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

    Health Care Benefits That Go Beyond The Basics

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

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

    Competitive Retirement Plans To Secure Employees’ Futures

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

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

    Flexible Work Options For A Better Work-Life Balance

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

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

    Paid Family Leave And Expanded Leave Options

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

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

    Career Development And Educational Benefits

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

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

    Financial Wellness And Student Loan Assistance

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

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

    A Strong Company Culture To Complement Benefits Offerings

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

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

    How Small Businesses Can Compete

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

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

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

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

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

    Key Deadlines For FSAs 

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

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

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

    What Employees Should Know 

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

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

    Important Considerations For Employers 

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

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

    How GMS Can Help 

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

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

  • The U.S. Department of Justice (DOJ) recently announced significant updates to its evaluation of corporate compliance programs (ECCP) policy document, a critical reference for determining whether corporate compliance programs are robust and effective. These changes, which became effective on September 23, 2024, are designed to address evolving risks, particularly around emerging technologies like artificial intelligence (AI) and the use of data analytics in compliance operations. 

    Let’s explore what these updates mean for your organization and how to ensure your compliance program stays ahead of the curve. 

    Understanding The DOJ’s Evaluation Of Corporate Compliance Programs 

    The ECCP is a key resource that the DOJ uses to assess whether a company’s compliance program is well-structured and effectively implemented. The DOJ’s approach to evaluating corporate compliance now includes a particular emphasis on how businesses are managing the risks presented by AI and other new technologies. This evaluation can impact decisions related to criminal charges, monetary penalties, and ongoing compliance obligations such as corporate integrity agreements. 

    New Focus On AI And Emerging Technologies 

    The DOJ has made it clear: the rapid development and use of AI presents new challenges that must be managed proactively. Companies are now expected to have specific policies, procedures, and safeguards in place to certify that AI technology is not misused, whether intentionally or recklessly. Prosecutors will ask detailed questions about AI risk management, such as: 

    • Does the company assess how AI could impact its ability to comply with laws? 
    • How does the company integrate AI risk management into its broader enterprise risk strategies? 
    • What measures are in place to prevent AI misuse and guarantee trustworthiness? 
    • Are there controls ensuring AI is used as intended, and how is human oversight maintained? 

    To address these questions, your compliance program should include mechanisms for monitoring AI usage, auditing AI performance, and training employees on proper and ethical use of AI technology. The DOJ’s message is clear: companies cannot afford to ignore the risks associated with emerging technologies. 

    Leveraging Data Analytics In Compliance Programs 

    Another major focus of the ECCP update is the strategic use of data analytics in compliance efforts. The DOJ now expects companies to leverage data analytics tools to enhance their compliance operations and monitor program effectiveness. Prosecutors will evaluate whether compliance personnel have adequate access to data systems and whether the company uses data to improve efficiency and measures outcomes. 

    Key questions from the ECCP update include: 

    • Is the company using data analytics to make compliance operations more efficient? 
    • How does the company ensure the quality and accuracy of its data sources? 
    • Are there methods in place to measure the performance of data analytics models? 

    This emphasis on data access and quality means companies must invest in robust data infrastructure and provide the necessary resources for their compliance teams to monitor and respond to potential risks effectively. Compliance staff must be equipped with the tools and training needed to leverage data analytics for proactive risk management. 

    Why This Matters For Your Business 

    The DOJ’s updated guidance highlights the increasing complexity of managing compliance in a technology-driven world. Companies must be proactive in understanding and mitigating risks posed by AI and emerging technologies, ensuring that their compliance frameworks are adaptable and robust. Furthermore, businesses that fail to leverage data analytics in their compliance operations may face greater scrutiny. 

    Practical steps for compliance 

    1. Review and update your compliance policies: Make sure your program addresses AI risks and incorporates data-driven monitoring tools. 
    2. Train your staff: Educate your team on the ethical and compliant use of new technologies, including AI. 
    3. Leverage data analytics: Invest in data systems that enable real-time monitoring and performance assessments of your compliance program. 
    4. Conduct regular audits: Frequently review your AI systems and data practices to ensure compliance and identify areas for improvement. 

    The Role Of Compliance In A Digital World 

    The DOJ’s ECCP update underscored the need for companies to adapt to technological advancements while maintaining strong compliance standards. As emerging technologies continue to evolve, organizations must stay vigilant, proactive, and committed to upholding the highest levels of corporate integrity. 

