Request a call Login

  • New York businesses are bracing for significant health insurance premium increases in 2024. The New York State Department of Financial Services (DFS) has approved average rate hikes of 13.5% for individual plans and 7.4% for small group plans. While these increases are lower than insurers initially requested, they still represent a substantial burden for businesses and employees alike. 

    Three Factors Driving Premium Increases: 

    1. Rising medical costs: The cost of medical care, including hospital stays, physician services, and pharmaceuticals, continues to rise. This is compounded by increased utilization of these services as patients seek more care post-pandemic. 
    2. Economic inflation: Broader economic inflation has put additional upward pressure on health care costs, including administrative expenses for insurers. 
    3. End of public health emergency (PHE): The unwinding of the PHE has led to changes in coverage, such as the reintroduction of cost-sharing for COVID-19 testing and the commercialization of COVID-19 vaccines, which increase insurers’ costs. 

    What This Means For Business Owners: 

    Increased costs 

    Higher insurance premiums will impact New York businesses’ overall operating costs. This is particularly challenging for small businesses, which may struggle to absorb these increases. 

    Administrative challenges 

    The process of navigating these changes and ensuring compliance can be administratively burdensome. This includes managing renewals and understanding new coverage options for employees. Businesses may need to invest more time and resources into understanding the changes and communicating them effectively to their employees. 

    Employee impact 

    Rising premiums may lead to higher contributions from employees or reduced benefits, potentially affecting employee satisfaction and retention. Employees may also face increased out-of-pocket costs, which could affect their financial well-being and job satisfaction. 

    Strategic decisions 

    Business owners may need to revisit their benefits strategy. This could involve considering different insurance carriers or plans, exploring self-insurance options, or increasing the focus on preventative care and wellness programs to help control costs. 

    Navigating Changes In Health Insurance Premiums 

    As businesses face rising health insurance premiums, it’s crucial to explore various options to manage costs while still providing quality coverage for employees. Here are some strategies to consider: 

    1. Explore GMS’s master health plan:
    • GMS offers an in-house master health plan that helps businesses avoid large swings in usage trends and renewal rates. 
    • Our plan provides access to one of the largest national networks. 
    1. Leverage group buying power:
    • By partnering with GMS, small businesses can access the buying power of a large corporation. 
    • GMS represents more than 50,000 employees, allowing for more competitive rates. 
    1. Consider different plan options:
    • Evaluate various plan types, such as preferred provider organizations (PPOs), health maintenance organizations (HMOs), or high-deductible health plans paired with health savings accounts (HSAs). 
    • Each option has different cost structures and benefits that may better suit your business and employees. 
    1. Implement cost-sharing strategies:
    • Adjust deductibles, copayments, or coinsurance to balance costs between the employer and employees. 
    • Offer voluntary supplemental insurance plans to cover gaps in primary coverage. 
    1. Promote wellness programs:
    • Implement wellness initiatives to improve overall employee health and potentially reduce long-term health care costs. 
    1. Educate employees:
    • Provide comprehensive education on plan options and how to use the benefits effectively. 
    • Help employees understand how these changes might affect their contributions and benefits. Transparency can build trust and reduce anxiety. 
    • GMS offers a dedicated team of experts to assist with employee training and answering complex health plan questions. 
    1. Regular plan reviews:
    • Conduct annual reviews of your health insurance plans to ensure they still meet your business needs and budget. 

    By exploring these options, particularly GMS’s master health plan, businesses can work towards managing premium increases while still offering competitive benefits to their employees. 

    Navigate Change With GMS: 

    As New York businesses navigate these challenging premium increases, GMS offers a valuable solution. Our in-house master health plan helps businesses avoid large swings in usage trends and renewal rates. By leveraging the collective purchasing power of over 50,000 employees, GMS enables small businesses to access group health insurance at significantly lower rates—24% lower for employee premiums and 21% lower for family premiums compared to the U.S. average.  

    By working with GMS, you can navigate these challenges more effectively, ensuring that your business remains competitive and your employees are well supported. Partner with GMS to better manage your health care expenses, support your employees, and maintain a competitive benefits package that supports employee retention. 

