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  • Starting a new business is an exciting endeavor, but it also requires a lot of preparation. Part of this process includes taking measures to make sure the business is set up properly so that you can legally conduct business. Here’s what you need to do to make sure that your new business is ready for success according to federal, state, and local regulations.

    An owner starting a new business that follows state and federal regulations. 

    Register Your Business

    Registration is the first step toward making your business a distinct legal entity. The rules on what you need to do to register your business vary depending on two factors: your location and business structure. 

    State registration

    Depending on where you conduct business, you may only need to register your business name with your state and local government. This can be as simple as providing an entity name to your state and county clerk’s office, along with a Doing Business As (DBA) name if you conduct business under a different term than your personal or entity names. However, a registered agent that will receive official legal documents or other papers is required for any new LLC, corporation, partnership, or nonprofit corporation. This agent must be in the same state as where you register.

    When it comes time to register in your state, you’ll need to provide some basic information and pay a fee. The cost of business registration varies, but it’s typically somewhere around a few hundred dollars. The information you provide typically includes your business name and location, registered agent information (if required), and details on ownership, directors, and management structure. Certain states may also require some additional documents based on your business structure. Per the Small Business Association (SBA), these can include:

    • For LLCs
      • Articles of organization
      • LLC operating agreement
    • For limited partnerships
      • Certificate of limited partnership
      • Limited partnership agreement
    • For limited liability partnerships
      • Certificate of limited liability partnership
      • Limited liability partnership agreement
    • For corporations
      • Articles of incorporation
      • Bylaws of resolutions
      • Number and value of shares

    If you plan to operate in states outside your registered location, you’ll need to file for foreign qualification. This requires filing a Certificate of Authority with the state office in question and paying any related fees. According to Forbes, foreign qualification is required if you can answer “yes” to any of the following questions.

    • Do I have a physical presence (e.g., office space or retail store) in the state?
    • Did I apply for a business license in the state?
    • Do I often conduct face-to-face (not just email/phone/Skype) meetings with clients in the state?
    • Does a substantial chunk of my company’s revenue come from the state?
    • Are any of my employees working in the state? Am I paying state payroll taxes there?

    Federal registration

    Unlike state and local governments, it’s not necessarily required for a business to register with the federal government to be considered a legal entity. However, there are some business statuses that do require federal registration. These include filing form 2553 with the IRS to create an S corporation or registering your business for tax-exempt status for nonprofit corporations.

    While not required, businesses can also register with the federal government for trademark protection. This act can help prevent other businesses from using your trademarked terms – or to help you act in case anyone infringes on your business, brand, or product names. You can start this process by filing to trademark your business name or any other related terms with the U.S. Patent and Trademark Office.

    Follow Tax Requirements

    Once you’ve registered your business, it’s important to make sure your business is set up to meet federal and state tax requirements. While you may not need to federally register your business, it is necessary for most new businesses to file for an Employer Identification Number (EIN) with the IRS. This unique nine-digit number is essentially a federal tax ID that allows you to set up your business’ payroll and identify your business when you send required payroll documents to the IRS and state agencies. Some locations also require businesses to have employer ID numbers for state and local governments as well. 

    In addition, businesses will need to register for an Electronic Federal Tax Payment System (EFTPS) account. This account allows business owners to pay federal taxes online or over the phone. There are also many other steps involved with setting up and handling payroll. To learn more about what it takes to make sure your payroll process is in a good place, check out our detailed guide on how to manage payroll for a small business.

    Obtain Any Necessary Business Permits and Licenses

    Depending on what your business does, you may need to apply and pay for federal or state permits and licenses. According to the SBA, any business that deals with any of the following activities are regulated on the federal level and require special licenses or permits:

    State licenses and permits are dependent on your location. Individual states tend to require permits and licenses for a broader spectrum of business activities than what’s federally required, which can mean you may need to obtain approval to operate in anything from construction to food service. In some cases, such as businesses that manufacture, import, or sell alcohol, you may need to acquire permits or licenses from both federal and state sources. Unfortunately, you’ll need to visit your state’s website to determine which permits and licenses are required and how to apply for any that pertain to your business. 

    Get Business Insurance

    Business insurance isn’t only a way to protect your business, it’s also mandatory in some cases. Federal law requires that every business has workers’ compensation, unemployment, and disability insurance, while some states require additional insurance policies. 

    Another factor is that certain types of businesses may need to carry specific types of insurance. Whether it’s mandated by local laws or you just want to protect your business against potential risks, different types of insurance can include:

    • Product liability insurance for manufacturers, wholesalers, distributors, and retailers
    • Professional liability insurance for service-based businesses
    • Commercial property insurance for businesses with property and/or physical assets
    • Home-based business insurance for businesses run out of the owner’s personal home
    • Business owner’s policy for small business owners looking for bundled coverage

    Prepare Your Business with Professional HR Management

    Opening a new business is a big investment, but it can succeed with the right team behind it. However, the administrative responsibilities of owning a business can dominate your schedule if you don’t have the right people to help you manage your business’ HR processes. That’s where a Professional Employer Organization like GMS can help.

    Every company needs proper HR management, no matter how big or small it is or how long it’s been in business. GMS can partner with you to build a strong HR foundation for your business and give you access to payroll, benefits, and other HR experts who can manage your business’ administrative needs and keep you up to date with any new business laws and regulations. In turn, you can focus your time on whatever it takes to grow your business.