    If you’re unsure whether your compliance program meets these new DOJ expectations, partnering with a professional employer organization (PEO) like Group Management Services (GMS) can provide clarity and guarantee your business remains compliant. 

    Contact GMS today to see how we can support your organization in effectively managing compliance risks. 

  • Navigating employee performance management can be a challenge, especially when it comes to disciplinary actions. Writing up employees may not be pleasant, but it’s a crucial step in maintaining a fair and productive work environment.

    When other forms of discipline like verbal warnings or informal coaching aren’t leading to an improvement in performance, an effective employee write-up can result in a good outcome for the organization, employees, and their supervisors. When performed incorrectly, write-ups can lead to misunderstandings or even legal issues.

    Listed below are common mistakes to avoid when issuing employee write-ups and how to ensure your approach is effective and compliant.

    Mistake: Waiting Too Long To Address Issues

    Promptly addressing problems is key to effective performance management.

    Delaying disciplinary action can weaken the message and reduce the effectiveness of a write-up. Taking too long to discipline an employee could also lead to important details of the situation being forgotten or lost as time progresses. Addressing performance or conduct issues quickly after they occur establishes a precedence for employees to understand the importance of the matter and gives them a chance to correct their behavior. Early intervention also provides a clearer timeline if future actions are needed.

    Mistake: Letting Emotions Take Over

    Write-ups should be calm, factual, and objective.

    Issuing a write-up when emotions are high can lead to unprofessional language and mistakes. Take the time to cool down and approach the situation calmly. An effective write-up focuses on objective and documented facts rather than opinions or frustrations. Employees challenging a disciplinary decision can use the write-up as evidence. Therefore, it’s important to remember that the goal of a write-up is to correct behavior, not to punish out of anger.

    Mistake: Using Vague Language

    Specificity is essential for clarity and compliance.

    Ambiguity can lead to confusion and weaken the write-up. Be precise when describing incidents, including details such as dates, times, and behaviors. Reference specific company policies that were violated and explain the impact of the employee’s actions. Providing clear examples leaves no room for misinterpretation and reinforces the seriousness of the issue.

    Mistake: Skipping Witness Statements

    Including witnesses adds credibility to documentation.

    If other employees or customers observed the incident, gathering their factual statements can strengthen a case. Witnesses should be unbiased and based on direct observations. This additional perspective not only reinforces a write-up but also demonstrates a thorough investigation into the issue.

    Mistake: Failing To Outline Clear Expectations For Improvement

    Clear goals and timelines are necessary for effective corrective action.

    Simply pointing out what went wrong is not enough. Detail what the employee needs to do to improve, provide actionable steps, and set a specific deadline. Employers can create a performance improvement plan (PIP), a formal written document that outlines recurring behavior and/or performance issues along with a specific timeline for the employee to achieve certain goals to regain good standing in the company.

    This not only helps the employee understand what’s expected but also protects the company if further disciplinary action is needed. Focus on corrective feedback rather than highlighting what’s wrong and avoid minimizing the seriousness with praise.

    Mistake: Delivering Write-Ups In The Wrong Setting

    Write-ups should be delivered in person whenever possible.

    Issuing a write-up via email or in a casual setting undermines the gravity of the situation. Schedule a private meeting to discuss the issue respectfully and provide the employee with a physical copy of the write-up. This allows for a professional and constructive conversation and gives the employee an opportunity to ask questions and understand the next steps.

    Mistake: Overlooking Company Policy References

    Aligning write-ups with company policies reinforces fairness and compliance.

    Always reference the relevant sections of the company’s policies when documenting a violation. If the employee signed an acknowledgment of these policies, in a handbook for example, mention that in the write-up. This consistency reduces the risk of claims of unfair treatment and strengthens the legitimacy of disciplinary action.

    Mistake: Not Following Up After The Write-Up

    Monitoring progress is just as important as issuing the write-up.

    Once a write-up has been issued, it’s crucial to evaluate whether the employee is making the necessary improvements. This can be done through informal evaluations such as observing their interactions with customers, or formal assessments using a standardized rubric. Demonstrate support by being available for questions and providing guidance. Effective follow-up helps prevent future issues and emphasizes a manager’s commitment to their employee’s growth.