  • On July 17th, the Internal Revenue Service (IRS) announced that some amended employment tax returns can be electronically filed using the Modernized e-File program.  

    The Modernized E-File (MeF) Program 

    MeF is a web-based system that allows electronic filing of tax returns. E-filing saves time and money. When taxes are e-filed, whether it be for businesses, professionals, or individuals, the data is directly transmitted online from the e-filer’s servers to the tax agency’s servers.  

    The MeF program provides electronic filing and payment options for filers of corporation, employment tax, estates and trusts, excise tax, exempt organization, individual, partnership, and withholding tax returns. Learn more about these returns here. 

    Amended Returns That Can Now Be E-Filed 

    The following amended employment tax returns can now be e-filed: 

    • Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return 
    • Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund 
    • Form 943-X, Adjusted Employer’s Annual Federal Tax Return for Agricultural Employees or Claim for Refund 
    • Form 945-X, Adjusted Annual Return of Withheld Federal Income Tax or Claim for Refund 

    Note: MeF cannot be used yet to e-file Form 944-X, Adjusted Employer’s Annual Federal Tax Return or Claim for Refund, or Form CT-1 X, Adjusted Employer’s Annual Railroad Retirement Tax Return or Claim for Refund. 

    About Form 940 

    Use Form 940 to report your annual Federal Unemployment Tax Act (FUTA) tax. Workers who have lost their jobs can receive unemployment compensation through the FUTA tax and state unemployment tax systems. Employers typically pay both federal and state unemployment taxes. Only employers pay the FUTA tax; your employee’s wages should not be subject to it. 

    About Form 941-X 

    Use Form 941-X to correct errors on a Form 941 that you previously filed. Form 941 is used to report both federal income taxes and Federal Insurance Contributions Act (FICA) taxes, the latter of which includes Medicare tax and Social Security tax. 

    About Form 943-X 

    Use Form 943-X to correct errors on a previously filed Form 943. Form 943 is a tax form used to report federal income tax, Social Security, and Medicare withholdings from agricultural employees. 

    About Form 945-X 

    Use this Form 945-X to correct administrative errors only on a previously filed Form 945. If the federal income tax you reported on Form 945 (including backup withholding) differs from the amount withheld from payees, you have committed an administrative error. 

    Use Form 945 to report withheld federal income tax from nonpayroll payments. Nonpayroll payments include: 

    • Pensions (including distributions from tax-favored retirement plans, for example, section 401(k), section 403(b), and governmental section 457(b) plans), and annuities 
    • Military retirement 
    • Gambling winnings 
    • Indian gaming profits 
    • Voluntary withholding on certain government payments 
    • Backup withholding 

    GMS Helps Keep Your Business Compliant 

    Staying compliant with the ever-changing landscape of tax and payroll regulations can be daunting for any business owner. With GMS, you can skip the manual work and focus on what truly matters—growing your business. Our expert team is dedicated to keeping you informed about new laws and regulations, ensuring your business remains compliant without the hassle. Let us handle the complexities of payroll and tax management. Contact us today to learn how GMS can support your business and simplify your operations! 

  • As a business owner, ensuring the health and safety of your team should be a top priority. Your employees’ work and productivity are vital to keeping your business running smoothly, and any threat to their safety can significantly impact your business’ operations. While maintaining a safe working environment involves several factors, there are specific legal obligations you must adhere to.

    Under the U.S. Department of Labor, the Occupational Safety and Health Administration (OSHA) has established comprehensive guidelines that businesses must follow. These guidelines extend beyond the physical workplace, including emergency plans, proper documentation, and more. While a few businesses are exempt, which we will discuss later, most companies must comply with OSHA regulations regardless of size. Non-compliance can lead to significant fines, legal consequences, and reputational damage that may be challenging to recover from.

    Prioritizing OSHA compliance not only ensures the safety and health of your team but also fosters a culture of responsibility and care within your organization. By doing so, you mitigate risks and contribute to a more productive and motivated workforce, which can ultimately drive your business toward sustained success. In other words, OSHA compliance is not just a legal obligation but a strategic move that can enhance your business’ performance and reputation.

