2025 W-2 Forms are now available in your GMS Connect employee portal here.

  • As the days grow longer and the sun shines brighter, our thoughts naturally turn to summer vacations. But in the hustle and bustle of work life, will employees actually take the time they need to recharge? Paid time off (PTO) is more than just a perk; it’s a critical component of employee well-being and productivity. Unfortunately, many workers hesitate to utilize their allotted days, leading to burnout and decreased morale.

    The PTO Challenge

    A recent survey by the Harris Poll revealed that a significant number of employees don’t take enough time off. Some even go on vacation without asking or setting up “mouse movers” to appear active while not working. As a business owner, it’s your responsibility to create an environment where taking PTO is not only encouraged but seamlessly integrated into the workplace culture.

    The following are ways to encourage the well-being of your employees:

    Champion the benefits of downtime

    Educate employees on the transformative power of PTO. Rest and relaxation fuel creativity, boost productivity and enhance overall job satisfaction. Share compelling research to underscore the importance of unplugging.

    Lead through example

    Managers and leaders, take note: your actions speak louder than policies. Prioritize your own work/life balance by taking PTO. During vacation, resist the siren call of emails and meetings – allow your team to truly unwind.

    Streamline PTO requests

    Simplify the process. User-friendly platforms and apps should replace bureaucratic hurdles. When requesting time off becomes as easy as ordering a latte, employees are more likely to indulge.

    Craft a flexible PTO policy

    One size doesn’t fit all. Develop a policy that accommodates diverse needs – whether it’s a beach escape, a mental health day, or a family emergency.

    Demolish PTO barriers

    Identify and get rid of any obstacles that may be in the way of your employees taking PTO. Fear of falling behind, workload concerns, and cultural stigmas can deter employees. Anonymously survey your workforce to understand their reservations and proactively address them.

    Nurture cross-training

    No one should feel irreplaceable. Implement cross-training initiatives so that responsibilities flow seamlessly during absences. When team members trust the safety net, guilt-free PTO becomes the norm.

    Create A Positive Workplace Culture By Partnering With GMS

    Creating a healthy PTO culture requires thoughtful policies, consistent communication, and a commitment to employee well-being. By implementing these strategies, HR professionals can foster an environment where taking time off is normalized. Remember, a happier, healthier, and more productive workforce begins with encouraging employees to embrace their well-deserved PTO.

    At GMS, a professional employer organization (PEO), our HR experts are here to support small business owners, especially when it comes to creating a positive workplace culture. Let’s unlock the power of PTO and create a workplace where well-being is a priority. Contact us today to learn more!

  • In December 2023, a tragic incident occurred at the Appleton plant of Konz Wood Products Co., a pallet manufacturer based in Wisconsin. As a result, the U.S. Occupational Safety and Health Administration (OSHA) has taken stringent measures against the company due to serious workplace safety violations, marking the fifth inspection at the plant since 2016.

    Incident Details

    The unfortunate incident involved the death of an employee who was crushed by a lumber stacking machine while attempting to free a jammed board. OSHA cited Konz Wood Products Co. for two “repeat violations” and 15 “serious” violations following this employee’s death. The company failed to ensure the machine was locked out to prevent movement, leading to the fatal accident.

    OSHA’s Actions

    In response to the violations, OSHA has proposed $177,453 in penalties for Konz Wood Products Co. The company has been given 15 business days to contest the citation and proposed penalties. In addition, due to the gravity of the violations, OSHA has placed the company in the agency’s severe violator program.

    Violations Identified

    The violations identified by OSHA include the failure to provide fall protection and violations related to machine guarding on various saws and other machinery. These violations raise serious concerns about the company’s commitment to ensuring a safe working environment for its employees.

    Protect Your Business With A PEO

    In light of the tragic incident at Konz Wood Products Co., businesses can take proactive steps to prevent similar accidents by partnering with a professional employer organization (PEO). A PEO like GMS offers comprehensive workplace safety programs that address critical areas such as machine guarding, lockout/tagout procedures, and fall protection. By collaborating with a PEO, companies gain access to expert guidance, safety training, and compliance resources. Implementing robust safety protocols, conducting regular inspections, and fostering a culture of safety can significantly reduce the risk of workplace accidents. Remember, investing in safety today ensures a brighter and accident-free future for employees and the organization as a whole. Contact our safety experts today!

  • In today’s competitive job market, retaining valuable employees is a top priority for businesses. When employees feel fulfilled, engaged, and valued, they are more likely to stay with the company for the long haul. Creating a positive and enjoyable workplace environment is essential for achieving high retention rates and mitigating the costs associated with employee turnover.

    Shift Your Expectations

    It’s important to recognize that the notion of employees staying with a single company for their entire career is no longer realistic. Instead, companies should focus on keeping employees for as long as possible, understanding that the median tenure for U.S. workers is around four years. Factors such as generational differences, burnout, work-life balance, and post-pandemic shifts have contributed to shorter tenures and higher turnover rates.

    The median tenure of workers ages 55-64 was 9.9 years – more than three times the tenure of workers ages 25-34, which was 2.8 years. As the older generations retire, Millennials and Generation Z will soon dominate the workplace, and there will be less expectations that employees stay with companies in the long-haul.