    Ready to build toward a bright future for your business? Contact GMS today to talk to one of our experts about how we can support you and your company.

  • Like any other state, Tennessee has it’s own particular rules when it comes to workers’ compensation. The Volunteer State has specific compliance standards for acquiring coverage. Here’s what small business owners in Tennessee need to know about workers’ compensation.

    A woman filling out a work injury form for a Tennessee employer with workers’ compensation insurance.

    Does My Business Need Workers’ Compensation Insurance?

    The state of Tennessee is strict when it comes to required workers’ compensation coverage. To start, Tennessee law mandates that employers must secure workers’ compensation insurance if they have five or more employees.

    It’s important to note that there is a big distinction between who is considered an employee or an independent contractor. While you may not view certain part-time workers or family members as true employees, the state may count them toward your five-person threshold depending on certain criteria. The differences between employees and independent contractors typically come down to the level of control an employer has over a person. In Tennessee, the state adopted a new 20-factor test that went into effect Jan. 1, 2020 to determine who is legally considered an official employee.

    Exemptions to the five-person minimum

    While five employees is the main threshold for mandatory workers’ compensation insurance, there are exceptions to that rule. The exemptions work both ways, allowing some businesses to work around the five-person count in some instances while lowering the threshold for others.

    In Tennessee, there are a couple of instances where employers need to secure coverage even if they only have a single employee. This one-person threshold applies to all employers in the coal mining or construction service industries unless they are specifically exempt. For example, Tennessee’s Department of Labor & Workforce Development notes that sole proprietors, members of LLCs, and partners “are excluded from the count of employees that determines whether or not an employer is covered by the Tennessee Workers’ Compensation Act.”

    Minimum employee thresholds do not apply to any state and local government agencies, as well as businesses that employ farm laborers or domestic help. However, these entities, along with any other business not required to secure insurance, may purchase coverage at their own discretion. It’s also important to note that any companies that do not have to provide worker’s compensation insurance are not protected against legal action. Injured employees for these companies won’t receive workers’ compensation benefits, but may still file a lawsuit against the employer.

    How Do I Make Sure My Business is Covered?

    If you need to – or decide to – secure workers’ compensation coverage, you have three options in Tennessee:

    • Voluntary market plans
    • Tennessee assigned risk plans
    • Self-insurance plans

    Unlike monopolistic states where employers have a single route for acquiring workers’ compensation insurance, Tennessee allows business owners to compare quotes and purchase policies from private companies. If your business has older or higher-risk employees, you can also purchase coverage from Tennessee’s assigned risk plan. This plan is managed by the National Council on Compensation Insurance (NCCI) and gives employers in Tennessee an insurance option if the voluntary market won’t.

    The third option involves employers self-insuring workers’ compensation claims. This route means that an employer assumes the risks associated with providing workers’ compensation to employees. As such, a self-insured employer won’t submit claims to an insurance company or pay fixed premiums. Interested businesses can apply with the Tennessee Department of Labor & Workforce Development to qualify for self-insurance.

    However, this option means that your business is on the hook for the cost of each workers’ compensation claim out-of-pocket as they happen. This arrangement makes self-insurance a high-risk, high-reward approach for smaller businesses without assistance from a Professional Employer Organization or some other organization that can administer such a policy.

    What’s the Best Way to Protect My Business without Extensive Workers’ Comp Costs?

    While there are a few situations where you won’t need to secure workers’ compensation insurance, odds are that you do. Even if you don’t, that insurance can be an important safeguard against legal action in case an accident does occur.

    Of course, this protection does come at a cost. Workers’ compensation rates can be a major drain on your overall bottom line. Fortunately, you have options in Tennessee that allow you to find the best means of workers’ compensation coverage for your business. Even better, you can work with a PEO to not only expand your coverage possibilities but also work to lower your rates through cost containment and loss prevention strategies.

    Certain costs or risk levels can limit options for small companies. As a PEO that represents tens of thousands of employees, GMS can help you tap into Fortune 500-level services, such as better workers’ compensation insurance options and more ways to save on rates. Between expert claims managers and economies of scale, we can help you protect your business at a more reasonable cost.

    Ready to keep your business compliant and take the burden of HR administration off your shoulders? Reach out to our Tennessee office or one of our other locations to talk to one of our experts about how we can help you through risk management and other critical administrative services.

  • After years of proposed changes to overtime laws, the Department of Labor (DOL)’s new updates finally went into effect at the beginning of 2020. The new salary levels make roughly 1.3 million more workers eligible for overtime pay. This news means business owners across the country may have some work to do to keep up with these changes.

    While the new standard salary level is a notable difference, it’s not the only change the DOL made. The department also revised rules for highly-compensated employees, regulations on overtime pay calculations, and other crucial details. To help, we broke down exactly what the DOL changed to help you know where your business stands and what you should do next.

    A clock tracking time for employees now eligible for overtime and papers documenting business numbers like regular rate calculations.

    Which Employees are Now Eligible for Overtime?

    Currently, the Fair Labor Standards Act sets the salary threshold for overtime at $35,568, which equates to $684 per week. Previously, the threshold was $23,660, or $455 per week. Those employees who meet the requirements set by the DOL are entitled to earn overtime pay for any hours worked past 40 in a given week. The pay for those extra hours is set at one-and-a-half times that employee’s standard rate of pay, which is the same as before. 

