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  • 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.

  • As a small business owner, you have plenty of responsibilities. Some of these tasks are unenjoyable because they’re time-consuming or confusing, but there’s one particular job that’s unpleasant for everyone involved: disciplining employees.

    Whether it’s a minor transgression or a fireable offense, disciplinary discussions are as important as they are difficult. It’s essential that leadership tackles these issues head-on to address incidents and prevent future problems, but employers shouldn’t go into these discussions without a plan. Thankfully, progressive discipline policies give small businesses the direction they need to appropriately handle these unfortunate situations.

    What Is A Progressive Discipline Policy?

    Simply put, a progressive discipline policy is a process designed to address and modify actions or behaviors that are unacceptable in the workplace. These steps allow employers to make a good-faith effort to help employees learn from mistakes and give them a chance to meet certain standards. These expectations are spelled out through three core components:

    • Definitions – A set of clearly defined definitions and examples of what constitutes as unacceptable workplace behavior.
    • Consequences – Thorough descriptions of what how enemies will be disciplined for unacceptable behavior and how these actions can escalate to termination.
    • Resources – Details on who employees can go to with any issues, concerns, or questions.

    A progressive discipline policy allows employers to address not only conduct concerns, but also performance issues. A good policy gives management clear steps to correct individual and repeat problems, all while documenting these episodes for both the employee and employer. Having this type of policy in place provides multiple benefits for your small business.

    You set the ground rules for everyone

    A good policy allows your business to make performance and conduct expectations clear and spell out the consequences for not meeting those expectations. This information gives everyone the knowledge they need to meet and exceed working standards.

    You collect the necessary information for ending an employee relationship

    Termination is not an easy decision. A progressive discipline policy gives employers the means to fairly and objectively make this call by documenting how employees didn’t make the necessary improvements over time and outlining the repeated offenses.

    You protect your business

    A progressive discipline policy serves as more than just guidelines for improving employee behavior. An existing policy gives businesses evidence to back your decisions if an employee files a discrimination complaint or claims their termination was unfair. That existing document in your employee handbook can play a key role in mitigating risk in the future.

    The Four Key Steps For A Progressive Discipline Policy

    One of the key parts of any progressive discipline policy are the steps management should take to properly address offending employees. These steps range from initial notification all the way to termination, giving employers the means to both work with employees and document efforts to correct problematic performance or actions.

    1. Verbal warning

    The first step is to officially inform the employee about what they have done wrong. Meet with the offending employee in a confidential meeting to break down how they either haven’t met performance standards or displayed bad behavior. This conversation immediately sets your expectations and lays out next steps for the employee to recognize the issue at hand and correct it.

    While the warning is verbal, it’s still important to document the event to officially put the employee on notice. If possible, have an HR representative in the meeting to provide added support and provide backup. You’ll also want to create a document that includes a few key details:

    • When you gave out the verbal warning (including both the date and time of meeting).
    • The reason for the warning and what was discussed in the disciplinary meeting.
    • The next steps that both sides agreed to during the meeting.
    • Who was present in the meeting.

    2. Written warning

    If a verbal warning isn’t enough to improve performance or curb bad behavior, it’s time to present your concerns in writing. This formal written warning should include details on the policy and specifics on how the individual violated company rules. This document should also include expectations on how to correct the offense, what will happen if the employee is non-compliant, and the date you presented the written warning.

    As with verbal warnings, this meeting should be confidential and everyone involved must sign the form acknowledging the discussion. One difference is that you should also give the employee the opportunity to assess their own behavior on the written document. Let the employee know that signing the form isn’t an admission that they agree, just evidence that the discussion took place and that they are accountable for future corrective action. Once everyone on hand signs the form, you can add it to the employee’s personnel file.

    3. Final warning

    The final warning is very similar to doling out a written warning, except that it should be clear that this meeting is the employee’s last opportunity to comply with expectations.

    Once again, present a dated document that restates the policy in question, what they did wrong, and what must be done to correct this behavior. The key difference is that this document should clearly indicate that this meeting is a final warning and future noncompliance will result in the employee’s departure from the company. Once the form is signed by everyone on hand, add it to the same file as the rest of the warnings.

    4. Termination of employment

    If all three previous steps don’t work, it’s time to let the employee go. Meet with the offending employee and notify them that they’re no longer a part of the company. You should present this individual with a written, dated termination notice and save a copy for the company’s personnel records. Everyone present for this meeting should also sign this document.

    This meeting also serves as the right time to wrap up any tasks required to finalize the termination. You’ll need to inform the departing employee about what to expect in terms of receiving their final pay, which can depend on your state’s requirements. You’ll also need to collect and company property from the employee, which can include keycards, laptops, and other items or equipment. Once the employee retrieves any personal items, immediately change any relevant passwords and restrict prior access to company systems.