    Addressing The Fundamentals Of Retention

    Retaining top talent is a constant challenge for many organizations. However, by addressing key fundamentals, companies can create an environment where employees feel motivated, valued, and committed to staying. Three critical areas to focus on include:

    1. Competitive compensation: Regularly review your compensation strategy to ensure it aligns with industry standards, competitors, geographic location, and the broader marketplace. Fair compensation remains a major factor in employee retention.
    2. Open communication: Build trust and strengthen relationships with employees through regular, honest, and transparent communication. This not only helps in addressing concerns promptly but also makes employees feel valued and heard, fostering a sense of belonging. Employees want to feel that their manager is accessible and listens to them. Provide frequent feedback, solicit input, and address concerns promptly.
    3. Positive company culture: Evaluate and nurture your company’s mission, vision, and values. Ensure they resonate with employees and are modeled within your leadership. A positive company culture not only helps in employee retention but also makes employees feel aligned with the company’s values and mission, fostering a sense of purpose and commitment. Identify any changes that need to be made within your culture, and work towards implementing those changes. It’s easy for employees to leave a company with a negative culture or a culture they do not believe in.

    Make The Extra Effort

    To be a sought-after workplace, you must have something special about your workplace that differentiates itself from others. Implement the following strategies to stand out against your competitors and become a sought-after workplace:

    • Create a community: Encourage teamwork, camaraderie, and even friendships among employees. Host social events and team-building activities and create an environment where employees feel like members of a community. Make these events and activities something your employees look forward to doing.
    • Remind employees of their purpose: Regularly remind employees of the bigger picture and how their work contributes to the company’s mission. Recognize their efforts and make them feel valued.
    • Offer flexibility: Accommodate employee preferences for remote work, flexible schedules, or hybrid arrangements. The increased flexibility and work-life balance gained throughout the pandemic have become highly valued by many employees.
    • Address burnout: Monitor for signs of burnout and take proactive steps to alleviate stress, such as offering mental health days, redistributing workloads, or engaging in stress-reducing activities.
    • Tailor management styles: Understand each employee’s unique personality, goals, and preferences, and tailor your management approach accordingly. Avoid the one-size-fits-all approach.
    • Provide growth opportunities: Nurture a culture of continuous learning by offering training programs, conferences, and mentorship opportunities. Discuss career paths and succession plans with employees. Employees appreciate knowing that they can grow and develop within their careers.
    • Offer unique perks: Implement perks and benefits beyond the standard package that align with your employees’ interests, provide value, and demonstrate your appreciation for their contributions.

    Create a fun atmosphere: Incorporate fun activities, celebrations, and team-building events to foster a positive and enjoyable work environment. Take the time to learn what your employees truly enjoy and implement more of these events for them.

    Leverage GMS’ Services For Improved Employee Retention

    Implementing these strategies can be challenging and overwhelming for business owners. If you’re unsure of where to begin or what would be the most beneficial for your organization, consider partnering with a professional employer organization (PEO) like GMS.

    Partnering with GMS can be a smart move to access expert HR support, ensure compliance, and compete with larger companies in the race to retain top talent. Outsourcing back-office functions also allows businesses to focus on their core operations while providing a positive and engaging workplace for their employees.

    By leveraging GMS’ expertise, businesses can create a workplace environment that attracts and retains top talent. GMS’ tailored solutions and industry expertise can help business owners foster a culture of belonging, growth, and appreciation, ultimately leading to improved employee retention and long-term success. Work smarter, not harder, and contact us today.

  • According to a workforce trend report, employee retention has become the top priority for operations and HR in 2023. One of the most effective strategies to achieve this is investing in employee development programs. These programs not only enhance employees’ skills and knowledge but also foster a sense of loyalty and commitment to the organization.

    Sixty-one percent of HR professionals state that lack of development and career advancement is the second most common reason for employee turnover, behind inadequate compensation. Twenty-one percent of HR professionals report lack of development as the number one factor influencing retention. 

    The Importance Of Career Development For Employees

    Employee development programs are attractive to employees because they provide opportunities for personal and professional growth, increase job satisfaction, and boost confidence in their abilities. When employees feel they are excelling in their careers, they are more enthusiastic about doing them. Instead of being stagnant in a job, employees would like to progress towards something more significant, such as a promotion or a leadership position. Employees who feel valued and supported in their careers are more likely to remain with the company for the long term.

    Why Should Employers Invest In Employee Development? 

    Investing in employee development leads to a more skilled and productive workforce. Employees who receive continuous training and education are better equipped to handle challenges, adapt to changes, become leaders, and contribute to innovative ideas. This can give your company a significant competitive advantage in your industry.

    Sometimes, employers believe that development is expensive and risky. They don’t want to invest money in development only for their employees to take that knowledge to a new job. However, employees leaving will always be a risk. If you choose not to invest in employee development, there will be widening knowledge and skill gaps, diminished engagement, and a lack of innovation.

    Investing in development also helps you recruit top-tier candidates who want to join a company that is committed to growth. Happier and more engaged employees tend to be more productive and motivated to do better work. By focusing on continued learning, you can encourage a culture of innovation and adaptability that gives your business a reputation for being forward-looking, relevant, and fresh.

