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  • Let’s be honest; what business owner looks forward to managing payroll? While payday may be exciting for your employees, it’s likely that you’re not thrilled about having to put together payroll reports, track deductions, and oversee every other critical aspect of payroll administration, especially if you do everything by paper. 

    For some small business owners, payroll administration is just a necessary part of business life and the business isn’t big enough to justify its own HR department. While payroll administration is necessary, it doesn’t have to be a big burden. Online payroll software can give you the tools to take some of the pain out of payday preparation. Here are a few questions you should consider when evaluating your payroll management process.

    Small business owner using online payroll software. 

    Do You Spend Too Much Time on Payroll Administration?

    Payroll management takes time. A survey conducted by the National Small Business Association found that more than half of owners who handled payroll internally spent at least three to five hours per month on the administration of payroll taxes alone. That time doesn’t even include other key payroll functions like processing paychecks, keeping records, and answering questions from employees. 

    Five hours per month may not sound like a lot, but it adds up to 60 hours of payroll administration per year. That’s more than a full work week of time solely dedicated on payroll, and that’s if you only spend five hours per month. Depending on your situation, you could easily spend more time to try and keep your business compliant with payroll tax requirements. If you cut down the time you had to spend on payroll administration, it would free you up to focus on other key projects that can help you grow your business (or even take a well-deserved break every now and then).

    Are You Afraid of Payroll Taxes?

    It’s important to spend time to make sure your payroll is managed correctly, as noncompliance can be costly. According to the Federal Register, the Department of Labor increased the penalties for payroll tax violations effective Jan. 13, 2017, making penalties even more expensive now than they were in the past. 

    When you aren’t a trained payroll professional, mistakes can happen even if you spend more time on payroll tax management. A miscalculation or missing piece of information is all it takes to incur a penalty. Payroll software allows you to easily keep track of deductions online without having to shuffle through old sheets of paper to determine if you did everything right.

    Is Your Business Growing?

    Even if you have a handle on your business’ payroll now, that may not be the case in the future. The more employees you add, the more work will be necessary to complete payroll. If you handle payroll offline, that means more storage space for documents, more potential for mistakes, and more strain on your schedule. 

    Just because your business grows doesn’t mean that your already-hefty workload needs to get bigger. Online payroll allows you to manage everything from any location as long as you have an internet connection. Thanks to the ability to complete payroll in a fraction of the time, you can add more employees without worrying nearly as much about how much longer it’ll take you to handle payroll administration each month.

    Online Payroll for Small Businesses

    Small business owners wear many hats, but you don’t have to be on your own when it comes to payroll management. Outsourcing payroll administration to a Professional Employer Organization allows you to lessen your workload while gaining the benefits of online payroll services. Not only does this mean you can make the move to online payroll, but you also have access to a dedicated payroll specialist who can provide you with help when you need it.

    Considering investing in online payroll software? Contact GMS today to talk to one of our experts about how payroll software can help you and your business.

  • Dealing with health insurance is one of the biggest challenges for a small business owner. Between the cost of insurance and the need to attract and retain talent, offering insurance is a major decision. Add in all the uncertainty that surrounds your responsibilities and health insurance can be a major headache.

    Simply put, health insurance administration is confusing. It’s understandable why employers are unsure about the health insurance requirements for small businesses – there’s a lot of information and only so much time to manage everything. This post will break down what you need to know about small business health insurance requirements and how you can keep your company compliant.

    Do Small Businesses Have To Provide Health Insurance?

    When it comes to small business health insurance requirements, this is likely the biggest question on your mind. The exact definition of a small business can differ from one organization to another. According to the Affordable Care Act (ACA), any business with 50 or fewer full-time-equivalent employees counts as a small business.

    That cutoff is significant because businesses with 50 or fewer full-time equivalent employees are not required to offer health coverage to their employees. However, these businesses are still required to provide a report about healthcare information to employees. This report should cover certain information about the health insurance marketplace, outlining what it is and how employees can contact the marketplace.