    Improve Employee Performance and Limit Risk with a PEO

    Your workers are your greatest asset, but that doesn’t make employee performance management any easier. Everything from creating thorough progressive discipline policies to conducting performance reviews not only takes time, but also has a major impact on your business’ success.

    The good news is that you don’t need to take on these responsibilities alone. GMS partners with businesses to take on the administrative burdens associated with managing employees, saving you precious time and protecting. Contact GMS today to talk to our experts about how we can save your time, money, and headaches through professional performance management.

  • You don’t need to run a big business to be a target for litigation. Small businesses across the country are targets for potential lawsuits, especially when it comes to wage and overtime compliance.

    Wage and hour litigation has grown into a major hazard for employers. Employees can pursue litigation if they feel that they weren’t paid for their work. These types of claims can stem from a variety of factors – an employee worked overtime that wasn’t approved, someone clocked in early when they weren’t supposed to, etc. These claims can wreak havoc on your business, so it’s essential to protect your business from these disputes.

    Why is Wage and Hour Litigation a Growing Trend?

    While wage and hour lawsuits have been around for decades, they’ve become more prominent in the past few decades. Fair Labor Standards Act (FLSA) lawsuits increased by a staggering 417% between 1997 and 2017, and the stakes have grown even higher in recent years due to complicated labor regulations and the impact of COVID-19.

    The Department of Labor’s Wage and Hour Division (WHD) has dedicated more time in recent years to achieve compliance with labor standards. The WHD conducted more outreach events in 2020 than any other year in history, capping off a three-year stretch of increased efforts. More employees also reached out to the WHD, as evidenced by the following numbers.

    • The WHD received more than 9,000 phone calls per day, an 350% increase from their previous average.
    • The WHD website received more than 45 million views since the passage of the Families First Coronavirus Response Act (FFCRA).
    • The WHD collected an average of $706,000 in back wages for workers per day in 2020.
    • WHD investigations in 2020 found that employees were owed an average of $1,120 in back wages.

    COVID-19 also created some new challenges for wage and hour compliance. More businesses were forced to have employees work from home, making it difficult for some employers to diligently track hours and account for overtime as they would have before.

    How to Protect Your Business from Wage and Hour Litigation

    Simply put, employers need to be increasingly careful about wage and hour violations. Even a small timekeeping error or miscommunication can turn into a lengthy, costly dispute. 

    Here are some ways that you can protect your business against these lawsuits.

    Keep accurate employee payroll records

    Clean, accurate payroll documentation is a critical aspect of running a compliant business. The (FLSA) requires businesses to keep accurate payroll records for non-exempt employees, many of which can help you make your case if you ever face a wage and hour lawsuit. Some of those records include:

    • Time and day of week when employee’s workweek begins
    • Hours worked each day
    • Total hours worked each workweek
    • Basis on which employee’s wages are paid (e.g., “$9 per hour,” “$440 a week,” “piecework”)
    • Regular hourly pay rate
    • Total daily or weekly straight-time earnings
    • Total overtime earnings for the workweek

    It’s also important to maintain these records for extended periods of time. Payroll data should generally be stored for at least three years in case of future litigation or if the Department of Labor (DOL) ever wants to review your business.

    Audit your timekeeping practices and adjust policies as necessary

    One of the simplest ways to protect your business is to review your timekeeping practices. Maintaining outdated or poorly defined practices can lead to unpleasant surprises when it comes to wage and hour law. As such, you’ll want to audit your practices and make the necessary changes to help your business avoid any issues.

    A good place to start is to review the Society for Human Resource Management’s (SHRM) checklist for various timekeeping practices. This checklist highlights a few different issues that can clean up your practices and establish more definitive methods for timekeeping. Of course, there are some notable risk areas that you’ll need to address as well.

    Establish a timekeeping policy and communicate it to employees

    It’s essential to set some ground rules to makes sure everyone is on the same page about your timekeeping policy. Employees should have a clear understanding of how your timekeeping policy works and what they should do when it comes to recording time. For example, you may want to highlight the following policies.

    • Require employees to record and verify all time worked.
    • Break down what counts as hours worked (such as training and travel time).
    • Put controls in place to prevent employees from clocking in early without prior approval.
    • Prohibit off-the-clock work.
    • Clearly state that overtime must be pre-approved by a supervisor.

    You’ll also want to have your employees review and sign documentation that they acknowledge your practices. This measure will not only educate employees on your policies, but also serve as a key compliance document to defend your business against some off-the-clock claims.

    Avoid rounding for timekeeping if possible

    It’s not uncommon for employers to round hours during payroll, but that doesn’t mean it’s the safest approach. According to the DOL, “employee time from 1 to 7 minutes may be rounded down, and thus not counted as hours worked.” The problem with this approach is that it can still open your business up to legal grey areas. SHRM found that “courts have ruled in favor of employees where the employer’s rounding policy worked only to the employer’s advantage or failed to average out over time.” Some states also have their own rules for rounding time, adding an extra dimension of complexity to the issue. 

