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  • Colorado is the first state to offer employees paid leave to care for a hospitalized infant in the neonatal intensive care unit (NICU). This law went into effect on January 1 of this year and allows eligible employees to take paid leave to support a newborn or an infant receiving intensive care. This new benefit, Neonatal Care Leave, was created through Senate Bill 25-144 and expands the state’s existing Family and Medical Leave Insurance (FAMLI) program. While this legislation is groundbreaking for parents and qualifying employees, it comes with various implications that business owners need to understand.

    Family and Medical Leave Insurance

    FAMLI is a government program that ensures Colorado workers have access to paid leave to care for themselves or their family during certain life events. Paid leave through FAMLI has been available since January 1st of 2024. Eligible Colorado employees can take up to 12 weeks of paid leave per year in order to:

    1. Care for themselves or a family member experiencing a serious health condition.
    2. Make arrangements for a family member’s military deployment.
    3. Address the safety needs and impact of domestic violence or sexual assault.
    4. To bond or care for a new child, including fostered or adopted children.

    FAMLI Vs. FMLA

    FAMLI and the Family and Medical Leave Act (FMLA) are similar pieces of legislation that focus on job-protected sick leave. While they are similar, there are notable differences that Colorado business owners need to be aware of. For example, FMLA is unpaid, job-protected leave, while FAMLI is paid, job-protected leave. Employees are eligible for FAMLI from the first day of employment if they meet the wage requirement, while FMLA only allows employees who work a certain number of hours before providing leave. Finally, FMLA is a federal law, meaning it applies to the entire country, while FAMLI applies to Colorado employees only.

    Neonatal Care Leave Overview

    Neonatal Care Leave is a new and additional type of paid leave under the FAMLI leave law. This leave allows eligible employees to take up to 12 weeks of paid time off while their newborn is receiving inpatient treatment in a NICU or a higher level of neonatal care. This leave only lasts the duration of the child’s NICU stay. Neonatal Care Leave is available to a broad range of caregivers, including biological, adoptive, step, and foster parents.

    Eligibility extends to parents whose infants were born before January 1, 2026, as long as the child remains hospitalized in a NICU on or after the law’s effective date.

    How Neonatal Care Leave Fits Within FAMLI

    Neonatal Care Leave isn’t the only type of leave parents can utilize for paid leave. Under FAMLI, eligible employees can qualify for:

    1. 12 weeks of Neonatal Care Leave (while the infant is hospitalized)
    2. 12 weeks of bonding leave after the child is discharged
    3. Up to four additional weeks if the birthing parent experiences pregnancy or childbirth complications

    As a result, some employees may be eligible for up to 24–28 weeks of paid FAMLI leave in connection with the birth of a child requiring NICU care.

    What Employers Should Do Now

    Employers in Colorado, or those with employees in Colorado, should take proactive steps to ensure compliance with the Neonatal Care Leave policy. These steps could include updating employee handbooks and company leave policies to reflect these regulatory changes. Employers could also provide training and education for employees, so they understand their rights, the policy details, and eligibility requirements. Colorado employers should also consider working with a third-party partner to assist and consult on Neonatal Care Leave compliance efforts.

    A First-in-the-Nation Policy With Broader Implications

    For families facing the stress of a NICU stay, the new law provides meaningful financial stability and time to focus on their child’s health during a critical period. Colorado’s Neonatal Care Leave underscores the state’s commitment to supporting working families during some of their most challenging moments.

    Group Management Services (GMS) can help Colorado business owners navigate Neonatal Care Leave and FAMLI obligations by providing expert guidance, HR support, and compliance assistance. GMS acts as a partner in compliance, HR, employee management, and business efficiency by consulting on regulatory changes, updating employee handbooks, and hosting training sessions on new laws. Employers should take action now and review existing leave policies, educate their teams, and partner with a trusted HR expert like GMS to ensure they are fully compliant and prepared for this expanded leave benefit. Take your first step towards compliance with GMS. Contact us today!

  • Running a business comes with many responsibilities. From payroll and compliance to employee benefits and risk management, every task takes time and energy. When you simplify these processes, you create space to focus on strategy growth and your core business operations.

    A professional employer organization (PEO) like Group Management Services (GMS) can help streamline your essential business functions by centralizing administrative tasks, reducing manual work, and helping your business operate more efficiently.

    Here are practical ways a PEO can simplify your business and why partnering with GMS gives you a competitive edge.

    Streamline Payroll

    Managing payroll manually with spreadsheets or disconnected tools like Excel or QuickBooks is time-consuming, error-prone, and costly. A PEO centralizes payroll using integrated software, which automates wage calculations, direct deposits, and tax filings.

    GMS’ payroll solution processes payroll in minutes and handles all tax compliance tasks, reducing manual data entry and the risk of errors and penalties. This ensures your team is paid accurately and on time while freeing your business leaders from administrative headaches.

    Go Paperless With an HRIS

    Paper-based processes slow HR operations and make managing employee records and pay stubs more difficult than they need to be. With a Human Resources Information System (HRIS), you can centralize employee data, benefits enrollment, and payroll in a single online platform.