    Exempt And Partially Exempt Businesses

    While most businesses are required to comply with all OSHA regulations, several factors determine whether your business falls under OSHA’s jurisdiction and the extent of compliance needed:

    • Small business exemptions: Companies with 10 or fewer employees are partially exempt from OSHA. While they must still comply with specific reporting requirements, they are not required to maintain records of illnesses or injuries unless directed otherwise by OSHA.
    • Industry-specific exemptions: Depending on the industry, businesses with 10 or more employees may still be partially exempt from OSHA’s recordkeeping requirements. Low-risk sectors, such as payroll services and research and development, for example, have reduced OSHA responsibilities and are only required to comply with specific regulations.
    • Location-based exemptions: OSHA has reviewed and approved 22 state employee safety programs. If your business operates in one of these states, you must follow the specific regulations set forth by the state’s safety program rather than federal OSHA regulations.
    • Self-employed exemption: This only applies to businesses where the owner doesn’t have employees. Once a business owner hires one or more employees, they become subject to OSHA regulations.
    • Federally or state-regulated industries: These industries include mining and milling, aviation, churches and religious establishments, to name a few. While these organizations do not fall under OSHA, they must adhere to their industry’s specific regulations to ensure the health and safety of their workers.
      It’s critical to understand your business’ required level of compliance. In addition, as your business grows, it’s important to regularly revisit your health and safety practices to ensure ongoing compliance, as your status may change.

    OSHA Requirements For Employers

    As a business owner, you are responsible for providing a safe workplace free from serious hazards. Workplace injuries can significantly impact your employees, reducing productivity and morale. Unsafe work environments often result in increased absenteeism, as injured employees may require extensive time off, which in turn places additional labor demands on the remaining staff. This can lead to burnout, disengagement, and even more injuries due to fatigue. Investing in the health and safety of your team can save you time and money in the long term.

    Beyond creating a safe work environment, OSHA also requires you to implement and maintain several key safety protocols and practices, including:

    Emergency plan

    A clearly defined emergency action plan (EAP) is essential in a crisis requiring employees to evacuate the workplace; this plan should outline the procedures for exiting the building or work zone safely. Ensure all staff members know the EAP and that it’s in an accessible area for easy reference, such as the cafeteria or a common gathering area. Regular drills and updates to the plan will help keep employees prepared and aware of the proper actions to take during an emergency.

    Fire safety plan

    Similar to the emergency action plan, a written fire safety plan is required. In addition, marked exits that are always obstruction-free are mandatory. If you choose to keep fire extinguishers onsite, while not required by OSHA in most cases, it’s essential to train your employees on proper use.

    Safety tools and training

    As an employer, you must provide all necessary tools and safety equipment for your team. This varies depending on your industry, but personal protection equipment (PPE) while operating heavy construction equipment is one example. Additionally, it’s crucial to ensure that employees are adequately trained in using and maintaining these tools. Regular training sessions will help maintain a high level of safety and proficiency.

    Personal protection equipment (PPE)

    PPE includes items such as head protection, gloves, masks, respirators, and eye, face, and ear protection. In industries where employees handle hazardous materials or work in dangerous environments, it’s your responsibility to provide the appropriate PPE and ensure your staff utilizes it effectively. Integrate regular training sessions and reminders into your workflow to reinforce proper usage.

    Documentation and reporting

    OSHA has specific documentation and reporting requirements for workplace injuries and illnesses. While you must report all cases to OSHA, the severity of the incident will dictate the reporting timeline. For instance, fatalities or amputations require you to file a report within eight hours of the incident, while less severe injuries require a report within 24 hours. Maintaining accurate records and adhering to these reporting guidelines are essential for compliance and employee safety.

    OSHA compliance is a serious task that can be time-consuming and costly. If you’re not sure where to start , this OSHA compliance checklist will help ensure you’re on the right track. However, if you’re seeking more assistance, partnering with a professional employer organization (PEO) like GMS can be highly beneficial.