    It’s also essential to advance employees’ knowledge and skills so that eventually, they can be promoted to leadership roles. Promoting from within is almost always easier than recruiting from outside. This also contributes to a future-ready workplace that can keep up with evolving trends and stay ahead of the industry.

    Create A Retention-Boosting Employee Development Program

    To craft an engaging and practical training program that aligns with employees’ daily workflows and piques their interest in learning, consider incorporating the following elements into your plan:

    Continuous learning

    As a small business owner, it’s essential to promote a continuous learning culture. Due to the constant evolution of industries, there’s always something new to learn. You can promote your company’s commitment to learning through your core values, employee handbook, employee training, company meetings, and day-to-day employee conversations.

    Personalized development

    Involve your employees in the planning process by asking them about their short and long-term goals, which skills they are interested in learning, and how they enjoy learning. Take these factors into account when you create your development program to ensure it’s a meaningful, engaging, and fulfilling experience for your employees.

    Day-to-day operations

    Your development program should be easily implemented in daily operational activities and the company’s goals. Employees must feel what they are learning is valuable to their daily working lives and enable them to make a positive impact on the organization.

    It’s also important to create short and more frequent bursts of micro-training focused on singular topics that employees can complete on their own time. If the training is short and easy to digest, it will be easier to implement as a frequent activity that fits into their busy day-to-day schedules. As a result, learning will be incorporated into the workplace culture more often, be more effective, and occur more often.

    Make it simple

    Development programs can involve attending conferences and going on trips, but it can also be simple. Learning can be as convenient as:

    • Reading an article in an industry publication
    • Listening to a podcast
    • Completing a short e-learning module
    • Attending a lunch-and-lean session
    • Engaging in a coaching session with a manager

    Your employees do not always have to go elsewhere to achieve professional growth. Growth can happen right within your organization, including mentorships with someone in higher positions, peer collaboration, and cross-training. Leaders should lead by example and actively support employee development initiatives.

    Monitor and reward

    Sometimes, employees need an extra push to complete development programs. Reward employees for mastering new skills, from anything to a bonus, extra paid time off (PTO), a gift, or a promotion from within. Recognizing and rewarding employees who demonstrate mastery of new skills can motivate others to engage in development opportunities.

    It’s also essential to monitor the effectiveness and appeal of your development programs and what works and what doesn’t. Ask for feedback from employees on what they would prefer and how to improve. Study your turnover rates, survey employees about the development opportunities you’ve offered, ask about development opportunities during exit interviews and have managers talk with employees in one-on-one meetings.

    Your Partner In Employee Development And Retention

    In today’s rapidly changing environment, investing in employee development is no longer an option but a necessity. Your employees are your greatest asset. However, ongoing employee management and training are significant challenges, especially when there’s only so much time in the day.

    That’s why GMS works with businesses to help them retain top talent. Our comprehensive suite of services is designed to support businesses in creating and implementing effective employee development programs.

    Our HR experts work closely with clients to assess their unique needs and develop customized solutions. Contact us today to learn how we can support your organization’s commitment to development.

  • For small business owners, providing comprehensive employee benefits is vital to attracting and retaining employees. Whether it’s health insurance, paid time off (PTO), or retirement plans, these perks can make a big difference in an employee’s decision to join or stay with a company. Among these benefits, Flexible Spending Accounts (FSAs) stand out as a valuable tool for employees to manage their health care expenses. Complementing health insurance coverage, FSAs give employees greater flexibility and control over their medical spending.

    FSAs offer more versatility than just paying for doctor’s visits and medications. While many people use FSAs to cover general health care costs, there are creative ways to use these accounts that are often overlooked. From chiropractic treatments to sunscreen for vacation, various health care services and products are eligible for reimbursement through FSAs. By exploring the full range of eligible expenses, you can maximize the benefits of FSAs for both you and your employees.

    How FSAs Work

    An FSA is a type of savings account that allows employees to allocate a portion of their paychecks for designated expenses. By depositing pre-tax funds, FSAs help you and your employees save money. Additionally, as an employer, you have the option to contribute to your employees’ FSA, but it is not mandatory.

    To utilize FSA funds, individuals must submit a claim along with proof of an eligible expense, such as a receipt, in order to be reimbursed.

    Different types of FSAs determine how FSA funds can be spent:

    • Health Care FSA: The accounts can be used to pay medical costs not covered by insurance, including deductibles, copayments, prescription medications, over-the-counter health care items, and more.
    • Dependent Care FSA (DCFSA): A DCFSA is used to pay for costs associated with care for children or a dependent adult, enabling parents and caregivers to work with less financial strain.
    • Limited Purpose FSA (LPFSA): Funds in an LPFSA are designated for dental and vision costs. This type of account is a favorable choice for individuals with a High Deductible Health Plan (HDHP) and a Health Savings Account (HSA).

    Common Uses Of An FSA

    FSAs are valuable because they can address a variety of medical expenses that may not be fully covered by health insurance. They can assist with the following costs:

    • Medical: You can use an FSA to pay for doctor’s visits, procedures, surgeries, and treatments, as well as cover co-pays and deductibles.
    • Vision: FSAs can cover eye exams, prescription glasses and sunglasses, contact lenses, and even corrective procedures like LASIK.
    • Dental: An FSA can be used for routine teeth cleanings, fillings, braces, and other necessary dental treatments.
    • Prescription medications: FSAs can help with the costs of both prescribed brand-name and generic drugs, including insulin, antidepressants, birth control, and more.
    • Over-the-counter health care items: Bandages, antibiotic ointments, allergy medications, and pain relievers are items frequently purchased with an FSA.