    GMS offers GMS Connect, a secure cloud-based HRIS that consolidates payroll, HR, and benefits data into a single system, giving you real-time visibility and easy access to employee information. Moving to a digital system simplifies record keeping, reduces errors, and eliminates filing cabinets full of paperwork.

    Reduce Workers’ Compensation Claims

    Workplace accidents disrupt productivity and increase insurance costs. A PEO brings safety expertise and structured risk management that helps reduce claims and lower premiums. GMS supports your company with safety program development, audits, and compliance support, giving you proactive protection and a safer work environment.

    Avoid Compliance Fines

    Employment laws, tax codes, and workplace safety regulations change often. Staying compliant can feel overwhelming, but failing to do so can lead to costly fines. PEOs maintain compliance expertise, so you don’t have to.

    GMS professionals monitor changing regulations, update your policies, and assist with compliance requirements, reducing your legal risk and burden.

    Simplify Benefits and Offer Better Coverage

    Managing employee benefits can be costly and complex. A PEO makes it easier and more affordable.

    Access Affordable Group Health Insurance
    GMS’ group health plan delivers customizable coverage at competitive rates, with access to an extensive national provider network. Businesses save on premiums while offering comprehensive benefits.

    Streamline Benefits Administration
    GMS simplifies the entire process:

    1. Enrollment support and employee education
    2. Claims management assistance
    3. Consolidated billing and eligibility tracking
    4. Online self-service tools for employees

    This reduces HR workload and ensures quick answers for employees.

    Offer Fortune 500-Level Benefits
    Small businesses gain access to high-quality benefits at affordable rates that rival those of large corporations. This helps attract and retain top talent in a competitive job market.

    Measurable Impact of PEO Partnerships

    Working with a PEO not only simplifies your processes but also improves business outcomes. Research from the National Association of Professional Employer Organizations (NAPEO) shows that businesses using a PEO:

    1. Grow seven to nine percent faster than those that do not grow without a PEO.
    2. Experience 10 to 14 percent lower employee turnover.
    3. Are 50 percent less likely to fail over time.

    Simplifying your business processes is essential for growth and sustainability. A PEO like GMS helps you streamline payroll, go paperless, improve safety, reduce compliance risk, and offer better benefits administration, including cost-effective group health plans.

    By partnering with GMS, you can provide high-quality benefits that attract and retain employees while freeing up your internal team to focus on your core business. Simplification leads to stronger operations, better employee experiences, and long-term success. Interested in simplifying your business in 2026? Get in contact with us today

  • Numerous government organizations are dedicated to ensuring workplace safety, maintaining proper labor standards, and overseeing business operations. Among these, the Department of Labor plays a crucial role for all businesses by prioritizing and developing laws on proper labor procedures, workplace safety, employee health benefits, workers’ compensation policies, and more. Understanding how this organization operates and the importance of complying with its laws is essential to successfully managing a growing and compliant business.

    What is the Department of Labor?

    The Department of Labor (DOL) is a federal agency that focuses on employees by writing and enforcing policies to improve and protect employee rights and worker safety. All DOL policies are developed to improve working and employment conditions for employees and are administered by an elected leadership team on a yearly budget.

    Importance of the DOL

    The DOL is responsible for enforcing over 180 federal laws that are crucial to the safety and health of millions of workers. Its authority includes regulations related to labor unions, workers’ compensation, wage garnishment, and veterans’ rights. The DOL’s expertise spans the entire country and a wide range of industries, making it an essential component of the American business landscape.

    Among the most significant laws that the DOL is tasked with creating and enforcing are the Fair Labor Standards Act (FLSA), the Occupational Safety and Health Act (OSH Act), and the Federal Employees’ Compensation Act (FECA). Without organizations like the DOL, workers would lack the rights and opportunities they enjoy today, and there would be no programs such as the Occupational Safety and Health Administration (OSHA) to protect them.

    Ways to Ensure DOL Compliance

    Laws are continually changing, so business owners must stay informed about any law updates or new laws. Since the DOL oversees various industries and pieces of risk management and human resources (HR) functions, it can be challenging for business owners to effectively implement changes and educate their employees about new policies.

    Stay up to date on current law changes and regulations

    Depending on the industry you work in, regulatory law changes can be constant or a rarity. Regardless of frequency, staying informed about updates that could affect your business, industry, or employees is essential. To keep up, consider subscribing to official government email alerts or following reliable sources online. Regular reminders about potential changes will help you stay informed, adapt quickly, and implement new policies as needed. Staying current on labor news also reduces the risk of costly penalties from noncompliance or safety issues.

    Prioritize documentation and employee information

    To reduce the risk of non-compliance and accompanying penalties, proper documentation should be a priority. Business owners should take great care in protecting employee information, including social security numbers, direct deposit account numbers, birthdates, and more.

    Employers should also document past workplace injuries, disciplinary actions, or behavioral warnings; to keep a record of past discrepancies and to have them on record, just in case another incident occurs. Proper documentation also makes it easier to pull out relevant information for authorities in case of a surprise audit by OSHA or another federal agency.

