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  • In February 2024, the U.S. Occupational Safety and Health Administration (OSHA) conducted an investigation on Strauss Feeds LLC, an animal feed manufacturer based in Watertown, Wisconsin. This investigation, prompted by reports of unsafe working conditions, revealed significant workplace safety hazards that put employees at risk. As a result, OSHA issued multiple citations and imposed penalties on the company, highlighting the need for immediate corrective action. 

    Incident Details 

    The OSHA inspection uncovered various safety issues at Strauss Feeds LLC, particularly related to dust hazards and respiratory risks. OSHA cited the company for 19 “serious” violations and five “other-than-serious” violations, leading to proposed penalties totaling $161,332. The violations stem from inadequate housekeeping practices, a failure to evaluate spaces for dust-related hazards, and a lack of engineering controls to manage combustible and airborne dust. 

    These conditions created a serious risk of explosion and fire, potentially endangering the plant’s workers. In addition to these hazards, OSHA found that Strauss Feeds had not developed a proper respiratory protection program, further increasing the health risks faced by employees due to inhalation of harmful dust particles. 

    OSHA’s Actions 

    In response to these findings, OSHA gave Strauss Feeds 15 business days to either contest the citations and proposed penalties or comply by addressing the violations. The company is now faced with the task of implementing necessary safety measures to prevent future accidents from occurring and protect its workforce from hazardous conditions. 

    Violations Identified 

    Among the key violations identified by OSHA are the following: 

    • Poor housekeeping practices that led to an accumulation of combustible dust. 
    • Failure to assess work areas for dust-related hazards. 
    • Lack of engineering controls to minimize dust buildup and exposure. 
    • Absence of a written respiratory protection program, endangering employees exposed to airborne contaminants. 

    These issues, left unaddressed, significantly increase the likelihood of fire, explosion, and respiratory illnesses, emphasizing the importance of workplace safety and compliance with OSHA standards. 

    Protect Your Business With GMS 

    The safety violations at Strauss Feeds LLC serve as a stark reminder of the dangers posed by inadequate workplace safety measures. Companies can proactively mitigate risks and ensure compliance by partnering with a professional employer organization (PEO) like Group Management Services (GMS). A PEO provides expert assistance in developing comprehensive safety programs tailored to each organizations unique needs, allowing businesses to protect their workers and avoid costly fines and citations from OSHA. 

    Investing in workplace safety is essential to creating a healthy and productive workforce. Let GMS help safeguard your business and create a culture of safety that prevents accidents before they occur. Reach out to our safety experts today! 

  • Significant updates are coming to 401(k) plans affecting employees across various industries. These changes, part of the SECURE 2.0 Act, are designed to enhance retirement savings opportunities and make retirement planning more accessible for all. Passed in late 2022, the SECURE 2.0 Act builds on the 2019 SECURE Act and includes over 90 provisions, some of which have already taken effect. The 401(k) updates for 2025 are particularly notable, offering expanded enrollment options, increased contribution limits, and greater flexibility for part-time workers. 

    Whether you’re just starting to save for retirement or already have a plan in place, it’s important to stay informed. Here’s a breakdown of the most significant changes to 401(k) plans coming in 2025: 

    Automatic Enrollment For New 401(k) Plans 

    Starting in 2025, all newly established 401(k) plans will automatically enroll eligible employees unless they opt-out. This provision aims to simplify the enrollment process and encourage more workers to begin saving for retirement as soon as they are eligible.  

    Employers with fewer than 10 employees or businesses under three years old are not required to automatically enroll. Government and church plans are also exempt from this rule.  

    Employers can set an initial contribution rate between 3% and 10% of an employee’s salary, with many opting for a rate around 6%. Each year, the contribution rate will automatically increase by 1% until it reaches the employer’s predetermined cap, which could be as high as 15%. This means that employees will have the chance to gradually increase their retirement contributions without needing to take any action. 

    Faster 401(k) Eligibility For Part-Time Employees 

    Currently, part-time employees need to work 500 hours over three consecutive years or 1,000 hours in one year to qualify for their employer’s 401(k) plan. However, beginning in 2025, that eligibility window will be shortened to two years instead of three. 

    This adjustment is excellent news for part-time workers, especially those who juggle multiple jobs. Keep in mind if you contribute to multiple 401(k) plans with different employers, your total contributions across all plans must not exceed the annual limit, which is set at $23,000 for 2024. 