    Creative Ways To Use FSAs

    The funds held in an FSA do not roll over and must be used by the end of the calendar year. From stocking up on first aid supplies to trying out alternative therapies, there are many ways your employees can make the most out of their FSA funds.

    By offering creative suggestions for how your employees can use their FSA funds, you not only help them maximize their benefits but also demonstrate your commitment to their well-being. The potential uses of FSAs extend far beyond conventional health care needs and can be used for the following:

    Mental health and self-care

    FSAs can support numerous mental health and self-care needs. Employees can use the money in their FSAs to cover various costs related to mental health services, such as therapy appointments, counseling sessions, or psychiatric care. In addition, FSAs can be used to purchase self-care items such as skincare products, acne treatments, or even relaxation aids including essential oils.

    Health and fitness

    Employees can use their FSAs to aid in their health and fitness journeys. Gym memberships, health clubs, and weight loss programs can be reimbursed through an FSA with a letter of medical necessity, allowing individuals to prioritize their fitness goals. Health trackers and nutritional supplements such as vitamins and minerals can be purchased with FSA funds to further assist in maintaining physical health. Items that support recovery and pain relief, such as orthopedic shoe inserts and knee braces, can also be covered by an FSA.

    Professional services

    Whether an employee is seeking treatments for pain relief or pursuing a holistic approach to health, there are numerous professional services that can be paid for with an FSA. Physical therapy, chiropractic care, and acupuncture are all FSA-eligible services that can help manage chronic pain and improve overall wellness. An FSA offers employees a range of options to address their individual health needs.

    Travel essentials

    An FSA can offer unexpected benefits when it comes to purchasing travel-related items. For example, travel essentials such as sunscreen, insect repellent, and travel-sized first aid kits are eligible purchases. Using an FSA to buy necessary supplies for travel not only ensures a safe and healthy trip but also helps with spending FSA funds before they expire.

    Advantages For Small Business Owners

    Small business owners can gain numerous benefits by offering FSAs to their employees. Since FSAs allow employees to use pre-tax dollars to cover specific costs, payroll taxes are reduced for both employers and employees. Contributions made to an FSA are also tax-exempt for employees and tax-deductible for employers, offering mutual benefits.

    Providing your employees with the option to enroll in an FSA can also enhance employee satisfaction and retention, as it is a valuable perk on top of health insurance. By offering this benefit, you not only save money on taxes, but you also display your commitment to your employees’ health and overall well-being.

    Employee Benefits With A PEO

    As a small business owner, it’s crucial to offer a benefits package that’s appealing to current and prospective employees. However, administering benefits can be costly and time-consuming. Partner with a PEO like GMS to save money and streamline your benefits management. We can assist in processing group health insurance, retirement plans, wellness programs, and more. Additionally, individuals with an FSA can visit our FSA Store to explore eligible products that can be purchased with their accounts. Contact us today to optimize your employee benefits offerings and ensure your business stays competitive in attracting top talent.

  • Compensation is a hot topic for both employers and employees, encompassing everything from minimum wage debates to comprehensive benefits packages. As an employer, meeting your staff’s needs and expectations can be challenging, especially when balancing your payroll budget. However, by implementing certain strategies, you can effectively manage your total payroll cost while still maintaining a competitive edge.

    The job market is constantly changing, and with that, employees’ expectations have also shifted. They now demand not just competitive pay but also respect, recognition, and a higher quality of life outside the office. As an employer, you have the power to positively influence their overall well-being and job satisfaction by addressing these broader concerns. This makes their positions more appealing in the long term and shows your commitment to their welfare.

    Compensation can be stressful to navigate; with limited budgets, it might be difficult to offer competitive salaries to your team. However, because today’s employees are looking for more than fair wages, we’ve gathered a variety of non-monetary ways you can boost your retention and recruitment efforts. When implemented effectively, these strategies can lead to a more engaged and satisfied workforce.

    Do Non-Monetary Benefits Matter?

    Happy employees are 20% more productive than unhappy employees. Non-monetary benefits are one way you can help boost employee morale, engagement, and overall satisfaction. Though it can take a bit of effort upfront to get these programs up and running, they can save you time and money once integrated into your work operations. The impact on employee productivity and satisfaction is well worth the investment.

    Employee turnover can significantly undermine team morale, productivity, and the quality of work. Moreover, the time and financial costs involved in hiring a replacement are substantial—often exceeding 24 days to fill a position and costing up to 33% of an employee’s annual salary. Implementing non-monetary benefits alongside a livable wage can effectively reduce turnover, fostering a more stable and engaged workforce.

    In addition, non-monetary benefits are of little to no cost to you as an employer. Once up and running, these benefits often maintain themselves with minimal ongoing expenses. Offering such benefits can create a more fulfilling work environment, encouraging employees to stay longer with your company. This approach not only reduces the frequency and costs associated with turnover but also builds a reputation for your company as a caring and desirable place to work.

