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  • For the most part, all industries across the world have experienced disturbances within their business operations since the COVID-19 pandemic. During the pandemic, businesses had to scale back operations because of the decrease in demand, or they were forced to furlough or lay off employees. However, plumbing and heating, ventilation, and air conditioning (HVAC) companies were some of the few that experienced a spike during the pandemic because their demand increased. Even with the increase in demand for HVAC services, they still face challenges, including a labor shortage and an aging workforce.

    Labor Shortage

    Similar to most companies, many HVAC companies are struggling to attract employees. However, this has been a challenge before the COVID-19 pandemic. Every type of business is looking to retain employees while workers are quitting their jobs at record levels. Low-interest rates, government stimulus checks, and a greater emphasis on home improvement (as many individuals were forced to stay home) drove new business for HVAC companies. The increased demand has put pressure on the existing workforce, leading to a shortage of skilled technicians. In addition, this industry is facing challenges in attracting younger workers, as many students and recent graduates are unaware of career opportunities in the blue-collar market, such as HVAC or plumbing.

    An Aging Workforce

    The aging workforce has been challenging for HVAC and plumbing contractors for almost a decade. However, the pandemic and Great Resignation heightened these challenges. Many companies’ experienced technicians are retiring, and there aren’t enough younger workers entering the industry to replace them. The Air Conditioning Contractors of America estimates that the average age of an HVAC worker is 55. Experts estimate that the shortfall of qualified HVAC workers is more than 115,000 individuals.

    Have You Considered Outsourcing Your HR Functions To A PEO?

    The economic downturn has made it challenging for HVAC and plumbing companies to offer competitive salaries, alluring benefits packages, and attract and retain top employees. More and more companies have looked to outsource these administrative tasks they don’t have the time or expertise to manage effectively. Have you considered outsourcing your HR functions to a professional employer organization (PEO)?

    Let’s start by understanding what a PEO is. A PEO is an organization that enters into a joint-employment relationship with an employer by co-employing the clients’ workforce, allowing the PEO to share and manage many employee-related responsibilities and liabilities.

    While a PEO can help you combat the labor shortage and aging workforce you may be faced with, a PEO can do much more than that. Everything is under one roof, from tracking employee performance to creating a fleet management program to an online payroll service. You can finally focus on your core competencies while you leave the HR responsibilities to professionals who specialize in that area. This can improve efficiency and accuracy in HR processes such as recruitment, benefits, and compliance with labor laws. In addition, you also gain access to a wider pool of HR talent and expertise which can result in better decision-making and overall HR strategy.

    Has an employee filed a claim because of an injury on the job? 

    A PEO takes a proactive approach to workplace safety by providing you with the following:

    • Onsite consulting
    • Jobsite inspections
    • Accident and injury investigations
    • Training
    • And so much more

    In addition, if you struggle to stay ahead of the risks associated with workers’ compensation and workplace hazards, a PEO can help protect your business. You now have a partner that enables you to take a proactive approach to address immediate issues and prevent potential problems in the future.

    Are you struggling to attract and retain top talent? 

    You’re not alone if you’re struggling to attract and retain top talent. Offering a quality benefits package is one of the best ways to retain and attract top talent. However, offering a quality benefits program is becoming increasingly expensive and takes too much time. A PEO works with business owners to help them decide which benefits make the most sense for their business operations, employees, and bottom line. In a time when your workforce is beginning to retire, it’s essential that you take every step possible to ensure you are attracting the next generation of employees. However, it’s also vital that you take proactive steps to retain your talent. Offering a competitive benefits program can help you stand out from your competition and help you succeed during these unprecedented times.

    Do you spend countless hours doing payroll each payroll period?

    As an HVAC or plumbing company owner, you don’t have the time to manage the payroll process anymore, especially with your demand at an all-time high. Your partnership with a PEO saves you time and gives you peace of mind. Think about the sleep you could get if your payroll is all managed online. Payroll software streamlines the payroll process, creating less paperwork and giving users access from anywhere with an internet connection.