    Partner With GMS For Expert Employee Management

    Employee write-ups are just one aspect of effective performance management. At GMS, we help business owners handle the complexities of managing employees, from documentation to compliance, employee development, goal setting, and more. Our team of HR experts can take on these administrative burdens, ensuring you stay protected, and your employees remain productive.

    Contact GMS today to learn how we can support your business and improve your employee management strategies. Download our free guide on simplifying performance management to get started.

  • Setting up a 401(k) plan for your small business not only helps you stand out in the competitive job market but also offers tax credits, deductions, and retirement savings for business owners. With the passing of SECURE Act 2.0, small businesses can take advantage of even more tax incentives, making a 401(k) plan more lucrative.

    The following steps will help get you started on establishing a 401(k) for your employees.

    Why Offer A 401(k) Plan?

    Many business owners assume a 401(k) plan is too costly or complex, but the benefits can far outweigh the negatives. By offering a 401(k) plan you can:

    • Attract and retain top talent: A recent study found that after health insurance, retirement plans are tied with company leave as the second most sought-after benefit. This study also found that 401(k) plans can help reduce turnover rates and boost retention by 81%.
    • Access tax credits: Small businesses with 50 employees or less may qualify for up to $5,000 per year in startup tax credits for the first three years, and an additional $500 annually for automatic enrollment, adding up to a potential $16,500 in total savings.
    • Secure retirement savings: A 401(k) plan lets business owners contribute to their own retirement savings while offering tax-deductible contributions for their company.

    Step 1: Research Retirement Options

    If you don’t have a 401(k) set up for your business, begin by exploring providers. Look into reputable financial institutions that offer robust support, payroll integration, and easy administration. Seek feedback from other small business owners about their experiences and consider a provider that can serve you for the long term.

    Consider factors such as:

    • Cost: How much is the plan? Is there a monthly fee associated with managing the plan?
    • Investment options: What funds are available in the plan?
    • Advice and guidance: Is there advice or counsel offered for participants?
    • Customer support: Is there easy access to reliable support if technical questions arise?

    Step 2: Choose Your 401(k) Plan Type

    Once you have a provider, select one or more plan types that best fits your business and employees’ needs:

    A traditional 401(k) allows employees to make pre-tax contributions via payroll deductions. Employers can contribute on behalf of employees, offer matching contributions, or both, with these contributions potentially subject to a vesting schedule. This plan must meet nondiscrimination requirements through annual actual deferral percentage (ADP), actual contribution percentage (ACP), and top-heavy tests to ensure fairness to ensure fairness. to ensure fairness.

    A Roth 401(k) is similar to traditional plans but contributions are made with after-tax dollars. This means withdrawals from the account are tax free upon retirement.

    The safe harbor 401(k) also resembles traditional plans except this plan requires employers to make contributions that employees own right away. These contributions can either match what employees put in or be a set amount for everyone who qualifies. A safe harbor plan doesn’t have to pass the ADP or ACP tests if employers provide their employees with clear and timely information about how the plan works and what their rights are.

    Lastly, the SIMPLE 401(k) is designed for small businesses with 100 or fewer employees. It is not subject to annual nondiscrimination tests and requires fully vested employer contributions. However, employees cannot receive contributions under other plans of the employer. If an employer offers alternative retirement plans, an employee utilizing the SIMPLE 401(k) plan can’t maintain those options.

    Once you have your plan type(s) selected, you should then consider other factors such as automatic enrollment and matching contributions. Automatic enrollment self-enrolls employees in your company’s plan, increasing participation rates and potentially qualifying your business for extra tax credits. Matching contributions is when an employer matches an employee’s 401k contribution up to a certain percentage of the employee’s salary.

    Step 3: Create A 401(k) Plan Document

    Draft a plan document that meets IRS requirements and outlines the specifics of your retirement plan. This document will include the plan’s terms, contribution structure, and eligibility criteria. Work with your provider to ensure compliance with federal regulations.

    Step 4: Set Up A Trust To Hold Plan Assets

    All 401(k) plan assets must be held in a trust to protect participants’ interests. Appoint at least one trustee to manage contributions, investments, and distributions, ensuring the plan’s financial integrity.

