer this feature. If they do, you must ensure you receive and read the notices informing you of your rights and options. You’ll also need to update your contact information with your current employer and IRA provider so they can reach you when necessary.

    If your current employer doesn’t offer automatic portability, you can still take action to consolidate your retirement accounts on your own. You can either roll over your old accounts to your new employer’s plan or an IRA of your choice. This way, you can avoid the drawbacks of having multiple small accounts and enjoy the benefits of having a larger retirement nest egg.

    Remember, your retirement savings are your future. Don’t let them get lost or forgotten. Take advantage of automatic portability or rollover your accounts today. Your future self will thank you.

    Actions For Employers

    As a business owner, the first step in supporting your employees is determining whether your retirement plan currently allows automatic portability transactions. If it doesn’t, decide what steps you need to take to make that feature available in your plan. Or, you can partner with a professional employer organization (PEO) like GMS. Our retirement experts at GMS ensure seamless transitions for employees when transitioning to our retirement plan. No more burdens associated with managing employees’ retirement benefits. Partner with GMS to unlock opportunities for your business and your employees. Get a quote from us today!

  • Stepping into adulthood comes with a game-changing moment – hitting the big 26 and waving goodbye to the safety net of your parent’s health insurance. It’s like unlocking a new level of independence but navigating the health care landscape can feel like a rollercoaster ride. This transition isn’t just about paperwork and getting the proper coverage; it’s a real-life journey into adulting. Picture this blog as your guide, unraveling the ins and outs of claiming your own health coverage. It’s going to feel like a breeze when you approach the 26th year of your life.

    Understanding The Transition

    Young adults lose coverage from their parents’ plans because of the Affordable Care Act (ACA), which only requires companies to cover dependents on a parent’s plan until they turn 26. Before the ACA, insurance companies dropped young adults from their parent’s policies after they reached a certain age or stopped attending college. This resulted in many young adults losing their insurance earlier in life. Now, with the ACA, adults 26 years and under can stay on their parent’s plan even if they:

    • Have started or finished school
    • Are no longer a dependent
    • Are married
    • Adopt or have a child
    • Turn down group health insurance through work 

    What this means is that when you turn 26, you’ll need to find alternative coverage to ensure you’re protected in case of illness or injury. Understanding the options available to you is crucial as you embark on this new phase of your life.

    Exploring Your Health Care Options

    It’s essential to understand you have various options when choosing health care options. Let’s take a look at your options:

    Employer-sponsored plans: If employed, your company may offer health insurance benefits. It’s essential to familiarize yourself with the coverage options and enrollment periods provided by your employer.

    Health insurance marketplace: You can explore plans through the Health Insurance Market, where you may be eligible for subsidies based on your income. A subsidy is a benefit given to an individual, business, or institution, usually by the government. It can be direct (cash payments) or indirect (tax breaks). It’s typically given to remove some burden and is often considered in the public’s overall interest, given to promote a social good or an economic policy.

    COBRA coverage: You may qualify for the Consolidated Omnibus Budget Reconciliation Act (COBRA) for a temporary extension of your parents’ plan, although it can be costly. This coverage gives workers, and their families who lost their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances, such as voluntary or involuntary job loss.

    Medicaid: Depending on your income, you may qualify for Medicaid, which provides low-cost or free health care coverage. In all states, Medicaid provides coverage for some low-income individuals, families and children, pregnant women, the elderly, and those with disabilities.

    Transitioning off your parents’ health plan can pose several challenges, such as understanding insurance jargon, comparing different plans, and budgeting for health care expenses. It’s normal to feel overwhelmed, but there are resources available to guide you through this process. The following are a few resources available to you:

    Financial Considerations

    • Budgeting for premiums: Evaluate the cost of premiums for different plans and consider how they fit into your monthly budget. For a healthy 26-year-old, the average cost of a marketplace plan is $372 per month.
    • Out-of-pocket expenses: Understand the potential out-of-pocket costs for deductibles, copayments, and coinsurance when comparing plans.
    • Health savings accounts (HSAs): If eligible, consider opening an HSA to save for medical expenses with pre-tax dollars. An HSA is a type of savings account that lets individuals set aside money on a pre-tax basis to pay for qualified medical expenses.

    In addition, it’s essential to understand the plan coverage:

    • Network providers: Check if your preferred doctors and health care facilities are included in the plan’s network to ensure continuity of care.
    • Prescription drugs: Assess how different plans cover the cost of prescription medications you may currently use or anticipate needing in the future.