    Non-Monetary Benefit Examples

    Ensuring employees are content and motivated extends beyond providing a living wage. Younger generations (Millennials and Gen Z) specifically prioritize meaningful work, positive culture, and work-life balance over traditional incentives. As an employer, it’s crucial to understand these changing needs and expectations. While it’s still necessary to consider monetary compensation, there are several options that can help boost employee engagement, productivity, recruitment, and retention:

    • Flexible work arrangements: Options such as remote work, flexible schedules, and compressed workweeks allow employees to effectively balance their personal lives with professional responsibilities. Generate a policy that works for your team, with set expectations around project completion and core operating hours. Include potential repercussions if the policy is abused, work goes unfinished, or remote employees are unreachable during core hours.
    • Health and wellness programs: These can include gym memberships, mental health days off, and recreational activities. Even if some team members don’t utilize these benefits, offering and encouraging them can help boost employee engagement and satisfaction.
    • Professional development: Offering tuition reimbursement, access to courses, workshops, and seminars, and opportunities for upward mobility within your company can motivate employees to stay long-term. Not only does this show investment in your team’s professional growth, but often, what they learn can be brought back and help your business grow.
    • Recognition and reward systems: Implementing peer recognition programs or performance-based awards can boost morale and encourage a productive workplace culture. Fostering a culture of appreciation gives employees a sense of belonging, which helps increase overall job satisfaction.
    • Financial well-being programs: These programs could include financial planning services, retirement planning sessions, and workshops on budgeting and economic health, helping employees feel more secure about their financial future.
    • Student loan repayment assistance: Given the rising concern over student debt, offering help with student loan repayments can be a significant relief for younger employees, making your business much more attractive to this demographic.
    • Time for volunteering or passion projects: Offering your team time off, specifically for volunteer work or to spend on a project they’re passionate about, is a simple but effective benefit. As younger generations are more motivated by meaningful work, giving them a few days a year or hours per month to dedicate to projects can lead to a more engaged and content team.
      While some of these tools, such as a gym membership or student loan assistance, will require a small budget, they can often be cheaper than offering your whole team higher salaries than other companies.

    While some of these tools, such as a gym membership or student loan assistance, will require a small budget, they can often be cheaper than offering your whole team higher salaries than other companies.

    Implementing Non-Monetary Benefits

    When rolling out new company-wide initiatives, anticipate some initial challenges, such as general confusion or underutilization of the new benefits. To mitigate these challenges, it’s important to develop comprehensive policies and communicate them effectively and regularly to your team. These policies should outline who qualifies for these benefits and how to use them. Make your benefits accessible and appealing to encourage your staff to utilize them.

    Moreover, actively seek feedback and involve your team in refining and improving these benefits and policies. It’s crucial that the benefits you offer align with your team’s needs and interests. Offering benefits that no one uses is not only a waste of resources but also a missed opportunity to enhance employee satisfaction and engagement.

    How GMS Can Help With Your Employee Benefits

    As a business owner, retaining and attracting quality employees is vital for business growth. Offering a competitive benefits package is critical to securing top talent. However, this can be costly and time-consuming. As a professional employer organization (PEO), GMS will work with you to find the benefits package that makes the most sense for your business operations, employees, and bottom line.
    In addition, once we’ve helped you find a benefits package, we’ll help you manage it. Our outsourcing small business benefits services include:

    Let us help you provide competitive and cost-effective benefits while you focus on running your business effectively. Contact us today!

  • In today’s fast-paced and increasingly demanding work environments, managing leave of absence requests is crucial for maintaining operational efficiency and employee well-being. However, balancing your business needs with your team’s health and satisfaction is often difficult.

    Leave of absence, separate from paid time off (PTO), allows employees to take extended time off to address personal matters. Leave of absence can be unpaid; however, employees will continue to receive their healthcare package and have guaranteed job security.

    A leave of absence, whether for health reasons, family care, or personal development, is not just a logistical issue—it’s a critical component of an employee’s relationship with their workplace. How you handle these requests can deeply influence employee morale, trust in management, and your company’s reputation as a caring employer. In addition, with rising awareness of the importance of mental health and work-life balance, businesses are under increasing scrutiny to adopt leave policies that support their employees’ well-being.

    Beyond these factors, as a business owner, you also have legal responsibilities regarding employee leave. Employees are protected by laws such as the Family Medical Leave Act (FMLA), and failure to address leave requests appropriately or retaliating against an employee who takes leave can result in lawsuits, penalties, and reputational damage that will be difficult to recover from. While a leave of absence can be stressful, we’ve gathered some resources to help you navigate them with your team while ensuring compliance.