    Step 5: Maintain Accurate Records

    Accurate record-keeping is essential for tracking contributions and plan values. Many small businesses work with a contract administrator or financial institution to simplify this process and ensure ongoing compliance.

    Step 6: Inform Your Employees

    Provide employees with a summary plan description (SPD) that explains the plan’s benefits, rights, and features. Keep employees updated on investments and any plan changes. Transparent communication helps employees make informed decisions about their retirement savings.

    Step 7: Monitor And Maintain The Plan

    Regularly review your 401(k) plan to ensure it continues to meet your business and employees’ needs. A reliable provider can assist with compliance checks, manage reporting requirements, and help maximize the plan’s value.

    Tax Benefits Of Setting Up A 401(k) Plan

    Establishing a 401(k) plan offers several tax advantages for your business including:

    • Startup tax credits: As mentioned above, small businesses with up to 50 employees may qualify for a tax credit covering 100% of startup costs, up to $5,000 per year for the first three years. Medium-sized businesses (51-100 employees) are eligible for a 50% credit on administrative costs, capped at $5,000 annually for three years.
    • Employer contribution credit: The SECURE Act 2.0 introduced a credit that allows small businesses to receive up to $1,000 per employee in employer contribution credits. This amount phases out gradually over five years, providing 100% credit in the first two years, 75% in the third year, 50% in the fourth year, and 25% in the fifth year.
    • Employer contribution deduction: Employers can deduct contributions up to 25% of eligible employees’ compensation, directly reducing federal tax liability.
    • Pre-tax deferrals for employees: Contributions reduce taxable income for the employer and employees, as pre-tax contributions defer taxes until funds are withdrawn, potentially lowering employees’ tax bills in retirement.

    Setting Up Your 401(k) With Ease

    Establishing a 401(k) plan may seem complex, but the right partner can make the process straightforward and manageable. A professional employer organization (PEO) like Group Management Services (GMS) simplifies 401(k) administration, offering expertise in plan selection, compliance, and ongoing management. Let GMS help you build a retirement plan that benefits your employees and strengthens your business.

    Ready to get started? Contact GMS today to explore how we can help you set up a 401(k) plan best suited for your business.

  • As workplace temperatures rise, so does the need for robust safety measures to protect employees from heat-related risks. In August 2024, the Occupational Safety and Health Administration (OSHA) took a critical step by introducing a new proposed rule aimed at preventing heat injury and illness in both outdoor and indoor work environments. This proposal highlights OSHA’s commitment to reducing heat-related injuries and fatalities by mandating preventative measures in all general industry, construction, maritime, and agriculture sectors.

    U.S. employers are responsible for the consequences of workplace injuries. In addition to the resulting downtime and lost productivity, these incidents increase insurance premiums.

    Here’s what you need to know about this significant development and its implications for your business.

    Why OSHA’s Heat Prevention Standard Matters

    Excessive heat is the leading cause of weather-related fatalities in the U.S., posing significant risks to workers in both outdoor and indoor settings where cooling measures are limited. According to the Bureau of Labor Statistics, workplace heat exposure caused 479 fatalities between 2011 and 2022 and over 33,000 work-related injuries. Many of these incidents could have been prevented with structured safety plans, which is exactly what OSHA aims to address with this new rule.

    Additionally, OSHA increased its penalty rates earlier this year. Violations now cost a business over $16,000 per infraction. This increase adds further motivation for employers to meet compliance standards.

    Key Components Of The Proposed Rule

    The proposed OSHA standard requires employers in all general industry, construction, maritime, and agriculture sectors to implement comprehensive heat prevention measures. The rule outlines several key requirements:

    • Heat hazard assessment: Employers must evaluate heat risks in their workplaces, considering both outdoor temperatures and indoor heat sources like machinery and equipment.
    • Heat injury and illness prevention plan: A core requirement of the proposal is for employers to develop a written plan that outlines specific steps for managing and mitigating heat hazards. This plan would clarify employer responsibilities, from ensuring access to water and shade to adjusting work schedules based on temperature.
    • Workplace controls: The rule proposes both engineering controls (such as cooling systems) and work practice controls (like rotating shifts and breaks) to reduce workers’ exposure to high heat.
    • Emergency response and training: Employers must establish protocols for responding to heat-related illnesses and train employees and supervisors on recognizing heat stress symptoms, administering first aid, and implementing preventive measures.