    A doctor going over the health insurance requirements for a small business.

    Requirements For A Small Business That Offers Health Insurance

    Despite health coverage not being mandatory, many small businesses with fewer than 50 full-time employees still choose to provide workers with health insurance because quality healthcare coverage can help businesses attract and retain top talent. This decision can be very beneficial, but it does mean that small business owners will need to take on a few new responsibilities.

    Minimum employer contribution for small business healthcare

    If an employer opts to offer group health insurance, the business must pay at least half of the monthly health insurance premiums. Employers must also meet the affordability threshold for the health coverage they offer. In 2022, an employee’s monthly contribution couldn’t exceed 9.61% of their income. The IRS adjusts this rate every year and has already announced that the affordability requirement will go down to 9.12% in 2023.

    Employees eligible for coverage

    Small businesses that offer health insurance are required to offer coverage to all full-time equivalent employees. Full-time equivalence requires an average of 30 hours of service per week for a calendar month or at least 130 hours of service in a month. You can also choose to offer health coverage to your part-time employees as well, although it is not mandatory.

    An employer may not discriminate between employees when offering insurance. If you offer insurance to some full-time employees, you must offer it to every employee. You must also provide health insurance to each employee’s dependents up until they turn 26 years old. However, federal law does not require employers to offer coverage to any spouses or other domestic partners.

    90-day maximum waiting period

    When an eligible employee is hired by a business that offers health insurance, that employee must be offered health insurance within 90 days of his or her employment start date. Employers may institute a waiting period before new employees can enroll in the company’s health insurance plan. A small business owner may also decide to waive this waiting period and allow employees to enroll as soon as possible.

    Summary of benefits and coverage (SBC) disclosure

    Employers are required to provide eligible workers with an SBC form to help individuals understand their options. This form explains what an employer’s plan covers and exactly what it costs employees. This includes breakdowns of specific costs, such as deductibles and out-of-pocket costs for varying medical events. The Department of Labor provides an online SBC template and other resources for any owners who provide health coverage.

    Tax Reporting Requirements For Small Business Health Insurance

    Offering comprehensive health coverage isn’t enough to meet your requirements. There are also certain tax reporting requirements that small business owners must follow if they decide to offer group health coverage. The following requirements include:

    What It Takes To Manage Healthcare Benefits

    In addition to following special requirements when offering healthcare, small business owners also need to consider how they’ll manage this new benefit. While employers can go through the Small Business Health Options Program (SHOP) to offer coverage for small groups, this means you’ll have to handle policy administration and health insurance billing.

    Fortunately, you don’t have to take on employee benefits administration alone. As a professional employer organization (PEO), GMS can leverage its buying power to procure quality group health insurance coverage with lower premiums than a small business would be able to obtain on its own. GMS also gives you access to trained benefits experts who can help small businesses stay compliant with any health insurance requirements.

    Looking to invest in health insurance for your small business? Contact GMS today to talk to one of our experts about how we can help you attract and retain quality employees through benefits administration and other services.

  • Thanks to technological advancements in the modern workplace, remote work, or work-from-home (WFH) jobs have become increasingly more common. According to the Global Workplace Analytics’ analysis of 2018 American Community Service data, work-from-home jobs have grown 173 percent since 2005—11 percent faster than the rest of the workforce. Remote work has likely grown even more so as a result of the 2020 outbreak of COVID-19, which prompted many employers to shift to a remote work model to limit the spread of the coronavirus. 

    Telecommuting can be an attractive work option for both employees and employers. For employees,  flexible work hours and more time to spend with family can make remote work an ideal situation. For employers, hiring remote workers can save money and increase productivity if you manage your remote team effectively. 

    As more businesses implement work-from-home policies, employers will need to consider how the trend will impact HR initiatives. Here are some best practices for managing HR for remote employees.

    A small business employee working from home.