    What Next?

    If 26 is just around the corner, you must start thinking about this process. Being able to compare your options allows you to get the best coverage for the best price as opposed to waiting until the last minute and rushing this decision. If your employer offers health insurance, you’re in luck. Your colleagues should be able to offer you advice, and if you’re lucky, your company might have a designated benefits specialist who can walk you through the entire process. If your employer doesn’t offer health insurance, the process will be longer, and you’ll have to make decisions on your own.

    For employers, have you considered partnering with a professional employer organization (PEO) like GMS? As your employees transition to their independent health care coverage, it’s essential you provide them with the tools and resources to make the right choice. When you partner with GMS, we provide access to comprehensive group health plans, leveraging our buying power to offer competitive rates and quality insurance. In addition, our Benefits Account Managers work with you and your employees to guide them through the enrollment process. We will also simplify complex paperwork, ensure compliance with regulations, and get the coverage your employees want and need. Contact our benefits experts today to ensure a seamless process for employees during this transitional period.

  • The phrase “aging with grace” has taken on a new meaning in modern times. As we age, we not only face the typical challenges associated with getting older but also a new set of factors that have reshaped the aging process. It’s crucial for individuals to confront these challenges head-on rather than avoiding them altogether. The good news is that people are becoming more proactive about aging, particularly those who have taken on the role of caregivers themselves. Recent data from New York Life reveals members of the Sandwich Generation, who care for aging parents and children, are actively saving for retirement, purchasing long-term care insurance, and setting aside funds for their children’s future care.

    Changing Care Options

    The aging population continues to transform the landscape of care options. In the past, Americans could rely on federal support to meet their retirement needs. However, today’s retirees can no longer be certain about the availability of such support. Federal programs are already under strain, with a significant increase in the number of retirees receiving social security benefits. In addition, the U.S. Census Bureau states approximately 4.4 million Americans (12,000 people per day) will turn 65 in 2024, placing even more pressure on an already stretched system.

    Statistically, individuals aged 65 or older have a 70% chance of requiring some form of long-term care support. Surprisingly, Medicare does not cover long-term care, and Medicaid coverage is limited to approved facilities, leaving individuals with minimal control over their aging journey. In addition, to qualify for Medicaid coverage, individuals must exhaust a significant portion of their hard-earned assets. Although some states have introduced long-term care funding programs, the limited benefits they offer are unlikely to cover the substantial costs associated with long-term care.

    The Role Of Private Insurance

    The retreat of many private insurance carriers from the long-term care space has left consumers with fewer options. However, private insurance alone cannot provide a comprehensive solution. While the current landscape may appear overwhelming, there are viable options available. As a business owner, you play a crucial role in supporting your client’s lifestyle goals as they age, including helping them design a robust financial strategy to meet their long-term care needs.

    Pandemic-Era Trends And Costs Of Care

    The COVID-19 pandemic has further highlighted the importance of at-home care, with 88% of Americans expressing a preference for receiving ongoing assistance in their own homes or with loved ones. In-home care costs an average of $60,570 annually, while a one-bedroom assisted living apartment costs around $63,337 annually. The average cost of a year’s care in a private Medicare-certified long-term nursing home room is $116,577. This preference for at-home care places additional strain on caregivers, impacting their personal finances, mental health, and social lives. Caregiving is often emotionally, socially, physically, and financially more challenging than expected, particularly for women who tend to spend more time caring for aging relatives.

    Building Support Systems

    As more individuals opt for aging at home, robust support networks become increasingly critical. Caregivers face mounting physical and mental health challenges, making it essential to establish reliable support systems. Data indicates that caregivers are already seeking help, with family members and friends being the most common sources of support. Planning for a network of paid and unpaid caregivers empowers individuals to maintain control over their care situation while alleviating the burden on individual caregivers.

    The Role Of Financial Planning

    Financial planning is often the weakest link in people’s support systems. Encourage your clients to plan early for their long-term care needs, regularly reassess their plans, and make necessary adjustments. Collaborating with a trusted financial professional can make all the difference, providing clients with the confidence and peace of mind they need as they navigate the complexities of long-term care.

    Addressing Long-Term Care Challenges With A PEO

    In navigating the increasingly complex landscape of long-term care, small business owners face unique challenges in supporting their employees and planning for their future care needs. A professional employer organization (PEO) can lend a helping hand in this journey, offering comprehensive solutions to address the evolving needs of employees and employers.