    This grey area is why pay to the punch is the gold standard for timekeeping. This approach will not only help your company identify exactly how long your employees worked, but also avoid these potential complications that can lead to wage and hour lawsuits.

    Invest in payroll technology

    These days, a manual timekeeping system is just going to hold you and your company back. Whether you use paper records or some other form of offline time tracking, these methods are inconsistent and time consuming. That combination is only going to make matters worse if your company is ever hit with a dispute.

    Payroll technology is designed to simplify timekeeping and keep your business compliant with wage and hour regulations. Cloud-based timekeeping tools like GMS Connect offer a variety of key advantages for small business owners. 

    For example, timekeeping software makes it easier to track exactly when employees clock in and out for work and avoid issues with rounding. Technology also helps you streamline payroll management, giving you real-time calculations of employees’ pay and allowing both you and your employees to access schedules, hours, and other details from anywhere with a secure connection.

    Work with payroll experts

    It’s not easy to manage payroll for a small business. A simple timekeeping mistake can lead to a serious compliance issue that turns into a lawsuit. That need for payroll expertise is exactly why small businesses shouldn’t face these threats alone.

    GMS partners with small businesses to help them take control of their payroll administration. We can provide your company with a comprehensive web-based payroll solution to not only keep your business compliant, but also save you both time and money. You’ll also have access to a dedicated GMS payroll processor and other experts who can answer your questions and help you stay on top of new regulations, state laws, and timekeeping trends.

    As a Professional Employer Organization, GMS is here to make your business simpler, safer, and stronger. Contact GMS today about how we can help you with payroll administration and other critical HR functions.

  • Whether you need to follow legal regulations or simply have some company rules, workplace compliance requirements are crucial for any small business. Unfortunately, it’s not always easy to get employees on the same page. 

    It’s important for small businesses to take some steps toward encouraging a compliant workplace. Encouraging this type of culture can help businesses save on workers’ compensation, create a safer workplace, and help everyone stay on the same page. Let’s break down what you can do to get your employees to buy in to your company’s rules. 

    How to Ensure Compliance in the Workplace

    There are a few different steps that employers can take to help cultivate compliance in the workplace. Here are six ways that you can make sure that your workforce complies with existing policies and procedures.

    Document any rules your employees need to follow

    The first step toward workplace compliance is to make sure everyone knows your policies and procedures. It’s important to document your company’s rules in your employee handbook. This way you can give each employee a handbook so that they can review the regulations you have in place. 

    This process will not only give everyone a document to review their rights and obligations, but also serves as a compliance tool in case there are any occasions where people violate company policies. You can have employees sign off on receiving and reviewing your handbook. You can also create checklists to ensure employees understand all the right steps for certain procedures.

    It’s also important to make sure your policies and procedures stay up to date with any new federal laws or business trends. You can update your handbook to add new policies or tweak existing rules, just make sure that every employee has a means to access these rule changes so that they can stay compliant. Finally, these documents should be easily accessible so that employees can review them at their own leisure.

    Consistently apply those policies and procedures

    Having policies and procedures in place is one thing, the way you apply them is another. Your compliance rules affect everyone at your company, from the top executive to the newest member of your team. 

    It’s important to make sure that you consistently apply those policies and procedures equally so that your whole organization sees that there isn’t any special treatment. If employees see that the rules aren’t applied equally, they’ll be much less likely to buy into them. That disenchantment can quickly lead to non-compliance.

    The best way to avoid this potential problem is to reinforce how important these policies and procedures are for everyone. Have regular handbook reviews where you go over key policies and company culture with your whole staff and reinforce that it takes buy-in from everyone. By setting an example and making sure everyone is accountable, you can instill a culture of compliance and avoid issues stemming from inconsistent treatment.

    Take a positive approach instead of just saying “no”

    If you want people to truly buy in to a culture of compliance, it’s best to focus on what they should do instead of telling them what not to do. Taking an “anti” approach with workplace policies is like telling someone “no” over and over – at some point, they may stop listening.

    This natural reaction to being told what not to do is why it’s better to focus on proper behaviors and educate employees on why that approach is best. If you have certain safety rules in place, create policies of what employees should do and why those behaviors are best. 

    For example, lay out guidelines on the safety equipment employees should use and how that equipment keeps them safe and healthy. That type of message will naturally hit home harder than simply saying “don’t work without a harness.” By providing positive instructions and providing the reason behind it, your workforce can at least understand why those rules are in place, even if they don’t like it.

    Invest in employee compliancetraining

    Once you have your policies in place, you’ll want to do more than just communicate them with employees. Training will help reinforce those compliance procedures and policies so that they’re less likely to make mistakes. These training sessions should cover the following topics.