    Higher Catch-Up Contributions 

    The SECURE 2.0 Act acknowledges the financial concerns of older workers, many of whom worry they haven’t saved enough for retirement. Starting in 2025, employees aged 60 to 63 will have the opportunity to make larger catch-up contributions than those in their 50s. The new limit will be set at either $10,000 or 50% more than the standard catch-up contribution limit, whichever is greater.  

    For example, if the catch-up contribution limit for 2025 remains at $7,500, workers between the ages of 60 and 63 can contribute up to $11,250. These limits will be adjusted annually to account for inflation, ensuring that employees can continue to maximize their retirement savings as costs rise. 

    How GMS Can Help 

    401(k) plan requirements are constantly changing, and with the new SECURE 2.0 provisions, businesses must stay on top of compliance while offering competitive benefits. At Group Management Services (GMS), we understand the importance of providing attractive retirement plans for your employees. Our team of retirement experts is here to help you navigate these changes, ensuring that your 401(k) offerings are compliant, competitive, and designed to meet the needs of your workforce. 

    Whether you’re looking to enhance your current retirement plans or want to explore new options, GMS can provide the guidance and support you need. Contact us today, and let us help you build a plan that works for both your business and your employees’ future.  

  • A Texas federal judge recently struck down the Federal Trade Commission’s (FTC) proposed nationwide ban on non-compete agreements, which was set to take effect in early September. This ruling means that employers can continue to enforce non-compete clauses according to their state laws. However, with ongoing legal challenges and the evolving regulatory landscape, it’s crucial for employers to stay informed and prepared for potential changes.  

    Understanding The Ruling 

    The FTC’s proposed rule aimed to ban non-compete agreements nationwide, a move that was met with significant pushback from the business community. In response, a Texas employer, the U.S. Chamber of Commerce, and other organizations filed a lawsuit challenging the FTC’s authority to impose such a ban. The case was heard by Judge Ada Brown of the Northern District of Texas, who ruled that the FTC overstepped its authority and the proposed ban was invalid. 

    Judge Brown’s decision was based on two key arguments: 

    1. The FTC does not have the power to issue substantive rules, as Congress only authorized the agency to establish procedural rules to address unfair competition.
    2. The rule itself was deemed “arbitrary and capricious” due to its broad and blanket approach, which failed to consider state-specific laws.

    As a result of this ruling, the non-compete ban has been blocked nationwide, allowing employers to continue using non-compete agreements as permitted by state law. 

    Why You Should Stay Informed 

    While the immediate threat of a nationwide ban has been neutralized, the FTC may appeal the ruling in the coming weeks. That said, employers should remain vigilant. The FTC may still pursue case-by-case enforcement actions against non-compete agreements, and the legal landscape could shift again if higher courts weigh in. Now is the time for employers to ensure their non-competes are compliant with state laws and tailored to protect their business interests without overreaching.  

    Implications For Employers 

    Employers should review their existing non-compete agreements and ensure they are narrowly tailored to meet the specific requirements of the states where they operate. It’s also wise to compile an inventory of all restrictive covenants, including those involving former employees, to ensure you are prepared for potential future legal challenges. 

    Partner with GMS To Navigate Complex Employment Laws 

    Navigating the complexities of employment law, especially with the potential for rapid changes, can be challenging. That’s where GMS comes in. As a professional employer organization (PEO), we provide comprehensive support to help you stay compliant with the latest rules and regulations, including those surrounding non-compete agreements. Our expert team keeps you informed and ensures that your business is protected while allowing you to focus on growing your business.  

    Stay informed, stay compliant, and let GMS be your partner in navigating the complexities of employment law. Contact us today to learn how we can help your business succeed in an ever-changing legal environment. 

  • Open enrollment can be a source of stress and confusion for many, with only a small percentage of people feeling confident in their ability to choose the right plan. If your employees are feeling anxious about this process, they are not alone. Let’s break down the essentials of open enrollment so your team can approach it with confidence. 

    What Is Open Enrollment? 

    Open enrollment is the designated time each year when employees can enroll in or make changes to their health insurance plans. Outside of this period, changes can only be made if you experience a qualifying life event (QLE), such as marriage, the birth of a child, or moving to a new location. These events allow for a special enrollment period, providing flexibility when significant life changes occur. 

    Choosing The Right Plan 

    Selecting the right health insurance plan involves evaluating your current and anticipated health care needs. Ask yourself if your current plan met your needs last year, whether your preferred doctors are within the network, and if your family circumstances have changed. Consider whether you expect to use more or fewer medical services in the coming year and whether you prioritize lower monthly costs or a broader network of providers. If you’re uncertain, seeking advice from a third-party resource, like a health advocate, can offer valuable insights. 