    How GMS Can Help

    As a small business owner, you can take extensive measures to create a safe working environment, but accidents may still happen; having a plan for when they do occur is the best way to ensure your team and your business are as protected as possible. GMS’ workers’ compensation experts work closely with your company to create a comprehensive risk management plan to keep your employees safe while also saving you money. In addition, our experts are always ready to help you navigate claims in real time. Our partnership with CarivaCare provides our clients with 24/7 access to the workers’ compensation nurse triage program. This program offers employees a neutral, third-party medical professional to report any injuries on the job.

    PEOs like 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. Contact us today, and let us help you create a safer and more compliant workforce!

  • South Carolina recently became the fifth state to enact a law regulating earned wage access (EWA) providers. The new law, signed by Governor Henry McMaster, takes effect on November 21, 2024.

    The Rise of Earned Wage Access

    Earned wage access allows employees to access wages they have already earned before their next payday. This helps employees meet unexpected expenses without having to pay late fees, overdraft fees, or resort to predatory payday loans.

    As EWA grows in popularity, some states and the federal government have considered enforcing stricter regulations that would classify it as lending. However, the industry has successfully advocated for laws like those in South Carolina that provide oversight without the burdens of lending laws.

    Key Provisions Of The South Carolina EWA Law

    • EWA is not considered a loan under the law
    • EWA providers must register annually with the SC Department of Consumer Affairs (DCA)
    • EWA providers must offer employees at least one no-cost option to access earned wages
    • Employees can discontinue EWA services at any time without penalty
    • EWA providers must disclose all fees associated with the service
    • Providers must report annual data like revenue, complaints, and transaction volume to the DCA

    South Carolina joins Kansas, Missouri, Nevada, and Wisconsin in implementing EWA regulations that avoid treating these services as loans subject to lending laws.

    EWA Benefits For Small Businesses

    EWA provides valuable financial flexibility for employees while helping small businesses attract and retain top talent. EWA is a beneficial tool that small businesses can leverage to foster a financially healthy, engaged, and loyal workforce. By providing employees with the financial flexibility they need, employers create a supportive and attractive work environment. With GMS’ payroll and human resources expertise, we can provide resources to integrate an EWA solution for your workforce.

    GMS stays up to date on rapidly evolving regulations like South Carolina’s new EWA law. We ensure your business remains compliant while offering benefits that give you a competitive edge in recruitment and employee satisfaction. Contact our team of HR experts today to learn more about how we can support your small business needs.

  • As of July 1, 2024, businesses operating in Chicago will need to comply with the city’s new Paid Leave and Paid Sick Leave Ordinance. This updated law replaces the previous Chicago Paid Sick Leave Ordinance and introduces significant changes that employers must understand and prepare for.

    Key Provisions Of The New Ordinance

    Under the new ordinance, eligible employees in Chicago will be entitled to earn up to 40 hours of paid sick leave and an additional 40 hours of paid leave per 12-month period. This paid leave can be used for any reason, providing employees with greater flexibility and work-life balance.

    The ordinance also includes provisions regarding the definition of a 12-month period, carryover of unused leave, denial of leave requests, use of paid time off (PTO) policies for compliance, rate of pay calculations, and employer notification requirements.

    Defining The 12-Month Period

    Employers have the flexibility to establish their own 12-month period for accruing and using paid leave and paid sick leave. This period can be based on the employee’s anniversary year, the calendar year, a contract year, the fiscal year, or the tax year, as long as it consists of consecutive months.

    Carryover Of Unused Leave

    Employees can carry over up to 80 hours of paid sick leave and up to 16 hours of paid leave from one 12-month period to the next. Employers have the option to frontload 40 hours of paid leave and 40 hours of paid sick leave at the beginning of the 12-month period, but frontloading paid sick leave does not alleviate the carryover obligations for that type of leave.

    Denial Of Leave Requests

    The ordinance allows employers to require reasonable preapproval for using paid leave to maintain business continuity. However, denials must be based on legitimate factors, such as the impact on operations, the nature of the business, and ensuring fair treatment of employees. Denials must be provided in writing with a clear rationale.

    The final rule includes a new provision that allows employers to restrict the use of paid leave or paid sick leave to the employee’s regular workweek. This means that employees could be prevented from accessing their paid leave or paid sick leave during scheduled mandatory overtime or weekends.