    Remote Employee Performance Management

    How do you manage an employee that you don’t see face-to-face every day? With technology and some effort, it may not be as hard as you think it is. In fact, some evidence shows that working remotely can improve performance. 

    According to the Society for Human Resource Management (SHRM), “77 percent [of employees] reported greater productivity while working offsite.” In addition, the article cites a U.S. News & World Report story that states “Telecommuters log five to seven more hours per week than non-telecommuters” With good management, remote employees can be a boon for business.

    Of course, this can all depend on making sure that proper employee performance management practices are in place to monitor performance and make sure that employees stay engaged. In terms of monitoring performance, timesheets or online time tracking can help you keep track of employee productivity.

    It’s also good to set up phone or video check-ins to see how they’re doing (but not so often that it feels like they’re being micromanaged). In addition, regular facetime can help remote employees feel like they’re a part of the company.

    While telecommuters can have flexible schedules, it’s a good idea to make sure that part of their schedules overlap with office workers and that they work together via Skype, Zoom, Slack, or other communication programs. 

     

    Payroll for Remote Employees

    Managing payroll can be a complex and time-consuming task for any business owner. However, remote employees might be subject to different payroll regulations and laws depending on where they’re located. Each state, county, and even city can have its own stipulations on how much people are paid and how it happens. This can affect multiple aspects of payroll compliance, including:

    Employers must also find a way to display federal and state labor law posters for remote employees. You can electronically share the posters via email or in an employee online workplace portal, or you can mail copies for the employee to keep.

    In addition, employers need to be aware of any state requirements for the reimbursement of business expenses that remote employees may incur, such as Internet access from a home office. Where the expense may be used for business and personal use, such as having a stable WiFi connection, consider a system to help employees monitor and record how much of the cost is related to business activities and reimbursing employees at least that amount.

    Nobody wants to be hit with costly non-compliance penalties, especially for infractions that could be easily avoided. If your employee works in a different city, make sure that you or your payroll provider checks each state’s payroll regulations to make sure that your business is compliant.

     

    Hiring Remote Employees

    While some HR functions may be impacted more by remote work locations, the hiring process can be very similar to what it would be for anyone who works on location. Aspects of the process like creating face-to-face time for an interview, assessing skills, and determining if someone is a good culture fit all apply to remote employees as well.

    While it’s not always possible to have remote applicants sit down for an in-person interview, technology gives you a way to conduct a “face-to-face” interview. Video interviews through Skype, Zoom, and other tools allow you to still get a more personal feel for how an applicant would fit through nonverbal communication and body language.

     

    Terminating Remote Employees

    As for termination, you need to take the same precautions that you would for someone located in your office. Create a checklist of matters to address when an employee is terminated, such as final pay requirements, removing IT and security access, and retrieving any company property in their possession (if the employee has anything). If the employee is out of state, make sure to review the laws in that state. For example, final payment laws can differ, impacting what’s included in a final paycheck and deadlines for when it must be provided.

    Another item to consider is how you inform your soon-to-be former employee about the termination. Even if he or she telecommutes, it’s good to let an employee hear the news face-to-face, whether it’s for an in-office meeting or through a video conferencing tool like Skype. The latter may not be as personal, but it’s much better to let someone know about a dismissal during a video conference than via email.

     

    Workplace Safety Concerns for Work-from-Home Employees

    Even though remote employees may not work in your office, they still may be subject to health and safety regulations. The level of responsibility an employer has regarding workplace safety for remote employees is hazy. 

    According to SHRM, OSHA is on record as saying that it “will not conduct at-home workplace inspections and that it will generally not hold employers liable for at-home safety issues.” However, the article also cites attorney Alec Beck stating that “OSHA continues to maintain that employers are responsible for safe working conditions regardless of location.” 