    Creating A Leave Of Absence Policy

    One of the most significant concerns among employees is the fear that taking leave might hinder their job security or career progression. This fear can discourage employees from applying for leave, even when they genuinely need it, damaging morale, productivity, and more. By establishing a clear leave policy, communicating it effectively, and fostering an environment of open communication, you can empower your team to prioritize their health without fear of negative repercussions. Your leave policy should include:

    • Request and approval procedures: Detail the process for requesting leave, including advance notice requirements, the use of official forms, and whom employees should notify regarding their absence. In addition, describe how leave requests are evaluated and approved, including who can grant or deny leave and under what circumstances.
    • Eligibility criteria: Clearly define who is eligible for leave of absence, including full-time, part-time, and temporary employees, as well as any specific conditions or probationary periods.
    • Reintegration outline: Outline and communicate a reintegration plan with your team. Return-to-work programs help employees ease back into their job roles, potentially starting with part-time hours or adjusted duties.
    • Anti-discrimination policy: Explicitly prevent discrimination in performance evaluations due to leave. This can help reassure employees that their absence will not hinder their career progression.
    • Documentation requirements: Specify any documentation employees need to provide when requesting leave, such as medical certificates for sick leave or proof of eligibility for parental leave.
    • Employee responsibilities: Communicate employees’ duties during leave, such as staying in touch with supervisors, adhering to company policies, and providing updates on their status.
    • Consequences of policy violations: Explain the consequences of violating the leave policy, including disciplinary action, loss of benefits, or termination of employment.

    Preemptively establishing a leave of absence policy not only protects employees but also contributes to a more loyal and productive workforce. Though it takes time and effort to generate, being caught without a plan can lead to stress and internal confusion that will impact your bottom line.

    Managing Workloads During A Leave Of Absence

    It’s crucial to have strategies to ensure operational continuity during leave. In certain situations, detailed planning may not be feasible, such as an unforeseen injury to a loved one that requires an employee’s leave for caregiving. Conversely, in cases such as parental leave, there may be more lead time to organize workloads. Regardless, ensuring you have a detailed plan will help ensure your team remains productive. You can do this through:

    Cross-training employees

    Cross-training your team is a practical approach to mitigate the risk of being caught without adequate coverage. It requires your team to learn the roles and tasks that may not be part of their day-to-day. By ensuring that every team member possesses a broad range of skills and knowledge, critical tasks can still be completed regardless of when leave is taken. This proactive measure safeguards against disruptions and fosters a collaborative and supportive company culture.

    In addition, cross-training promotes skill development and empowers team members to take on new challenges and responsibilities. It encourages flexibility and adaptability within the workforce, ultimately enhancing your organization’s overall resilience and productivity.

    Contract or temporary hires

    Another way you can ensure your team continues to operate at peak efficiency is by leveraging contract workers or temporary hires. Bringing in additional support can prevent existing team members from becoming overburdened with extra responsibilities and potentially burning out – particularly for longer leaves such as parental leave, which can extend up to three months or more.

    Delegate and communicate

    Leave can be a stressful time for employees. To mitigate employee stress, your leadership team should make a detailed plan and delegate important tasks to the remaining staff. After delegating tasks, establish regular check-ins with the team. These check-ins can assess not only task progress but also accurately gauge team morale and identify signs of burnout or discontent.

    Pitfalls To Avoid

    When an employee takes leave for an extended period, it’s essential to ensure you have your paperwork in order. Details such as payroll should be worked out ahead of time if possible. Mishandling payroll during an employee’s absence can result in over or underpayment, which can be difficult to fix later. Take the time to review and adjust payroll calculations accordingly, factoring in any changes to hours worked, leave entitlements, and benefits.

    In addition, keeping accurate records of employee leave dates is crucial for managing schedules and ensuring adequate coverage. Without proper tracking systems, you risk scheduling conflicts, understaffing, or overstaffing, which can impact productivity and workflow.

    Lastly, don’t forget about your employees on leave. Neglecting to support and communicate with your staff during their leave can impact their morale and loyalty to your organization. Don’t overload them with messages; a card or a quick message can go a long way. Showing empathy and understanding and providing necessary support where possible can boost employee engagement upon return.

    GMS Services

    Managing leave is complicated; from workloads to legal obligations, it’s stressful for your whole team. Professional employer organizations (PEOs) like GMS offer a range of services that help simplify your HR tasks.

    One of the services GMS offers is employee training and recruitment. Our human resources experts work closely with you, offering expert guidance on recruitment and training strategies. We alleviate the administrative burdens associated with the entire employee life cycle, allowing you to maintain complete control over hiring decisions while we simplify the process. Contact us today, and let us help you navigate the complexities of being an employer.

  • For small business owners, sometimes the need for extra hands sneaks up unexpectedly. Whether it’s a sudden rush of customers, a seasonal demand, or a taxing project, the need for additional labor can be undeniable at times. Despite the necessity for extra help, it’s not always the right time or best financial decision to hire and onboard a new long-term employee.

    As your business faces the demand for more support, it’s essential to assess the situation carefully and explore alternative options such as leased employees. Hiring leased employees is a flexible and cost-effective way to address short-term staffing needs without committing to permanent hires.

    What Is A Leased Employee?

    A leased employee is contracted to work for a business through a staffing agency. While a leased employee performs tasks and duties for their assigned business, a staffing agency assumes responsibility for their salaries and associated HR administration. Leased employees offer flexibility and access to specialized skills without needing to go through the full hiring process. By improving efficiency and adaptability, employee leasing allows small businesses to remain competitive and keep up with industry demands.