    Using PTO Policies For Compliance

    Employers can use existing PTO policies to comply with the ordinance, but they must adhere to its requirements, such as the shorter waiting period for using paid sick leave. For example, the 30-day waiting period for paid sick leave must apply to the policy instead of the 90-day waiting period for paid leave.

    Rate Of Pay Calculations

    Employees must receive their regular rate of pay when using paid sick leave and paid leave, including continuing health care benefits if applicable. The final rules did not provide guidance on calculating the regular rate of pay for non-exempt employees based on the previous 90 days of employment.

    Employer Notification Requirements 

    The ordinance outlines various notification requirements for employers, including:

    • Posting notices
    • Providing new hire notifications
    • Annual frontloading notices (if applicable) 
    • Annual employee notifications 
    • Establishing written policies
    • Notifying employees of policy changes
    • Providing information on available paid leave balances

    Ensuring Compliance With GMS

    As the July 1st effective date approaches, businesses in Chicago must take proactive steps to ensure compliance with the new Paid Leave and Paid Sick Leave Ordinance. Failure to comply can result in penalties and legal consequences.

    At GMS, we understand the complexities of navigating the ever-changing labor laws and regulations. Our team of experts can assist your business in reviewing and updating your paid leave policies, employee handbooks, and notification procedures to align with the new ordinance. We can also provide guidance on record-keeping, payroll calculations, and other compliance-related matters.

    By partnering with GMS, you can have peace of mind knowing that your business is fully compliant with state and local laws. and any other applicable labor laws. Contact us today to learn more about our comprehensive compliance solutions and how we can help your business stay ahead of the curve.

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

    Incident Details

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

    OSHA’s Actions

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

    Violations Identified

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

    Protect Your Business With A PEO

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

  • The U.S. Department of Labor (DOL) recently announced a significant change that will impact millions of workers across the country. The final rule to increase the minimum salary level for the Fair Labor Standards Act (FLSA) “white collar” exemptions will have far-reaching effects on employers and employees. It’s essential to explore the implications of these changes, especially for different state regulations.

    Changes In Minimum Salary Levels

    The DOL’s announcement sets the minimum salary level for the FLSA “white collar” exemptions to increase in two phases. The first phase, effective July 1, 2024, will see the minimum salary level rise from $684 to $844 per week, or from $35,568 per year to $43,888 per year. However, on January 1, 2025, the minimum salary level will experience another hike, reaching $1,128 per week or $58,656 per year.

    Impact On States

    The new salary thresholds for white-collar exemptions will affect different states, depending on their existing labor laws and regulations. Let’s break down the impact based on the different categories of states:

    States with no general overtime pay provisions

    There are 17 states without general overtime pay provisions. Employers in these states, covered by the FLSA, must adhere to the federal overtime pay requirements, including the new salary thresholds. These states include:

    • Alabama
    • Arizona
    • Delaware
    • Florida
    • Georgia
    • Idaho
    • Louisiana 
    • Mississippi
    • Nebraska
    • Oklahoma
    • South Carolina
    • South Dakota 
    • Tennessee 
    • Texas
    • Utah
    • Virginia
    • Wyoming

    States and territories referring to FLSA overtime definitions

    Currently, 14 states and territories rely on or directly refer to the overtime definitions found in the FLSA. Consequently, they’re also obligated to follow the new salary thresholds. These states and territories include:

    • Arkansas
    • District of Columbia
    • Indiana
    • Kansas
    • Kentucky
    • Maryland
    • Massachusetts
    • Michigan 
    • Missouri
    • Nevada
    • New Hampshire
    • North Carolina
    • Ohio 
    • Rhode Island

    States with their own overtime rules

    In addition to the above, there are 20 states that have their own overtime rules to consider alongside the federal regulations. These states include:

    • Alaska
    • California
    • Colorado
    • Connecticut
    • Hawaii
    • Illinois
    • Iowa
    • Maine
    • Minnesota
    • Montana 
    • New Jersey
    • New Mexico
    • New York
    • North Dakota
    • Oregon
    • Pennsylvania 
    • Vermont
    • Washington
    • West Virginia
    • Wisconsin

    Interaction With State Laws

    It’s important to note the interaction between the new FLSA salary thresholds and state laws is critical. While state law requirements are less favorable to an employee than the FLSA, the state laws apply only to employees who are not covered by the FLSA. On the contrary, if the state requirements are more favorable to an employee than the FLSA, they apply to all employees covered by the state law, even if they’re also covered by the FLSA.