    As a result, the best plan of action is to create safety reporting systems and policies that can help protect you and your employees. SHRM suggests the following risk management strategies to help reduce the chance of claims against your business:

    • Create an at-home work policy and disseminate it to all employees.
    • Require that remote employees create and provide evidence of a dedicated work area at home that has been set up according to your specifications.
    • Periodically follow up to ensure compliance.
    • Require employees to have homeowner’s or renter’s insurance that covers any potential equipment damage or liability.
    • Review the employer’s insurance to make sure that all contingencies are covered—including business travel incidents.
    • Make it clear that computer security issues are monitored and that employees wishing to use their own computers must have safety protocols installed.

     

    Manage HR for Remote Employees with a PEO

    It takes a lot of hard work to run a business. Telecommuting adds yet another layer of complexity to HR management, a task that already requires plenty of time and know-how. This amount of work and expertise is a big reason why many businesses turn to a professional employer organization (PEO) to help manage HR.

    At GMS, our experts can help you save time and strengthen your business through payroll management,  benefits administration, and other key functions. Contact GMS today to talk to one of our experts about how we can help your company manage remote employees.

  • Probably. Maybe. Maybe not. Who knows? Do you know?

    As a Sales Rep for a Professional Employer Organization (PEO), I talk with small to medium-sized business owners on a day-to-day basis. I never cease to be amazed at how well they know their company, their employees, their business, their industry, and their competition. When you spend 80 hours a week working on your business, you become an expert.

    Yet, these same business owners will often tell me, “I don’t know what I don’t know. And even if I knew what I didn’t know, I don’t always know how to find out what I need to fix, remedy, or comply with the situation.” Of course, they don’t. They’re devoting all their time to making a better product and/or a better company.

    If you’re new to the game or haven’t spent a lot of time thinking about this, you might be wondering what regulations I’m speaking of in the title of this post. After all, those are geared towards large companies, not small, independent businesses, right?

    Compliance chalkboard for small businesses.

    Federal Regulations for Business of All Sizes

    Some things are required no matter the size of your company. For example, you must make sure you have I-9 forms on all your employees and that they’re filed correctly.  There are hefty fines tied to misfiled or missing forms. You also need to have the required employment posters hanging in prominent places for your employees so they can see what their workplace rights are.

    Other laws are based on how many employees you have. For example, if you have between one and 10 W-2 employees, these laws apply to you:

    • Fair Labor Standards Act (FLSA)
    • Employee Polygraph Protection
    • Equal Pay Act
    • Consumer Credits Protection Act
    • National Labor Relations Act

    Once you have between 11 and 14 employees, you have to become compliant with OSHA and all federal health and safety standards. That includes all the reporting that comes with it.

    From 15 to 19 employees, you need to start paying attention to the following regulations:

    • Title VII, Civil Rights Act
    • Title I, Americans with Disabilities Act
    • Pregnancy Discrimination Act

    At 20 employees, you have to worry about COBRA (if you’re offering benefits) and Pregnancy Discrimination Act. And it goes on and on and on… you get the idea.

    How to Stay in Compliance with Federal Regulations

    How does a business owner know what they need to be compliant with while working full-time on their business? There are several ways I can think of:

    • During all your downtime, read up on federal regulations and keep tabs on all the changes as they happen
    • Pay an attorney to keep you abreast of these things
    • Hire someone on staff whose sole responsibility is keeping track of these things

    These are all good options, but many small business owners find the best option is to partner with a Professional Employer Organization, like GMS, that will not only keep you compliant but will also take on all the regulatory liability of your employees.

    Recent studies show that small businesses that use PEOs grow 7 to 9 percent faster, have 10 to 14 percent lower employee turnover, and are 50 percent less likely to go out of business. Contact GMS today to learn how we can help take over these administrative burdens, allowing you to focus on your core business.

  • As an employer, understanding how to calculate payroll tax and income tax deductions is essential to running a compliant and efficient business.. A major part of that is making sure every employee’s paycheck has the correct taxes and other deductions withheld. Below is an overview of some of the most important payroll deductions for 2025, along with pointers on how to calculate them.

