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  • As we move into 2025, businesses across the U.S. face changing minimum wage requirements, with 23 states and Washington, D.C., implementing increases. Inflation adjustments, pre-scheduled state laws, and voter-approved initiatives primarily drive these changes. Here’s a comprehensive overview of the updates and what they mean for employers. 

    The Federal Minimum Wage 

    The federal minimum wage remains $7.25 per hour. While this serves as a baseline, 30 states and Washington, D.C., set higher minimum wages, often tying increases to inflation or cost-of-living adjustments. However, 20 states still default to the federal rate, emphasizing the disparity in wage standards across the country. 

    State-by-State Updates For 2025 

    • Significant increases: States such as Michigan will see substantial increases due to legal rulings and voter measures. Michigan’s wage will rise from $10.56 to $12.48 in February of 2025, reflecting a 20% jump. 
    • Modest adjustments: States like Montana and Ohio will experience smaller increases of $0.25, with rates reaching $10.55 and $10.70, respectively. 
    • Top rates: Washington State leads with a minimum wage of $16.66, followed by California at $16.50 and Connecticut at $16.35. Washington, D.C., is expected to raise its already high rate of $17.50 based on cost-of-living adjustments midyear. 
    • Regional variations: States like Oregon and New York apply regional minimum wages, creating differing rates within state boundaries. For example, in Oregon, wages range from $13.70 in rural areas to $15.95 in the Portland metro area. 

    These updates highlight the growing complexity of minimum wage compliance, especially for businesses operating across multiple states. 

    Challenges For Remote And Multistate Teams 

    The rise of remote work adds another layer of complexity. Employers must account for the minimum wage laws in the state where each remote worker resides, even if the business operates elsewhere. For instance, a company headquartered in a federal minimum wage state may need to comply with California’s $16.50 rate for its remote employees. 

    Implications For Employers 

    • Payroll adjustments: Employers must update payroll systems to reflect the new rates and ensure timely compliance. 
    • Budgeting: Wage increases may impact labor costs, requiring adjustments in pricing strategies or workforce planning. 
    • Compliance risks: Noncompliance can lead to legal and financial penalties, particularly in states with rigorous enforcement mechanisms. 

    How GMS Can Help 

    Navigating minimum wage changes and maintaining compliance is a significant challenge, particularly for businesses managing remote teams or operating in multiple states. Group Management Services (GMS) offers comprehensive payroll and HR solutions, helping businesses: 

    • Track and implement state-specific wage changes: Our tools ensure your payroll remains compliant, no matter where your employees are located. 
    • Streamline multistate compliance: We simplify managing wage laws across jurisdictions, minimizing administrative burdens. 
    • Enhance workforce planning: Our expert advisors assist in budgeting for wage increases and optimizing labor costs. 

    By staying informed and partnering with experts like GMS, your business can adapt to these changes efficiently, ensuring compliance and protecting your bottom line. 

  • Illinois employers with 15 or more employees will soon be required to openly share pay scales and benefits in job postings.

    On January 1, 2025, amendments to Illinois’ Equal Pay Act of 2003 will take effect, placing new responsibilities on employers and employment agencies operating in the state. These changes are part of a broader push toward wage transparency and fairness, and they will impact how businesses recruit, retain, and compensate their workforce. In addition to pay scale and benefits disclosure, the law also strengthens recordkeeping requirements and outlines a new process for dealing with complaints.

    Whether you’re a small local business or a larger multi-state operation, these new rules represent a shift in how you communicate with potential hires and engage with current employees. Let’s break down the key points.

    A Closer Look At The New Requirements

    Mandatory pay transparency in job postings

    For employers with 15 or more employees, pay scales and benefits must be included in all specific job postings. This could be a wage or salary range, along with details about benefits like bonuses, stock options, health coverage, and other forms of compensation. Employers can reference a pay scale set by market data, internal pay ranges, or a previously established budget for the position.

    Promotion postings for internal candidates

    The law also requires employers to announce promotion opportunities internally no later than 14 days after making an external job posting. By doing so, the state aims to encourage fair, equitable access to advancement within organizations.

    Recordkeeping obligations

    Employers must maintain documentation on wages, job postings, and associated pay scales and benefits for five years. This ensures that if questions arise (from employees or regulators) you’ll have the records to show you’ve followed the rules.

    Complaint and enforcement mechanisms

    Employees, and in some cases job applicants, can file complaints if they believe there’s been a violation of the Equal Pay Act or the new requirements. The Illinois Department of Labor (IDOL) can investigate, and if it finds violations, issue penalties. These fines can escalate up to $10,000 for repeated offenses.

    Why These Changes Matter

    Promoting trust and fairness

    Transparency around pay and benefits can build trust with both current employees and potential hires. It sends a clear signal that:

    • You value fairness
    • You have nothing to hide
    • You’re committed to creating a level playing field

    This sort of openness can translate into better employee morale, stronger retention, and a more attractive employer brand.