    How A PEO Comes Into Play

    The changes in the FLSA minimum salary levels will have a widespread impact on the employment landscape across the United States. It’s essential for small business owners to stay informed about these changes and ensure compliance with federal and state regulations to avoid any potential legal ramifications.

    This is where a professional employer organization (PEO) can play a crucial role. A PEO, like Group Management Services (GMS), can provide expert guidance on compliance with federal and state labor regulations, offer tailored HR solutions, and assist in managing payroll and employee benefits. By partnering with GMS, businesses can streamline their HR processes, stay updated on changing regulations, and ensure they are well-equipped to adapt to the new FLSA requirements while adhering to state-specific laws. Contact us today to learn more!

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

    The new poster can be found by clicking here.

    Understanding The “Workers’ Bill Of Rights”

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

    The Role Of QR Codes In Promoting Accessibility

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

    Implementation Timeline And Employer Responsibilities

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

    Compliance And Penalties

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

    Where GMS Comes Into Play

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

  • A safe workplace can help make for a more successful business. Not only do safety guidelines help keep your employees safe, but they also save you from having to deal with costly workers’ compensation claims. Additionally, when you make it a point to value safety, you gain a reputation for caring about your employees, which can help boost your recruitment and retention efforts.

    Aside from these apparent benefits, workplace safety programs provide many perks you might not necessarily consider. From increased productivity to reduced environmental impact, there are many advantages to creating a safe workplace.

    What Is A Workplace Safety Program?

    A workplace safety program is a set of practices and procedures designed to keep employees safe and healthy on the job. It’s not just about following regulations (although that’s important too!), it’s about creating a culture of safety where everyone is committed to preventing accidents and illnesses.

    Critical elements of a successful workplace safety program include:

    • Management leadership: Management sets the tone for safety in the workplace. This means being visible, involved, and committed to safety.
    • Worker participation: Employees should be involved in identifying hazards, developing safety procedures, and reporting unsafe conditions.
    • Hazard identification and control: The program should regularly identify, assess, and control potential hazards in the workplace.
    • Education and training: Provide your team with training on hazards, safe work practices, and personal protective equipment (PPE).
    • Program evaluation and improvement: You should regularly evaluate your policies to ensure they are up-to-date and identify areas for improvement.
    • Communication and coordination: There should be clear communication about safety expectations and procedures. This includes communication between employees, managers, and any contractors or temporary workers.

    Unexpected Benefits Of Workplace Safety Programs

    The primary function of workplace safety programs is to prevent accidents, injuries, and occupational hazards. However, beyond its primary goal, these programs can bring several other benefits, including the following:

    Better retention rates

    When you implement a workplace safety program, you’re working toward creating a better environment for your employees. The Society for Human Resource Management (SHRM) found that employees of businesses who prioritized health and safety were four times more likely to report job satisfaction. A safe workplace is a happy workplace that retains employees year after year.

    Enhanced organizational reputation

    A robust workplace safety program reflects positively on your reputation. Businesses known for prioritizing safety are perceived as responsible and caring employers. This reputation can attract top talent, improve customer trust, and strengthen relationships with stakeholders, including investors and regulatory bodies.

    Reduced costs and increased efficiency

    You may know that workplace safety programs are a sound financial decision, but how much money can it save? One study found that facilities in California that had been inspected by California’s Occupational Health and Safety Department saw 26% average cost savings on workers’ compensation following an inspection compared to similar uninspected workplaces.

    While the initial investment in safety equipment and training may seem costly, it often leads to significant cost savings over time. Fewer workplace accidents mean lower expenses for workers’ compensation claims, medical costs, insurance premiums, and potential legal fees. Moreover, a safer work environment tends to be more efficient, with fewer disruptions due to accidents or absenteeism.

    Compliance with regulatory requirements

    Implementing a comprehensive safety program ensures compliance with health and safety regulations set forth by governmental agencies. Meeting regulatory requirements not only avoids fines and penalties but also establishes a framework for best practices in workplace safety.