    Calculating Payroll Taxes for Employees

    The term payroll tax typically refer to Federal Insurance Contributions Act (FICA) taxes, which include both Social Security and Medicare contributions. For 2025, the employee-share rates remain:  

    • Social Security: 6.2% of gross wages
    • Medicare: 1.45% of gross wages

    This totals 7.65% for most employees, withheld each pay period. For example, if someone’s gross pay is $1,000:

    • Social Security withheld = $1,000 x 6.2% = $62
    • Medicare withheld = $1,000 x 1.45% = $14.50
    • Total Payroll Tax withheld = $76.50

    Meaning every paycheck for that employee will have $76.50 withheld.

    How to Calculate Federal Income Tax Deductions

    Unlike the flat rates for Social Security and Medicare, income tax deductions are determined by the employee’s Form W-4 and IRS tax tables. The IRS has 2025 Form W-4 instructions and updated tables in Publication 15-T. You can generally calculate withholding using either the wage bracket method or the percentage method.

    Wage bracket method

    This method uses easy-to-read tables. You simply:

    1. Look up how frequently you pay employees (weekly, biweekly, semimonthly, monthly, etc.).
    2. Choose the correct table based on the employee’s filing status (from the Form W-4) and whether they’ve checked the Step 2 box.
    3. Find the wage range in the table; the table cross-references the amount of tax to withhold based on any additional adjustments entered on the W-4.

    Percentage method

    This approach involves a bit more math, but it may be more flexible if your payroll amounts frequently exceed the ranges in the wage bracket tables. You will:

    1. Convert allowances (if you still have employees on 2019 or earlier W-4s) or interpret the relevant steps if they’re using a 2020 or later W-4. (For 2019/pre-2020 forms, note that the IRS publishes a “computational bridge.”)
    2. Subtract any allowances (or standard W-4 adjustments) from gross wages to get the taxable portion for that pay period.
    3. Apply the percentage method table.
    4. Add or subtract any additional amounts indicated on the employee’s W-4.

    Understanding State and Local Payroll Tax Withholding

    State And Local Taxes

    Federal income taxes aren’t the only concerns; many states and local governments require payroll tax withholding for state and local income tax deductions.. The method differs from state to state:

    • Some states (e.g., Florida, Texas) do not impose state income tax, meaning you only handle federal deductions.
    • Others (e.g., Ohio, New York) require both state and sometimes local income tax withholdings.
    • Check your state government’s website or official documentation for the 2025 rates and instructions.

    Additional (Voluntary) Paycheck Deductions

    In addition to required taxes, some income tax deductions are voluntary and may be either pre-tax (which reduce taxable income) or post-tax: These can include:

    1. Health insurance premiums for medical, dental, vision, etc.
    2. Retirement contributions (e.g., 401(k), IRA) chosen by the employee.
    3. Life insurance premiums paid via payroll deduction.
    4. Job-related expenses if you have agreed to recoup certain business expenses through paychecks (where legal).

    Ensure that these are set up correctly in your payroll system. Some might be pre-tax (reducing taxable wages), while others are post-tax.

    Why Payroll Tax Compliance Matters

    Staying accurate and up to date on payroll laws and tax tables is vital. Miscalculating payroll tax or income tax deductions can result in underpayment or overpayment, leading to potential penalties from the IRS or your state’s tax authority. It also impacts employees directly; over-withholding means smaller paychecks, while under-withholding can mean a big tax bill in April.

    • You’re responsible for timely depositing withheld taxes with the IRS, as well as filing the proper forms (like Forms 941 or 944 for federal payroll taxes).
    • For 2025, be sure you’re referencing the latest versions of IRS Publication 15 (Circular E) and Publication 15-T (2025) for the updated wage bracket or percentage method tables.

    Let GMS Simplify Your Payroll Tax Process

    Handling small business payroll taxes can be daunting, especially as forms and laws evolve each year. Group Management Services (GMS) can take the guesswork out of payroll tax and income tax deductions, ensuring accurate withholdings, filings, and tax deposits. If you’re:

    • Worried about maintaining compliance for 2025.
    • Unsure how to handle different forms (e.g., older 2019 W-4 forms vs. new 2025 W-4 forms).
    • Concerned about multi-state or local tax withholding.