    Educate employees on policies and procedures

    Proper education is a great way to lower the risk of accidents, injuries, and noncompliance. Schedule monthly or quarterly educational sessions to keep employees up to date on any regulatory changes that impact their employment or benefits. Employers should also hold company-wide meetings to explain any changes to company policies or procedures. This ensures that your workforce understands current procedures and can follow them.

    Work with experts

    Compliance isn’t an easy responsibility for business owners to tackle, but it’s imperative to the long-term success of your company and employee retention. Some weeks, there are dozens of new bills that are signed into law, which isn’t easy for a business owner to keep track of on their own. That’s why working with compliance experts or HR partners can help reduce employee risk and non-compliance fees. A third-party company like Group Management Services (GMS) can assist your employees with benefits administration, answer workers’ compensation questions, and consult on HR tasks such as employee handbook development, performance review assistance, new labor policies, and beyond.

    A Compliance Partner

    Ensuring company-wide compliance isn’t something that business owners can do on their own. Regulatory compliance is an intricate web that can get confusing quickly. Luckily, professional employer organizations (PEOs) like GMS can offer businesses a helping hand.

    GMS’ team of HR experts assist you in navigating local and state laws, as well as compliance requirements. They can help you prepare essential documentation, create a communication plan to inform everyone about changes in the law, and provide guidance on best practices to ensure compliance and safety. GMS’ safety team can also conduct safety audits, develop safety plans, and conduct risk management training for your employees. Compliance with important regulatory organizations like DOL or OSHA is extremely important when it comes to running a business. Stay one step ahead of noncompliance fines with the help of GMS. Learn how GMS can help your company stay compliant here.

  • For many business owners, partnering with a professional employer organization (PEO) can raise questions and misconceptions. Myths about control, cost, and risk often prevent businesses from exploring solutions that could actually simplify operations and support long-term growth. The reality is that a PEO is designed to strengthen your business, not replace it.

    Let’s break down some of the most common PEO myths and uncover the facts business leaders should understand before deciding whether a PEO partnership is right for them.

    Myth 1: A PEO Takes Control of Your Business

    One of the most common misconceptions is that partnering with a PEO means giving up control. In reality, business owners maintain full authority over daily operations, company culture, and strategic decision-making.

    A PEO operates under a co-employment relationship, which allows the PEO to handle administrative human resources (HR) responsibilities such as payroll processing, benefits administration, and compliance support. You remain in charge of managing your workforce and running your business. The PEO simply works behind the scenes to support those efforts.

    Myth 2: A PEO Controls Hiring and Termination Decisions

    Some business owners worry that a PEO will dictate who they can hire or fire. This is not the case. All hiring, promotion, and termination decisions remain solely with the business owner.

    While a PEO may provide guidance on best practices, onboarding support, and compliance considerations, the final decisions always rest with your leadership team. The goal is to help ensure that decisions are well-documented and compliant, not to make them for you.

    Myth 3: PEOs Are Only for Large Companies

    PEOs are often assumed to be a solution only for large organizations, but small and midsize businesses frequently see the greatest impact from a PEO partnership.

    Many growing businesses lack dedicated HR staff or the resources to keep up with changing employment regulations. A PEO helps level the playing field by giving smaller organizations access to experienced HR professionals, modern technology, and Fortune 500-level employee benefits that would otherwise be difficult to secure.

    Myth 4: Partnering With a PEO Is Too Expensive

    While partnering with a PEO does involve a service fee, the cost is often offset by savings in other areas. Businesses may reduce expenses related to benefits administration, payroll errors, compliance penalties, and workers’ compensation claims.

    Beyond direct savings, a PEO can also deliver value by reducing administrative burdens, allowing leadership teams to focus more time on growth, productivity, and employee engagement. When viewed holistically, many businesses find that a PEO partnership delivers a strong return on investment.

    Myth 5: A PEO Negatively Impacts Company Culture

    Some business owners fear that outsourcing HR functions will make their company feel less personal. In practice, the opposite is often true.

    By offering better benefits, clearer policies, and structured HR support, a PEO can enhance the employee experience. When HR processes run smoothly and employees feel supported, businesses are better positioned to build a positive and consistent workplace culture that reflects their values.

    Myth 6: Co-Employment Creates More Risk for Employers

    The term co-employment is often misunderstood. Rather than increasing risk, it is designed to help reduce it.

    In a co-employment relationship, the PEO assumes responsibility for many HR related administrative and compliance functions, including payroll tax filing and benefits administration. This added layer of expertise helps businesses stay compliant with employment laws while maintaining full control over business operations and employee management.

    Understanding the Real Value of a PEO

    When the myths are stripped away, the benefits of a PEO become clear. PEOs offer businesses HR expertise, compliance assistance, employee benefits, and technology to manage their workforce more efficiently and minimize risks.

    Rather than replacing internal leadership or culture, a PEO strengthens your foundation, enabling your business to grow with confidence and stability.