    Who Is Affected By The Rule?

    Workers in high-risk environments, particularly those exposed to direct sunlight or operating heat-generating machinery, would benefit significantly from this regulation. Some groups, such as pregnant workers and employees of color, who are disproportionately employed in essential roles at higher heat risk, stand to gain the most from these protections.

    Why Employers Should Prepare Now

    OSHA is currently inviting public comments on the proposal, with a deadline set for December 30, 2024. Employers have an opportunity to provide feedback, but it’s also an ideal time to begin implementing preventive strategies. Preparing ahead can help businesses align with potential regulatory requirements while fostering a safer work environment.

    Alternatively, small and midsize businesses (SMBs) should consider partnering with a professional employer organization (PEO). PEOs like Group Management Services (GMS) not only ensure compliance with OSHA but also implement cost-containment and loss-prevention strategies to lower workers’ compensation rates and save your hard-earned money.

    Next Steps For Employers

    To get ahead, employers can start by:

    • Assessing workplace heat risks: Conduct a thorough evaluation of both outdoor and indoor work environments to identify areas where heat hazards exist.
    • Developing a heat safety plan: Outline procedures to provide hydration, shade, and cooling measures, and identify work adjustments during high-heat periods.
    • Engaging in OSHA’s comment period: Employers can visit Regulations.gov to submit comments or participate in the public discussion to help shape the final rule.

    Taking Action To Ensure Compliance And Safety

    With OSHA’s heat prevention proposal, businesses now have to mitigate one of the leading environmental risks in the workplace. Taking proactive steps not only ensures compliance but also underscores a commitment to employee health and safety, a core value for any successful organization.

    For additional support, GMS has a team of workers’ compensation experts who work closely with your company to create a comprehensive risk management plan tailored to meet OSHA standards. Our team can support you through every step, assessing the heat risks in your workplace and complying with OSHA. Contact us today, and let us help you create a safer and more compliant workforce!

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

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

    2025 Tax Bracket Overview 

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

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

    Standard Deduction And Personal Exemptions 

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

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

    Additional IRS Adjustments 

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

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

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

    What Your Employees Should Know 

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

    What This Means For Business Owners 

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

    Preparing For The Adjustments 

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

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

    How GMS Can Help With Tax Compliance 

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

  • Starting in January 2025, California employers must adjust their hiring practices to align with a new amendment to the Fair Employment and Housing Act (FEHA). Senate Bill 1100 prohibits employers from requiring job applicants to have a driver’s license unless driving is an essential and unavoidable part of the job. This change aims to support the employment of non-drivers who rely on alternative forms of transportation like ride-hailing services, public transit, biking, or walking. 

    Understanding The FEHA Amendment 

    California law already prohibits discrimination based on an applicant’s immigration status, with nonstandard driver’s licenses (such as AB 60 licenses) issued to individuals who cannot prove legal presence in the United States. However, the new legislation expands protections to those without any form of driver’s license, aiming to ensure that transportation barriers do not unnecessarily limit job opportunities. 

    Under the amended FEHA, employers can no longer include blanket statements in job ads or applications requiring a driver’s license unless: 

    1. Driving is an essential job function. The employer must reasonably expect the role to require driving in a way that cannot be replaced by alternative transportation. 
    2. Alternative transportation is not comparable. The employer must determine that using a ride-hailing service, taxi, or other modes of transportation would not be feasible in terms of travel time or cost. 

    The law aims to prevent discrimination against individuals who either cannot afford to maintain a vehicle or whose physical limitations prevent them from obtaining a license, such as those with visual impairments. 

    Implications For Employers 

    Employers in California should review their hiring materials, including job postings, applications, and recruitment ads, to ensure compliance with the new FEHA requirements. Starting January 2025, employers must clearly evaluate whether a driver’s license is necessary for the job or if alternative transportation methods could fulfill the role’s demands. 

    Businesses operating in Los Angeles County must comply with local hiring regulations. This includes the Fair Chance Ordinance, which imposes specific requirements for job solicitations. 

    Why This Matters 

    This amendment is part of a broader effort to remove barriers to employment, particularly for those who rely on public transportation or ride-sharing services due to financial or physical limitations. Employers who fail to comply with the new law not only risk legal penalties but also a loss of access to a broader, more diverse talent pool. This adjustment offers an opportunity for employers to rethink what is truly necessary in their job requirements, encouraging inclusivity in the workplace. 

