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  • On November 19th, President Biden’s $1 trillion Infrastructure Law (Infrastructure Investment and Jobs Act) was passed by the House after months of delays and will now be sent to the Senate to approve. The White House is projecting that this bill will create 2 million jobs over the coming decade. However, many are worried about where the funding will come from. 

    This bill will deliver $550 billion of new federal investments in American infrastructure over five years, which will touch everything from bridges and roads to the nation’s broadband, water, and energy systems. Also included in this bill are expanded child-care, paid leave, expanded healthcare coverage, an extension on child tax credit payments, green energy investments and tax credits, universal pre-K, affordable housing, and various other programs.  

    One upside for some is that this could create many jobs in construction, transportation, and energy. The New York Times goes on to describe that if there isn’t enough labor to keep up with the demand, then Biden’s plans could be set back. In an already-tight labor market, employers can expect even more hiring hurdles, should the bill be approved. 

    Employers in the construction, transportation, and energy industries should be proactive in recruiting talent and growing their workforce. GMS can help by creating a hiring plan for your company, streamlining your onboarding process, and ensuring a seamless payroll. Contact us today.  

  • Inflation has been rising and studies have shown that unfortunately, inflation hurts low-income Americans and small business owners the most. According to Fox Business, prices for consumers have surged 6.2% in October, compared to the previous year. Moreover, core prices, which exclude the more volatile measurements of energy and food, rose 4.6% over the past year, which was the largest increase since 1990. Prices have risen 0.9% from September to October.  

    Not only is the rise of inflation hard for consumers, but it can also be detrimental to small businesses. It is proven that when inflation is high, small businesses have less buying power – which means you don’t have as much freedom to search for new hires and expand your business in the ways you usually do when you have extra money to spend. As Inflation Data explains, owners of small businesses have a greater financial risk when inflation is high.  

    Small business owners may not have the same access to financial cushions as big businesses do. This means that money will come directly from the company and there will be little money to expand the business at the end of the year. Another problem that small businesses will face is whether to raise their prices and have customers upset or leave the prices and lose their own money. The last option is to switch vendors that cost less – which might mean that they are choosing one that provides lower quality. 

    Due to COVID-19, small business owners have been hit so hard that they are just now recovering from the money loss and high inflation rates are making them realize they won’t be able to recover the way that they were hoping to. This makes it so important to figure out where you need to focus your money and efforts.  

    Staying savvy during these hard times is crucial when costs are rising. Trying to find time to focus your efforts on improving your core business can be difficult, too. You may want to reevaluate your healthcare plan, workers’ comp., and so forth. Contrary to popular belief, outsourcing all of these administrative functions can help you save time and money in the long run. This will give you more free time to recruit and focus on where you think your company has room to grow. 

    If you’ve been contemplating how your business can alleviate some of its financial strains, whether it’s saving on administrative fees or finding a better healthcare option, now is the time. Contact us today. 

  • The controversial COVID-19 vaccine mandate had countless private-sector workplaces with 100 or more employees concerned over the testing and vaccine mandate. After a lawsuit was filed Friday by a group of plaintiffs, including Louisiana Attorney General Jeff Landry, the order has been suspended by the court. The court ordered that OSHA, ”take no steps to implement or enforce” the ETS “until further court order.”  OSHA has suspended activities accordingly. 

    A three-judge panel of the Fifth Circuit Court of Appeals slammed Biden’s end-justifies-the-means approach. The constitution limits what the federal government can make people do, even in emergencies.   

    Because similar challenges to the emergency temporary standard (ETS) have been brought in all but one of the 11 federal circuit courts of appeals, the U.S. Judicial Panel on Multidistrict Litigation will conduct a lottery as required by statute, pursuant to 28 U.S.C.A. §2112 (a)(3), likely this week, to select which federal circuit will hear appeals in the numerous challenges, including with respect to the Fifth Circuit’s order. Any outcome from the circuit selected in the lottery process may and likely will be appealed to the U.S. Supreme Court.  

    There are many other details that the public deems unconstitutional, which the NY Post covers in detail. For example, companies right under the 100-employee mark do not apply for this new order along with people who do not work or work at home. This case is headed for the US Supreme Court where this is unlikely to pass.   

    GMS will continue updating you on all the details to come regarding this new mandate. Be sure to stay in the know by subscribing to our email list.  