    Group Management Services (GMS) can help streamline all aspects of your payroll tax management, from accurate withholdings to timely tax filings, allowing you to focus on growing your business. Contact GMS to learn more about our payroll tax services and how we can help you navigate the complexities of income tax deductions.

  • The 50-employee mark is more than just a milestone; it’s also an important number for some major regulation requirements. Once your business has 50 full-time employees, various federal and state laws become mandatory, which can wreak havoc on your business if you don’t prepare for them. Here’s what your business needs to do to stay compliant once it reaches 50 full-time employees.

    Multiple employees during a training session at an applicable large employer.

    Health Insurance

    While smaller businesses can choose to offer health insurance, it becomes a requirement once your business reaches 50 or more full-time or full-time equivalent employees. At that point, the Affordable Care Act designates your business as an applicable large employer (ALE).

    Any ALE is required to meet the employer shared responsibility provisions found in the Affordable Care Act. These provisions give ALEs two options:

    • Offer health coverage that the ACA deems “affordable and provides “minimum value” to full-time employees and their dependents
    • Make a payment to the IRS any of the ALE’s full-time employees receive a premium tax credit for purchasing individual coverage on a Health Insurance Marketplace

    In addition to offering coverage – or opting to not offer coverage and pay penalties – ALEs are required to report to the IRS about their health care coverage. This means every ALE must file both Form 1095-C and Form 1094-C to the IRS, as well as a similar statement for each full-time employee.

    Determining full-time equivalent employees

    You may have noticed that threshold to be considered an ALE was set at 50 full-time or full-time equivalent employees. This means that you don’t need 50 strictly full-time employees to meet ALE designation if you have enough part-time individuals to qualify.

    Full-time employees include any worker who averages at least 30 hours of service per week in a calendar month. Full-time equivalent employees are a combination of individuals who do not meet full-time specifications, but whose combined work is determined to equate to that of a full-time worker.

    Per the IRS, there is a two-step process to determine the number of full-time equivalent employees at your business.

    1. Combine the number of hours of service of all non-full-time employees for the month (do not include more than 120 hours of service per employee)
    2. Divide the total by 120

    The total number represents a company’s number of full-time equivalent employees. That total would then be added to the number of regular full-time employees. If the combined number is at least 50 – for example, 40 full-time employees and 10 full-time equivalent employees – your business is considered an ALE.

    Family Medical Leave Act (FMLA)

    Unlike the Affordable Care Act, the Department of Labor (DOL) does not look to full-time and full-time equivalent employees to determine which businesses must comply with FMLA. Instead, the DOL simply writes that “private employers with at least 50 employees are covered by FMLA.” FMLA also applies to businesses with fluctuating workforces as long as they had at least 50 employees for 20 or more total workweeks in the current or previous year. These employees must then meet the following stipulations to be eligible for FMLA:

    • Work for the employer for at least 12 months
    • Work at least 1,250 hours during the 12 months before the start of leave
    • Work at a jobsite where the employer has at least 50 employees within 75 miles

    If eligible, employees are entitled to take unpaid, job-protected leave for various permissible reasons. These include taking up to 12 weeks of leave in a 12-month period for the following:

    • The birth of a child and to bond with the newborn child within one year of birth
    • The placement with the employee of a child for adoption or foster care and to bond with the newly placed child within one year of placement
    • A serious health condition that makes the employee unable to perform the functions of his or her job
    • To care for the employee’s spouse, son, daughter, or parent who has a serious health condition

    FMLA Compliance requirements

    Covered employers must also take steps to notify employees about FMLA rights. The first step is to display an FMLA poster prepared by the DOL at all locations. The next is to provide general notice with the same information as the poster in the employee handbook. If no handbook exists – and it absolutely should – employers must distribute a general notice to all employees and any new individuals when hired.