    Partner With GMS

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

    1. Payroll and tax
    2. Human resources
    3. Employee benefits
    4. Risk management
    5. Benefits administration

    Contact us today to talk to one of our experts about how a PEO can support your company!

  • As the new year approaches and labor market fluctuations continue, it’s more important than ever for business owners to focus on improving employee retention and implementing wellness initiatives. Employee retention rates and wellness policies often go hand in hand; prioritizing employee wellness can lead to better retention and increased loyalty.

    Essentially, the more you prioritize your employees and their happiness, the more likely they are to engage at work and remain with the company long-term. A great way to prioritize employee wellness and retention is by investing in benefits and offering health care plans. Continue reading to discover more about what benefits business owners should provide and how they can benefit your employees and company.

    The Advantages of Offering Employee Benefits

    Recruitment

    One of the greatest advantages of offering your employees robust benefits is that it makes your company more attractive to potential employees. People want to work for a company that genuinely cares about them and provides them with access to resources that can improve their lives. According to Aflac, 77% of organizations that offer supplemental insurance report that it helps with recruitment efforts. By offering employee benefit plans, business owners can attract top talent, helping them achieve business growth and success.

    Retention

    Given the uncertainty in the labor market and the economy, retaining top talent can be challenging. Retaining your current workforce not only improves operational efficiency but also reduces recruitment and hiring costs. Offering employee benefits plans is one of the most effective strategies for improving employee retention. When organizations provide comprehensive benefits, they show their employees that their long-term health, security, and well-being matter. This support fosters loyalty, making employees less likely to seek opportunities elsewhere. In a competitive job market, strong benefits packages can differentiate a company, turning satisfied employees into long-term team members and advocates for the organization.

    Trust and productivity

    Offering employee benefit plans can significantly boost productivity and trust within an organization. When employees feel secure about their health, finances, and overall well-being, they are less distracted by personal worries and more focused on their work. Benefits such as health insurance, retirement plans, and wellness programs demonstrate that the company values its workforce, fostering a deeper sense of loyalty and commitment. This trust develops greater engagement, reduces turnover, and creates a stronger workplace culture and long-term organizational success.

    Employee Benefits That Make a Difference

    Health Insurance

    Health insurance plans are the most critical benefit for employees. They provide peace of mind and ensure access to necessary medical care, reducing stress and improving overall well-being. For employers, healthier employees mean fewer sick days and higher productivity. Offering comprehensive health coverage demonstrates that you care about your team’s health and financial security. Employers should also consider offering access to supplemental benefits plans, including dental, vision, and disability insurance. This enables employers to tailor their health benefits to meet the specific needs of their employees.

    Retirement Plan

    Retirement plans, such as a 401(k) with employer matching, are another top priority for employees. These plans help employees plan for their future and build financial stability. Employers are able to match employee contributions, effectively adding to the employee’s nest egg. When employers contribute to retirement savings, it shows a long-term commitment to their workforce, which fosters loyalty and reduces turnover. Additionally, employer contributions are often tax-deductible, making this a smart financial move for businesses.

    Paid Time Off (PTO)

    Paid time off is essential for maintaining work-life balance. Employees need time to recharge, and when they do, they return more focused and productive. PTO also signals that your company values mental health and personal time, which is increasingly important in today’s workplace culture.

    Work From Home

    Flexibility is an increasingly important perk that employees look for in a role and with a company. Providing resources that give your employees the ability to exercise work-life balance highlights your company’s dedication to employee health and happiness. By developing policies for work-from-home days or flexible scheduling, you’re investing in your employees and their long-term employment.

    Mental Health Support

    Mental health is just as important as physical health. Providing access to counseling services, therapy sessions, or Employee Assistance Programs (EAPs) helps employees manage stress and maintain emotional well-being. This leads to higher morale, better focus, and reduced burnout.

    Streamlined Benefits

    Offering employee benefits is not just about compliance or perks—it’s about building a thriving, loyal workforce that drives your business forward. By investing in benefits, you invest in your people, and ultimately, in your company’s success. There are a myriad of benefits and health insurance plans to offer your employees, but enrollment and employee education can be overwhelming for business owners.

    Luckily, there are companies like Group Management Services (GMS) that can assist companies with benefits administration, health care plans, and supplemental benefits. As a professional employer organization (PEO), we help you offer cost-effective, high-quality benefits that can compete with those of larger companies, all while saving you time and money. By partnering with GMS, you receive streamlined, all-in-one employee benefits solutions. Learn more about our offerings here!

  • As the new year begins, business owners should be thinking ahead to one of the biggest administrative responsibilities of the year: preparing for W-2s, 1099s, and tax season. Early preparation helps ensure compliance, avoid penalties, reduce stress, and create a smooth experience for you and your team.

    This guide breaks down what you need to know, including form definitions, how to classify workers correctly, key deadlines, proactive steps to take, and how Group Management Services (GMS) can support you every step of the way.

    Understanding W-2 vs. 1099: What’s the Difference?

    A critical first step for tax season is knowing which tax forms apply to your workers.

    What is a W-2?