  • Workplace Culture Can Help You Attract And Retain Top Talent 

    Company culture, a once cliché term, is now at the forefront of every leader’s brain – as it should be. Pair the up-and-coming millennial generation that continues to shift the nation’s workforce with the hundreds of thousands of employees who have become accustomed to working at home over the last year and a half, and there you have it… The Great Resignation. 

    According to the U.S. Department of Labor, during the months of April, May, and June 2021, a total of 11.5 million workers quit their jobs. This voluntary workforce mass exodus has left businesses of all sizes and industries wondering how, if at all, they could combat such an occurrence.  

    As a business owner, you likely are already aware that a solid culture could be your best defense in the fight. But, what you may not have realized is culture isn’t the casual dress code Fridays and suction-cup basketball hoops on the wall that once deemed an organization as a good place to work. Now, culture is developed on the premise of a much different set of values, including work-life balance, inspiring leadership, and professional development – just to name a few.  

    Every company will develop a certain type of culture over time, but it is your job to control the values, beliefs, and attitudes you create. Keeping an eye on this can help boost productivity and decrease both turnover and negative behaviors. According to Balance Careers, your employees are more likely to enjoy their work and be more productive if you focus efforts on culture and making sure that your employees are happy while getting the job done. It’s not just about your current employees, though. If you’re looking to grow your business, consider how your culture may appear to candidates. 56% of workers ranked a strong workplace culture as more important than salary, with more than three-in-four workers saying they’d consider a company’s culture before applying for a job there.  

    Five Aspects That Drive Your Culture 

    There are five aspects that can impact your company culture: opportunity, success, appreciation, and well-being, and purpose. All five aspects are arguably subjective, but equally important.  

    • Opportunity: Opportunity can look different for every role and every employee. Is it the opportunity to learn a new skill or the opportunity to one day have a higher title? If opportunity breeds success, why limit what opportunities are available to your employees? 
    • Success: Both personal success and the company’s success should be key drivers for your culture, but at what cost? What does success look like to your leadership team and how will you communicate it along the way? How will you celebrate successes, and, on the contrary, how will you develop and coach employees when they fall short of it? 
    • Appreciation: Heavily-important to millennials, your employees seek recognition. The age-old saying, “A person who feels appreciated will always do more than expected,” still holds true. Is your management team expressing appreciation and recognizing achievements? Taking it one step further, are you recognizing your employee in a way that resonates with that particular person? Finally, recognize that communication is crucial in expressing your appreciation, don’t assume your employees know that you appreciate them. 
    • Well-being: One of the most talked about topics as the country begins to put an emphasis on mental health, what does your culture offer for employees’ well-being? Sure, not every organization can offer mental health days or an office puppy to boost morale. But, are your leaders trained to recognize burnout? Do your managers have a zero-tolerance policy for gossip? Are you working to create healthy relationships or are you giving never-ending to-do lists and nonstop deadlines? 
    • Purpose: The infamous “why.” What’s your company’s why? What is your employee’s why? Does your job candidate have a why? (Spoiler alert: if they don’t, they likely will lose motivation) Do those align? Are the values made clear?  

    Taking the necessary footsteps above to define your culture could save you from losing your top talent. Still, it can be overwhelming to even get started. As your trusted HR partner, we know what tactics to leverage in helping build a culture that is unique to your organization. Contact us today to discuss your options.  

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

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

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

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

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

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

    How GMS can help:   

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

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

  • Three HR Tech Trends To Implement   

    As the HR technology landscape continues to gain momentum, companies across the country are utilizing the surge of new solutions to more efficiently manage their employees. From learning management systems to applicant tracking – all these exciting offerings make it easier for owners to streamline their employee experience, and, in turn, allow them to focus on the daily tasks of running your business.  

    Check out the top three trends according to our HR experts:

    Trend #1: Applicant Tracking Systems 

    An applicant tracking system (ATS) will transform your hiring process in no time. Here, your company can show what jobs you have open, along with seeing which ones candidates are most interested in. This platform is intuitive enough to show how long it took to get them in the door and accept the job – which is crucial, as the workforce continues to tighten. Moreover, an ATS offers customizable and configurable features, including pre-hire assessments and sourcing of passive candidates. Plus, with integrations on career sites, job boards, and social media, an ATS can get your posting out quickly and effectively.  