    Staying ahead of regulatory trends

    Illinois is not alone in pursuing pay transparency measures. Many states and jurisdictions are adopting similar requirements. Being proactive in Illinois may give you a head start if you operate or expand into other states with comparable laws. Beyond pure compliance, embracing transparency now shows that you’re on the cutting edge of best practices in HR and compensation management.

    Avoiding financial risks

    Non-compliance could result in significant penalties. Beyond that, there’s also the potential reputational damage. Employees and job candidates can easily learn about infractions that appear in public records. Being proactive helps shield you from such setbacks.

    Practical Steps To Prepare

    1. Review and update pay scales

    If you haven’t established formal pay scales or if your current ranges are outdated, now’s the time to get organized. Set clear criteria for determining pay ranges-consider market data, industry standards, and geographic factors. Document these criteria and ensure consistency.

    1. Examine your benefits offerings

    The new law requires not just pay information, but also a “general description” of the benefits and other compensation offered for each position. Make sure you can clearly articulate what you provide, such as:

    • Health insurance options
    • Retirement plans
    • Bonuses
    • Paid time off (PTO)
    • Other perks

    Have a system to keep this information current as offerings evolve.

    1. Adjust your job posting processes:

    Build compliance into your recruitment workflow. Before posting a job, confirm that the pay scale and benefits information is accurate and up to date. If you work with a third-party recruiter or job board, ensure they have the necessary details.

    1. Strengthen your recordkeeping:

    of all job postings, pay ranges, benefits information, and employee wage data. Since you’ll need to retain this documentation for at least five years, consider implementing a reliable HR information system (HRIS) or leveraging an external partner to streamline these tasks.

    Looking Ahead

    As we approach January 1, 2025, the clock is ticking for Illinois employers to adapt. Navigating the new Illinois pay transparency requirements can feel overwhelming, especially when you’re already juggling countless HR responsibilities. That’s where Group Management Services (GMS) comes in. When you partner with GMS you get:

    • Compliance guidance: We can help clarify the new Illinois requirements and show you how they fit into your current HR strategy.
    • Efficient recordkeeping: We’ll help implement systems that keep all the necessary information at your fingertips, reducing stress when it’s time to prove compliance.
    • Training and support: Need help educating your team or ensuring that your posting and promotion processes meet the new rules? GMS can provide the resources, tips, and best practices you need to ensure everything is aligned.
    • Integrated payroll and benefits administration: GMS integrates payroll and benefits into a cohesive system. This integration ensures accurate pay data, easy updates to employee compensation, and clear, accessible benefits information for current and prospective employees.

    Ready to prepare your business for Illinois’ upcoming law changes? Contact GMS today to learn how we can help you stay compliant and thrive in an evolving regulatory landscape.

     

     

  • When you invest in your people, they invest in your vision, which creates a recipe for long-term success.

    Key Takeaways 

    • Retention through growth: 94% of employees are more likely to stay with a company that invests in their professional development.
    • Boosted productivity: Companies with robust learning programs report a 70% increase in employee productivity.
    • Leadership pipeline: Development programs prepare mid-level employees for leadership roles, and increased engagement for an entire generation of workers.
    • Practical strategies: Effective professional development involves clear goals, mentorship, formal training, flexible schedules, and recognition of achievements.
    • The GMS approach: Tailored programs from Group Management Services (GMS) help businesses empower employees, build resilient teams for small to midsize businesses, and align growth opportunities with organizational success.

     

    As the job market rapidly fluctuates, professional development projects a guiding light for organizations to achieve sustained success. With talent retention becoming more challenging, businesses that prioritize employee growth opportunities are seeing results that go beyond lower turnover rates. It’s what transforms a fresh Sales Representative into a strategic deal-closer and a small business owner into a confident leader.

    Recent findings from talent management platform Clear Company reveal a simple yet powerful truth: 94% of employees would stay with a company longer if it invested in their career. This is no longer just a luxury, it’s an expectation. When you empower your workforce to learn and grow, you’re future-proofing your company and creating a culture of continuous improvement. At Group Management Services (GMS), we’ve seen firsthand how focusing on employee development boosts retention, raises productivity, and turns a good team into an exceptional one.

    Let’s explore why professional development matters and how to build a meaningful framework that supports both individual potential and organizational success.

    What Is Professional Development?

    Professional development is an ongoing process of learning and skill-building after entering the workforce. It can take many forms:

    • Formal training programs such as industry certifications or leadership workshops.
    • In-house initiatives such as mentoring or company-sponsored seminars.
    • Independent learning through online courses or conferences.

    It’s not a one-time task; it is an ongoing journey that keeps employees engaged, adaptable, and prepared for future challenges.