    A Form W-2, or Wage and Tax Statement, reports wages paid to employees and the taxes withheld on their behalf. Employers must withhold federal income tax, Social Security, Medicare, and other applicable taxes, and report that information on the W-2.

    What is a 1099?

    A Form 1099-NEC reports non-employee compensation, such as payments to independent contractors, freelancers, and other non-employees, when total payments reach certain thresholds. Unlike W-2 wages, these payments are not subject to tax withholding. Contractors are responsible for their own tax obligations.

    Accurate classification between employees and independent contractors is essential. Misclassification can lead to penalties and compliance issues with the Internal Revenue Service (IRS).

    Why Compliance Matters

    Complying with IRS rules for payroll and information returns is not just paperwork. It is a legal requirement that protects your business.

    Avoiding Costly Penalties

    Failing to file correct W-2 and 1099 forms on time can result in penalties that increase the later you file. The IRS tracks timeliness and accuracy, and penalties can add up quickly, especially if mistakes are widespread or repeated.

    Keeping Worker Records Straight

    Providing accurate forms to employees and contractors helps them file their own tax returns correctly and prevents mismatches with IRS records that could trigger audits or notices.

    Supporting Your Team’s Financial Wellness

    Timely and accurate W-2s and 1099s reduce confusion and frustration for your workforce, and contractors come tax filing time. It is a simple way to reinforce professionalism and care for your people.

    Key Deadlines You Must Know

    While deadlines can shift slightly year to year, here are key dates to mark on your calendar as you prepare:

    • January 31, following the close of the tax year: Deadline to furnish both W-2s and 1099s to recipients, including employees and contractors, and in most cases file with the IRS or Social Security Administration (SSA).
    • January 31 or early February: Typical deadline to file Forms 1099-NEC and W-2 with the IRS or SSA, whether filed electronically or by mail.
    • For certain 1099-MISC types, other due dates may apply depending on the type of income and filing method.

    Tip: Deadlines may fall on weekends or holidays, and the IRS may adjust filing expectations slightly, so always verify the current year’s official guidance.

    Tax Season Preparation Checklist

    Getting ahead now can save valuable time and headaches later. Here is what you can start doing today.

    Gather Worker Information

    Employees should have completed Form W-4s on file with accurate names, addresses, and Social Security Numbers. Contractors should complete Form W-9s, so you have their legal name, address, and Taxpayer Identification Number.

    Review Your Payroll Records

    Double-check total wages paid to employees and payments to contractors to ensure accuracy. Make sure all payments that require reporting are captured in your payroll or accounting system.

    Confirm Worker Classification

    Review how each worker is classified as an employee or contractor. The IRS considers factors like behavioral control, financial control, and the relationship between the parties when making determinations.

    Update Your Systems

    Now is the best time to verify direct deposit setups, mailing addresses, and payroll data to ensure forms are delivered without delay.

    Plan for State Filings

    Some states require additional filings for W-2s or 1099s. Check state requirements and deadlines to remain compliant across all jurisdictions where you operate.

    How GMS Helps You Prepare and Stay Compliant

    Preparing for tax season is easier with the right support. GMS helps businesses navigate W-2 and 1099 reporting by combining experienced payroll professionals with technology designed to improve accuracy and reduce compliance risk.

    Our payroll experts assist with worker classification, payroll data review, and timely federal and state filings, helping businesses avoid costly errors and penalties. With GMS Connect, employee and contractor information is centralized, calculations are automated, and W-2s and 1099s can be securely filed and accessed without last-minute stress.

    Beyond payroll, GMS provides ongoing support across HR compliance, benefits administration, and workforce management. By simplifying administrative responsibilities and keeping compliance on track year-round, GMS helps business owners head into tax season with confidence.

    Contact us to learn how we can support your business in the new year!

  • Payroll errors are costly, time-consuming, and damaging to your company’s reputation. From incorrect tax filings to miscalculated wages, even small mistakes can lead to compliance issues and financial penalties. Fortunately, there are a variety of solutions and steps business owners can take to minimize these risks and ensure a smooth and efficient payroll process.

    Common Payroll Mistakes

    On average, U.S. businesses pay $4.5 billion annually in Internal Revenue Service (IRS) payroll penalties. Payroll errors often lead to non-compliance with regulations, which quickly turn into an expensive penalty bill. While experts can make a variety of payroll errors, late filing, employee misclassification, and incorrect filings are among the most common.

    • Missed deadlines: Whether you’re late submitting your weekly payroll or missing a payroll tax deadline completely, these late filings can lead to costly fines and hurt your credibility as an employer.
    • Misclassification of Employees: Confusing contractors with employees can result in tax and compliance issues. It can also lead to employee distrust, which increases turnover and damages hiring efforts.
    • Incorrect Tax Withholding: Failing to stay updated on tax laws can lead to underpayment or overpayment, leading to unnecessary expenses and noncompliance risk.

    Ways to Prevent Payroll Errors

    While some payroll errors fall through the cracks, there are ways to significantly reduce the risk of mistakes. Continue reading to learn several ways to prevent errors and minimize the risk involved.