    The Advantages Of Leased Employees For Small Businesses

    Leased employees offer numerous benefits for small businesses, serving as a strategic solution to address various operational challenges. When you opt for leasing employees, you have the ability to:

    Adapt to staffing fluctuations

    Leasing arrangements can vary from temporary to long-term based on your business’s needs. Temporary leased employees can resolve immediate staffing needs, addressing heightened demands during peak seasons, special projects, or sudden increases in workload. For businesses requiring a more permanent solution while still retaining flexibility, long-term leased employees are a favorable option. They can provide the skills needed or fill ongoing positions without the administrative burden of traditional hiring.

    Tap into expert skills without long-term contracts

    Employee leasing allows you to tap into a diverse talent pool with a wide range of skills and knowledge, all without the need to hire a full-time employee. This flexibility allows you to find a qualified leased employee that suits your exact project or need. Whether you’re in search of a temporary sales representative or a more long-term IT analyst, the flexibility of leased employment empowers you to acquire the exact skills you need precisely when you need them.

    Save on hiring costs

    Leasing employees is a cost-effective alternative to hiring full-time employees. With leased employees, you can save time and money on the recruitment process since this is handled by a staffing agency. You can also avoid the additional financial obligation of providing benefits like health care, retirement plans, and paid time off (PTO) because leased employees are not full-time employees. Additionally, you don’t need to worry about the associated financial burdens such as layoffs or severance packages.

    Lighten your HR load

    Since leased employees are managed by a staffing agency, you have fewer HR responsibilities on your plate. An agency takes care of HR tasks associated with leased employees, including processing salaries, administering benefits, and more. By entrusting experts to take care of staffing and HR duties, you can free up your own team’s time and resources. Plus, staffing agencies know the best practices and solutions for hiring, ensuring small businesses maximize the benefits of employee leasing.

    Comparing Leasing Employee To Traditional Hiring

    While leasing employees can offer numerous benefits for small businesses, it’s essential to consider all options. Before deciding on whether you want to lease employees, reflect on the following benefits of traditional hiring:

    • Stronger company culture: A part-time or full-time employee will become fully immersed in the company’s mission and values, fostering more loyalty and commitment. This cohesion enhances morale and cultivates a sense of unity among all employees.
    • Efficient integration of new hires: Traditional hiring allows for a smoother onboarding process, helping new employees quickly acclimate to company processes and dynamics. Bringing on a permanent employee can lead to better overall collaboration and teamwork.
    • Reduced legal and compliance risks: With traditional hiring, businesses have greater control over employment classification and compliance with labor laws. This reduces the risk of violating employment regulations, helping your business stay legally compliant.

    Deciding What Is Right For Your Business

    Leasing employees can be an advantageous decision for some businesses, but it’s crucial to identify your goals and assess compatibility with your business model beforehand. To start, evaluate your staffing demands and consider how a leased employee would fit in with your current employees. Think about what tasks or projects they could tackle and how their expertise could complement your existing team’s skills.

    Furthermore, determine whether employee leasing fits your budget and aligns with your long-term business goals. Compare the costs and weigh the benefits of all staffing options including contracting, part-time, full-time, as well as leasing. Contemplate how this position functions short-term and how it could evolve over time. If you’re debating between leasing an employee or hiring a full-time employee, consider the possibility of offering a leased employee a more permanent role in the future.

    How To Control Risks And Maximize Benefits

    When you decide leasing an employee is suitable for your business, set yourself up for success by adhering to the following:

    1. Establish clear communication and expectations: Encourage open communication with your leased employee to build trust and collaboration. Ensure you’re both on the same page regarding responsibilities and expectations as well as project goals and timelines.
    2. Monitor performance and provide feedback: Track and assess how your leased employee is fulfilling their role. Regularly check in and supply constructive feedback to promote improvement and growth.
    3. Offer targeted training and ongoing support: Provide specialized training sessions to enhance the skills related to their role. Give continuous support as your leased employee learns and adapts to the expectations of their role.

    Optimize Hiring With GMS

    If you’re considering expanding your team, a PEO like GMS can help you determine the best staffing option. From recruiting top talent to smooth onboarding, we make the hiring process simple and efficient. GMS can support your staffing needs and handle numerous HR responsibilities related to new employee management. Contact us today to discuss how GMS can enhance your hiring process!

  • Taxes are a fundamental part of running a business, and understanding employer tax obligations is critical to remaining compliant with federal and state regulations. Two employment-related taxes that often cause confusion are FUTA (Federal Unemployment Tax Act) and SUTA (State Unemployment Tax Act) taxes. These taxes are essential for funding unemployment benefits for workers who lose their jobs through no fault of their own. 

    Although these taxes both fund unemployment compensation, they differ in their calculation methods, who is responsible for paying them, and their impact on businesses. Understanding these taxes can help employers avoid penalties, manage tax costs, and stay compliant with federal and state regulations. 

    What Is FUTA Tax? 

    The Federal Unemployment Tax Act (FUTA) is a federal payroll tax that employers pay to fund unemployment benefits at the national level. This tax helps support state unemployment programs and covers administrative costs for running unemployment systems nationwide. 

    FUTA ensures that state unemployment agencies have the resources to provide temporary financial assistance to unemployed workers. It also funds extended unemployment benefits during economic downturns when states may run out of money. 