    In addition, highly compensated employees must now earn at least $107,432 ($684 of which must be paid weekly as either a salary or fee) instead of the old rate of $100,000. The new rules also maintain that employers can count annual (or more frequent) nondiscretionary bonuses and incentive payments as up to 10 percent of the minimum salary threshold.

    This salary threshold does not apply to all employees, however. The new rules still provide overtime protections to blue-collar workers, which means they are eligible for overtime even if they make more than $684 per week. Similarly, white-collar employees still do not receive these same overtime protections as long as they meet certain criteria for exemption. 

    In addition to meeting the new salary threshold, white-collar employees are considered exempt based on the duties they perform and if they’re paid a predetermined, fixed salary that is not subject to reduction. There were no changes to the preexisting duties tests, so owners can use the same criteria for exemption as in the past. For a detailed breakdown of those exact duties, check out our post on navigating white-collar exemptions.

    What Applies to Regular Rate Calculations for Overtime?

    Once you identify which employees are eligible for overtime pay, there’s still the matter of having to pay them for their extra hours. However, it’s not always easy to identify what affects an employee’s regular rate of pay.

    The FLSA identifies an employee’s “regular rate” as the rate that the employee is paid per hour. This doesn’t mean that the employee needs to be compensated on an hourly basis. Instead, it’s simply a calculation of how much the worker makes over the course of an hour compared to his or her salary, commission, and other compensation for all non-overtime hours worked in a workweek. As such, it’s relatively simple to calculate an employee whose compensation consists of only hourly pay – multiply that employee’s total hourly rate by the number of overtime hours worked.

    However, these calculations are much more complicated once you factor in other forms of compensation. The FLSA identifies that the rate should cover compensation that “include(s) all remuneration for employment paid to, or on behalf of, the employee,” such as bonuses, commissions and other forms of compensation. The DOL’s final rule added a list of exclusions that do not apply to overtime pay to address the confusion over what is considered part of the regular rate of pay. Per the DOL, these exclusions include:

    • The cost of providing certain parking benefits, wellness programs, onsite specialist treatment, gym access/fitness classes, employee discounts on retail goods and services, certain tuition benefits (whether paid to an employee, an education provider, or a student-loan program), and adoption assistance
    • Payments for unused paid leave, including paid sick leave or paid time off
    • Payments of certain penalties required under state and local scheduling laws
    • Reimbursed expenses including cellphone plans, credentialing exam fees, organization membership dues, and travel, even if not incurred “solely” for the employer’s benefit; and clarifies that reimbursements that do not exceed the maximum travel reimbursement under the Federal Travel Regulation System or the optional IRS substantiation amounts for travel expenses are per se “reasonable payments”
    • Certain sign-on bonuses and longevity bonuses
    • The cost of office coffee and snacks to employees as gifts
    • Discretionary bonuses, by clarifying that the label given a bonus does not determine whether it is discretionary and providing additional examples 
    • Contributions to benefit plans for accidents, unemployment, legal services, or other events that could cause future financial hardship or expense

    What Should an Owner Do About the New Overtime Rules?

    While some of the exact details have changed since the initial plans to update the overtime rules were announced back in March of 2019, our advice remains largely the same as it was that spring. First, you’ll need to evaluate your employees and identify who is now eligible for overtime and how much overtime you expect them to work (if any). If you do have employees who will now earn overtime, you’ll need to decide how you want to handle these new costs:

    • Pay newly-eligible employees overtime pay for the extra hours they accrue
    • Limit employees to 40 hours per week to prevent them from earning overtime
    • Determine how much certain employees would make in expected overtime and bump their pay to above the salary threshold if that ends up being less costly
    • Adjust salaries for new employees to account for expected overtime costs

    Each of these options has its own benefits and drawbacks, so deciding which route is best for your company largely depends on you and your workforce. Regardless of your decision, you’ll need to make sure that whatever you do ensures that your business is compliant with the new overtime rules so that you don’t open yourself up to thousands of dollars in fines and other potential penalties.

    How Can I Stay Ahead of New Regulations?

    The new overtime rules are just another major change that forces business owners to change how they manage their business. Unfortunately, you don’t always have the time or knowhow to keep up with new regulations. Fortunately, GMS can help you claim your time back and protect your business.

    As a premier PEO, GMS has the HR experts necessary to help you plan for the future and stay compliant with current laws. Our integrated HR system helps us take care of the administrative burden of payroll management, benefits administration, and other crucial human resources tasks for you so you have the time you need to focus on growing your business.

    Ready to stay ahead of new regulations and ease your administrative burden? Contact us today to talk to one of our experts about how we can strengthen your business.

  • Payroll forms can put a lot of pressure on business owners. When you’re in charge of a small business, it’s up to you to make sure that these forms are not only completed accurately, but on time as well. If you’re not careful, the penalties can range from $50 per faulty form all the way up to hundreds of thousands of dollars for notable violations.

    One of the biggest struggles of managing payroll forms is simply knowing which forms apply to your business and what they do. We’ve compiled a list of payroll forms that you’ll likely need to know for your small business and how they work.

    Form SS-4

    What is it?

    An SS-4 form is an application for an employer identification number (EIN). These unique nine-digit numbers are used to identify business entities and are required by most businesses before they can file and report taxes.

    When is it due?