    Are you having trouble hiring and recruiting employees? 

    Recruiting, training, and retaining employees has never been more challenging for small and mid-sized businesses in a tightening labor market. Luckily, when you partner with a PEO, this heavyweight is carried off your shoulders. You now have access to the tools and resources necessary to take on these responsibilities while improving your overall recruiting, hiring, and training efforts. This partnership can strengthen your business and let you focus on other responsibilities. In a market where your services are in high demand, it’s a great time to partner with a PEO to find you the talent your business wants and needs to thrive.

    Consider Group Management Services (GMS)

    From creating a competitive benefits package and streamlining your payroll process to creating safety programs to ensure you have a safe work environment to hiring and recruiting top talent, Group Management Services (GMS) does it all. We make employee management simpler, safer, and stronger. We save you time and money while you retain full control over your employees and regain the opportunity to focus on growing your business.

    Andrew Szczesniak, Senior Sales Strategist, expressed, “GMS helps companies in the plumbing and HVAC industries by reducing their administrative costs regarding workers’ compensation and health care. By lowering costs in those areas, businesses are now more competitive in bidding jobs and can attract and, as importantly, retain their existing employees.”

    Leave the HR details to us. Contact us today so we can help you thrive in today’s economy.

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

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

    Improvements That Will Be Made

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

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

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

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

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

    Additional Steps That Should Be Taken

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

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

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

    Cutting Back On Retirement Savings

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

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

    How You Can Step In As An Employer

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

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

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

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

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

    Your Responsibility As A Business Owner

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

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

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

    Diabetic Management With GMS

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

    • Diabetes
    • Prediabetes
    • High Cholesterol 
    • High Blood Pressure 

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

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

    Reimagine possible and contact us today to get started.

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

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

    Consider Offering Childcare Benefits

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

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

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

    Additional Steps You Can Take

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

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

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

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

    What Falls Under Job “Benefits?”

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

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

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

    Types Of Job Benefits 

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

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

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

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

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

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

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

    How To Choose The Right Benefits

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

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

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

    GMS Offers Quality Benefits And Support

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

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

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

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

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

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

    How Does A 401(k) Work?

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

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

    Types Of 401(k)Plans

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

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

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

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

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

    How Do I Choose The Right Plan?

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

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

    How Do I Start?

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

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

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

    Let’s Talk About Your 401(k) Options

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

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

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

  • In late December 2022, government officials announced changes coming to the U.S. retirement system. A collection of retirement-related provisions known as “Secure 2.0” includes a 4,100-page, $1.7 trillion spending that will fund the government for the 2023 fiscal year. The Secure Act 2.0 would require employers with 401(k) or 403(b) plans to automatically enroll all new, eligible employees at a 3% contribution rate, increasing by 1% each year until it reaches 10%.

    The current law allows individuals at least 50 years old to put an extra $6,500 annually in their 401(k). Secure 2.0 would increase the limit to $10,000 starting in 2025 for individuals ages 60 to 63. In addition, the following would also change:

    • Catch-up amounts would be indexed for inflation 
    • All catch-up contributions will be subject to Roth treatment (not pre-tax) except for workers who earn $145,000 or less

    These provisions are intended to build on improvements to the retirement system that were implemented under the 2019 Secure Act. The following are provisions for the new law:

    • Requires automatic 401(k) enrollment
    • Increases the age when required minimum distribution (RMD) would need to start
    • Creates bigger “catch-up” contributions for older retirement savers
    • Broadens employer 401(k) match options
    • Improves worker access to emergency savings 
    • Increase part-time workers’ access to retirement accounts
    • Boosts the contribution amount of a qualified longevity annuity contract
    • Changes the required minimum distribution amount
    • Broadens usage for unused college savings money

    In addition to all these benefits, it also includes a variety of incentives for small businesses to set up retirement savings plans for their employees, encourages individuals to set aside long-term savings, and makes it easier for annuities to be an income option for retirees.