    Understanding Health Insurance Terms 

    Health insurance terminology can be complex, but understanding key terms is crucial for making informed decisions. Here are a few important concepts: 

    • Deductible: The amount you pay out-of-pocket before your insurance begins to cover expenses. 
    • Copay: A fixed fee you pay for specific health care services. 
    • Coinsurance: The percentage of costs you share with your insurer after meeting the deductible. 
    • Out-of-pocket maximum: The maximum amount you’ll pay in a year for covered services. 
    • Preferred provider organization (PPO): A type of health plan that offers a network of health care providers but allows for out-of-network care at a higher cost. 

    Can You Change Your Plan After Enrollment? 

    During the open enrollment period, you can make changes to your plan. However, once this period ends, changes are only possible if you experience a QLE. For new employees, benefits typically start on the first of the month following enrollment, while existing employees’ coverage begins according to the employer’s plan year. 

    Open Enrollment In 2024 

    Under the Affordable Care Act (ACA), employers with 50 or more full-time employees or the equivalent must provide health care to their team. Regardless of your team’s size, health care is a leading benefit that can assist with hiring and retention efforts due to the rising cost of personal health expenditures. While businesses have different renewal periods throughout the year, Q4 is a common time for many companies to conduct open enrollment. It’s important to stay informed with your company’s schedule to know when it’s time to elect benefits. For 2024, the open enrollment period for HealthCare.gov begins on November 1st and extends until January 15, 2025, in most states. This timeframe allows individuals to enroll in or make changes to their health insurance plans for the upcoming year. 

    Navigate Open Enrollment With GMS 

    It can be difficult for employees to make informed decisions regarding benefits due to the complex array of options available. When you partner with GMS, we shoulder the responsibilities of the open enrollment period, allowing you to concentrate on other aspects of your business. Your dedicated benefits account manager closely collaborates with you and your team to offer top-notch benefit plans and educate your employees effectively. Gain access to a team of specialists who can train your employees on plan details and address challenging coverage inquiries. We understand the complexities of health insurance. Let us guide you on how to maximize your plans, ensure compliance, and stay updated on regulations. Connect with us today. 

  • As health care costs continue to rise, more people are looking for ways to save on medical expenses. One powerful tool that can help is a health savings account (HSA). This unique type of account allows you to set aside money specifically for qualified health care costs while providing triple tax advantages.

    An HSA allows you to put money away and withdraw it tax free, as long as you use it for qualified medical expenses, like deductibles, copayments, coinsurance, and more. (Generally, insurance premiums aren’t considered qualified medical expenses.) You’re eligible to contribute to an HSA when you’re covered by an HSA-eligible plan (sometimes called a High Deductible Health Plan (HDHP)).

    Who Is Eligible For An HSA? 

    To be eligible for an HSA, you must be enrolled in a high-deductible health plan (HDHP). An HDHP has a higher annual deductible than traditional plans but comes with lower monthly premiums.

    The maximum amount you’re allowed to contribute to an HSA in 2024 is $4,150 if you participate in the HDHP as an individual or $8,300 if you participate in the HDHP as a family.

    If you are an HSA holder aged 55 or older, you may also contribute an extra $1,000 annually as a catch-up contribution. The maximum contribution amount allotted for an HSA in 2024 is $1,600 for individual coverage or $3,200 for couples or family coverage. Please note that HSA contribution maximums are adjusted annually for inflation.

    Any eligible individual can contribute to an HSA. For an employee’s HSA, the employee, the employee’s employer, or both may contribute to the employee’s HSA in the same year. For an HSA established by a self-employed (or unemployed) individual, the individual can contribute. Family members or any other person may also make contributions on behalf of an eligible individual. The funds grow tax-deferred, similar to a traditional individual retirement account (IRA) or 401(k) contributions. Best of all, withdrawals from your HSA are completely tax-free when used for qualified medical expenses.

    Opening a Health Savings Account 

    Opening an HSA is easier than you may think. In most cases, your employer will offer you an HSA if you take advantage of their medical coverage. However, if your employer does not offer an HSA as a part of your benefits package, you can open one yourself. Banks, credit unions, and investment brokerages provide these accounts. You can also get coverage by visiting HealthCare.gov. You will not be eligible to open an HSA if you’re enrolled in Medicare or a health care plan that doesn’t require you to pay deductibles or copays before receiving coverage.