    How GMS Can Help 

    Staying compliant with labor laws can be complex. At Group Management Services (GMS), we specialize in helping businesses navigate regulatory changes like California’s new FEHA amendment. Whether you need assistance with drafting compliant job descriptions, updating your hiring processes, or managing other HR functions, GMS has the expertise to ensure your business remains compliant and avoids costly penalties. Contact us today to learn more about how we can support your HR and compliance needs. 

  • In today’s unpredictable U.S. health care landscape, businesses are struggling more than ever to provide competitive health benefits while controlling rising costs. Next year, U.S. employers project a 9% increase in health care plan costs – 2.6% higher than last year’s budget increases. Each employee covered by company health plans will cost $16,000 annually. 

    Small and midsize businesses (SMBs) are finding it particularly daunting to offer competitive health care plans compared to their larger competitors. A single hospital claim can cost a company over $100,000. Employers struggling with these rising costs often look for assistance from external organizations specialized in fighting claims and managing benefits administration. 

    Continue reading to discover key strategies that can help your business manage its health care costs and optimize employee benefits for the coming year. 

    What Type Of Medical Insurance Does My Business Need? 

    There are two primary types of medical insurance: 

    Fully funded 

    • This is the most common option, where insurance rates are set based on factors such as age, gender, and location. 
    • While easy to manage, businesses have little insight into how their plan is performing – such as how well the plan controls costs, processes claims, and manages employee health care usage. 

    Level funded 

    • This option provides greater transparency, as it’s based on the health of the group, size of the company, and expected usage. 
    • This gives SMBs a better understanding of their plan’s performance and predict renewal costs. 
    • However, it can be more unpredictable, especially for smaller groups, because they’re tied to the group’s health and claims history. A single high-cost claim can cause unpredictable spikes in renewal premiums, making budgeting less stable compared to fixed premium plans. 

    Given these options, businesses should ask critical questions when selecting a health insurance partner. SMBs need to consider factors beyond the deductible, such as copayments and the maximum out-of-pocket costs.

    Catastrophic Claims 

    Catastrophic claims, where serious injuries result in permanently preventing an employee from working, now account for over 20% of cost increases. Without proper audits and cost-control initiatives, SMBs are at the mercy of health care providers.  

    Measures that can have a positive impact on cost savings include: 

    Case management 

    • Health care professionals coordinate complex care for employees to ensure they receive appropriate treatment, helping avoid unnecessary services and reducing overall costs. 

    Disease management 

    • Employers can reduce expenses associated with emergency medical care by offering guidance and resources to support employees with chronic conditions. 

    Nurse advice lines 

    Claim audits 

    • Reviewing medical bills ensures accuracy and helps catch errors or overcharges. 

    Rising Cost Of GLP-1 Drugs 

    A major driver behind the increase in prescription drug costs is the rising demand in Glucagon-Like Peptide-1 (GLP-1) drugs, such as Ozempic, Wegovy, and Trulicity. Commonly prescribed to treat diabetes and obesity, GLP-1 drugs are responsible for over 75% of the increase in costs. These medications, ranging from $1,000 to $1,500 per month, can quickly strain an employer’s budget. 

    Providing employees access to more affordable services like telehealth, coaching, or gym membership reimbursements also allows you to support their healthy lifestyle change without breaking the bank. 

    Medical Provider Costs 

    “Your worst-case scenario is what you need to plan for,” -GMS’ Benefits Sales Manager, Claire McCarus 

    To combat these rising costs, SMBs should design a plan that includes: 

    Dependent eligibility audits 

    • A process that reviews and verifies that all dependents enrolled in a company’s health plan meet eligibility requirements. 

    High deductible health plans (HDHP) 

    • Insurance plans that offer lower premiums but require employees to meet higher deductibles, meaning they must pay more out-of-pocket costs before full coverage begins. 

    Spousal surcharges 

    • Additional fees are charged when an employee’s spouse has access to their own employer-sponsored health insurance but chooses to remain under the employee’s plan. 

    Formulary changes 

    • Adjustments to the list of prescription drugs covered by a health plan, aimed at promoting cost-effective medications and managing rising drug expenses. 