    Unless you’re just about to start your business and haven’t paid anyone yet, you likely already have an EIN. There are some situations where you may need a new EIN, which the IRS has listed on its site. Aside from those scenarios, you won’t have to worry about refiling form SS-4 once you have your EIN.  

    Form W-2

    What is it?

    A W-2 form is a wage and tax statement that details what you paid an employee and the taxes you withheld from their wages for the government during the last calendar year. W-2s need to be completed for any employee who worked for you in the past year and copies should be sent to the Social Security Administration (SSA) and the employee listed on the W-2. In addition, you should hold onto a copy of each W-2 for at least years.

    When is it due?

    W-2 forms must be sent to your employees and the SSA by Jan. 31 of each year. Most state governments set the deadline at Jan. 31 as well, but make sure to check with your specific state tax agency in case your state’s date differs. 

    You can also request extensions to file forms with the SSA and distribute forms to your employees. For an SSA extension, you’ll need to fill out Form 8809 and submit it to the IRS between Jan. 1 and Jan. 31. The IRS will then either deny your request or grant you a single 30-day extension. 

    As for distribution to employees, you must mail a letter to the IRS to request an extension. The letter must explain why you need an extension, your name, business address, EIN, and signature. If approved, the IRS will grant you either a 15- or a 30-day extension.

    Form W-3

    What is it?

    W-3 forms are closely related to W-2s. Essentially, W-3s are transmittal forms that summarize the all the wage and tax statements made on the W-2s that a business files. In short, if you fill out 10 W-2 forms for your 10 employees, Form W-3 should represent a total of all 10 W-2s.

    When is it due?

    Form W-3 should be sent along with your W-2 forms to the SSA by Jan. 31. However, you don’t need to send W-3s out to your employees.

    Form 1099

    What is it?

    Form 1099 is used to report compensation for independent contractors and other nonemployees. If you pay a contractor more than $600 in a year, you need to report how much you paid them to both the contractor and the IRS so that these wages can be evaluated for tax purposes.

    When is it due?

    Contractors should receive their 1099 forms by Jan. 31. You also need to submit 1099 forms to the IRS by Jan. 31 as well.

    Form 1096

    What is it?

    Remember how the SSA requires a Form W-3 to show a total of all your W-2 forms? Form 1096 has the same relationship with your 1099 forms and should include a summary with the total amount of your 1099 payments from the last calendar year.

    When is it due?

    Form 1099 needs to be submitted along with all your 1099 forms by Jan. 31.

    Form W-4

    What is it?

    Form W-4 is used by employees to determine how much they’ll individually have withheld in payroll taxes. On this form, your employees will note how many withholding allowances apply to them. These allowances will allow you to determine the amount of payroll taxes each employee will have withheld from their paychecks.

    When is it due?

    Form W-4 doesn’t have an annual due date like other payroll forms. Instead, employees should fill a W-4 form out when they are hired. The IRS does recommend that employees submit a new W-4 form each year to account for any financial or personal changes, but it’s not mandatory. In this case, simply continue to withhold taxes based on an employee’s original Form W-4 until he or she provides a new one.

    Form 940

    What is it?

    Form 940 deals directly with Federal Unemployment Tax Act (FUTA) taxes. Your business must pay FUTA taxes if you meet the following requirements:

    • You paid at least $1,500 in wages in any calendar quarter during the past two years
    • You had one or more employees for at least some part of a day in any 20 or more different weeks during the past two years

    FUTA taxes are based on employee wages, but are only paid by the employer and not the employee, so make sure not to withhold FUTA taxes from employee wages. These taxes are paid quarterly and then reported once a year through Form 940.

    When is it due?

    Form 940 should be completed and filed to the IRS by Jan. 31. However, the IRS will extend the filing due date to Feb. 10 if you pay all your FUTA taxes on time.

    Form 941

    What is it?

    Form 941 is used to report both federal income taxes and Federal Insurance Contributions Act (FICA) taxes, the latter of which includes Medicare tax and Social Security tax. If your business’ quarterly tax liability is between less than $2,500, you can also use Form 941 to make tax deposits as well. If your liability is more than $2,500, the IRS requires that you follow a deposit schedule.

    When is it due?

    Form 941 is due quarterly, which means you should complete and report them by the following dates:

    • Jan. 31
    • April 30
    • July 31
    • Oct. 31

    Form 944

    What is it?

    Form 944 is very similar to Form 941, except that it’s used by employers who only need to file their FICA taxes once a year. The IRS grants an exemption for small employers whose annual liability for social security, Medicare, and withheld federal income taxes is $1,000 or less for the year. If your business falls within those limits, you get to file Form 944 instead of Form 941.

    When is it due?

    If you meet the requirements for Form 944, your reporting and payment deadline is Jan 31.

    Form 1095-B

    What is it?

    Form 1095-B is used by small employers to report employee health coverage if they offer a self-insured health plan. With a self-insured plan, employers pay medical bills instead of just a premium, so the IRS requires Form 1095-B to verify that individuals on your plan had minimum essential coverage. If you offer a fully-insured plan, your health insurance provider will fill out and file Form 1095-A for you.

    When is it due?

    A copy of Form 1095-B should be filed for each full-time employee covered by your plan. Individual forms should be mailed to corresponding employees by Jan. 31. The filing deadline for the IRS differs depending on how you send Form 1095-B to them. Paper forms should be mailed to the IRS by Feb. 28, but the deadline extends to March 31 if you electronically file the forms. It’s also important to keep a copy of each employee’s forms.