    Contribute Or Withdraw From Your HSA

    Once you are enrolled in your HSA, you can start contributing to your account immediately. Deposits can be made by you, your employer, or your spouse, but you must ensure that any contributions made do not exceed the annual limit. If you withdraw money from your HSA for non-medical expenses before you turn 65, you must pay the federal income tax and a 20% penalty.

    Benefits Of An HSA 

    Qualified expenses cover a wide range of health care costs, including deductibles, copays, prescriptions, dental treatment, vision care, and even insurance premiums if you receive federal or state unemployment benefits. The funds can be used to pay expenses for yourself, your spouse, or your tax dependents, even if they’re not covered by your HDHP.

    One of the biggest advantages of HSAs is that the money is yours to keep indefinitely. Unlike flexible spending accounts (FSAs), unused HSA funds roll over from year –to –year without expiring. The money you invest is not taxed; interest and investment earnings are tax-free, and you won’t pay taxes on eligible purchases.

    You can continue using the account to pay for medical costs after changing jobs or retiring. After age 65, you can withdraw HSA funds for non-medical purposes without a penalty (though subject to income tax).

    If you have an HDHP, opening an HSA is a smart way to build up a dedicated health care savings fund while reaping significant tax benefits along the way. With triple tax advantages and funds that are yours for life, HSAs provide a powerful way to prepare for current and future medical costs.

    GMS Can Help Guide You

    At GMS, we understand the value of an HSA in helping our clients save money while preparing for health care expenses. That’s why we offer HSA administration services alongside our comprehensive suite of PEO solutions. Our team of experts are here to guide you through the process of setting up and managing an HSA that works seamlessly with your HDHP, providing you with the support and guidance you need.

    With GMS as your partner, you can maximize the tax advantages of an HSA while streamlining compliance and strengthening your overall employee benefits program. By collaborating with a PEO like GMS, business owners can ensure their workforce gains access to HSAs and other benefits plans. Through tailored guidance, support, and an array of benefits options, GMS empowers businesses to enhance their offerings, fostering satisfaction and financial security. To learn more about our benefits offerings, contact us today.

  • Navigating the complexities of human resources can be daunting, especially for small businesses with limited resources. From payroll processing to benefits administration and compliance with employment laws, managing HR functions internally often becomes overwhelming. That’s why a professional employer organization (PEO) provides comprehensive services for businesses that need help. By partnering with a PEO, businesses can access expert HR support, streamline operations, and focus on their core activities, saving time and money in the long run.

    There are several misconceptions about what it means to partner with a PEO. Fortunately, we’re here to help answer your questions. We’ve debunked a few common myths about partnering with a PEO.

    Myth: PEOs Take Over Control Of Your Business

    Fact: A PEO doesn’t take over your company; it’s a partnership.

    No one wants to lose control of their business. Contrary to popular belief, hiring a PEO won’t result in a takeover; instead, PEOs partner with companies to provide expert guidance and support, enabling more informed business decisions that can save time and money. 

    The confusion often arises from the co-employment model that PEOs use. While it may sound like your staff is now part of the PEO’s company, this model allows PEOs to take on HR responsibilities and liabilities without interfering with your business operations. This means that while the PEO handles tasks such as payroll, benefits administration, and compliance, you maintain complete control over your day-to-day operations and decision-making processes. 

    In addition, partnering with a PEO enhances your business’s buying power. By pooling employees from multiple companies, PEOs can negotiate better rates on benefits packages. This allows you to offer your team benefits comparable to those of a Fortune 500 company, making your business more attractive to top talent and helping with employee retention.

    Myth: PEOs Decide Who To Hire And Fire

    Fact: You retain complete control over your staffing choices.

    When partnering with a PEO, you control your staffing decisions. PEOs are there to streamline and support the hiring process, but the final decision always rests with you. 

    PEOs can significantly enhance the efficiency of your hiring process by screening applicants and presenting only the most qualified candidates. This saves you time and ensures access to a top-tier talent pool when hiring. However, the ultimate choice of who to bring on board remains entirely in your hands, preserving your control over the composition of your team. 

    In addition, PEOs provide comprehensive employee management systems that offer valuable tools for tracking employee progress and documenting incidents such as poor performance or inappropriate behavior. These systems enable you to monitor performance effectively and maintain detailed records. Should you need to make the difficult decision to terminate an employee, having thorough documentation helps safeguard your business against potential legal challenges.