    Automate Where Possible

    Utilizing an automated payroll system is a great way to streamline processes and minimize calculation errors. With payroll software, you can automate overtime, tax, and deduction calculations, saving yourself time and reducing your stress. Payroll software can also improve employee security and flexibility by storing important information in a safe and secure portal. Employees can also access their paychecks, schedule paid time off (PTO), and more.

    Laws and regulations are changing every day, and it’s important to stay current on payroll and tax laws as they evolve. Missing a law change can lead to noncompliance, resulting in costly penalties and fines. To ensure compliance, regularly visit government tax or labor sites that post law updates or changes, and consult payroll or financial experts on how to implement any changes.

    Prioritize Documentation

    When it comes to payroll, it’s important to prioritize employee information. Storing their personal records, such as their social security numbers or bank account numbers, is vital for proper payment and security. By keeping these records safe and easily accessible, you can ensure proper and timely payment for your employees.

    Regularly Review Information and Processes

    Technology and employee information change all the time. Employees may move; they might get a raise or close a bank account; it’s important to be aware of any changes so that you can update your records and continue to provide correct and timely payment. If you utilize payroll automation software, it’s important to stay current on software updates or process changes. To avoid any technical difficulties or improper payment, make quarterly checklists focused on verifying employee information, making proper software updates, and reviewing direct deposit amounts.

    How Group Management Services (GMS) Can Help

    As a business owner, you didn’t start your company to be buried in direct deposit forms and payroll checks. You started your business to do what you love and find success while doing it. Companies like Group Management Services (GMS) allow you to focus on business growth while taking on the burden of running payroll, ensuring tax compliance, and calculating overtime deductions. GMS’ payroll software is a safe and secure portal that stores employee information and automates processes, so you don’t have to worry about any discrepancies.

    GMS’ team of financial experts can ensure your compliance, whether you operate in one state or multiple. If you have a tax question or are concerned about changing regulations, our team is here to provide guidance and expertise to help your business grow and thrive. To learn more about our payroll services, click here!

  • As businesses look to grow in 2026, one strategic advantage that is becoming increasingly important is outsourcing human resources (HR) functions. More companies are turning to professional employer organizations (PEOs) to help streamline administrative processes, improve employee satisfaction, and support sustainable growth. By partnering with an expert HR provider like Group Management Services (GMS), business owners can focus on driving their core mission forward while we handle the rest.

    Why HR Outsourcing Is a Growth Engine

    Outsourcing HR through a PEO is more than a convenience. It is a proven business growth engine. Today, more than 200,000 businesses across the United States partner with a PEO for HR related services, including payroll, benefits, compliance, and risk management.

    The numbers speak for themselves: companies that work with a PEO experience significantly better outcomes compared to those that manage HR entirely in-house. According to research from the National Association of Professional Employer Organizations (NAPEO), businesses using PEO services grow twice as fast as those that don’t, have 12% lower employee turnover, and are 50% less likely to go out of business than their non-PEO counterparts.

    In addition to improved survival rates, PEO clients often enjoy:

    1. More consistent and competitive benefit offerings for employees
    2. Centralized payroll and compliance support
    3. Cost savings and increased profitability overall

    This support enables small and midsize companies to compete more effectively and grow confidently.

    How Outsourcing HR Relieves Administrative Burdens

    One of the biggest challenges for business owners is keeping up with the constant administrative workload that comes with HR. Tasks such as payroll processing, benefits management, compliance reporting, and workers’ compensation are essential but time-consuming. They also demand specialized expertise that many businesses struggle to maintain internally.

    When a company partners with a PEO like GMS, these responsibilities are handled by experienced professionals. This allows business leaders to shift their time and energy back to high-value initiatives. HR outsourcing through GMS leads to more accurate payroll, streamlined benefits administration, consistent compliance support, and easier access to answers for employee questions. Instead of juggling paperwork or navigating complex regulations, business owners can focus on growth, innovation, and daily operations with clarity and efficiency.

    Benefits for Employees Too

    Outsourcing HR not only helps leaders. It also provides meaningful benefits to employees. Through a PEO partnership, employees gain access to:

    1. Competitive benefits packages that are often similar to what larger companies offer
    2. Easier enrollment and better benefit administration
    3. Consistent payroll and HR support
    4. Resources that help with questions about benefits, compensation, or workplace policies

    These improvements help increase job satisfaction and overall retention. In a competitive talent market, the ability to offer strong benefits and dependable support can significantly improve a company’s ability to attract and keep great employees.

    Client Success Story

    “Having GMS administer our payroll, health care benefits, workers’ compensation, and assisting with human resources management has enabled us to focus our own resources on our core business of making quality aluminum extrusions. The contacts that I use at GMS are knowledgeable, professional, and provide accurate information in a timely manner.”

    — Manufacturer

    This testimonial reflects what many GMS clients experience. With HR experts managing essential functions, businesses regain time, clarity, and confidence to focus on their core mission.

    Partner with GMS to Scale in the New Year

    As you plan for the year ahead, consider how outsourcing HR could be a game-changer for your business. Partnering with a trusted PEO like GMS gives you the expertise, infrastructure, and peace of mind to scale without being bogged down in administrative tasks.