    For a young sales professional, this might mean learning advanced negotiation tactics, mastering a new customer relationship management (CRM) system, or gaining insights into emerging buyer behaviors. For mid-career employees, it can involve leadership workshops, strategic planning seminars, or communication courses that help them guide teams to success and prepare for further career advancement.

    Why Professional Development Matters

    Professional development is about creating a thriving ecosystem where employees feel valued and motivated. The benefits of investing in career growth ripple across every layer of an organization. Some of these include:

    • Retention: Retaining employees is far more cost-effective than recruiting and onboarding new hires. Employees who see clear growth opportunities are more likely to stay and contribute long-term.
    • Productivity: Companies with robust learning programs see a 70% increase in employee productivity. That’s not just good for morale; it’s good for the bottom line.
    • Innovation: Development opportunities encourage employees to think creatively, driving innovation which provides competitive advantages.

    A workforce engaged in ongoing learning tends to be more curious and solution oriented. They’re the ones who spot inefficiencies, propose new ideas, and come up with fresh approaches to old problems.

    Professional Development For Mid-level Employees And Higher

    Professional development benefits everyone, from entry-level hires gaining foundational skills to senior employees refining leadership abilities. Some of these benefits include:

    • Leadership potential: Development programs prepare mid-level employees for leadership roles, ensuring a steady pipeline of qualified candidates for management positions.
    • Engagement: A staggering 87% of millennials say that career growth opportunities are essential in a job. Companies that fail to provide them risk losing an entire generation of talent.

    Practical Ways To Encourage Professional Development

    So, how do you put professional development into action? There’s no simple right answer, but here are some strategies that can help shape a thoughtful approach:

    1. Set clear goals: Define what you want employees to achieve. Is it mastering a new software tool? Gaining a certification in a niche area? Make the objectives tangible and realistic.
    2. Lead by example: Leaders who continually learn and share their growth experiences send a powerful message. If managers and executives are excited about professional development, employees will follow suit.
    3. Offer formal training & mentorship programs: In-house workshops, seminars, or pairing employees with experienced mentors can create a supportive learning environment.
    4. Embrace feedback loops: Encourage employees to share what they’ve learned, whether it’s best practices for remote selling, tips for handling tough negotiations, or new tools that streamline workflow.
    5. Recognize achievements: Celebrate milestones like certification completions or conference attendances. A simple “congratulations” in the company newsletter can reinforce the value of ongoing learning.
    6. Utilize external resources: Programs from external platforms like Hubspot or Udemy can broaden skill sets and perspectives. Learning management systems (LMS), online courses, industry conferences, and professional grounds can complement in-house training efforts.
    7. Offer flexibility: Consider giving employees dedicated hours each month for professional development. For instance, allocate two hours weekly for online courses or industry-specific webinars. This sends the message that their growth isn’t a side project, it’s a core responsibility.

    Fitting Professional Development Into A Busy Schedule

    We get it. Everyone’s juggling deadlines, personal responsibilities, and a never-ending stream of emails. That’s why it’s essential to be realistic. Start small if you have to: a one-hour webinar each month, or one workshop a quarter. Consistency matters more than volume. Over time, these incremental efforts add up to significant skill growth.

    From an organizational perspective, offering flexible scheduling or financial support for courses shows employees you trust their judgment. It lets them choose learning opportunities that resonate with their career goals and your business needs.

    The GMS Advantage

    At GMS, we know that professional development isn’t just about individual growth, it’s about building stronger, more resilient organizations. That’s why we offer customized solutions to help businesses create impactful learning programs tailored to their unique needs.

    Whether it’s employee training, recruitment or performance management, GMS provides the tools and expertise to help your workforce thrive. When you invest in your people, they invest in your vision, and that’s a recipe for long-term success.

    Contact GMS today, and let’s work together to build an empowered workforce that’s eager to learn, innovate, and shape the future of your organization.

  • The gig economy has reshaped the modern workforce, offering flexibility and freedom for workers and cost-saving adaptability for businesses. However, this new dynamic also brings challenges in legal compliance, worker classification, and benefits provisions. As the gig economy grows, companies must address these hurdles to build a competitive operation. Let’s explore these changes and what businesses can do to adapt. 

    The Rise Of The Gig Economy 

    The gig economy, often referred to as the sharing or access economy, relies on freelancers, independent contractors, and temporary workers rather than traditional full-time employees. This model appeals to businesses for its cost savings and adaptability, as well as to workers for its flexibility and autonomy. In 2023, 64 million Americans (38% of the U.S. workforce) participated in gig work, contributing $1.27 trillion to the economy. 

    While the gig economy has grown rapidly, it is shifting away from labor-based gigs such as ridesharing and delivery to skill-based roles in fields such as tech, creative services, and management. This transition highlights the importance of adapting strategies to meet the changing needs of both workers and businesses. 