    Myth: Small Businesses Can’t Benefit From PEOs

    Fact: PEOs are especially helpful for small businesses.

    You don’t need to run a large corporation to take advantage of a PEO’s services. Small businesses face many challenges regarding HR functions, much like their larger counterparts. A small company might have one person wearing many hats, making managing payroll, navigating compliance issues, and handling employee benefits overwhelming and time-consuming. These tasks often lead to late hours, costly inefficiencies, and the potential for errors that can have significant financial and legal repercussions. 

    A PEO can alleviate these burdens by providing specialized expertise and support in managing HR functions. By partnering with a PEO, you can gain access to a team of HR professionals who are well-versed in the complexities of HR and regulatory compliance without having to hire a full-time HR professional. This ensures accuracy and efficiency and frees up valuable time for you and your managers to focus on core business initiatives. 

    Myth: PEOs Are Too Expensive

    Fact: PEOs are an intelligent investment

    Investing in a PEO is a strategic decision for businesses of all sizes. While PEOs typically charge a fee per employee per month, the significant saving in HR functions and overall operational efficiency typically offsets the cost. 

    PEOs bring expertise to your business, streamlining HR and identifying and resolving costly issues before they escalate. Their proactive approach to HR management ensures that common pitfalls and compliance risks are addressed, preventing the “inevitable HR issues” that can disrupt business operations and lead to financial penalties.

    Myth: PEOs Damage Company Culture

    Fact: PEOs can enhance your company culture

    Like most organizations, you take great pride in your workplace’s culture. Culture is carefully built and requires considerable effort to maintain, so understandably, you want to protect it. Contrary to concerns that partnering with a PEO might harm your company culture, PEOs can enhance it. 

    PEOs provide access to top-tier benefits and a wider pool of resources, which can significantly contribute to a positive work environment. This leads to higher employee satisfaction and morale, which are critical components of a strong company culture. 

    Additionally, PEOs offer onboarding and training and development support, which can further reinforce your company’s values and goals. By providing opportunities for professional growth and development, PEOs help employees feel more engaged and invested in the company’s success.

    This enhances individual performance and fosters a collaborative and motivated workforce.

    PEOs also help create and maintain comprehensive employee management systems, including performance tracking, feedback mechanisms, and conflict resolution processes. These systems help ensure that your company culture remains positive and productive by addressing issues promptly and effectively. A PEO partnership enables you to maintain the essence of your culture while benefiting from the additional support and resources that a PEO provides.

    Partner With GMS 

    PEOs like GMS offer a range of benefits while saving you time and money in the long term. Over the past 25+ years, GMS has helped over 3,500 companies manage their HR functions. As HR experts, we take on the administrative burdens that companies don’t have the time or expertise to manage effectively, including:

    Contact us today to talk to one of our experts about how a PEO can help our company improve its HR functions.

  • The United States health care system has undergone significant changes over the past few decades. While it was once viewed as a global leader, rising costs and strained resources have created challenges in providing accessible, affordable care for Americans.

    Many individuals face long wait times to receive treatment and lack convenient access to providers, especially in rural or underserved areas. This further escalates the situation, creating disparities in health outcomes across different communities. Turn to innovative solutions like telehealth to address these issues and meet your employees’ evolving needs.

    Telehealth offers a promising approach to delivering quality care directly to members, regardless of their financial situation or geographic location. By leveraging virtual consultations, remote monitoring tools, and digital resources, you can enhance health care accessibility while controlling costs.

    Enhancing Accessibility And Reducing Wait Times

    Healthy employees are good for every business. Telemedicine allows employees to contact doctors for a free consultation, allowing them to connect virtually with providers within hours instead of weeks or months. Telemedicine also allows you to avoid time-consuming visits to the doctor or unnecessary trips to the emergency room.

    For those managing chronic conditions in rural areas with few specialists, telehealth provides a convenient alternative with the use of virtual consultations. Insurers can leverage remote monitoring tools to help members control chronic issues. Telehealth also increases access to mental health resources that were previously limited, especially in underserved areas.

    Making Health Care More Affordable

    In addition to accessibility, telehealth supports proactive, preventative care that reduces long-term costs and burdens on the system. During virtual visits, you can gather real-time health data to identify risk factors early. With this data, providers can give personalized care plans, routine check-ins, and guidance to help members make cost-effective decisions, preventing conditions from worsening and avoiding expensive treatments.