    Improved quality of work

    A good safety program can keep your employees healthy, but did you know they can also make them more productive? Businesses experienced a 43 percent increase in productivity from employees who followed a workplace safety program, meaning that the program not only helped keep employees safe but also made them work more efficiently than before.

    Why? Employees who aren’t worried about safety hazards are better able to focus on their tasks, leading to higher-quality products or services. Reduced accidents and errors contribute to smoother operations and better customer satisfaction.

    Enhanced teamwork and communication

    Safety programs often promote teamwork and open communication among employees. Safety training sessions and regular safety meetings allow workers to interact, share concerns, and collaborate on safety initiatives. This improved communication can extend beyond safety issues and positively impact overall teamwork and collaboration within the organization.

    Innovation and continuous improvement

    Safety programs encourage a culture of innovation and continuous improvement. Employees and managers actively involved in safety initiatives often identify opportunities for process improvements and technological advancements that not only enhance safety but also increase efficiency and reduce costs.

    Reduced environmental impact

    Many workplace safety programs include initiatives that reduce operations’ environmental impact. Implementing energy-efficient practices, reducing waste, and using safer chemicals or materials can contribute to sustainability goals and demonstrate corporate responsibility.

    Better emergency preparedness

    Safety programs often incorporate emergency preparedness and response plans. Employees trained in emergency procedures are better equipped to handle unexpected situations such as fires, natural disasters, or medical emergencies. This preparedness can save lives and minimize property damage during critical incidents.

    Long-term business sustainability

    Ultimately, a commitment to workplace safety contributes to the long-term sustainability of the business. By protecting employees, minimizing risks, and fostering a positive work environment, you can build resilience against external challenges and position your business for continued success in the marketplace.

    Start Your Own Workplace Safety Program

    Workplace safety programs offer more than just protection against accidents—they promote employee well-being, enhance organizational reputation, improve efficiency, and contribute to overall business success. Investing in safety is a legal and moral obligation and a strategic decision that pays dividends in numerous ways.

    Don’t wait to institute a workplace safety program for your business. Contact Group Management Services today, and we will help you see the benefits of a safer workplace for your business.

  • Employee classification is the backbone of workforce management, impacting everything from payroll to compliance and employee satisfaction. For human resources (HR) professionals and business owners, keeping up with evolving laws and regulations is crucial to protecting your business and supporting your workforce. This blog will equip you with the knowledge you need to confidently navigate employee classification and avoid common pitfalls. 

    What Is Employee Classification And Why Does It Matter? 

    Employee classification defines the legal relationship between a business and its workers, determining their eligibility for benefits, wage protections, and tax obligations. The two most common distinctions are: 

    Employees: Employees have a formal employment relationship with the company, usually documented through an employment contract. They are entitled to various protections, including minimum wage, overtime pay, unemployment insurance, and workers’ compensation. The company withholds taxes from employees’ paychecks and can contribute to their retirement accounts. Employees typically work for one employer, either full-time or part-time, and can be classified as exempt or non-exempt. Their tenure lasts until they resign, are terminated, or the role ends. 

    Independent Contractors: Independent contractors are self-employed individuals who provide services to a company but do not receive the same protections as employees. They typically have greater control over how they complete their work, including setting their own schedules and using their own tools and methods. Unlike employees, contractors are responsible for paying their own taxes, including self-employment taxes, as companies do not withhold taxes from their payments. Additionally, businesses must complete Form 1099-NEC to report payments made to contractors during tax season. 

    Proper classification ensures: 

    • Compliance: Reduces legal exposure to penalties or lawsuits.  
    • Fair compensation: Supports worker rights and builds trust. 
    • Business stability: Avoids audits and fines that disrupt operations. 

    The Key Types Of Employee Classification 

    Employees Vs. Independent Contractors 

    Businesses must correctly classify workers as employees or independent contractors. The U.S. Department of Labor’s updated rule, effective March 11, 2024, helps clarify this process. The rule focuses on several factors, such as how much control a business has over a worker and whether the work is a permanent part of the business. These changes aim to reduce misclassification, ensure workers get the wages and protections they deserve, and provide clear guidelines for businesses. 