    Ready to see if a PEO is right for you?

    Schedule a 15-minute conversation and discover how we can help your business grow in 2026 and beyond.

  • As the end of the year approaches, businesses are reviewing their balance sheets, reflecting on their growth, identifying problem areas, and developing a game plan for 2026. Among the tasks business owners should prioritize completing at the end of the year, performance reviews should be listed at the top. Employees are the lifeblood of a company; checking in with them and monitoring their progress with a performance review is vital to retaining top talent, fostering loyalty, and improving your bottom line.

    End-of-year performance reviews are an important touchpoint for employers and employees. It’s important to understand how this process benefits your company and the best practices for conducting it. Continue reading to learn more about the benefits of end-of-year performance reviews and how to run them effectively.

    Introducing Performance Reviews

    An end-of-year employee performance review is an evaluation of an employee’s performance throughout the year. While the metrics for a successful year depend on the individual, the purpose of these reviews is to help the employee and employer discuss topics ranging from job performance, training, areas for improvement, and career development. These reviews are also great times for employees to discuss compensation, potential promotions or raises, and to strategize for the upcoming year.

    Benefits of an end-of-year performance review

    Performance reviews provide a variety of benefits to the entire company. They can:

    • Build a workplace culture that prioritizes employee growth
    • Clarify employee expectations and objectives
    • Foster greater communication across management levels
    • Improve employee engagement and productivity
    • Provide personalized guidance on career development
    • Clarify job expectations
    • Improve morale

    Best Practices for Conducting Performance Reviews

    Prepare thoroughly

    To effectively conduct a performance review, preparation is essential. Gather data from the past year; this data can include peer feedback, the employee’s previous goals, past performance reviews, and self-evaluations. Then, based on that data, develop important talking points for the meeting and make notes on the most important points to discuss. It’s also key to schedule time at the end of the meeting for employee questions and concerns.

    Prioritize open communication

    During the review, encourage your employees to share their perspectives and the challenges they’ve faced this year. Hearing their point of view can strengthen your relationship and allow you to gain a stronger understanding of their strengths, weaknesses, and future goals.

    Set goals

    One of the main objectives of conducting end-of-year performance reviews is to track an employee’s professional progress from the beginning to the end of the year. But an equally important objective of these reviews is to plan and set employee goals for the next year. Setting KPIs and goals for the following year acts as a benchmark for progress and professional development.

    While professional goals differ from employee to employee, they should be specific, actionable, and measurable. By working with your employees on their goals, you can set a precedent for what they should focus on during the next year and help them build a plan for how they are going to achieve them.

    Maintain regular check-ins

    End-of-year performance reviews are a common process throughout businesses, but you shouldn’t wait until the end of the year to check in with your workforce. By scheduling consistent reviews and check-ins, you foster a culture focused on open communication, employee development, and trust. Employees are also more likely to reach their goals by checking in with their employers and adjusting their benchmarks or KPIs as they see fit.

    Employee Management Assistance

    Performance reviews are about growth, communication, and organizational alignment. When approached thoughtfully, they strengthen relationships, enhance productivity, and create a thriving workplace culture. Employees are the cornerstone of a strong and successful company, and by checking in with them, your business is one step closer to overall development and growth.

    While you may not be an expert in performance reviews, Group Management Services (GMS) can help. With our knowledgeable Human Resources (HR) team, we consult business owners on best practices for employee growth and management initiatives. We can assist with writing employee handbooks, recruitment, employee training, and more. From performance reviews and HR audits to unemployment, GMS can help your business and employees thrive. Learn more about our HR services here!

  • As 2026 approaches, small business owners face a year of rapid change driven by technology, workforce evolution, and shifting customer expectations. Key trends include the rise of digital customer experiences, accelerated adoption of artificial intelligence and automation, and growing demand for flexible work models. Businesses must also prepare for complex regulatory updates, strengthen cybersecurity measures, and embrace sustainability initiatives to stay competitive. Explore these six critical trends and actionable tips to futureproof your business for 2026.

    As 2026 approaches, small and midsize business owners are preparing for another year shaped by rapid innovation, evolving workforce expectations, and new economic realities. The businesses that plan ahead now will be better positioned to stay competitive, attract talent, and support long-term growth.

    Below are the key trends shaping the year ahead and what they mean for employers.

    1. A Shift Toward Digital Customer Experience

    Online sales now account for 16.3% of total U.S. retail sales as of Q2 2025. More customers expect seamless online experiences, personalized communication, and a mix of both digital and in-person interaction. Small businesses that fail to meet these expectations risk losing customers to competitors who prioritize convenience, personalization, and speed.

    Key digital experience trends include:

    1. More businesses are launching or expanding e-commerce channels
    2. Growth of subscription or recurring revenue models
    3. Increased personalization in marketing and customer touchpoints
    4. Greater integration between online and physical customer experiences

    Action Tip: Review where your customers interact with your business online. Improving website performance, updating online booking tools, or expanding digital touchpoints can strengthen loyalty and make revenue more predictable.