    The convenience of telehealth saves you and your employees time by eliminating travel and sitting in waiting rooms. It also limits the need to take time off work to fit an employee’s ailments into a doctor’s schedule. Telehealth allows insurers to be proactive rather than reactive.

    Quick, Convenient Telehealth Access For Employers

    At GMS, we recognize the potential of telehealth to transform health care accessibility and affordability for our members. Our telehealth services connect members with providers virtually for urgent care, primary care, mental health support, chronic condition management, and more.

    We leverage real-time health data to provide proactive, personalized care plans that prevent issues from escalating. Our goal is to empower our members with the resources and guidance they need to make informed, cost-effective decisions about their care.

    As we continue investing in telehealth, GMS is committed to driving the evolution of the health care industry. We aim to deliver a truly accessible, affordable, and high-quality virtual care experience that improves outcomes and reduces burdens on the system. Partner with GMS to stay ahead of the digital health care curve; contact us today!

  • In a significant move to empower employees and safeguard their rights, New York City has unveiled a mandatory new workplace poster as part of its commitment to fostering a transparent and fair working environment. This initiative, rooted in the city’s “Workers’ Bill of Rights,” ensures that every employee is well-informed about their rights at work. Continue reading to learn what you need to know about this pivotal development.

    The new poster can be found by clicking here.

    Understanding The “Workers’ Bill Of Rights”

    The “Workers’ Bill of Rights” is a comprehensive effort by New York City to provide its workforce with a clear understanding of their entitlements and protections under state and federal law. Recognizing the diverse linguistic landscape of the city, the newly released poster by the New York Department of Consumer and Worker Protection (DCWP) captures the spirit of inclusivity and accessibility. The poster embodies the city’s commitment to reaching every worker by featuring “Know your rights at work” in 12 different languages.

    The Role Of QR Codes In Promoting Accessibility

    A standout feature of the poster is its large quick-response (QR) code, which serves as a digital gateway to a wealth of information. By scanning this QR code, workers are directed to a dedicated page on the DCWP website titled “Workers’ Bill of Rights.” This page not only outlines state and federal workplace laws but also provides links to relevant enforcement agencies, ensuring that employees have on-the-go access to essential resources and support mechanisms.

    Implementation Timeline And Employer Responsibilities

    Beginning July 1st, 2024, employers across New York City are required to distribute this multilingual poster to all existing employees and new hires. The mandate extends beyond just distribution; employers are obligated to prominently display the poster within the workplace and through any online platforms commonly used to engage with their employees. This dual approach of physical and digital posting is aimed at maximizing visibility and ensuring the message reaches every corner of the workforce.

    Compliance And Penalties

    The city has taken a firm stance on compliance, signaling that adherence to these new requirements is not optional. Following an initial violation, employers may face civil penalties, underscoring the seriousness with which New York City views the protection of workers’ rights. This move is indicative of a broader trend towards increased accountability and transparency in the employer-employee relationship, with the city leading the charge in setting new standards for workplace fairness.

    Where GMS Comes Into Play

    In the dynamic and evolving landscape of New York City’s business environment, a professional employer organization (PEO) like GMS stands out as a valuable partner for businesses looking to navigate the complexities of compliance, HR, and employee management. GMS’ expertise and resources allow business owners in New York City to offload the burden of administrative tasks, access comprehensive HR support, and ensure adherence to the latest regulations, including the implementation of initiatives such as the “Worker’s Bill of Rights” poster. With the guidance of GMS, businesses can focus on their core objective while fostering a workplace culture that prioritizes employee well-being and compliance, ultimately contributing to their long-term sustainability and success in New York City. Contact our experts today to learn more.

  • Small business owners have the opportunity to evaluate their processes and find ways to enhance efficiency and productivity. While reflecting on your operations, you may realize that payroll management demands more attention than you initially thought. Let’s face it: you didn’t start your business to become an expert in payroll and spend countless hours on processing. Whether in construction, manufacturing, health care, plumbing, or any other industry, payroll is likely the last task you want to spend your precious time on. You started your business for a reason, driven by passion or a need you identified, and running payroll probably wasn’t part of that vision.

    Fortunately, outsourcing your payroll processes can be the solution you’ve been looking for. You might be unfamiliar with what outsourcing entails, or perhaps you’ve been bombarded by outsourcing companies claiming to be your payroll saviors. It may seem too good to be true, but we’re here to share the truth! Continue reading to explore the benefits of outsourcing your payroll and how it can save you countless hours.

    What Is Payroll Outsourcing?