    • Safety and health policies, goals, and procedures
    • Functions of the safety program
    • Proper contacts for any questions or concerns about the program
    • How to report hazards, injuries, illnesses, and close calls/near misses
    • What to do in an emergency

    Training should also be more than a one-time event. An ongoing training program can help your employees stay aware of company policies and procedures, especially if there are any changes to your compliance guidelines. 

    Use positive reinforcement for doing the right thing

    Let’s be honest, the average person doesn’t think of workplace compliance as a fun topic. That doesn’t mean the subject has to be a drag. Utilizing positive reinforcement to reinforce your policies and procedures can not only help prevent problems, but also encourage your employees to actively participate in workplace compliance measures.

    There are several different ways that you can go about this process. If you’re trying to get people into compliance training, the company could buy lunch for employees to get them more excited about the session. You can also incentivize employees by setting up a small rewards program for people who actively engage in compliant behaviors. If you make compliance a positive experience, employees will be much more likely to follow company policies and procedures.

    Keep employees engaged

    Positive reinforcement is one step in the right direction, but don’t forget that compliance is a two-way street. It’s critical to keep communication open for any employees who want to talk about workplace compliance. Those conversations will not only help your employees feel heard, but also uncover some potential opportunities for improvement.

    Sometimes these conversations aren’t exactly enjoyable. If someone breaks company rules about safety, harassment, or something else, it’s time to have a serious discussion about unacceptable behavior. It’s important to foster a compliant work environment, so these conversations are necessary to explain why an employee’s behavior went against company policy and how to move forward.

    It’s also important to keep an open dialogue with employees to see what’s going on around the workplace. If employees are experiencing difficulties with certain policies or have some feedback about how to create a safer work culture, let them know that management is there to listen. Allowing people to share what they’re experiencing can help foster a more engaged workforce and help identify potential opportunities to improve compliance. 

    Create a Culture of Compliance

    From safety regulations to parking policies, it’s important to make sure that everyone buys in to your company’s rules. Fortunately, you don’t have to go through this process alone.

    GMS works with businesses to develop a culture of workplace compliance and help them save time and money through expert HR outsourcing. Our team can help instill a culture of compliance through employee training, documentation, and other measures to help prevent future issues.

    Ready to make your company simpler, safer, and stronger? Contact GMS today about how we can support your business through comprehensive human resource services.

  • Hiring a new employee is an exciting occasion for a small business. However, it does call for a lot of paperwork. 

    The onboarding process requires new employees to review and sign several documents. These papers range from government forms to records specific to your business. Regardless of their purpose, it’s important to make sure new hires address these documents shortly after they join your company. Let’s break down the various documents required for onboarding a new employee.

    The Different Types of New Hire Forms and Documents

    Onboarding documents have many different functions. Some are needed to collect important information from a new employee. Others are designed to properly inform new hires about certain practices and give them the ability to sign up for certain benefits. Essential onboarding documents are broken up into a few different groups. 

    • Initial hiring documents
    • Employee eligibility forms
    • Tax forms
    • General business documents

    Regardless of their intent, it’s best to have employees review and sign these documents on their first day if possible. While the paperwork may not be all that exciting, it’s best to get these steps out of the way early and create a good foundation for new hires.

    Initial hiring documents

    The onboarding process starts with a job offer. There are a few documents that new hires will need to sign in order to get the job and help ensure that they’re the right fit for a company. As such, all prospective employees should fill out the following documents to get the onboarding process into motion.

    Job application form

    The job application form is the very first official document required to onboard new hires. While this form may seem obvious, it’s crucial to have it on file so that you have information such as work history, education, and personal data available in case any issues were to occur in the future. Some states have requirements for including specific statements in job application forms, so having this document can help you prove that you followed any legal obligations.

    New employees should sign this document to verify all the information and consent to a background check. It’s also important to note that this form should be included even if a job candidate already submitted a resume. You can then hold onto this document for a full year along with any notes or other details documented during the hiring process. 

    Offer letter and/or employment contract

    The offer letter is another standard part of adding on a new employee. Still, it’s important to not only give employees an offer letter and employment contract, but also attach a copy to the employee’s file. This inclusion will just give businesses another document to reference in case any issues arise in the future regarding that contract or offer details.

    Drug testing records

    Whether a company wants to drug test a job candidate upfront or conduct tests throughout employment, you’ll need to provide employees with a copy of the company’s drug testing policy. You should also maintain records of any test results for at least one year, although some regulations may increase the minimum time frame for saving these records.

    Employment eligibility forms

    Once you’ve decided on the perfect candidate, the government requires them to confirm their eligibility to work in the United States. There’s only one document that falls under this section, but it’s a very important one: Form I-9.

    Form I-9 requires both the new employee and the employer to fill out parts of the document. New employees must fill out and sign the first section of Form I-9 on their first day of employment. Employers are then required to review the first section for completion.