    Key details of FUTA tax: 

    • Who pays it? Only employers pay FUTA tax. Employees are not responsible for contributing. 
    • 2025 FUTA tax rate: The standard rate remains 6.0% on the first $7,000 of each employee’s annual wages. 
    • Potential FUTA tax credit: Employers who fully pay their SUTA taxes on time can receive a tax credit of up to 5.4%, reducing their effective FUTA rate to 0.6%. 
    • Purpose of FUTA: These funds go toward unemployment insurance (UI) programs and help states during high unemployment periods when state funds are depleted. 

    What Is SUTA Tax? 

    The State Unemployment Tax Act (SUTA) is a state-mandated payroll tax that funds unemployment benefits for eligible workers within that specific state. Unlike FUTA, SUTA tax rates, rules, and wage bases vary by state. 

    SUTA taxes directly fund state unemployment benefits for workers who lose their jobs through no fault of their own. These programs ensure financial stability for workers while they search for new employment. 

    Key details of SUTA tax: 

    • Who pays it? Employers are responsible for SUTA taxes, though in some states (like Pennsylvania, New Jersey, and Alaska), employees also contribute. 
    • Tax rates vary by state: SUTA rates depend on state laws, employer industry, and individual employer experience ratings (how often they’ve had former employees claim unemployment). 
    • State-specific wage base limits: Unlike FUTA, which has a fixed wage base of $7,000, each state sets its own wage base for SUTA tax. In 2025, these limits range from $7,000 to over $50,000, depending on the state. 
    • Purpose of SUTA: These funds are used to provide unemployment benefits to workers in that specific state. 

    Key Differences Between FUTA And SUTA 

    Why Employers Must Stay Compliant 

    Employers must accurately calculate, report, and pay FUTA and SUTA taxes to avoid penalties, interest, and increased tax liabilities. FUTA credit reductions can occur if a state fails to repay federal loans for unemployment benefits, leading to higher FUTA tax liabilities for employers. Frequent layoffs can increase an employer’s SUTA tax rate due to a higher “experience rating,” resulting in higher state unemployment taxes. 

    Late payments, incorrect filings, or misclassifying employees can lead to severe penalties from the IRS and state agencies, including fines, interest, and even criminal charges. States with outstanding federal loans may face FUTA credit reductions, causing employers to owe more in FUTA taxes until the loan is repaid. Ensuring compliance with FUTA and SUTA tax requirements is essential to avoid these costly consequences. 

    How to Ensure Compliance 

    • Stay updated on state tax rates: Because SUTA rates and wage bases change annually, employers should monitor state updates. 
    • File reports on time: FUTA taxes are reported quarterly using IRS Form 940, while SUTA filings vary by state. 
    • Work with a payroll partner: Outsourcing payroll tax management to a professional employer organization (PEO) ensures compliance and reduces the risk of penalties. 

    How GMS Can Help 

    Managing unemployment taxes can be challenging, especially for multi-state employers navigating different SUTA rates and regulations. Group Management Services (GMS) helps businesses: 

    • Accurately calculate and file FUTA and SUTA taxes 
    • Stay compliant with state and federal tax laws 
    • Reduce their SUTA tax burden through proper claims management and best practices 

    GMS can provide expert guidance and comprehensive payroll services if you’re unsure about your company’s FUTA or SUTA tax obligations. Contact us today to learn how we can simplify payroll tax management for your business. 

  • 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. 

    Many businesses may be familiar with PEOs but may ask “What is a certified PEO?” Certified Professional Employer Organizations (CPEOs) go a step further than PEOs by meeting stringent requirements set by the Internal Revenue Service (IRS) and offering clients unique financial protections and tax benefits. PEO companies that are not certified typically do not provide these financial protections.

    CPEO vs. PEO: What’s the difference?

    When comparing a CPEO vs a PEO, the key difference is that a Certified Professional Employer Organization must complete the IRS’s certification process, an extensive evaluation that examines a PEO’s history, financial responsibility, and compliance record.

    While standard PEOs can offer many benefits, certified PEOs 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 certified PEO for federal employment tax on wages they pay to your employees. That’s a significant peace-of-mind factor for business owners.

    Ultimately, the CPEO vs PEO distinction comes down to added tax protections, financial bonding, and IRS oversight. 

    IRS guidelines and processes

    The IRS established the Certified Professional Employer Organization (CPEO) program through the Tax Increase Prevention Act of 2014. This was recently clarified by Revenue Procedure 2023-18, which replaced earlier guidance and laid out steps, processes, and requirements in more detail.

    The IRS lays out clear prerequisites to qualify as a CPEO. To become and stay a Certified Professional Employer Organization, a business must: 

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

    Why partner with a CPEO?

    Partnering with a Certified Professional Employer Organization like GMS ensures compliance and reduces risk.

    1. Stronger financial protections: As noted, a certified PEO 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. 
    1. Clear tax benefit retention: If you’re claiming tax credits, a CPEO relationship can help ensure you retain those credits without interruption. 
    1. 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. 
    1. 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 certified PEO recognized by the IRS. GMS meets all IRS CPEO requirements so our clients can operate with confidence. 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 IRS regulations and beyond, ensuring your organization meets updated standards.

    Contact us today to learn what a certified PEO is and how GMS can deliver peace of mind and improve your bottom line.