    Let’s start with the basics: what is payroll outsourcing? Payroll outsourcing is the practice of delegating payroll-related tasks to a third-party service provider such as a professional employer organization (PEO). Instead of handling payroll in-house, businesses can entrust this crucial responsibility to experts specializing in payroll management. These outsourcing companies have the knowledge, resources, and technology to efficiently handle payroll processes such as:

    • Wage calculation
    • Tax deductions
    • Issuing payment to employees
    • And more!

    Outsourcing your payroll processes allows business owners to free up valuable time, enabling them to focus on their core operations and strategic goals. In addition, payroll outsourcing ensures compliance with ever-changing tax regulations and reduces the risk of errors or discrepancies. It offers a seamless and streamlined solution that eliminates the hassle and complexity associated with managing payroll internally.

    Now, let’s explore the five signs your business needs to outsource payroll.

    1. You Don’t Have Enough Time

    Handling payroll in-house can be a time-consuming and complex task. Small business owners often find themselves dedicating countless hours to managing payroll, which takes away valuable time from other critical business functions. According to The Business Journals, a survey found small business owners spend 5 hours or more each pay period or 21 days each year managing payroll. When you outsource your payroll, business owners can free up this time and allocate it towards activities that directly contribute to their business growth.

    In addition, outsourcing payroll eliminates the need to hire and train specialized staff, invest in payroll software, and constantly update systems to comply with changing regulations. These costs can quickly add up for small businesses. Instead, by opting for payroll outsourcing, business owners can redirect these resources towards areas that help their business thrive, such as product development, customer service, or marketing efforts.

    2. You Struggle Keeping Up With Regulatory Demands

    Payroll management requires a deep understanding of complex tax laws and regulations. Mistakes in payroll calculations or non-compliance with legal requirements can lead to severe consequences, including penalties, fines, and damage to the business’s reputation. By outsourcing payroll to experts who specialize in this field, small business owners can ensure accurate and timely payment of wages, taxes, and benefits. 40% of small businesses pay an average of $845 annually in IRS penalties because of mismanaged payroll processes.

    On the bright side, payroll outsourcing providers stay up-to-date with the latest regulatory changes, ensuring that businesses remain compliant at all times. They have the knowledge and expertise to handle tax filings, deductions, and reporting requirements, minimizing the risk of errors or oversights. This accuracy saves businesses from potential financial losses and provides peace of mind.

    3. You Need Security And Confidentiality

    Data security is a critical concern for businesses, regardless of their size. Payroll outsourcing providers invest heavily in robust data security measures to protect sensitive employee information. To safeguard data from unauthorized access, breaches, and identity theft, they utilize the following:

    • State-of-the-art technology
    • Secure servers
    • Encryption protocols

    By outsourcing payroll, small business owners can benefit from the expertise and resources of these providers, ensuring their payroll data is handled with confidentiality. This allows business owners to focus on their core activities, knowing that their employees’ personal and financial information is secure.

    4. Your Business Is Growing

    As businesses grow and evolve, the complexity of payroll management increases. Outsourcing payroll offers scalability and flexibility, allowing small business owners to adapt to changing needs without disruptions. Whether adding new employees, accommodating seasonal variations, or expanding into new markets, outsourcing providers can quickly scale their services to meet the requirements.

    Outsourcing providers have the infrastructure and resources to handle payroll for businesses of all sizes. They’re equipped to manage payroll across multiple locations, handle different pay structures, and integrate with various HR systems. This flexibility ensures that payroll processes remain seamless and efficient, regardless of fluctuations in the business landscape.

    5. You Need Access To Expert Support

    Payroll outsourcing providers not only handle routine payroll tasks but also provide expert support and advice. Their team of professionals specializes in payroll management and stays updated with industry trends, regulations, and best practices. This expertise is invaluable for small business owners who may not have dedicated payroll staff or the time to stay informed about the ever-changing payroll landscape.

    When business owners outsource their payroll, they gain access to a team of experts who can address any payroll-related queries, provide guidance on compliance, and assist with complex issues such as tax filings, benefits administration, and regulatory requirements. This support ensures that small business owners can make informed decisions, minimize potential risks, and maximize efficiency in their payroll processes.

    Meet Group Management Services (GMS)

    Long story short, if you’re a small business owner, consider partnering with a PEO. If you want to free up your time for the first time in who knows how long, you’ve come to the right place. I get it; it seems too good to be true, but it is the truth. Say goodbye to restless nights wondering about the what-ifs and what could’ve been. We’re here to bring your dreams to life.