    Small business owners can access tailored benefits packages, expert guidance on financial planning for long-term care, and support in establishing robust support systems for employees when they partner with a PEO. In addition, GMS, a certified PEO (CPEO), can provide access to cost-effective insurance options and valuable resources to help small business owners and their employees navigate the intricacies of long-term care planning. Address the long-term care needs of your employees while securing their financial well-being by partnering with GMS. Contact us today to learn more.

  • As we enter the new year, Pennsylvania and New Jersey residents should prepare for changes in health care regulations. This 2024 legislative lineup promises new improvements ranging from coverage for donor breast milk to prescription-free hormonal birth control. The following is what you should anticipate from these pivotal new laws.

    Pennsylvania’s Owen’s Law

    Pennsylvania’s Owen’s Law underscores the benefits of breast milk over formula, particularly for newborns battling severe health conditions. Under this new law, Medicaid will now cover the cost of screened, pasteurized breast milk for mothers who are unable to meet the demand themselves, helping the fight against newborn malnutrition and gastrointestinal issues. Taking effect around January 20th, 2024, Medicaid coverage applies when breast milk is essential for infants with certain serious conditions. Most of this milk is given to newborns in hospital neonatal intensive care units, and some are sold in outpatient settings but can cost as much as $4 per ounce.

    Patients’ Rights In Pennsylvania

    Another Pennsylvania law safeguarding patients’ rights requires health care providers to receive both verbal and written consent before performing pelvic, rectal, or prostate examinations on anesthetized or sedated patients. This addition to the state’s Medical Care Availability and Reduction of Error Act promotes autonomy by ensuring that patients are informed and gave consent to such procedures. This does not apply in cases of emergencies when exams are necessary for providers to reach a diagnosis or provide treatment.

    Detecting Illicit Substances In Pennsylvania

    A new law requires health providers in Pennsylvania to test patients for xylazine and fentanyl, drugs frequently implicated in overdose deaths across the state. In addition, hospitals must now provide patients with educational materials and resources about the risks posed by these substances. Coupled with state-wide reporting of positive tests, these changes offer a dual approach to curbing drug addiction: data-driven intervention strategies and targeted patient education.

    New Jersey’s Road To Accessible Contraception

    Meanwhile, in the neighboring state of New Jersey, the contraception landscape is being transformed. An unprecedented law passed in 2023 now enables pharmacists to dispense hormonal birth control without a prescription. This radically increases accessibility for those seeking contraceptives.

    Capping Essential Medicine Prices In New Jersey

    A critical move for residents with certain health plans, New Jersey Governor Phil Murphy has introduced price caps for essential medications, including EpiPens, insulin, and asthma inhalers. With these cost-control measures, out-of-pocket expenses will be significantly lowered. Patients will only have to cover capped costs of $35, $25, and $50, respectively, for these essential medications, offering relief for individuals managing these chronic conditions.

    How PEOs Help Navigate These New Health Care Laws

    Due to these groundbreaking new laws, 2024 signifies an exciting new chapter for health care in Pennsylvania and New Jersey. The changing landscape of health care laws in these states presents challenges and business opportunities. Partnering with a professional employer organization (PEO) like GMS stands as a proactive solution. By leveraging the expertise of a PEO, business owners can navigate the complexities of these new regulations, gain access to comprehensive health care options, and streamline HR operations. This partnership with GMS ensures compliance and fosters a thriving and resilient workforce, ultimately paving the way for sustainable growth in this evolving health care landscape. So, as the new year unfolds, let us keep an eye on how these laws shape the health care landscape in your state so you can focus on growing your business. Contact us today to learn more.

  • Health care costs in the United States have been steadily climbing, and the burden on employers providing health care benefits for their workforce is intensifying year by year. A recent report by Aon forecasts a looming challenge: average costs for employers covering their employees’ health care are projected to surge by 8.5% in 2024, amounting to over $15,000 per employee. This steep rise marks a concerning trend, nearly doubling the previous year’s increase of 4.5%, setting off alarm bells for companies navigating their health care budgets.

    Driving Factors Behind Escalating Costs

    Let’s take a look at three pivotal elements that are steering this surge in health care expenses.

    Inflation: The silent aggressor

    Inflation, accounting for roughly half of the cost hikes, substantially impacts health care expenses. The health care sector experiences a delayed effect due to multi-year provider contracts. Renewals in these contracts are causing providers to demand higher fees, thereby stretching the impact of inflation over several years.