    Flexibility Vs. Security 

    Gig work offers significant advantages, such as the freedom to set schedules and the ability to work remotely. However, it also leaves workers vulnerable to economic insecurity and a lack of traditional employment benefits. Employer-provided benefits are tied to long-term employment and consistent hours, criteria that many gig workers don’t meet. Therefore, although 63% of individuals prefer gig work for its flexibility, 50% would only consider gig roles if they included robust benefits such as health care and retirement plans. 

    Addressing this gap presents an opportunity. Companies that provide alternative forms of support for gig workers can stand out, attracting top talent. Examples include:  

    • Providing access to resources such as financial education. 
    • Connecting workers to third-party benefits providers. 
    • Offering competitive pay that accounts for the lack of traditional benefits.

    Legal Considerations And Compliance Risks 

    Proper classification of gig workers is critical for businesses to avoid legal pitfalls. Misclassification can lead to lawsuits, penalties, and reputational damage. In 2024, the Department of Labor implemented new criteria for distinguishing employees from independent contractors under the Fair Labor Standards Act (FLSA). Employers must carefully assess relationships with gig workers to align with these standards and provide proper documentation and worker protections. 

    By proactively addressing compliance issues, companies can demonstrate ethical practices, reduce the risk of legal repercussions, and build a strong reputation. 

    Strategies For Succeeding In The Gig Economy 

    To effectively manage gig workers and remain competitive, businesses must address the unique challenges of gig work with forward-thinking strategies. Consider the following: 

    1. Provide non-traditional support: Facilitate gig workers’ access to third-party benefits platforms, professional development opportunities, and financial planning resources. 
    2. Maintain proper worker classification: Follow Department of Labor guidelines to distinguish between employees and independent contractors. 
    3. Leverage technology: Use modern platforms to manage contracts, track compliance, and streamline payments. 
    4. Embrace global talent: Expand the company’s reach by hiring international gig workers, taking advantage of the gig economy’s globalized nature. 

    Adapting To The Future Of Work 

    The gig economy is no longer a peripheral workforce model, it can be a central aspect of modern business strategy. Companies that adapt to its unique challenges while adhering to the evolving laws and regulations will gain a competitive edge in a dynamic labor market. 

    Partnering With GMS 

    Navigating the complexities of the gig economy requires expertise in HR management and legal regulations. Group Management Services (GMS) can help businesses stay ahead by ensuring proper worker classification, providing training and documentation to maintain compliance, and managing regulatory challenges.  

    Contact GMS today to learn how we can support your organization in the progressing gig economy. 

  • Corporate culture isn’t just a company’s personality; it shapes the way employees connect with their work, collaborate with each other, and align with organizational goals. Companies that deliberately grow a positive, inclusive culture experience heightened engagement, lower turnover, and increased productivity. 

    Culture, similar to a product, is something you build and refine. While companies create products to meet customer needs, the workplace culture is the “product” designed for employees. It’s essential that both are treated with the same care and investment for a business to grow successfully.  

    Let’s explore what you need to build a healthy culture for your business. 

    The Role Of Corporate Culture In Employee Engagement 

    Research shows that companies with a positive culture report a 72% higher employee engagement rate compared to those with a negative or dysfunctional culture. 

    Employee engagement, defined as the emotional commitment employees have toward their organization, is closely tied to a company’s workplace environment. A culture prioritizing psychological safety, accountability, and recognition creates an ecosystem where employees feel valued and motivated to contribute their best work. Engaged employees are not only more productive but also more likely to stay with their organization, reducing turnover costs and preserving institutional knowledge.  

    Productivity Rooted In Purpose 

    An intentional culture acts as a performance catalyst. Companies that align their cultural values with business objectives empower employees to perform with purpose. Clear communication of mission and values not only boosts morale but also strengthens organizational cohesion. Research consistently shows that positive workplace environments improve both productivity and emotional wellbeing. 

    Being A Cultural Architect 

    “Invest in your culture, and your people will invest in your vision.”

    – Lisa Dassani, VP of Human Resources, Group Management Services

    Leadership plays a pivotal role in shaping and sustaining corporate culture. Company leaders set the tone for their teams. Employees look to them not just for direction, but for cultural cues. It’s imperative to demonstrate transparency, integrity, and understanding when interacting with your team. Some ways for leaders to reinforce culture include: 

    • Share company updates and achievements regularly to keep employees informed and motivated. 
    • Create an open-door policy to encourage honest feedback and innovative ideas. 
    • Host team-building activities to strengthen trust and collaboration among employees. 
    • Use performance reviews as an opportunity to align individual goals with organizational values. 

    Strategies To Cultivate A Positive Corporate Culture 

    1. Define clear vision and values: Clearly articulate your company’s mission, vision, and values, and make them a part of daily operations. 
    2. Lead by example: Embody and reinforce cultural values through actions, not just words. 
    3. Endorse open communication: Encourage feedback so employees feel heard and valued. 
    4. Recognize your employees: Regularly acknowledge and reward employees’ contributions to reinforce positive behaviors and achievements. 
    5. Invest in professional development: Offer opportunities for continuous learning and career advancement to keep employees engaged. 
    6. Promote work-life balance: Implement policies that support employees’ personal lives, such as flexible working hours and wellness programs. 
    7. Support autonomy: Give employees the freedom to take ownership of their roles while maintaining accountability. 