    Employers also must also fill out the second section of Form I-9 within three business days of the date of hire. This step requires new employees to provide unexpired original documentation to prove their identity and employment authorization. This documentation can come in may forms such as passports, driver’s licenses, Social Security number cards, and more. U.S. Citizenship and Immigration Services provides a complete list of acceptable Form I-9 documents online.

    Once an employer has the required information, they can fill out the remainder of the form. Employers do not need to fill Form I-9, but they should keep it on file for at least three years after the employee’s first day or for a full year after an employee is terminated. This will allow employers to present the form if any authorized U.S. government officials visit the business for inspection.

    Tax forms

    Employment eligibility is just the first step toward completing government-mandated documents for new employees. Employees are also required to fill out Form W-4 so that you can properly manage payroll for their business. 

    Form W-4 is used so that employees determine the federal income taxes that their employers should withhold from paychecks. As such, new hires should fill this form out right away so that employers can apply the information toward their first pay period. Some states also have their own version of Form W-4 for local income tax withholding, while others simply use the federal document.

    Employers aren’t required to regularly submit these forms, but they should keep them on file for reference and in case the IRS requests a copy to compare withholdings. Each W-4 should be kept on file for at least four years after these taxes are either paid.

    General business documents

    While some onboarding documents are required by law, many others are simply a means to provide new hires with all the information they’ll need at their new company. These papers can range from means to gather payroll and benefits information to simply giving individuals more detail about their roles and other company materials. 

    Direct deposit form

    Direct deposit is a convenient arrangement for both employers and employees, but businesses need some details to set up this payment method. New employees that will receive direct deposit will need to fill out a bank account information form to ensure that their paychecks go to the right place. These forms should require the employees to include:

    • Their full name
    • Bank account number
    • The account type (checking or savings)
    • Name and routing number of the bank

     Benefits forms

    If a business offers a benefits package to its employees, that company should provide information about those benefits to new hires and have them opt in or out of programs. These programs can include:

    • Health insurance
    • Life insurance
    • Retirement plans
    • Disability insurance
    • Wellness programs

    Employers will need to hand out different benefits forms for each offering in their plan. These forms should have details about each offering and give employees the chance to opt in for them if they’re eligible. Even if they opt out, employers should retain those signed documents as evidence that they were informed of benefits options and chose not to enroll in them.

    Mission statement and strategic plan

    Some onboarding documents are simply to help new employees get more accustomed to a business. A company mission statement, strategic plans, or any other relevant documents will help new hires understand the company’s culture and goals. This type of information will help them understand how their role fits in with the organization’s vision and fit in from day one.

    Employee handbook

    As long as an organization has an employee handbook, it’s best to give a copy to new employees right away. A good handbook lays out all the important elements about a business – company policies, procedures, and other key details. 

    Handing out a handbook to new employees allows them to consult this document about key questions they may have about an organization. A handbook also serves as a noteworthy compliance tool, acting as proof that employees had prior information about company policies. As such, you’ll also want employees to sign an employee handbook acknowledgment form to verifying they received and read through the handbook.

    Job description and performance plan

    Every employee should be given a clear direction of what their role should accomplish and how their success will be measured over time. Employers should provide new hires with a document that lays out responsibilities, expectations, and potential timelines of what should be accomplished during their first few months. Having employees sign off on this document will not only help them understand expectations, but also provide employers with written guidelines when it comes time to evaluate performance.

    Employee onboarding checklist

    There’s a whole lot that needs to happen in the first few weeks on the job. An onboarding checklist is a detailed action plan that documents all the training, tasks, and other key items that will happen at the beginning of someone’s tenure with the organization. A solid outline will help keep everyone on track and give new employees a sense of reassurance that their new employer has a plan and values their position.

    Security and parking signoffs

    If the job calls for special security or parking details, employers should lay out all that information and arrange for special clearances in time for a new hire’s first day. Employees should receive any forms they need to sign and key items or information related to parking, entrance, and more. These items can include parking passes, keys, and passcodes. Documentation for these items should also include details on next steps if an employee leaves the company or is terminated.

    Emergency contact information and plans

    Everyone hopes that they’ll avoid any emergencies, but it’s important to be prepared just in case. New employees should be given relevant contact information for managers and other individuals in case anything happens after hours. Employees should also provide the company with an emergency contact in case something happens to them on the job as well. Finally, provide new hires with any disaster readiness plans if the company has any created.

    Set Up Your New Employees for Success

    While new hires call for a lot of paperwork, a good onboarding process can make for an easier transition into your company. Of course, gathering all these documents is just the first step in a long process. It’s important to set the right tone for new employees so that they can help your company grow.

    Fortunately, GMS can help your business build an onboarding process that not only sets up new hires for success, but also takes the administrative work off your hands. Contact GMS today about employee onboarding management and other critical human resource functions.