    Exempt Vs. Non-Exempt Employees 

    For employees, the Fair Labor Standards Act (FLSA) governs whether employees are entitled to overtime pay.  

    Key factors include: 

    Exempt Employees: Generally salaried workers who meet a “duties test” and are not eligible for minimum wage and overtime pay. These employees are typically salaried and hold executive, administrative, or professional roles. 

    Non-Exempt Employees: Typically hourly workers who are eligible for overtime pay for hours worked beyond 40 per week and must earn the federal minimum wage.  

    Full-Time Vs. Part-Time 

    While “full-time” and “part-time” are not strictly legal terms, they are crucial in determining eligibility for benefits such as health insurance, retirement plans, and paid time off. Employers should clearly define these terms in their handbook and any other key distinctions to ensure consistency and compliance with company policies and applicable laws. 

    Full-time employees: Typically work 35 to 40 hours a week, are eligible for benefits, and may qualify for overtime pay. 

    Part-time employees: Typically work fewer than 35 hours a week, are less likely to receive benefits, and often have more flexible schedules. 

    Seasonal Employees Vs. Temporary Workers 

    Seasonal employees: Hired for specific times of the year when demand increases, such as lifeguards in the summer or retail workers during the holidays, typically for six months or less.

    Temporary workers: Fill short-term needs, like covering for someone on leave, with contracts ranging from a few days to several months.  

    It’s important to distinguish between these types of workers because the Affordable Care Act (ACA) requires large employers to offer health insurance to full-time employees working 30 or more hours per week. Both seasonal and temporary workers may qualify as full-time if they consistently work 30 hours per week for several months, entitling them to health insurance. For more details on ACA requirements, consult legal counsel. 

    Remote Employees And Multi-State Compliance 

    With remote work normalized, businesses must navigate state-specific labor laws for employees working across the country. Some states, like California, have stricter worker classification standards, including wage theft protections and mandatory overtime laws. Employers must ensure proper tax withholding and reporting based on the worker’s state of residence. Explore our guide to managing a remote team for more information.  

    The Risks Of Misclassification 

    Misclassification can expose your business to serious risks, including: 

    • Tax liabilities: Misclassification can result in unpaid payroll taxes, which can lead to significant tax liabilities and penalties from the IRS. 
    • Back wages and benefits: Employers may be required to pay back wages, overtime, and benefits to misclassified workers, which can be substantial. 
    • Legal disputes: Employees misclassified as contractors may sue for unpaid wages, benefits, or wrongful termination. 
    • Fines and penalties: Federal and state agencies are increasingly aggressive in auditing businesses for compliance. 
    • Reputational damage: Misclassification issues can tarnish your company’s public image, deterring talent and clients. 

    How To Ensure Proper Employee Classification 

    • Conduct a classification audit: Regularly review employee and contractor relationships to ensure compliance. Focus on roles with unclear or evolving responsibilities. 
    • Reevaluate job descriptions. Clearly define each role’s scope, expectations, and reporting structure. Align job descriptions with FLSA and ABC test criteria. 
    • Understand state laws: Pay close attention to labor laws in the states where your employees work, especially those with stricter classification standards, such as California, New York, and Illinois. 
    • Train your team: Equip HR and management teams with the knowledge they need to spot and address potential classification errors. 
    • Consult experts: Partnering with a professional employer organization (PEO) like Group Management Services can provide your business with access to legal, HR, and payroll expertise to manage classification challenges. 

    How GMS Supports Proper Classification 

    Navigating employee classification is a complex process, but GMS simplifies it. We provide: 

    • Comprehensive classification audits: Identify and correct any misclassification issues. 
    • Multi-state compliance management: Ensure your workforce is compliant across all states where you operate. 
    • Payroll and benefits administration: Streamline your processes with tools and resources tailored to your needs. 

    Proper employee classification is not just about avoiding penalties; it’s about fostering a fair and compliant workplace. As 2025 brings new challenges and stricter regulations, businesses must stay proactive to protect their workforce and bottom line. Connect with GMS today to explore how we can help you manage employee classification and drive your business forward.