    Partner With GMS To Strengthen Your Culture 

    Navigating the complexities of building a strong corporate culture can be daunting, especially for growing organizations. That’s where Group Management Services (GMS) steps in. GMS specializes in offering solutions like HR audits, professional development programs, and leadership training to help businesses refine their culture. By partnering with GMS, companies gain access to tools and strategies that support a healthy workplace, paving the way for employee satisfaction and business growth. Contact us today and let’s support your journey toward building an engaged and high-performing workforce environment. 

  • On November 15, 2024, the U.S. District Court for the Eastern District of Texas issued a ruling that vacated the Department of Labor’s (DOL) recent changes to overtime salary thresholds. This decision, effective nationwide, has significant implications for employers navigating wage and hour compliance under the Fair Labor Standards Act (FLSA). 

    The overturned rule, finalized on April 23, 2024, proposed the following changes to the salary threshold for exempt employees (those not entitled to overtime pay): 

    • Raising the salary threshold from $684 per week ($35,568 annually) to $844 per week ($43,888 annually), effective July 1, 2024. 
    • Further increasing the threshold to $1,128 per week ($58,656 annually), scheduled for January 1, 2025. 

    However, with the court’s recent decision, employers no longer need to implement these increases. 

    Key Points From The Court’s Decision 

    The court’s ruling centers on the DOL’s authority to set salary thresholds for overtime exemptions. While the FLSA allows the DOL to define and delimit exemptions for bona fide executive, administrative, and professional (EAP) employees, the court found that the 2024 rule overstepped this authority. Specifically, the rule’s high salary thresholds were seen as overshadowing the duties-based test required to determine exemption status. 

    In a related case earlier in 2024, the Fifth Circuit Court of Appeals emphasized that while salary can serve as an objective measure for exemption, it must not replace the primary consideration of job duties. The District Court echoed this sentiment, concluding that the 2024 rule’s salary increases effectively nullified the duties-based exemption criteria. 

    What’s Next? 

    The DOL may appeal the decision but given the court’s reasoning and the upcoming change in presidential administration, the likelihood of the rule’s revival appears slim. For now, the pre-2024 thresholds remain in place: 

    • A salary threshold of $684 per week ($35,568 annually) for exempt EAP employees. 
    • A highly compensated employee (HCE) threshold of $107,432 annually. 

    Staying updated on these developments as the situation evolves is critical for employers to ensure compliance and minimize disruptions. 

    Navigating Compliance Amid Uncertainty 

    The court’s ruling highlights the ongoing challenges businesses face in maintaining compliance with labor laws. Wage and hour regulations frequently change, making it essential for employers to stay informed and prepared. 

    At Group Management Services (GMS), we understand the complexities of workforce management. Our team of HR experts work closely with businesses to navigate regulatory changes, ensuring compliance and reducing administrative burdens. From policy updates to payroll management, we offer comprehensive solutions tailored to your needs. Contact us today to learn how we can help your business thrive. 

  • In today’s competitive job market, employee benefits are more critical than ever. As we look ahead to 2025, the demand for comprehensive, flexible, and tailored benefits packages is only expected to grow. Small businesses, in particular, may feel challenged to keep up with larger companies that have greater resources to devote to benefits. But with strategic planning, even smaller organizations can offer in-demand benefits that can attract and retain top talent.

    Health Care Benefits That Go Beyond The Basics

    Health care remains a top priority for employees, with benefits such as medical, dental, and vision coverage being nearly universal expectations. But in 2025, employees are looking for more than just basic health plans. Telemedicine, mental health resources, and wellness programs are becoming increasingly popular.

    • Telemedicine and virtual health care: Employees value the convenience and flexibility of telemedicine, especially for routine check-ups and non-emergency consultations. Small businesses can offer access to telemedicine services, which are typically affordable and easy to add to existing plans.
    • Mental health support: Mental wellness is now recognized as a vital piece of overall employee health. Offering access to counseling, mental health apps, or employee assistance programs (EAPs) demonstrates a commitment to employee well-being.
    • Wellness programs: Programs that encourage healthy living appeal to employees who want to prioritize their health. These benefits can include gym memberships, wellness coaching, and more.