  • As a business leader or as the owner of your own business, I’m sure you already know about the changes to the I-9 form that have come around in time for its 30th anniversary. Unfortunately, in my travels as a sales representative for GMS, I often run into business owners who don’t know what an I-9 form is, let alone if they’re filed properly.

    Image of a business going through I-9 compliance. Contact GMS today about business compliance.

    Explaining the I-9 Form

    According to the Website of the Department of Homeland Security, “Form I-9 is used for verifying the identity and employment authorization of individuals hired for employment in the United States. All U.S. employers must ensure proper completion of Form I-9 for each individual they hire for employment in the United States. This includes citizens and noncitizens.” This is also a form that causes a lot of unnecessary regulatory and financial headaches to businesses.

    According to a newsletter recently put out by HR Specialist and its LEAP (Labor and Employment Law Advanced Practices) Letter, “Form I-9 is used for verifying the identity and employment authorization of individuals hired for employment in the United States. All U.S. employers must ensure proper completion of Form I-9 for each individual they hire for employment in the United States. This includes citizens and noncitizens.” A big reason for this was a new audit initiative put out by the Obama Administration in 2009, to crack down on employers who violate immigration laws.

    Maintaining I-9 Form Compliance

    Those fines can be steep and violations can be simple. According to that same newsletter, “The U.S. Immigration and Customs Enforcement agency (ICE) recently slapped a California-based production company with the single largest fine ever for Form I-9 paperwork violations. The $605,250 fine was for violations on more than 800 different I-9 forms. The company’s biggest mistake: a repeated failure to sign Section 2 of the form.”

    If you’re concerned where you stand with compliancy on your I-9 forms or just need help to get your business compliant with all government regulations, known and unknown, there are steps you can take. You can talk with your attorney or you can do what more and more small businesses are doing and speak with a Professional Employer Organization like GMS about I-9 compliance. Contact GMS today about how we can help you stay compliant and make your business simpler, safer, and stronger.

  • Most entrepreneurs start a business based on something they are passionate about. For the majority of auto shop owners, their dream started working on cars. When that passion turns into a business venture, it quickly becomes apparent that running your own auto shop requires more than just a love of cars.

    Leading a group of people, keeping systems in place to track hours, and tracking employee history are just a few of the tasks that shop owners handle on an everyday basis. Owners have enough on their plate in handling day-to-day business, but the work is not done when the shop closes. Here are some of the most common HR issues facing these small business owners.

    Image of an auto repair employee. Contact GMS about human resources help for the auto industry.

    Employee Recruitment and Retention

    Through the combination of an aging workforce and a lack of good, young workers, an inevitable skills shortage looms near. As the industry grows with technological advancements driving consumer demand, the need for quality employees is greater than ever, but younger workers are shifting away from a career path as an auto technician.

    According to the U.S. Bureau of Labor Statistics, “more than 237,000 jobs are expected to open up in the automotive repair field between 2014-24.” With a large volume of auto techs retiring in the coming years, and a lack of skilled replacements entering the industry, there is a huge emphasis on recruiting and retaining quality workers. 

    Record Keeping

    Documentation is an often overlooked aspect of running any business. Shop owners must have detailed manuals setting the expectations of the position. These documents must be updated every year to make sure you are keeping up to date with any changes in the industry. 

    If you fail to provide this information to employees, it is difficult to hold them accountable. Throughout their employment, you must keep detailed records of their employment history, including any disciplinary actions taken throughout their time with the company. Should their actions require termination, you will have all of the information in their employee file to help protect your company from any claims of wrongful termination or other legal action. 

    According to the Hiscox Employee Lawsuit Handbook, “19% of employment charges resulted in defense and settlement costs averaging a total of $125,000.” The time and money associated with these potential lawsuits only further support the need to document everything.

    Compliance

    Automotive technicians face a much higher volume of potential workplace hazards than employees in most other industries, therefore the Department of Labor and the Occupational Safety and Health Act has stringent workplace standards for employees. 

    The use of tools and machinery, as well as toxic chemicals, creates an environment that justifies regulation. OSHA breaks down the primary risks stating, “Chemical hazards may include volatile organics from paints, fillers and solvents; diisocyanates, polyisocyanates, and hexavalent chromium from spray painting operations; silica from sandblasting operations; dusts from sanding; and metal fumes from welding and cutting. Physical hazards include repetitive stress and other ergonomic injuries, noise, lifts, cutting tools, and oil and grease on walking surfaces.”. A list of the most common citations can be found here.

    Partner with a PEO

    Many shops across the country are turning to Professional Employer Organizations to handle all of these Human Resource functions, so owners can focus on the business. No more late nights in the office running payroll, reviewing candidates, and updating handbooks. Contact GMS today to see how we can make your business simpler, safer, and stronger!