    COVID-19’s lingering impact

    The aftermath of the pandemic continues to cast a shadow over health care costs. Medical utilization, which plummeted during the peak of the pandemic, is now reverting to pre-COVID levels. This resurgence in medical usage is a driving force behind the escalating health care expenditures for employers.

    Surging prescription drug costs

    Prescription drug expenses are spiraling at an alarming rate, surpassing the growth rate of medical costs. The use of specialty drugs such as GLP-1 and medications initially designed for diabetes, which are now being utilized for weight loss, have doubled between 2022 and 2023.

    Navigating The Way Forward

    The tight labor market continues to discourage passing higher health care expenses onto workers. However, future projections indicate an inevitable shift towards significant changes in employee contribution as employers prepare for 2025. Employers are creating strategies to manage costs, including targeted plan adjustments to address expensive medications and treatments. In addition, a shift in vendors is anticipated to secure better prices and discounts on health care services. The focus on mental health services is also expected to intensify, acknowledging the importance of employee well-being.

    How PEOs Are Revolutionizing Employee Benefits

    In the face of these health care cost escalations, employers find themselves at a critical stage where innovative solutions are imperative. The strain of balancing employee well-being with financial sustainability requires a strategic approach. This makes the role of Group Management Services, a certified professional employer organization (CPEO), crucial. GMS extends a lifeline to businesses, offering access to various benefits through our master health care plan (MHP). Through pooled resources, negotiated rates, and streamlined administration, GMS enables companies to combat increasing health care expenses effectively. By leveraging GMS’ buying power and expertise, businesses can navigate these unprecedented times and provide quality health care benefits to their employees while maintaining a competitive edge in the marketplace. Get a quote from us today and end the open enrollment period on a high note.

  • As the end of the year approaches, it’s time to review your HR policies and ensure they are up-to-date and compliant. HR compliance is intricate and constantly evolving. It’s a complex issue that can’t be overlooked or hastily reviewed, as noncompliance can have severe long-term consequences.

    Noncompliance can lead to significant penalties, damage to your reputation, decreased employee retention, and lower job satisfaction – all of which can have detrimental effects on your business. It’s crucial to be proactive to mitigate these risks. Regular audits, education on legal changes, and consistent policy enforcement can safeguard your organization.

    Moreover, a culture of compliance can enhance your company’s image in the eyes of potential talent, customers, and partners, leading to better recruitment opportunities, customer trust, and strategic relationships. It also fosters a positive work environment, which is instrumental in boosting employee morale and engagement. Investing in HR compliance is not just about avoiding negative outcomes—it’s about creating a solid foundation for your business’s success and longevity.

    Maintaining compliance is complex, so we’ve gathered a few things to consider as you wrap up the year.

    What Is HR Compliance

    HR compliance is the practice of adhering to all labor laws and regulations at the federal, state, and city levels.

    • Federal laws: These broad regulations apply to all U.S. employers, covering minimum wage, anti-discrimination, and benefits. A few examples include the Fair Labor Standards Act (FLSA), Title VII of the Civil Rights Act, and the Affordable Care Act (ACA).
    • State laws: Each state has its own set of employment laws that can expand upon or differ from federal regulations. These include higher minimum wages, stricter anti-discrimination laws, or different overtime pay requirements.
    • Local laws: In some cases, local governments enact ordinances that affect employment practices within their jurisdictions. For example, some cities have their own paid sick leave requirements that are more generous than state or federal provisions.

    Businesses that operate across multiple states face a magnified challenge when it comes to compliance. You must ensure you’re not only meeting the federal baseline but also adhering to the varied requirements of each state in which you operate. 

    HR Compliance Checklist

    To set yourself up for success, wrap up the year by reviewing and ensuring your HR policies are up to date. While it can be a lot to manage, a little work now will save you time and stress later. The following is a list to get you started:

    OSHA regulations

    • Assess and update your job safety and health training programs to ensure they are current and effective.
    • Keep precise documentation of work-related injuries and illnesses using OSHA’s Form 300 log.
    • Evaluate personal protective equipment (PPE) needs to identify the required safety gear for employees.
    • Post the official OSHA Job Safety and Health poster in a prominent location where all employees can see it.
    • Establish and maintain transparent channels for employees to report workplace hazards or compliance issues without fear of retaliation.