    Form 1094-B

    What is it?

    Like the W-3, Form 1094-B is a transmittal form used to summarize your collective 1095-B forms. This form is very simple and only requires some basic company information and a total for the number of 1095-B forms you will submit along with Form 1094-B.

    When is it due?

    The deadlines for 1094-B are the same as Form 1095-B. The only difference is that employees do not receive 1094-B.

    Place an Emphasis on Proper Payroll Management

    Payroll forms can be tricky, but they’re just one part of the payroll puzzle. Payroll administration is comprised of many different steps and responsibilities that can have major impacts on your business. To see just how much can go into the payroll process, check out our guide on what it takes to manage payroll for a small business.

    Even when you have a good understanding of each payroll form, the time and effort it takes to complete them and manage your payroll can put a serious dent in your schedule. That’s why many owners turn to GMS to handle payroll administration for their small business. Our experts take an active approach to managing your payroll so that you can spend your time growing your business instead of struggling with forms and tax calculations.

    Want to find out how GMS can save you time and money while strengthening your business’ HR functions? Contact GMS today to talk to one of our experts about your business.

  • As an employer, it can be difficult to balance the desire to return to business and maintain a safe operation. Unfortunately, there’s not necessarily an exact answer as to how to approach reopening your business during a pandemic. While there are some rules and regulations, many details can be unclear or depend on your location, the nature of your business, and a plethora of other reasons. To help, we broke down some key factors you should consider when it’s time to reopen your business or expand operations.

    A man with a face covering after his small business returned to work. 

    Is My Region Ready for My Business to Reopen?

    It’s important to identify if your community is in a good position before you attempt to reopen your business. The White House’s Guidelines for Opening Up America Again recommends a phased approach to reopening businesses to help slow the spread of COVID-19. These guidelines suggest a few general state or regional criteria for relaxing restrictions based on certain factors within your community.

    • There should be a downward trajectory of both influenza-like illnesses (ILI) and COVID-like syndromic cases reported within a 14-day period.
    • There should be either a downward trajectory of documented cases within a 14-day period or a downward trajectory of positive tests as a percent of total tests within a 14-day period (flat or increasing volume of tests).
    • Regional hospitals should be able to treat all patients without crisis care
    • There should be a robust testing program in place for at-risk healthcare workers, including emerging antibody testing.

    While the factors listed above are solid guidelines for a safer return, it’s important to note that these are not mandates. Each state is able to independently manage COVID-19 regulations, so you’ll need to double-check local laws and rulings for any specific regulations. 

    The Three Phases for Reopening Your Business

    If your state does allow for your business to reopen, consider taking a multi-phase approach to resuming operations. This method can help you reopen your business in different stages to help keep you, your employees, and your clientele safe while you get back to business.

    Phase one

    The first phase focuses on making telework available to any employees who do not need to be onsite to complete their duties. If you maintain a regular place of business, you should close off any common areas to prevent anyone other than employees who must be on location. In addition to allowing for remote work, businesses in phase one should also minimize nonessential travel.

    Phase two

    After going through phase one long enough for another two-week decline in cases, guidelines indicate that businesses can shift to phase two. Businesses should have an accommodation plan for vulnerable employees in place at this point. 

    Employees who cannot work from home are allowed to return to the workplace as long as they follow proper safety protocol. Social distancing measures must be enforced, but businesses can ease limitations on the number of people in a space.

    Phase three

    Advancement to phase three requires another two-week decline in cases at the previous stage. Once in phase three, employers can resume unrestricted staffing of worksites. However, businesses in this phase should maintain social distancing guidelines where possible and are recommended to approach public interaction very carefully.

    What to Address When Reopening Your Business

    When it’s time to return to work, it’s important to weigh many factors that can impact you and your employees. According to the CDC, any plan to reopen your business should meet the following criteria:

    • Be specific to your workplace.
    • Identify all areas and job tasks with potential exposures to COVID-19.
    • Include control measures to eliminate or reduce such exposures.

    To meet these standards, you’ll need to address some key elements before you reopen your business.

    Hazard assessment

    As you plan for a return to work, it’s critical to assess potential hazards to you and your employees and take measures to help prevent the spread of COVID-19 in the workplace. The following practices can help you identify potential risk factors and keep your workforce safe.

    A thorough hazard assessment should be completed before any employees return to work on company premises. Various locations and job duties can create hazards specific to your business. It’s imperative to pinpoint potential problem areas and determine what can be done to protect people in those positions. The CDC suggests using the following hierarchy of controls to implement feasible and effective control solutions.

    1. Elimination – Physically remove the hazard
    2. Substitution – Replace the hazard
    3. Engineering controls – Isolate people from the hazard
    4. Administrative controls – Change the way people work
    5. PPE – Protect the worker with Personal Protective Equipment

    This hierarchy represents the most to least effective means of eliminating exposure risks in the workplace. For example, if a specific hazard forced employees to work in close quarters, the removal of that hazard is the most effective way to eliminate the risk. Of course, elimination or substitution isn’t always practical or even feasible. Instead, use the hierarchy to identify the best, most realistic method to lessen exposure risks and enact those preventative measures.