    What This Means For Small Business Owners

    These provisions are intended to help employees save more for their retirement. Whether you want to attract more employees or find ways to retain current employees, providing your employees with a retirement plan is critical. When you implement a retirement plan, you show your employees that they are critical to your company’s success. Partnering with a professional employer organization (PEO) like GMS will help you and your business with 401(k) plans by doing the following:

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

    Contact GMS today to learn more. 

  • The COVID-19 pandemic changed how we work and forced many of us to reflect on our current lifestyles. Many realized the jobs they were working weren’t fulfilling or flexible. Countless people began quitting their jobs which became known as “The Great Resignation.” UKG conducted a survey which showed that nearly half of employees worldwide would never recommend their company or profession to their children or to people they care about.

    As a business owner, you may wonder if your workers feel this way about your business. Sometimes, you may never know the truth, making it challenging to eliminate the feeling your employees are experiencing. However, if you conduct performance reviews or simply enforce one-on-one meetings with your leaders and their team, it can create a more welcoming environment for your employees to open up in. Unfortunately, that might not be all you need to combat these feelings.

    Continue reading to learn how you can ensure your employees enjoy working for your company and recommend you to their network.

    Purposeful Work = Job Satisfaction

    The main question employees should be asking themselves is what’s more important, a good salary or meaningful work? 52% of employees worldwide tell their children that meaningful work is the most important aspect to consider. However, 50% say the same about salary. In addition, generations that are making their way into the workforce are said to care more about the following aspects of one’s career:

    • Time to care for and spend with family
    • A feeling of fulfillment
    • A successful career path

    Since the feeling of purposeful work is a main priority for the coming generations, it’s your job as a business owner to take the necessary steps to ensure your employees feel fulfilled and find purpose in their actions. The following will help your employees find more meaning in their work.

    Provide support and employee care benefits

    Offering benefits to your employees is essential as it shows them you’re invested in their overall health and future. In addition, a quality benefits package will ultimately help you attract and retain top talent. The following are benefits you should consider adding to your benefits package if you don’t already:

    • Health insurance
    • Paid time off (PTO)
    • Paid holidays
    • Flexible schedules
    • Education assistance
    • Paid sick time
    • Volunteer opportunities

    In addition to providing your employees with resources for good health, it also gives them more purpose in their daily tasks. If they know they have a certain number of vacation days, they are more productive at work, knowing they can take a day off. You must encourage your employees to take breaks and use their PTO, letting them know it’s more than okay to take time for themselves. Try implementing a “use it or lose it” policy, so your employees are encouraged to take time off; otherwise, they will lose their vacation time at the end of the calendar year.

    Build a positive work environment

    One of the most important factors in adding more purpose to your employee’s work is creating a positive work environment. Let’s face it, creating a healthy, positive working environment brings out the best in everyone. The following are factors to consider when creating a positive work environment:

    • Social connection
    • Open communication
    • A culture of empathy
    • Willingness to help

    A positive work environment makes employees feel that the culture reflects their values and beliefs, making them more efficient, effective, and fulfilled in their work. The following are additional benefits of a positive workplace that may convince you that a positive environment helps workers feel more purpose in their work:

    • Employees take more pride in the work they do for a company they believe in
    • There’s an inverse relationship between cost and employees’ levels of happiness
    • It builds a supportive culture that fosters growth for individuals and your organization

    Link personal drivers with a team or organizational goals

    When employees understand their job’s greater purpose, they are happier, more engaged, and more creative. As a business owner, when your employees see how their job fits the company’s goals, staff turnover decreases, and productivity rises. To learn about your team members’ goals and drivers, it’s essential that you and your leaders meet with each employee to determine their drivers. From there, they’ll need to assess how they can connect their motivations with the organization’s goals. For example, if one of your company’s goals is transparent actions and your employee’s driver is to build honest relationships, that would be more motivating since you both are working towards the same goals.