    Lastly, consider how an ATS can help you thin out your candidate pool by setting minimum requirements, such as years of experience or education. With the time saved and quality hires gained, the return on investment of an ATS is more apparent than ever.  

    Trend #2: Performance Management Systems 

    A performance management system is vital to developing and improving performance at an organizational, departmental, and individual level. Whether it’s creating notes for a one-on-one meeting, setting objectives and goals, or guiding evaluations, implementing a performance management system allows for transparency and accountability on all accounts.  

    The most important aspect of using a performance management system is how your company is closing the loop with the information learned. Management must rely back on the information gleaned to make informed decisions on compensation such as increases or bonuses, as well as career trajectory and company goals. Just about anything related to human capital management can and should come from your performance management system.  

    The return on investment (ROI) of your performance management system can be calculated through a variety of means – consider tracking the increase of workforce productivity, the cost of reducing your attrition, or simply the time saved. Effective performance management drives business benefits.  

    Trend #3: Learning Management Systems  

    A learning management system (LMS) provides the framework for an organization’s learning and development. The right LMS can help an organization create, manage, share, and track learning programs. Investing in the educational development of your staff helps keep them engaged, which, in turn, helps you retain quality talent – knowing that every time a business replaces a salaried employee it costs them six to nine months’ salary. 

    As a plethora of companies make the leap over to paperless, an LMS can lend a hand in those efforts. Paper can be a big hassle when you need to edit information in a small amount of time. eLearning helps your company’s green initiatives by not reprinting material every time a small change is made. Moreover, quizzes and other learning activities no longer require being printed either. However, there are print options still along the way, such as printing a certificate of completion when an employee completes a training. Perhaps your company isn’t quite paperless but is still working remotely, an LMS provides the classroom experience without actually needing the classroom. 

    According to an article from Cornerstone, training is best understood when it is customized to an employee. Personalized information is one of the most important aspects to consider when wanting everyone to fully understand the information they are being taught. Each department has job-specific knowledge they need their employees to learn, which LMS makes very appealing.  

    As you may know, we are on the verge of what some experts deem “the great employee resignation.” The time is now to show your employees that you are invested in their education and future. By offering continued education through an LMS, you can offer your employees tailored content to help develop them professionally.  

    Our Message: 

    When deciding whether you want to add HR Platforms to your business, it is important to fully understand all the aspects included. We recommend doing your research on which one matches your company’s budget and functions, as this information above was just an overview of a few great ones we recommend. To learn more about how we can help you grow your business and to take advantage of our HR technology, contact us here.  

  • Washington has officially announced that under government ruling, starting on January 4th, all companies with 100 or more employees will need to be vaccinated or produce a verified negative COVID test weekly.  If one should not fully comply, there will be a nearly $14,000 fine per violation – up to $136,532 for a willful violation of rules. Unvaccinated employees must also wear masks. This new ruling will affect more than 84 million workers at medium and large companies.  

    Stricter rules will apply to 17 million people who work in nursing homes, hospitals, and other facilities that receive Medicare and Medicaid. They all must be vaccinated and will have no option to be tested.  

    Along with vaccine mandates and testing, OSHA requires that businesses provide paid time off for employees to get vaccines and sick leave to those who have gotten sick from the virus, which will go into effect on December 5th.  

    OSHA also states that because vaccines are free of cost, the companies do not need to pay for the tests for employees who do not wish to receive the vaccine.  

    Administration officials say efforts to get people vaccinated are paying off with about 70% of the nation’s adults now fully vaccinated. Although some companies fear that vaccine-hesitant people might quit which leaves an already-struggling small workforce even thinner.  

    This situation remains fluid and it is expected more changes and announcements are forthcoming. 

    Partnering with GMS can help business owners navigate legislative updates during these unprecedented times. To learn more about our services, contact us today. 

  • Why Certified Professional Employer Organizations Are Critical To Franchises

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

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

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

    Partnering with a CPEO offers your franchise:

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

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

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

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

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

  • New Jersey Secure Choice Savings Program   

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

    Why Require A State-Ran Retirement Plan? 

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

    How Do These Plans Work? 

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

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

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

    The New Jersey Secure Choice Program:  

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

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

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

    Three Subjects Employers Must Follow Are:  

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

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

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