    As expected, the FMLA has penalties in place for any employers who meet the 50-employee threshold who deny or interfere with permitted leave or fail to meet notification requirements. Updated penalty amounts can be found on the DOL website.

    Miscellaneous State Laws

    Only looking to federal requirements can land your business in hot water. Certain states have their own regulations for businesses once they reach the 50-employee threshold. One of the more notable examples is that New York employers with 50-plus full-time employees must give at least 90 days’ written notice for mass layoffs, employment losses, or relocations. This law is a variation of the federal Worker Adjustment and Retraining Notification Act (WARN), which only applies to businesses with at least 100 employers. As a result, you’ll want to consult with your state government’s site to review any local laws that go into effect at the 50-employee threshold.

    Prepare Your Growing Business

    Growth is great, but it can become a major problem if you aren’t prepared for the additional compliance concerns and internal responsibilities. More employees mean more time spent handling payroll management, benefits administration, and other key HR needs – unless you find a partner that can manage these critical functions and save you much-needed time.

    Whether you’re a startup or a 50-plus employee business, Group Management Services provides professional HR management to help you make your business simpler, safer, and stronger while you focus on ways to grow your company. Contact us today to talk to one of our experts about what we can do to help you protect your company now and prepare for the future.

  • When you’re thinking of starting a business, your passion is ultimately what drives you to provide the best product or service. The first thing that comes to your head is not about the technology you need for payroll, or how you are going to recruit top talent. Need an employee handbook? “I’ll type something up real quick.” 

    These are just a few of the many human resource topics you can easily put on the backburner without realizing the full scope of responsibilities you now carry as a business owner. As for the future of HR, it’s only getting more crucial for businesses to stay compliant with laws and stay protected.

    Two small business owners responsible for many HR functions, including payroll and taxes. 

    HR Responsibilities for New Business Owners

    The U.S. Small Business Administration puts the followings tasks under human resources:

    • Recruitment and hiring
    • Payroll and benefits
    • Employee retention and compensation
    • Laws and regulations

    Recruiting can be a difficult and frustrating process. Doing it the right way, the first time, will save you time and money to produce the best results down the line. This can result in hiring committed, talented, and loyal employees that will benefit your company and your bottom line. “Where do I even start,” you may ask. A job description and an employee handbook can get the ball rolling, but you must write both correctly to save yourself in the long run. According to HR Dive, 72 percent of hiring managers say they provide clear job descriptions, while only 36 percent of candidates agree.

    Once you have employees, you must have a system for payroll. Again, you may not know where to start. You know how much you want to pay your employees, but now you must log hours, file taxes, and keep up with your own finances. This is where retention and compensation come into play as well. Keeping up with workers’ compensation, healthcare, 401k, and all other benefits go hand in hand with retention and compensation. According to MetLife, 51 percent of employers say using health and wellness benefits to maintain employee loyalty and retain talent will become even more important in the next three to five years.

    Lastly, staying on top of laws and regulations can be overwhelming because of how often they change. Failing to put these new regulations into place can result in legal issues, which is why it is essential to stay on top of them. Dozens of new laws take effect yearly and as an owner, you are responsible for making sure your company is compliant. 

    Set Your Business up for HR Success

    Preparing for the future of HR can be simple with the right resources. Being able to embrace change, technology and the new workforce is essential. Now what can GMS do for you? GMS is a Professional Employer Organization that puts all of your HR responsibilities under one roof for your company. We have the HR experts who will keep your organization up to date with the latest regulations, making sure you and your workforce are protected. 

    GMS has you covered when it comes to areas like payroll, tax, human resources, risk management, benefits, and healthcare. We help you reduce costs, limit your business risk, and save time and money when it comes to HR administration. Contact GMS to see how we can help manage and benefit your organization!

  • Safety is one area business owners shouldn’t overlook. According to the National Safety Council, a worker is injured on the job every seven seconds. It’s essential to make sure your employees are given the tools to succeed, while also ensuring you have created a culture of safety to minimize any risks their daily activities may carry. 