    By entrusting payroll-related tasks to experienced professionals like GMS, businesses can save time, resources, and energy that can be redirected toward their core operations and strategic goals. Not to mention, we ensure compliance with complex tax regulations, minimize the risk of errors or discrepancies, and provide a seamless and streamlined payroll management solution. Stop thinking about it and get a quote from us today. You’re one click away from a brighter future!

  • Running a business involves countless moving parts, from managing payroll and taxes to ensuring compliance with federal and state employment regulations. Professional employer organizations (PEOs) exist to ease this burden, handling administrative and human resource (HR) functions so employers can focus on growth. Now, certified professional employer organizations (CPEOs) take this service to another level by meeting stringent requirements set by the Internal Revenue Service (IRS) and offering clients unique financial protections and tax benefits.

     

    CPEO vs. PEO: What’s the difference?

    A CPEO is a PEO that successfully completes the IRS’s voluntary certification process, an extensive evaluation that examines a PEO’s history, financial responsibility, and compliance record. While standard PEOs can offer many benefits, CPEOs stand out because:

    1. They assume full liability for federal employment tax payments on wages paid to worksite employees.
    2. They must post an annual bond (up to $1 million) that guarantees payment of federal employment tax liabilities.
    3. They undergo rigorous and ongoing IRS reviews and financial reporting requirements.

    By contrast, in a typical PEO relationship, both the client and PEO share liability for certain tax obligations. When partnering with a CPEO, the liability may fall solely on the CPEO for federal employment tax on wages they pay to your employees. That’s a significant peace-of-mind factor for business owners.

     

    IRS guidelines and processes

    Thanks to the Tax Increase Prevention Act of 2014, the IRS established a formal CPEO program. This was recently clarified by Revenue Procedure 2023-18, which replaced earlier guidance and laid out steps, processes, and requirements in more detail. Key points for PEOs aiming to become or remain CPEOs include:

    • Maintaining proper bonding.
    • Ensuring continual compliance with federal, state, and local tax laws.
    • Submitting annual financial reports and IRS verifications.
    • Verifying ownership and management meet all criteria (e.g., U.S. citizenship/residency and extensive knowledge of employment tax requirements).

    With these enhanced guidelines, businesses can now easily verify a CPEO’s status by checking the IRS’s public listings of active, suspended, or revoked CPEOs.

     

    Requirements to become (and stay) a CPEO

    The IRS lays out clear prerequisites to qualify as a CPEO:

    1. Be a business entity with at least one physical location in the United States.
    2. Demonstrate a history of financial responsibility, organizational integrity, and federal/state tax compliance.
    3. Be managed by individuals (mostly U.S. citizens or residents) who have knowledge and experience in employment tax compliance.
    4. Maintain certification annually through online verification, financial reporting, and compliance monitoring.

    Failure to meet these standards could result in losing the CPEO designation.

     

    Why partner with a CPEO?

    1. Stronger financial protections: As noted, a CPEO can take on sole liability for federal employment taxes on wages they pay, backed by a significant surety bond, helping protect you from potential tax risks.
    2. Clear tax benefit retention: If you’re claiming tax credits, a CPEO relationship can help ensure you retain those credits without interruption.
    3. Enhanced compliance: CPEOs are regularly monitored and regulated by the IRS, which can give you extra assurance that payroll, HR, and tax compliance issues are handled accurately.
    4. Administrative relief: The day-to-day HR and administrative tasks (payroll, benefits, compliance, risk management) are managed by a professional entity, freeing you up to drive strategy, revenue, and team building.

     

    Special note for the transportation industry

    Many businesses in transportation must partner with a CPEO if they choose to outsource certain HR functions, specifically due to the liability implications tied to compliance rules. If your sector requires or strongly recommends partnering with a CPEO, understanding these benefits becomes even more crucial.

     

    A CPEO you can count on

    At Group Management Services (GMS), we’ve taken the extra steps to become a CPEO recognized by the IRS. What does that mean for you?

    • Reduced risks: We assume the primary liability for federal employment taxes for our clients’ worksite employees.
    • Time and cost savings: From payroll administration to benefits management and HR compliance, we handle the details, allowing you to focus on growing your business.
    • Ongoing compliance expertise: We stay on top of 2025 IRS regulations and beyond, ensuring your organization meets updated standards.

    Contact us today to learn more about how GMS can deliver peace of mind and improve your bottom line.