    Social distancing measures

    One effective control solution is to enable practices that help employees and potential clientele to maintain a safe distance during work. Six-foot spacing is the expected standard, so consider the following steps to promote social distancing standards in the workplace.

    • Post signage that everyone – employees, customers, and visitors included – should maintain at least a six-foot distance from each other.
    • Add directional signs for hallways and other spaces where six-foot spacing restricts movement.
    • Mark floors, counters, and more with tape or signs to create clear spaces for where employees and/or customers should stand to maintain social distancing.
    • Limit occupancy to help provide additional space for employees, customers, and visitors to prevent overcrowding and improper distancing.
    • Implement teleworking capabilities to allow people to work from home
    • Modify the work area to create more physical space between employees.
    • Close certain spaces – such as common areas – where people congregate or are too small for social distancing measures.

    Improve workplace hygiene

    Once you’ve taken steps to assess potential exposure risks and enact social distancing measures, it’s time to identify ways to implement improved hygiene standards. There are a variety of practices that employers can enact to help maintain a healthy environment and keep workspaces clean.

    • Keep soap, water, hand wipes, and paper towels available for employees, customers, and visitors to wash their hands.
    • Encourage frequent hand washing and post instructions on how to properly wash hands at all sinks or other washing stations.
    • Provide hand sanitizer – ideally with touchless dispensers – with at least 60 percent alcohol and stress to employees the importance of using it.
    • Educate employees about proper CDC sneezing and coughing practices.
    • Place no-touch trash cans and other receptacles around the premises.
    • Prohibit handshaking.
    • Discourage workers from using other employees’ desks, phones, supplies, and any other work tools and equipment.
    • Identify high-traffic areas and commonly touched surfaces that require regular cleaning and disinfection.
    • Routinely clean surfaces and higher-traffic areas in the workplace with an EPA-approved disinfectant.

    Create practices to identify and address exposed or ill employees

    Another key step toward reopening is to create a plan for employees affected by COVID-19. These policies should cover workers who may currently be sick or who show symptoms while at work.

    Have sick employees stay home

    If an employee may be sick – or live with someone who is sick – play it safe and have them stay away from work. Stress to employees that they should remain at home and notify their supervisor if they feel sick or have noticed any symptoms for COVID-19. Have employees evaluate themselves for potential symptoms before heading to work. In addition, provide them with a link to the CDC’s steps for individuals who may have COVID-19. These employees should stay away from work until they or their family members meet the CDC’s guidelines to discontinue home isolation and are cleared by a healthcare professional. 

    Consider conducting daily in-person or virtual health checks

    One way to help limit potential exposure is to conduct site temperature checks, symptom questionnaires, or other forms of health screening while at work. Neither the OSH Act nor OSHA standards prevent employers from testing employees for COVID-19 as long as this testing is done in a transparent, non-retaliatory manner.

    Personnel who conduct these screenings should wear PPE or some other level of protection. It is also not necessary to make a record of temperature checks and other details – screeners can simply acknowledge readings then and there. If you choose to document these records, you’ll want to retain them and keep them confidential as you would any other document covered under the Access to Employee Exposure and Medical Records standard.

    Separate sick employees and send them home

    It’s critical to have a policy in place for any employees who fail a screening or become ill while in the workplace. This protocol should include details about how and where to isolate sick employees if they are unable to leave immediately. For employees who use public transportation or are otherwise unable to take themselves home or to a healthcare facility, have a procedure in place to provide them with safe transport. 

    Once the affected individual leaves, all spaces that person has touched or otherwise occupied should be cleaned and disinfected to prevent possible exposure to others. Use the CDC’s cleaning and disinfection recommendations to prepare areas for future use.

    • Clean dirty surfaces with soap and water before disinfecting them.
    • Disinfect surfaces with products that meet EPA criteria for use against SARS-Cov-2 and are appropriate for the surface.
    • Always wear gloves and gowns appropriate for the chemicals being used when you are cleaning and disinfecting.
    • Wear additional PPE depending on the setting and disinfectant product you are using. For each product you use, consult and follow the manufacturer’s instructions for use.

    Create a return to work policy for workers who dealt with illness or exposure

    Make sure to have some guidelines in place before an employee returns to company premises after isolation. To start, employees should use the following CDC recommendations to know when to discontinue isolation.

    • At least 10 days have passed since symptom onset.
    • At least 24 hours have passed since resolution of fever without the use of fever-reducing medications.
    • Other symptoms have improved.

    Once the affected employee is ready to return, have that employee routinely perform self-monitoring in addition to any workplace screenings required.

    List and install various controls and safe work practices

    Before you open back up for business, you should document and implement the different measures taken to protect employees from exposure in the workplace. These measures should include different engineering and administrative controls, safe work practices, PPEs, and other regulations.

    Engineering controls for COVID-19

    There are multiple engineering controls that can help isolate employees from potential work-related hazards. These controls typically involve improving or altering worksites to reduce the chances of exposure. Certain engineering controls are more feasible than others, but the following options can help you improve the overall safety of your business.

    • Improve ventilation rates in working environments and disable demand-controlled ventilation (DCV).
    • Install high-efficiency air filters.
    • Keep ventilation systems running longer hours, perhaps even all day, to enhance air exchanges in the building space.
    • Mount physical barriers such as clear plastic guard walls and sneeze guards between work stations, places with employee/customer interaction, and other spaces.
    • Add a drive-through window or some other means of distancing for customer service.
    • Move electronic payment reader away from cashier.
    • Remove or rearrange furniture and other items to increase space and maneuverability.
    • Review the safety of your building water system and devices after a prolonged shutdown.