    2. Artificial Intelligence (AI) and Automation

    Artificial intelligence adoption is accelerating across businesses of all sizes. According to the U.S. Chamber of Commerce’s 2025 report on technology adoption among U.S. small businesses, nearly 60% of small businesses now say they use some form of artificial intelligence.

    Some of the most common uses include:

    1. Automating repetitive administrative tasks like scheduling, payroll processing, and data entry
    2. Enhancing customer service through chatbots and automated responses
    3. Improving human resources (HR) processes, including recruiting, onboarding, and performance tracking

    Small businesses that adopt AI tend to outperform peers relying on traditional methods. These businesses often report increased operational efficiency, reduced costs, and the ability to offer services and responsiveness more typically associated with larger firms.

    Action Tip: Identify tasks in your business that are repetitive, time-consuming, or require significant manual effort. That’s often where AI or automation tools will deliver the most benefit in 2026.

    3. Workforce Trends

    As the labor market continues to shift, 2026 will be a pivotal year for how small and midsize businesses think about staffing, talent acquisition, and workforce development. According to Indeed, hiring trends are leaning strongly toward more inclusive, flexible, and candidate‑centered practices, making it essential for businesses not just to fill roles, but to build resilient, growth‑ready teams.

    Key areas to watch:

    1. Continued demand for flexible or hybrid work arrangements
    2. Rising interest in contract, freelance, and seasonal work to manage variable workloads without overextending your team
    3. A growing need for employee upskilling to keep up with technology and close skill gaps
    4. Increased competition for skilled workers, particularly in tech-driven roles

    As hiring challenges continue, small businesses will need strong benefits, consistent communication, and modern HR support to stay competitive.

    Action Tip: Assess benefits, recruitment, and training strategies for gaps. Employees who feel supported and equipped for change are more likely to stay long term.

    4. Regulatory Changes Will Grow More Complex

    With new labor, tax, and benefit regulations on the horizon, compliance remains a top priority for business owners. In 2026, companies may face updates to minimum wage, payroll taxes, retirement plan rules, and workplace safety regulations.

    Staying compliant is critical not only to avoid penalties but also to build trust with employees and maintain operational efficiency. Businesses increasingly rely on professional partners to manage these areas accurately and efficiently.

    Key areas to watch:

    1. Keeping up with state and federal regulatory updates
    2. Payroll tax compliance
    3. Pay transparency acts
    4. Minimum wage and exempt salary thresholds
    5. Paid leave expansions
    6. Occupational Safety and Health Administration (OSHA) electronic injury reporting
    7. And much more

    Action Tip: Conduct a compliance audit and partner with experts to simplify processes and reduce risk in 2026.

    5. Cybersecurity and Data Protection

    As businesses adopt more technology and digital tools, cybersecurity risks increase. Small businesses are often targeted because they may not have robust defenses. Cyberattacks can disrupt operations, damage customer trust, and result in costly fines or lawsuits. In 2026, protecting data, including employee, customer, and financial information, will be essential for maintaining business continuity and reputation.

    Key areas to watch:

    1. Regularly update software, firewalls, and network security to stay ahead of evolving threats
    2. Implementing secure cloud and IT solutions
    3. Training employees on security best practices, including phishing, password security, and safe use of devices and software

    Action Tip: Conduct a cybersecurity audit, implement employee training, and explore cyber liability insurance to reduce risk and protect your business in 2026.

    6. Sustainability

    Customers and employees increasingly evaluate companies based on transparency, sustainability, and ethical practices. Deloitte predicts that by 2026, sustainability will continue influencing consumer behavior, brand loyalty, and employee satisfaction.

    Even small initiatives, such as reducing waste, sourcing responsibly, or participating in community programs, can improve brand loyalty and employee engagement.

    Small businesses can benefit by:

    1. Reducing waste or energy usage
    2. Clearly communicating company values
    3. Creating community involvement or social responsibility initiatives
    4. Purchasing materials from vendors with responsible practices

    Action Tip: Choose one achievable sustainability goal for 2026. Small changes can improve brand perception and strengthen customer trust.

    How GMS Helps Business Owners Stay Ahead of 2026 Trends

    Navigating these trends can feel overwhelming, but GMS helps businesses stay ahead in every area. We provide:

    1. Payroll, HR, and benefits support: Simplifying complex processes so owners can focus on growth.
    2. Compliance expertise: Ensuring your business complies with evolving labor, payroll, and benefits regulations to avoid fines and operational risks.
    3. Workforce strategy guidance: Helping you design flexible, inclusive, and development-focused workplaces to attract and retain top talent.
    4. Risk management and cybersecurity support: Offering guidance on protecting sensitive data and exploring solutions like cyber liability insurance.
    5. Technology adoption and process optimization: Helping you implement tools that boost efficiency, reduce errors, and free your team to focus on strategic priorities.

    GMS is here to help business owners adapt with confidence and stay ahead of what is coming in 2026. Contact us to learn how we can support your business’s unique needs.