    At Group Management Services (GMS), we offer highly competitive health care plans that help business owners effectively manage rising health care costs. On average, our plans are 26% lower for individuals and 15% lower for families compared to the U.S. market. 

    What About Ancillary Benefits? 

    Ancillary benefits, such as dental, vision, life insurance, and disability, are an affordable way to enhance your benefits package without the high cost of medical insurance. Offering these supplementary benefits can also boost employee satisfaction and retention at a lower cost. 

    Partner With GMS 

    Managing your company’s health care plan is stressful and expensive, especially for smaller businesses. As health care costs continue to increase, you’ll want to start looking for ways to cut down on claims and prescription drugs and reorganize suitable medical plans for your business. 

    If all of this sounds daunting – don’t worry. There are companies with the sole purpose of helping you manage the backend complexities that come with running a business. Outsourcing to a partner like GMS can simplify the administrative burden, providing a dedicated team to handle employee inquiries, manage claims, and even oversee the Consolidated Omnibus Budget Reconciliation Act (COBRA) administration.  

    This support helps ensure nothing falls through the cracks, enabling employers to focus on their business rather than the complexities of benefits administration. Contact us here so we can help your business reduce avoidable expenses and alleviate the stress associated with managing employee benefits. 

  • In 2025, more than 72.5 million Americans will see a change in their Social Security and Supplemental Security Income (SSI) benefits due to a 2.5% cost-of-living adjustment (COLA). This change, announced by the Social Security Administration (SSA), aims to help retirees and SSI recipients to keep pace with rising costs. While the adjustment isn’t as significant as the 3.2% increase in 2024, it is still a crucial step toward maintaining the financial stability of millions of Americans, especially in a fluctuating economy. 

    What Does The 2025 COLA Mean For Social Security Beneficiaries? 

    For Social Security beneficiaries, the 2.5% COLA will result in an average monthly benefit increase of about $50, starting in January 2025. Meanwhile, SSI recipients will begin receiving increased payments on December 31, 2024. This boost is part of the SSA’s annual adjustment process, which ties COLA to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), ensuring benefits adjust with inflation. 

    In addition to the benefit increase, the taxable maximum (the maximum amount of earnings subject to Social Security tax) will rise from $168,600 to $176,100. This means higher-income earners will contribute more to Social Security in 2025. 

    The earnings limit for individuals who have not yet reached full retirement age will increase, allowing them to earn up to $23,400 before benefits are reduced. For those reaching full retirement age in 2025, the limit rises to $62,160. There are no earning limits for individuals at or above full retirement age, which provides greater flexibility for those continuing to work. 

    Simplified Communication For Beneficiaries 

    One key improvement in 2025 is the SSA’s redesign of the COLA notice. Beneficiaries will now receive a simplified, one-page document with personalized information about their benefit changes, making it easier to understand their new payment amounts and any applicable deductions. Beneficiaries with a “My Social Security” account can access this information online before receiving the mailed notice, providing quicker access to critical updates. 

    These changes reflect the SSA’s ongoing effort to streamline communication and improve the user experience, making it easier for beneficiaries to manage their benefits. 

    What Employers Need to Know 

    For businesses, particularly those managing payroll for employees receiving Social Security benefits, these changes require adjustments in payroll processes. The increase in the taxable maximum and changes to the earnings limits will impact payroll deductions and reporting requirements. Employers must stay informed about these changes to avoid compliance issues and ensure that deductions and withholdings are handled correctly. 

    Additionally, businesses should be aware that employees who are nearing full retirement age may adjust their working hours or earnings to avoid benefit reductions, affecting workforce planning and productivity. Employers who offer benefits that coordinate with Social Security, such as pension plans or retirement savings programs, may also need to update their offerings to align with the new COLA. 

    Partner With GMS 

    In a financial landscape that is constantly changing, businesses need a strategic partner to help navigate the complexities of payroll management, tax compliance, and regulatory changes like the Social Security COLA. As a professional employer organization (PEO), GMS provides the expertise and support needed to optimize payroll processes and ensure compliance with these updates. By partnering with GMS, businesses can focus on their core operations while we manage the administrative burdens, ensuring that both employers and employees benefit from financial stability. 

    Let GMS be your trusted partner in staying compliant and navigating the ever-changing world of payroll and benefits. Contact us today to learn more about how we can support your business through 2025 and beyond.