    Administrative controls

    While engineering controls alter your work spaces, administrative controls are changes to work policies that impact employees. Adjusting certain procedures can help limit the odds of exposure and give employees not only a safer work environment, but also some peace of mind to allow them to focus on their jobs and personal lives. Consider instituting some of the following administrative controls when it’s time to return to work.

    • Create communication plans and invest in online teleconferencing or chat platforms to give employees the means to communicate away from the office and address any concerns.
    • Evaluate existing policies and, if needed, implement new ones that provide additional flexibility and use of telework, types of leave, and other options to help employees minimize exposure risks.
    • Replace in-person meetings with virtual communications to minimize contact among employees, clients, and customers.
    • Offer work hour flexibility, alternating days, or staggered shifts to limit the number of employees in the same location at the same time.
    • Limit, or even discontinue, nonessential travel.
    • Limit capacity for break rooms.
    • Mandate employees wear cloth face masks and other appropriate face coverings if PPE is not required.
    • Provide employees with up-to-date education on COVID-19 risk factors and training for protective behaviors, such as how to wear protective clothing, proper care, etc.

    PPEs

    As an employer, you are obligated to provide employees with the proper PPE required to keep them safe as they complete their duties. Gloves, goggles, face shields, face masks, and respiratory protection are all forms of PPE that may be required depending on an employee’s duties. Before you reopen your business, you should assess which PPE is required for every employee based on specific job duties and the hazards faced in that role. In addition, PPE should be provided at no cost to the employees. According to OSHA, the PPE supplied to your employees should be:

    • Selected based upon the hazard to the worker.
    • Properly fitted and periodically refitted, as applicable (e.g., respirators).
    • Consistently and properly worn when required.
    • Regularly inspected, maintained, and replaced, as necessary.
    • Properly removed, cleaned, and stored or disposed of, as applicable, to avoid contamination of self, others, or the environment.

    Don’t Prepare for the Future Alone

    Running a successful business isn’t easy during normal times – figuring out how to safely reopen during a pandemic is a different challenge altogether. There are multiple factors that impact the ability to reopen your business in a safe and compliant manner, and only so much time for you and your team to determine the right course of action for your company.

    While reopening your business is a frenzied experience, you don’t have to go through the process by yourself. At GMS, our experts can help guide you through difficult decisions and take the administrative burden off your shoulders as you lead your business through a critical endeavor. Contact GMS today to find out how we can help you make your business simpler, safer, and stronger.

  • Running a business is difficult enough. Keeping track of the Occupational Safety and Health Administration’s regulations makes your job as an employer even more complicated.

    It’s not uncommon for small business owners to not fully understand the OSHA regulations that apply to their business – after all, there are a lot of them. However, noncompliance with OSHA regulations can not only put your employees in potential danger, but also lead to costly penalties that will set your business back financially. 

    An inspector with an OSHA compliance checklist with requirements for small business owners. 

    Who is Covered Under OSHA?

    The general rule of thumb is that if your business has employees, those employees are likely covered by federal OSHA regulations. There are a few exclusions to this, such as people who are self-employed, public sector employees, and family members who work on a farm. 

    Even with those omissions, the vast majority of businesses must meet OSHA safety and health requirements. However, businesses with 10 or fewer employees are defined as partially exempt by OSHA. This partial exemption means excludes these small business from some key responsibilities.

    Another important note is certain states have their own OSHA-approved health and safety plans. OSHA still monitors these state plans, but the state laws take precedence over federal rules. As such, you’ll need to double check your state’s exact regulations to see if they differ from federal OSHA laws. OSHA includes a map with all the active state health and safety plans and contacts on its website.

    OSHA Requirements for Small Business Owners

    Whether your business is partially exempt or not, OSHA affects your company in several ways. Employers have multiple responsibilities to ensure that their business is compliant with OSHA standards. 

    Provide a workplace free from serious recognized hazards

    The first major OSHA requirement for employers is to conform workplace conditions to applicable OSHA standards. These standards mandate that employers should identify and correct any safety and health hazards present in the workplace. If any hazards can be eliminated or reduced through feasible changes in working conditions, then those changes must be made to comply with OSHA standards.

    These dangers can vary greatly depending on the nature of your business. For example, a construction site may require safety measures such as fall protection, guards on machines, and removal of hazardous waste. Meanwhile, adding ergonomic seating may limit health risks in office environments. For an exact list of regulations, please refer to OSHA Standards – 29 CFR.

    Part of these changes often include ensuring that employees have the proper tools and equipment to complete their jobs safely. You must provide the correct personal protective equipment (PPE), such as gloves, eye protection, and more. Any tools and equipment must be properly maintained. Furthermore, it’s a small business employer’s responsibility to provide safe tools and equipment – employees should not be required to provide their own PPE aside from everyday clothing and items.

    Give employees the information necessary to protect themselves

    Another key OSHA requirement for small business owners is to provide employees freedom in their right to information. As an employer, you are expected to provide your workers with a few different forms of information.

