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  • Washington has officially announced that under government ruling, starting on January 4th, all companies with 100 or more employees will need to be vaccinated or produce a verified negative COVID test weekly. If one should not fully comply, there will be a nearly $14,000 fine per violation – up to $136,532 for a willful violation of rules. Unvaccinated employees must also wear masks. This new ruling will affect more than 84 million workers at medium and large companies.

    Stricter rules will apply to 17 million people who work in nursing homes, hospitals, and other facilities that receive Medicare and Medicaid. They all must be vaccinated and will have no option to be tested.

    Along with vaccine mandates and testing, OSHA requires that businesses provide paid time off for employees to get vaccines and sick leave to those who have gotten sick from the virus, which will go into effect on December 5th.

    OSHA also states that because vaccines are free of cost, the companies do not need to pay for the tests for employees who do not wish to receive the vaccine.

    Administration officials say efforts to get people vaccinated are paying off with about 70% of the nation’s adults now fully vaccinated. Although some companies fear that vaccine-hesitant people might quit which leaves an already-struggling small workforce even thinner.

    This situation remains fluid and it is expected more changes and announcements are forthcoming.

    Partnering with GMS can help business owners navigate legislative updates during these unprecedented times. To learn more about our services, contact us today.

  • Why Certified Professional Employer Organizations Are Critical To Franchises

    Franchising has proven to be an extraordinarily successful business model for hundreds of thousands across the country, as it delicately blends entrepreneurship with tailored guidance. For most successful franchisees, their strength lies in the structure of their business operations. So, it makes perfect sense that adding a Certified Professional Employer Organization (CPEO) further increases a franchise’s operational efficiencies – especially considering that effective employee management is ranked #2 in the three biggest challenges that franchises face.

    Franchise owners are exceptionally fond of the CPEO model because they maintain control of all organizational decision-making, while HR burdens and liabilities are shifted to the CPEO.

    CPEOs manage a plethora of duties within the employment process – from benefits to HR services, and even payroll and tax, thus providing an extra layer of safety by ensuring regulatory compliance. Having undergone rigorous background, financial, and reporting requirements set by the IRS, fewer than 7 percent of PEOs in the U.S. are currently certified.

    Partnering with a CPEO offers your franchise:

    Benefits: Benefits administration can be tolling, especially when you consider onboarding, claims, and most importantly… rates. Because the CPEO model aggregates the employees of its clients, they then having the buying power of large corporations. In turn, your franchise and its employees enjoy competitive rates and solid coverage.

    HR Services: Whether it’s employee handbooks, onboarding, drug testing services, or employment verification – amongst other things, your CPEO helps you simplify your HR plans. Now more than ever, as the country faces a workforce shortage, finetuning your employee experience is vital for your recruiting and retention.

    Payroll and Tax: CPEOs assume the responsibility for federal tax liability and penalties and are required to post an annual bond of up to $1 million guaranteeing payment of its federal employment tax liabilities. CPEOs ensure financial protections and tax benefits that non-certified PEOs do not necessarily have. This means paying your employees, record keeping + management reports, PTO accruals, and more, are no longer on your plate.

    Compliance: The co-employment relationship allows your franchise to substantially mitigate the risk associated with being an employer. A CPEO will provide guidance and support on new hire reporting, Employment Practices Liability Insurance (EPLI), unemployment and workers’ compensation insurance filings.

    A good CPEO can ease the mind of franchise owners while helping to reduce both their cost and liability. Contact us today to see how your franchise could benefit from with a CPEO.