  • You’re likely familiar with the saying, “If it ain’t broke, don’t fix it.” While this mindset can be beneficial in some areas of your business, it doesn’t quite fit when it comes to HR processes and policies. The landscape of federal, state, and local regulations is constantly evolving. Sticking to your status quo, even if it once met legislative requirements, could leave you non-compliant and expose your business to potential risks.

    In addition, technology advances quickly, and the systems that once seemed to streamline your operations might now hinder your efficiency or create unnecessary headaches for you and your team. This is where professional employer organizations (PEOs) can be of use. PEOs offer several advantages, particularly to small and medium-sized enterprises (SMEs) who may need more comprehensive in-house HR, payroll, compliance, and employee benefits management resources.

    While the temptation to stick with what’s familiar is understandable, embracing change, especially in HR, can significantly elevate your business’s efficiency and compliance. Partnering with a PEO can transform your HR department from a purely administrative function to a strategic asset. By offloading the administrative burdens that come with HR, you and your team can refocus on core business strategies and growth initiatives.

    The Benefits Of Partnering With A PEO

    PEOs can often provide services at a lower cost than if you were to handle these functions in-house. By pooling together employees from multiple companies, PEOs achieve economies of scale, allowing them to negotiate better rates for health insurance, workers’ compensation, and other benefits for your team. Often, these benefits are on par with Fortune 500-level companies and can assist with your recruitment and retention efforts. In addition, partnering with a PEO can help:

    • Ensure compliance: PEOs employ professionals with expertise in HR, benefits, payroll, tax compliance, and risk management. Partnering with a PEO gives you access to these experts, who can be invaluable for making informed decisions about your workforce and business strategy, all while ensuring your compliance with federal and local regulations.
    • Offer HR management and support: PEOs provide comprehensive HR services, including recruitment, onboarding, performance management, and employee termination. This support can relieve your internal team of these duties, allowing them to focus on other areas of your business.
    • Boost employee performance and satisfaction: Employees often experience better HR support with PEOs as they can offer more timely resolution of issues and access to a broader range of benefits. This can lead to increased employee satisfaction and productivity.
    • Provide flexibility for growth: As your business grows, a PEO can quickly scale its services to accommodate new employees, enter new markets, or adjust to changes in your business model. This flexibility is particularly beneficial for rapidly growing companies that need to focus on scaling operations without being bogged down by administrative tasks.

    According to the National Associations of Professional Employer Organizations (NAPEO), businesses in a PEO arrangement grow 7-9 percent faster, have 10-14 percent lower turnover, and are 50 percent less likely to go out of business. While the temptation to “stay with what’s familiar” may be strong, today’s business landscape demands agility and a proactive approach to HR management.

    By partnering with a PEO, you not only safeguard your business against compliance risks but also position it to thrive in an ever-changing market. This strategic move can be the difference between merely surviving and truly flourishing in your industry.

    Partnering With A PEO

    While partnering with a PEO might sound like a good decision, you might still be concerned about what that partnership actually means. When you start working with a PEO, you enter a co-employment agreement; this essentially allows the PEO to handle your payroll and benefits. However, you remain in complete control of your business, managing the day-to-day and making all the critical decisions related to your company.

    While PEOs speed up and streamline the hiring process by finding qualified candidates for you to meet, at the end of the day, you choose who joins your team. Your relationship with a PEO is designed to be collaborative. The co-employment model used by PEOs does not diminish your authority or ability to manage your team. Instead, it provides a support structure, enhancing your capabilities to focus on other business areas.

    Embrace Change With GMS

    Getting started with a PEO can feel daunting, but GMS makes it easy. Today, business owners need to be compliant with a multitude of regulations in regard to:

    Whether you’re seeking support in one specific area or need comprehensive assistance across all these critical functions, GMS stands ready to elevate your business. Our team of experts is dedicated to making your operations smoother, ensuring your workplace is safer, and fortifying your company against the challenges of tomorrow. Don’t let the complexity of HR and compliance slow you down.

    Contact us today to discover how we can transform your business into a simpler, safer, and stronger entity. Let us take the burden off your shoulders so you can focus on what you do best—growing your business.

  • As a business owner, you get to make the rules in  your own company. However, there are still plenty of regulations and laws that can impact your business.

    It can be difficult for owners to keep track of every single rule and avoid non-compliance costs when they’re  busy, well, running a business. That’s why it can pay to invest in human resource outsourcing through a Professional Employer Organization. A PEO can help your business stay in line with complicated regulations to help you keep your HR functions in order. Here are areas  where a PEO can help save you some money.

    Image of compliance needs for a business. Learn how human resorce outsourcing with a PEO can help with compliance.

    Four Areas Where Non-compliance Can Cost Businesses

    Workplace Safety

    OSHA takes safety very seriously and can dole out some significant fines for non-compliance. According to the OSHA Penalties list updated Jan. 13, 2017, serious violations can cost a business a whopping $12,675 per violation. It’s 10 times that amount for willful or repeated penalties.