    • On-site OSHA poster
    • Hazardous chemical details
    • Employee training

    On-site OSHA poster

    Every workplace has OSHA poster requirements for small businesses and large businesses alike. Regardless of company size, each business should have an OSHA or state-plan compliant poster on premises. Employers are required to display this poster in a prominent place so that employees can review their rights under OSHA law. An approved OSHA “It’s the Law” workplace poster is available for free online.

    Hazardous chemical details

    Any hazardous chemical containers must be properly labeled. These labels should not only identify the hazardous substance, but also include appropriate warnings. You should also keep Safety Data Sheets (SDSs) for every substance that your employees may encounter. These SDSs must be readily available to workers so that they can review them and learn about the chemicals, their effects, exposure prevention, and emergency treatment.

    Employee training

    OSHA requires employers to train employees about potential dangers and what they can do to stay safe on the job. Per OSHA rules, there are four different topics that should be addressed during employee training procedures.

    • Hazardous substance training. This training should include how to read SDSs and what to do when handling any incidents. 
    • Blood-borne pathogen training. Any employees who may be exposed to blood-borne pathogens during regular duty should be trained about how to deal with blood-borne pathogens in case of an emergency.
    • Emergency situation training. Employees should be trained on what to do in emergency situations, such as how to exit the building. 
    • OSHA inspector training. Employees should be trained on what to do if an OSHA inspector ever visits your workplace.

    Employers must communicate training in a language and vocabulary workers can understand. The method of communication depends on how many employees you have. Businesses with 10 or fewer employees can orally communicate a training plan to meet OSHA standards. Businesses with more than 10 employees must share a written plan that is kept in the workplace and available for employees to review at all times.

    Recordkeeping requirements

    Depending on the size of your business, OSHA may require you to keep records of serious work-related injuries and illnesses. Every accident should be recorded in the OSHA 300 log available online. Employers do not need to record minor injuries that only require first aid. Instead, employers should record the following injuries and illnesses listed by OSHA.

    • Any work-related fatality
    • Any work-related injury or illness that results in loss of consciousness, days away from work, restricted work, or transfer to another job
    • Any work-related injury or illness requiring medical treatment beyond first aid
    • Any work-related diagnosed case of cancer, chronic irreversible diseases, fractured or cracked bones or teeth, and punctured eardrums
    • Special recording for work-related cases involving, needlesticks and sharps injuries, medical removal, hearing loss, and tuberculosis

    It’s also important to note that recordkeeping is another area affected by partial exemption. Businesses with 10 or fewer employees do not need to maintain OSHA injury and illness records unless OSHA or the U.S. Bureau of Labor Statistics specifically instructs them to in writing. Employers in certain low-hazard industries are also exempt from this requirement.

    Reporting requirements

    OSHA is going to want to know about serious accidents or illnesses that occur at your workplace. These reporting requirements change depending on the severity of the issue. To start, employers are required to record any minor accidents and illnesses in the OSHA 300 log within seven days. 

    More serious incidents require added urgency and reporting measures. Workplace accidents that result in at least one death or send three or more employees to the hospital must be reported within eight hours. Meanwhile, employers must report work-related inpatient hospitalizations, amputations, and eye loss within 24 hours. For these types of incidents, you can report to OSHA through the following means:

    Once an incident occurs, you must post OSHA citations either at or near the work area involved. These citations should stay posted for at least three working days or until the violation is corrected (whichever is longer).

    Whistleblower protection

    OSHA will crack down hard on any employers who discriminate against employees who file complaints alleging OSHA violations. The Whistleblower Protection Program disallows employers from taking adverse actions against employees who engage in protected activities. These actions include, but are not limited to:

    • Firings or layoffs
    • Demotions
    • Denial of overtime or promotion
    • Reduction of pay or hours
    • Intimidation or harassment
    • Denial of benefits

    Potential OSHA Violations for Noncompliance

    While there are several different criteria to maintain OSHA small business compliance, not all violations are viewed in the same light. There are four different types of OSHA violations, each of which have distinct penalties.

    • Willful violations. Any violations that OSHA deems were intentionally and knowingly committed by an employer with plain indifference to the law. Penalties for willful violations can range from $5,000 up to $70,000 for each offense.
    • Serious violations. These violations occur when an employer knew, or should have known, about a hazard that would likely lead to death or serious physical harm. Serious violations can lead to penalties of up to $7,000.
    • Other-than-serious violations. These violations are also tied to the safety and health of employees, but the hazard in question probably wouldn’t lead to death or serious physical harm. Other-than-serious violations can result in penalties of up to $7,000.
    • Repeated violations. A business that commits violations that are similar to past offenses are committing repeated violations. OSHA can penalize businesses up to $70,000 for every repeated violation.

    Prevent OSHA Small Business Issues with Proactive Risk Management

    Workplace hazards are a major problem for any small business. Workplace injuries and illnesses can not only impact the wellbeing of your employees, but also cause OSHA to visit your business. Fortunately, there are ways you can mitigate, or even avoid, OSHA  inspections and penalties.

    At GMS, we help business owners take control of workplace safety through proactive risk management. Our team works with you to provide onsite consulting, training, and jobsite inspections to identify potential problem areas and help your small business stay compliant with OSHA regulations. We’re also there to handle key investigations and deal with OSHA on your behalf in case an incident ever does occur.

    Need a partner that can help your small business stay ahead of risks and avoid costly penalties? Contact GMS today about how we can save you time, money, and plenty of headaches by helping you take control of critical HR functions.