    Workers’ compensation 

    • Ensure your business is compliant with state-level regulations for workers’ compensation. 
    • Establish and maintain correct protocols for reporting and filing workers’ compensation claims. 
    • Conduct an assessment of your workplace to confirm it’s secure and hazard-free. 

    Employee information and W-2s 

    • Check your records and ensure you have updated addresses from your team to ensure they receive their W-2s immediately.
    • Confirm you have all social security numbers or federal employer identification numbers (FEIN) to avoid penalties from the IRS.

    Benefits and leave

    • If you have 50 or more employees, you’re required to provide health care coverage under the ACA.
    • Review employee classifications to ensure accurate benefit entitlements.
    • Familiarize yourself with the Family and Medical Leave Act (FMLA), which allows up to 12 work weeks of leave annually and requires you to keep records for no less than three years.
    • Review and communicate your leave application process to ensure employees understand how to request leave and the approval process.
    • Perform a thorough examination of all benefit offerings to verify their adherence to regulatory standards.

    Hiring practices

    • Review your hiring practices and job postings. Avoid discriminatory language that would violate Title VII of the Civil Rights Act.
    • Retrain your hiring managers on appropriate interview questions to avoid any illegal questions. For example, you can’t ask if someone has a disability or a medical condition. You can, however, ask if they will be able to perform the job with or without reasonable accommodation.

    Onboarding

    • Update your employee policies and ensure employees have easy access to them via an employee handbook.
    • Review your onboarding process to ensure each new hire understands your company’s policies and how to remain compliant.

    While this checklist is comprehensive, it does not encompass everything your business needs to ensure compliance. You should revisit laws and regulations specific to your industry and location to ensure you haven’t missed anything.

    How GMS Can Help

    As a business owner, you may discover that you can no longer manage administrative tasks or keep up with the ins and outs of HR. That’s where we come in. We manage a range of responsibilities for your business. From payroll tax to employee benefits, we focus on administrative work so you can focus on what truly matters in your business.

    At GMS, we take HR off your plate. In addition, we offer four types of HR audit programs to meet your specific needs, including the following:

    • Compliance audit: This focuses on how compliant your business is with federal, state, and local laws and regulations.
    • Best practices audit: This audit reviews your competitive advantage by comparing your HR practices to proven best practices.
    • Strategic audit: This audit helps identify your strengths and weaknesses and helps ensure your HR processes align with your organization’s strategic plan.
    • Function-specific audit: Need help with something specific? We can run focused audits on areas such as payroll, hiring and onboarding, and risk management, to name a few.

    For all of your HR needs, we’re here to help. We’ll connect you with one of our dedicated HR specialists who can lighten your load so you can focus on other areas of your business. Contact us today!

  • Open enrollment is here again, and it brings the stress of navigating and enrolling in the ideal health care plan. Under the Affordable Care Act (ACA), employers with 50 or more full-time employees or the equivalent must provide health care to their team. Regardless of your team’s size, health care is a leading benefit that can assist with hiring and retention efforts due to the rising cost of personal health expenditures. Therefore, offering health care to your employees is something you should take seriously.

    Finding and evaluating multiple plans and pinpointing the best option for you and your team is no easy feat. Moreover, after making your choice, ensuring your team comprehends and successfully enrolls in their chosen plans adds another layer of complexity.

    So, how can you best prepare your workforce and ensure a seamless experience for all? Collaborating with a professional employer organization (PEO), like GMS, can effectively reduce some of the stress and complications associated with open enrollment. In the meantime, we’ve gathered some strategies to help you get started.

    Open Enrollment

    Open enrollment occurs annually, usually from November to January. During this time, employees can enroll in a new health insurance plan, tweak their existing coverage, or, if necessary, say goodbye to their current coverage.

    The significance of this period lies in the fact that any changes outside this window are restricted and limited. If you miss the enrollment season, make a mistake, or decide you want a different plan after it’s over, you’ll have to wait until the next open enrollment period to make those changes. Some exceptions include qualified life experiences such as having or adopting a child, marriage, or divorce, to name a few. Making informed decisions during this time can significantly impact your financial and overall well-being throughout the year. So, take your time, weigh your options, and ensure you’ve covered everything.

    Mistakes To Avoid

    Open enrollment is confusing enough. Preparing for the most common mistakes can help you and your team have a successful enrollment season.