    Competitive Retirement Plans To Secure Employees’ Futures

    With the Internal Revenue Service (IRS) increasing retirement plan contribution limits in 2025, employees should be more aware now than ever of the importance of securing their financial future. A well-structured retirement plan can be a powerful tool in attracting talent. Employers should consider offering incentives such as:

    • 401(k) matching contributions: Offering a company match on 401(k) contributions is an attractive benefit for employees, providing immediate financial value. Even a modest match such as 3% can help retain employees and show commitment to their long-term financial well-being.
    • Automatic enrollment and Roth 401(k) options: Automatic enrollment helps increase participation rates and simplifies the process for employees. As part of the SECURE 2.0 Act, all newly established 401(k) plans will automatically enroll eligible employees unless they opt-out. Roth 401(k) options, which offer tax-free withdrawals in retirement, are also popular among employees looking for tax-advantaged retirement strategies.

    Flexible Work Options For A Better Work-Life Balance

    The demand for flexible work options has only intensified post-pandemic, with many employees now expecting remote work, hybrid arrangements, or flexible schedules as standards.

    • Remote and hybrid work arrangements: Flexibility is no longer just a perk; it’s a priority for many employees. Businesses can appeal to top talent by offering options to work from home, even if just part of the time.
    • Flexible scheduling: Employees appreciate the ability to adjust their work hours to accommodate personal responsibilities, whether it’s picking up children from school or attending a doctor’s appointment. Flexible scheduling supports a work-life balance and reduces burnout.

    Paid Family Leave And Expanded Leave Options

    With work-life balance being a high priority for employees, having comprehensive leave policies in place are increasingly important. Employees expect to see options for paid parental leave, family medical leave, and even leave for mental health days.

    • Parental and family leave: Offering paid time off (PTO) for new parents or employees caring for a sick family member demonstrates empathy and builds loyalty. Small businesses may not be able to offer extensive leave but can explore affordable options to support employees during these life changes.
    • Paid time off flexibility: Employees appreciate flexible PTO policies, such as consolidated leave or even unlimited PTO. Flexible policies allow employees to take time off without worrying about strict caps or regulations, fostering a culture of trust and respect.

    Career Development And Educational Benefits

    Employees, especially Millennials and Generation Z, want jobs that offer growth and development opportunities. Providing access to career development resources is another powerful way to attract and retain ambitious, forward-looking employees.

    • Professional development programs: Opportunities for skill-building through workshops, courses, or seminars can make your company more attractive to candidates eager to learn. Many small businesses partner with online learning platforms to offer employees free or discounted courses.
    • Tuition reimbursement: While this benefit can be costly, it’s also highly attractive for employees interested in furthering their education. Offering partial tuition reimbursement can be a more affordable way to provide this benefit without full financial commitment.

    Financial Wellness And Student Loan Assistance

    Financial wellness benefits, such as student loan assistance, are in high demand, particularly among younger employees who may be carrying educational debt.

    • Student loan repayment assistance: Many employees still face significant student loan debt. Offering a student loan assistance program can make your business especially attractive to candidates early in their careers.
    • Financial education programs: Resources such as financial planning workshops or one-on-one consultations with financial advisors can help employees make informed financial decisions and feel more secure in their financial well-being.

    A Strong Company Culture To Complement Benefits Offerings

    A positive workplace culture is just as important to employees as specific benefits offerings. Some ways to encourage a healthy company culture include:

    • Team-building activities: Organizing events and initiatives encourages collaboration and camaraderie among staff, strengthening team dynamics.

    How Small Businesses Can Compete

    Offering competitive benefits doesn’t necessarily mean matching larger companies dollar-for-dollar. Small businesses can strategically focus on benefits that their employees value most and find creative ways to deliver them. By prioritizing employee needs, open communication, and being transparent about available resources, smaller companies can attract and retain talent effectively.

    At GMS, we specialize in helping businesses maximize their benefits offerings to meet evolving employee expectations. Our benefits administration services streamline health insurance, retirement plans, and other employee benefits to help businesses recruit and retain top talent.

    Partner with GMS to create a benefits package that meets today’s workforce expectations and positions your business as the ideal company to work for.

  • As we approach the end of the year, it’s a crucial time for Flexible Spending Account (FSA) holders to review their balances and ensure they’re maximizing these pre-tax dollars. While FSAs provide valuable tax benefits, they come with strict use-it-or-lose-it rules that can leave employees forfeiting funds if they don’t act before the year ends.  

    Continue reading to learn what both employers and employees need to know about FSAs, critical deadlines, and strategies to avoid losing these hard-earned savings. 

    Key Deadlines For FSAs 

    Flexible Spending Accounts generally have a calendar-year plan, which means that for many, December 31st is the last day to incur eligible expenses. According to the IRS, however, employers can offer one of these options that provide additional flexibility: 

    1. Grace period: Allows employees an extra two and a half months after year-end to use any remaining FSA funds. 
    2. Carryover option: Permits employees to roll over up to $640 of unused funds (as of 2024) into the next plan year while forfeiting any remaining balance beyond this limit. 

    Employers may offer one of these options but not both. It’s critical for employees to check with their HR departments to know which option, if any, applies to their account. 