    Workplace inspections and guidance on compliance can do more than just avoid costly OSHA fines. They can make your workplace safer and minimize risk for workplace accidents. 

    Hiring

    Hiring employees can be a costly experience if you aren’t compliant with appropriate policies and practices. There are several laws enforced by the Equal Employment Opportunity Commission that can trip up companies that aren’t careful, leading to lawsuits from disgruntled applicants over improper job applications, discrimination, or other issues.

    Healthcare

    Even with the current political administration in power, businesses should still plan for Affordable Care Act  compliance. As our own Andrew Szczesniak wrote earlier this year about the future of the ACA , “it’s impossible to predict with any certainty what will happen in the next 12 months, let alone the next two years.”

    With many people committed to the ACA through at least 2017, businesses still need to make sure that they stay compliant. Failure to offer coverage under current legislation could end up costing a company thousands of dollars  each month, depending on the number of employees at your company and how/if you offered employees coverage. The specifics can get complicated, so The Henry J. Kaiser Family Foundation has an easy chart that you can follow to see where you fall.

    Payroll

    Businesses have to deal with tax liabilities and responsibilities. If you don’t stay compliant, you could end up having to cut a few more checks as a penalty. 

    Bloomberg reported back in 2014 that “the IRS issued 6.8 million penalties totaling $4.5 billion” for business in the U.S. over the course of a year. That’s a lot of lost cash that could be avoided by making sure your business is compliant with tax liabilities and responsibilities.

    Stay Compliant through Changing Regulations

    It can be tricky enough for some businesses to stay compliant with every rule and regulation. It gets even harder when laws are created or updated. 

    The ACA is a great example of how changing legislation can create questions about what you need to do to keep your business compliant and avoid costly penalties. A PEO has a dedicated team of HR specialists who can help you stay up to date on the legislation and regulations that may affect your business. 

    With a PEO, you don’t have to toil away for long nights trying to make sense of every little detail. PEO experts know how to do that so your business is safer and stronger in the long run. Contact us today to talk to one of our experts about how a PEO can help your business with compliance.

  • Non-compliance can cost businesses a lot of money. If you’ve read our posts before, you’ll know that the benefits of staying compliant are things that we’ve harped on before, but it’s worth repeating, especially when small business owners pay billions of dollars each year in payroll tax penalties. It’s especially true when it comes to something as problematic as multi-state payroll compliance.

    The problem with multi-state payroll compliance is that the rules you followed for your home state may not be the same as the other states where you do business. Each state has different payroll standards, meaning that you may not be nearly as compliant as you thought you were.

    Potential Multi-State Payroll Compliance Issues to Consider

    It can already be tricky to keep track of compliance needs, but adding multiple state locations just amplifies the issue. A few such areas of concern include:

    • Minimum wage
    • Income tax withholding
    • Leaves of absence regulations
    • Common ownership concerns
    • Workers Comp regulations

    We’ll use minimum wage as an example of just how quickly multi-state considerations can get out of hand. Let’s say that you’re a business based in Ohio that hires a lot of employees at minimum wage. If you have an operation in California, you’re going to be expected to pay California’s minimum wage of $10.50 an hour instead of Ohio’s $8.15 as of 2017, even if you’re mainly an Ohio-based business.

    While that may seem simple enough, there’s more. Twenty states increased their minimum wage rates at the beginning of this year. Also, you may not know that there are some cities and counties that observe different minimum wages than their state’s standard. For example, Cupertino, Calif. follows a $12 minimum wage as of Jan. 1, 2017, and they’re not alone. As of March 9, 2017, the U.C. Berkeley Labor Center lists 41 counties and cities across the country that observe a different minimum wage than the rest of their respective states.

    There are also other considerations than just the minimum wage, such as overtime pay rates. According to the Department of Labor, Minnesota’s basic minimum rate changes depending on whether your enterprise has annual receipts of more than or less than $500,000. While premium pay after designated hours kicks in after a 40-hour work week, it doesn’t kick in until after 46 hours in Kansas. Each state has their own specific differences that can create a huge problem for businesses who just based their payroll compliance on their home state.

    Avoid Payroll Compliance Issues Across Multiple States

    As you can tell, keeping track of payroll compliance across multiple states can be extremely complicated. It’s critical that you notify your payroll team about work situations in different states as soon as you can. That way whoever handles your payroll tax management can get a head start so that you can avoid costly non-compliance issues.

    If you’re a small business owner, there’s a chance that payroll compliance responsibilities fall on your shoulders, or on someone else who isn’t necessarily trained to handle payroll. If the thought of managing multi-state payroll compliance seems too intimidating, we’re happy to help.

    As a Professional Employer Organization, we have the experts you need for payroll tax management. Contact us today to talk with one of our experts about how multi-state compliance issues may affect your business and how we can help you stay compliant.