    Missed deadlines

    Missing deadlines is one of the most common pitfalls because open enrollment can vary from year to year. However, open enrollment typically begins on November 1st and concludes on January 15th. To ensure your employees meet these deadlines, it’s essential to be well-prepared, maintain transparent communication with your team, and consistently send reminders about approaching cut-off dates. Timely submission of enrollment forms is necessary to secure coverage for the upcoming year.

    Defaulting to past plans

    We know you have a lot on your plate, and sticking with your previous year’s plan might seem like the most straightforward option. However, this can be detrimental in the long run. Health plans and their associated costs frequently change from year to year, and so do the health care needs of your team. Failing to reassess your coverage options can result in inadequate coverage or unexpected costs. It’s imperative to take the time to reevaluate your current plan and determine if it aligns with the evolving needs of your employees.

    Providing too many choices

    While offering various health care plan options is critical, it’s equally crucial not to overcomplicate the selection process. Limiting the choices to the most essential or popular plans is key. Providing too many options can confuse and overwhelm employees, making it difficult for them to make an informed decision. A concise selection of plans can streamline the decision-making process, making it easier for employees to choose the most suitable coverage.

    Ignoring plan details

    Another common mistake employers make is not thoroughly evaluating the details of the available plans. You should review each plan’s specifics to understand the coverage and costs. Ignoring these details can contribute to a poor plan selection, leading to discontent among your team, ultimately affecting employee satisfaction and, in turn, harming your retention and recruitment efforts. Therefore, it’s vital to take the time to thoroughly examine each plan to guarantee you’re making the best choice for your employees’ well-being and satisfaction.

    Not considering family needs

    Health insurance isn’t a one-size-fits-all solution. Failing to consider your team’s and their families’ specific health care needs can result in inadequate or too expensive coverage, which would, in turn, be noncompliant with the ACA. Assess whether the plans you choose meet the needs of your employees, their spouses, and dependents, including any special health care requirements or medications.

    Underestimating the cost-benefit analysis

    While lower monthly premiums might seem appealing, it’s essential to consider the broader cost-benefit analysis. A plan with slightly higher premiums may offer better coverage and lower out-of-pocket expenses, ultimately saving you and your team money in the long term.

    Failing to educate employees

    Proper information is the cornerstone of informed decision-making. Failing to educate your employees about the available plans and their intricacies can result in uninformed choices. To address this, providing clear and comprehensive information about each option is essential, including coverage details, costs, in-network providers, and any changes from the previous year. Consider conducting informational sessions or webinars to ensure your team has the knowledge to make well-informed decisions about their health care coverage.

    Forgetting ancillary benefits

    In addition to health care, other valuable benefits are often available during open enrollment, such as dental, vision, life insurance, and retirement plans such as a 401(k) match program. Overlooking these ancillary benefits can mean missing out on essential perks that contribute to the overall well-being of you and your team.

    By avoiding these common mistakes and investing time and effort into open enrollment, you can make informed decisions that lead to better health care coverage and financial well-being for you and your team.

    Compliance

    Maintaining compliance with the ACA requires meticulous attention to your health care plan choices. This encompasses a thorough assessment of various aspects, such as out-of-pocket maximums and the essential health benefits mandated by the ACA. These requirements are the foundation for ensuring that your health plans align with the legal framework and offer comprehensive coverage for your employees.

    In addition, fostering an inclusive environment is crucial for ACA compliance. It’s imperative that all employees, regardless of their circumstances, have an equal opportunity to engage in the benefit enrollment process.

    This commitment to inclusivity extends to employees with disabilities, who should receive the support they need through auxiliary aids, alternative formats, and other necessary accommodations. These measures guarantee regulatory compliance and cultivate a work environment that respects the diverse needs of all team members, contributing to a more equitable and welcoming workplace.

    Comprehensive Small Business Health Insurance Solutions

    Offering small business health insurance is easily one of the most complicated and costly aspects of running a business. You want to provide your employees with the best health care benefits, but you’re also dealing with rising insurance premiums, compliance, and mountains of paperwork. With a PEO like GMS, you can decrease costs while providing top-tier medical coverage and reducing administrative burdens.

    GMS represents more than 45,000 employees, which allows us to help small businesses purchase group health insurance for an average of 24% lower for employee premiums and 21% lower for family premiums than the U.S. average. GMS is the only PEO that provides an in-house master health plan that helps you avoid large swings in usage, trends, and renewal rates.

    Our experts are here and are ready to provide guidance on how to utilize your plans best. Contact us today and let us help get your team the best health care possible!