    What Employees Should Know 

    Employees looking to make the most of their FSAs before the deadline should consider the following steps: 

    • Review eligible expenses: FSAs cover a wide range of medical, dental, and vision expenses. Typical eligible expenses include prescription medications, copays, and medical equipment. Click here for an entire store of qualifying expenses, which can be helpful in planning year-end spending. 
    • Schedule appointments and fill prescriptions: Many health care providers and pharmacies book up quickly toward the end of the year. Employees should consider scheduling any necessary medical, dental, or vision appointments as soon as possible. 
    • Invest in health products: Many over-the-counter products, such as first aid kits, blood pressure monitors, and even sunscreen, are FSA-eligible. Employees can use up their remaining funds on these items. 
    • Track spending carefully: It’s essential to keep receipts and track spending, as some items may need documentation for reimbursement. Additionally, employees should confirm their remaining balance through their FSA provider to avoid overspending. 

    Important Considerations For Employers 

    Employers play a vital role in helping employees understand and maximize their FSA benefits. Here are some key points for employers to keep in mind: 

    • Communicate deadlines: Employers should remind employees of year-end deadlines and if there are grace periods or carryover options in place. Clear communication can help employees make informed spending decisions. 
    • Encourage education on eligible expenses: Many employees may not be aware of the full range of FSA-eligible expenses. Employers can consider sharing resources or holding informational sessions to help employees make the most of their funds. 
    • Evaluate FSA options for the next year: Offering a grace period or carryover option can provide employees with valuable flexibility, and it may encourage higher FSA participation rates. Employers should assess these options annually to determine which choice best aligns with their company’s goals and employee needs. 

    How GMS Can Help 

    FSAs are a valuable employee benefit, but managing them effectively requires clear communication and guidance. Group Management Services (GMS) assists businesses in structuring and managing their benefits packages, including FSAs, to optimize value for both employees and employers. From helping you select the best FSA options to educating your workforce about deadlines and eligible expenses, GMS provides comprehensive support to make year-end planning seamless. 

    Don’t let your employees lose out on the benefits they deserve. Contact GMS today to maximize the impact of your company’s FSA offerings. 

  • The Internal Revenue Service (IRS) has announced the annual adjustments to the standard deduction and tax brackets for tax year 2025, effective January 1, 2025. It’s important to note that these figures will be used to prepare your 2025 tax returns in 2026, not for your 2024 tax returns. Understanding these changes is vital for effective business planning and budgeting. 

    If you don’t anticipate significant changes in your financial situation for 2025, you can use these updated numbers to estimate your tax liability. However, if you expect changes such as increased income, getting married, starting a business, or having a baby, you should consider adjusting your withholding or estimated tax payments accordingly. Continue reading to understand how the adjustments impact you and your employees. 

    2025 Tax Bracket Overview 

    Each year, the IRS adjusts tax brackets to reflect changes in the cost of living, which helps maintain taxpayer purchasing power. For tax year 2025, the top tax rate remains 37% for individual single taxpayers with incomes greater than $626,350 ($751,600 for married couples filing jointly). The other rates are: 

    • 35% for incomes over $250,525 ($501,050 for married couples filing jointly). 
    • 32% for incomes over $197,300 ($394,600 for married couples filing jointly). 
    • 24% for incomes over $103,350 ($206,700 for married couples filing jointly). 
    • 22% for incomes over $48,475 ($96,950 for married couples filing jointly). 
    • 12% for incomes over $11,925 ($23,850 for married couples filing jointly). 
    • 10% for incomes $11,925 or less ($23,850 or less for married couples filing jointly). 

    Standard Deduction And Personal Exemptions 

    The IRS defines the standard deduction as a precise dollar amount that reduces the amount of income on which you’re taxed. A standard deduction consists of the sum of the basic standard deduction and any additional standard deduction amounts for age and blindness. The standard deduction has also increased for 2025: 

    • For single taxpayers and married individuals filing separately for tax year 2025, the standard deduction rises to $15,000 for 2025, an increase of $400 from 2024. 
    • For married couples filing jointly, the standard deduction rises to $30,000, an increase of $800 from tax year 2024.  
    • For heads of households, the standard deduction will be $22,500 for tax year 2025, an increase of $600 from the amount for tax year 2024. 
    • Personal exemptions for tax year 2025 remain at zero, as in tax year 2024. The elimination of the personal exemption was a provision in the Tax Cuts and Jobs Act of 2017. 

    Additional IRS Adjustments 

    The IRS has updated a variety of other thresholds for 2025: 

    • Alternative minimum tax (AMT) exemption: $88,100 for single filers and $137,000 for married couples filing jointly. 
    • Earned income tax credit (EITC): Maximum EITC amount rises to $8,046 for qualifying taxpayers with three or more children. 
    • Flexible spending account (FSA): The contribution limit increases to $3,300. 

    For in-depth details regarding the 2025 adjustments, click here. 