    Workplace safety programs are designed to give you the tools necessary to develop and manage an effective safety culture that will not only help reduce work-related injuries and workers’ compensation costs but assist in helping you meet federal regulatory requirements as well. Here’s what you need to know about implementing a successful workplace safety program. 

     Manager checking fire safety system.

    Create a Culture of Safety

    Before you create your workplace safety program, it’s important to understand what it takes to create a culture of safety in your organization. Here are the four keys to an effective safety culture.

    Facility Audit

    Walk the facilities and observe processes and field work to identify the types of hazards employees are exposed to.  For example, you might notice a mezzanine 5’ above another floor with no guardrail system. Or, maybe one of your project managers stops to check on the progress of your electricians and discovers they are working on live circuits without locking out breakers. 

    Hazard Control

    Once you identify the different hazards your employees are exposed to, you’ll need to find a way to control them. The different types of hazard control include:

    • Elimination
    • Substitution
    • Engineering
    • Administrative

    When assessing the different hazards in your workplace, discuss which would be the best method for combating the issue. For example, if you have a large hole in the middle of your job site, you could:

    • Elimination: Fill the hole in.
    • Substitution: Issue fall protection for employees.
    • Engineering: Add a guard rail around the hole.
    • Administrative: Close that area of work down.

    Employee Training

    Now that you have identified and controlled the risks, it’s important to train your employees on the measures you’ve taken to protect them and what role they must take in their own safety. For example, if you purchased fall protection equipment, you must now train employees to know when to use the equipment, the equipment’s capabilities, how to utilize the equipment safely, and how to inspect the equipment correctly.

    Documentation

    It’s critical to keep a record of all types of safety data, as much of it is required by law. You’ll need to keep documentation of:

    • OSHA 300 logs
    • Safety data sheets
    • Safety training and tool box training sign-in sheets

    You’ll also want to track your progress and document your steps by keeping your job hazard analysis and standard operating procedures.

    Document Programs

    Companies with 10 or more employees must have, at very least, these four safety programs in place: Health and Safety Manual, Emergency Response Plans, Fire Prevention Plans, and a Hazardous Communications Program. After these, it may be required that you have more written programs based on the specific hazards your employees are exposed to, such as fall protection programs, respiratory protection programs, and forklift operation programs.

    Implement Your Workplace Safety Plan

    Just having the documentation on hand doesn’t keep your employees safe. Use your programs to develop a training regimen. Owners are required to train their employees, but sometimes struggle to find content. Your written health and safety documentation can provide you with a unique, job-specific training curriculum. Your training sessions should be based on prioritizing your specific hazards from those with the largest potential for catastrophic outcomes to those with the least and then creating a yearly training schedule tackling the biggest hazards first. 

    Obtain Employee Buy-In

    The hardest part of achieving an effective safety culture is obtaining employee buy-in. It’s important to let your employees know that you care about them and want them to go home and enjoy their free time, family, and friends in the healthiest way possible. As an owner or production manager, you need to convey the message that safety will never take a backseat to production or service. Look to your frontline supervisors to lead by example in following your workplace safety plan. Give them the authority to enforce the written discipline policy, but more importantly give them the influence and knowledge to implement your safety program daily, so they are familiar with the hazards, controls, and regulatory requirements of each job, exemplify the standard, and engage employees in the process.

    Outsource Your Risk Management Services

    Many small business owners struggle to stay ahead of the risks associated with workers’ compensation and workplace hazards. Group Management Services (GMS) is dedicated to reducing your risk through onsite consulting, jobsite inspections, accident and injury investigations, training, and education.

    As you think about ways to keep your workplace safe, you might also want to think about other ways you can make your workplace simpler, safer, and stronger. GMS offers payroll, risk management, and human resources services to help keep your business running smoothly all through the year. Contact GMS today to talk with one of our experts about how you can ensure workplace safety at your organization.

  • 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.