    Use feedback to boost positivity

    Positive feedback helps motivation, boosts confidence, and shows your employees you value them. Giving positive feedback should be a simple part of your manager’s daily tasks. Research shows that 68% of employees who receive accurate and consistent feedback feel fulfilled. When you provide them with feedback, it motivates them, and they better understand how and where improvements are needed and where their strengths lie. In addition, when you share success stories or feedback from clients for a job well done, it’s a powerful way to inspire your team and keep them connected with the people they’re helping.

    GMS Is Here To Help

    When you partner with GMS, you are given the tools and resources to help you determine your employee’s goals and drivers. We provide you with performance review services that help you with the following:

    • Demystify the approach to implementing performance management
    • Recommend the best way to set up an employee appraisal and review process
    • Assess and develop employee performance reviews
    • Move an organization to an online, electronic system for maximum efficiency when conducting a review process

    Our HR experts take on the administrative burdens you don’t have the time to focus on. Let us do the heavy lifting so you can focus on what you do best, growing your business. Contact us today.

  • The thought of working fewer hours and having more days off each week sounds great, doesn’t it? Many businesses have implemented shorter workweeks already, such as Basecamp, Bolt, and Panasonic, and have experienced significant benefits. Researchers found that businesses that adopted a four-day workweek found that 78% of their employees were happier, 70% were less stressed, and 62% took fewer days off.

    Background Of The Traditional Workweek

    Before we dive into what it means to implement a four-day workweek, let’s recall how the 40-hour workweek came to life. Almost 100 years ago, the U.S. revolutionized the way we worked by introducing a 40-hour “typical” workweek. The Industrial Revolution was a chaotic time forcing labor laws and practices to be tested.

    Henry Ford, an American industrialist who founded the Ford Motor Company, was the first to examine productivity and found that the more individuals worked, the less productive they were. This was the start of the standard 40-hour workweek. From there, the Fair Labor Standards Act was implemented in 1938, providing overtime pay for those who worked more than 40 hours within a week. This forced employers to create schedules so employees weren’t working overtime.

    Deep Dive Into A Four-Day Workweek

    Since COVID-19 and the Great Resignation, the typical 40-hour workweek has been a hot topic. It’s forced a new level of flexibility as remote work has become increasingly popular, encouraging employees to find more flexible careers. With work-life balance perks becoming more favored, businesses have begun testing and implementing the four-day workweek.

    A shorter work week usually means employees are in the office four days per week instead of five. While businesses have already implemented the four-day workweek, others have their employees complete four, 10-hour days. The truly shortened workweek reduces hours worked, usually 32 hours per week. You might be thinking that having your employees work fewer hours might not seem like the best idea. However, we’re here to tell you that it benefits you, your employees, and your business.

    The following are the benefits of implementing a shorter workweek:

    • Reduces company costs
    • Reduces employee costs
    • Greater work-life balance
    • Happier employees
    • Improved employee well-being
    • Increased productivity 
    • Attracts more job applicants

    A Guide To Implementing The Four-Day Workweek

    All of these benefits sound perfect, don’t they? You may wonder where to begin or test it to see if it’s a good fit for your business. We will start with the bad news. Moving to a four-day workweek will require serious task reprioritization and workload reorganization. Now the good news. Implementing a shorter workweek can be done through the following steps:

    • Set clear guidelines
    • Use automation and artificial intelligence
    • Free up your and your employees’ to-do lists
    • Reduce the time spent on meetings
    • Inform your clients about the switch
    • Keep track of your key performance indicators (KPIs)

    With businesses already implementing this shortened schedule for their workers, the results are overwhelmingly positive. Companies have reported a 40% increase in productivity.

    New Year, New Schedule!

    As the new year approaches, it’s a great time to analyze your business efforts and find ways to improve next year. While this may seem stressful and challenging to jump into, GMS is here to help you. Whether you want to revamp your benefits offerings to provide more paid time off (PTO) or begin implementing a shorter workweek, our experts are here every step of the way. Our goal is to help you and your employees succeed by simplifying your business. Contact us now.