    What Your Employees Should Know 

    The new tax brackets apply to all earnings starting January 1, 2025. Employees should be provided with the resources necessary to make informed decisions. The IRS offers a tax withholding estimator that helps individuals determine if they have too much federal income tax withheld, which could reduce their take-home pay. Alternatively, it can assist employees with additional income sources in deciding whether to withhold more or make an estimated tax payment to avoid a tax bill. Employees can also submit IRS Form W-4 to their HR or payroll department to ensure the correct federal income tax is being withheld. 

    What This Means For Business Owners 

    If you’re a business owner, it’s essential to understand the tax bracket adjustments and standard deductions. Paycheck withholding amounts and quarterly estimated tax payments can affect an employee’s income level subject to a higher tax bracket. Additionally, the following could impact your employees’ decisions: 

    Preparing For The Adjustments 

    Business owners should take proactive steps to prepare for these changes by: 

    • Reviewing payroll systems: Ensure your payroll systems are updated to reflect the 2025 tax brackets and standard deductions. This will help avoid discrepancies in employees’ paychecks. 
    • Communicating with employees: Inform your employees about the changes and how they might impact their take-home pay. Providing resources like the IRS tax withholding estimator can help them make informed decisions. 
    • Adjusting financial plans: Revisit your business’s financial plans and budgets to account for changes in tax liabilities. This includes reviewing estimated tax payments and potential impacts on cash flow. 
    • Consulting with tax professionals: Engage with tax advisors to understand the full implications of these changes on your business and to ensure compliance with IRS regulations. 

    How GMS Can Help With Tax Compliance 

    Navigating tax changes can be challenging, especially when it comes to payroll compliance. Failing to comply can result in hefty penalty fees. It is estimated that 40% of small businesses pay tax fines of more than $850 annually. GMS offers expert payroll tax management services, ensuring your business complies with the latest IRS updates. From handling payroll deductions to managing employee contributions, our services simplify your tax obligations, helping you focus on growth. Contact us today to learn how we can support your business.  

  • Many working parents in California need time off to manage school-related activities or care for their sick children throughout the year. For employers, understanding the state’s leave entitlements is critical to maintaining compliance while supporting employees’ work-life balance. Continue reading for an overview of key California leave laws for parents and caregivers that businesses should consider. 

    Supporting Involvement In Education 

    The Family-School Partnership Act requires employers with 25 or more employees at a single location to provide eligible employees with up to 40 hours of unpaid leave each year to participate in their children’s school activities. Eligible employees include parents, guardians, and grandparents who have custody of children in grades K-12 or those attending licensed daycare facilities. 

    This leave can be used for activities such as school meetings, field trips, or parent-teacher conferences. However, it is important for employers to note that this leave is capped at eight hours per month, and employees may be required to use accrued vacation or paid time off (PTO) before taking unpaid leave. Additionally, employers can request that employees provide reasonable advance notice when taking leave for school-related activities. 

    Protecting Parent Involvement 

    Under California Labor Code Section 230.7, employers are prohibited from discriminating against or terminating employees who need time off to attend school meetings related to their child’s suspension or expulsion. In these situations, parents and guardians have a right to be present under California Education Code Section 48900.1. Employers must ensure their policies do not penalize employees for fulfilling their responsibilities as parents in these difficult circumstances. 

    Caring For Sick Children 

    When cold and flu season hits, parents often need time off to care for their sick children. California’s Paid Sick Leave law allows employees to use their accrued sick time for their own health needs or to care for a sick family member, including children. This can include time off for preventive care, diagnosis, or treatment. 

    As of January 1, 2024, the minimum mandated paid sick leave increased to five days or 40 hours per year. Employers should ensure they are meeting this requirement and be mindful of any additional local sick leave ordinances that may apply. Many cities and counties in California have their own sick leave laws that may be more generous than the state standard. 

    Best Practices For Employers 

    To create a supportive and compliant workplace, it’s important for employers to: 

    1. Review and update leave policies: Ensure that leave policies comply with state and local laws, including updates to the minimum paid sick leave.
    2. Communicate clearly with employees: Make sure employees are aware of their rights and the procedures for requesting leave. Consider updating employee handbooks to reflect any changes in the law.
    3. Monitor local ordinances: In addition to state laws, California has many local ordinances that may require additional leave or benefits. Keeping track of these changes is essential for maintaining compliance.

    How GMS Can Help 

    Navigating California’s complex employment laws, especially as they relate to family and medical leave, can be challenging. GMS helps businesses stay compliant by offering comprehensive HR services that keep you informed of regulatory changes and ensure your policies meet legal requirements. Whether it’s managing leave entitlements, sick leave policies, or other employment law compliance, GMS is here to guide your business through the intricacies of California labor laws, reducing risk, and helping you focus on your business’s success. Let us take care of the details so you can stay compliant and provide a supportive environment for your employees.