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  • The Unanticipated Telecommuting Tax  

    Throughout the progression of COVID-19, over half of full-time employees were encouraged to work from home. As a result, some major corporations have permanently implemented the option to telecommute. The drastic change brings along an unexpected tax consequence.  

    Within most states, there is state income tax withholding which is required by the state where employees perform. The state can tax employees’ earnings if they work or live within the state. When it comes to neighboring states, commuters often have reciprocity agreements. These agreements allow withholding to be required within the employee’s home state. However, the tax or withholding is not always enforced to the work state.  

    When an employee works in a different state from their employer, it often creates another complication – Nexus.  Although varying by state, it holds the potential to trigger state income, sales tax, and corporate taxes for the employer. Employees will not be the only ones who are impacted. With an increasing number of employees teleworking from various locations, how to manage where they are to pay income tax has become vastly complicated.   

    Telecommuting is proposed to be the new norm, even after the end of the pandemic. If this occurs, employers must be made aware of the potential tax impacts and how to properly manage their teleworkers.  

    How GMS Can Help:  

    Working with a PEO like GMS will allow you to stay up to date with all the changing regulations. Along with ensuring that as an employer you are covered throughout the complete employee life cycle. Allowing business owners to have additional access to counsel for any questions that may arise.   

    Interested in learning more about all GMS has to offer? Contact us today! 

  • Thanks to technological advancements in the modern workplace, remote work, or work-from-home (WFH) jobs have become increasingly more common. According to the Global Workplace Analytics’ analysis of 2018 American Community Service data, work-from-home jobs have grown 173 percent since 2005—11 percent faster than the rest of the workforce. Remote work has likely grown even more so as a result of the 2020 outbreak of COVID-19, which prompted many employers to shift to a remote work model to limit the spread of the coronavirus. 

    Telecommuting can be an attractive work option for both employees and employers. For employees,  flexible work hours and more time to spend with family can make remote work an ideal situation. For employers, hiring remote workers can save money and increase productivity if you manage your remote team effectively. 

    As more businesses implement work-from-home policies, employers will need to consider how the trend will impact HR initiatives. Here are some best practices for managing HR for remote employees.

    A small business employee working from home.

    Remote Employee Performance Management

    How do you manage an employee that you don’t see face-to-face every day? With technology and some effort, it may not be as hard as you think it is. In fact, some evidence shows that working remotely can improve performance. 

    According to the Society for Human Resource Management (SHRM), “77 percent [of employees] reported greater productivity while working offsite.” In addition, the article cites a U.S. News & World Report story that states “Telecommuters log five to seven more hours per week than non-telecommuters” With good management, remote employees can be a boon for business.

    Of course, this can all depend on making sure that proper employee performance management practices are in place to monitor performance and make sure that employees stay engaged. In terms of monitoring performance, timesheets or online time tracking can help you keep track of employee productivity.

    It’s also good to set up phone or video check-ins to see how they’re doing (but not so often that it feels like they’re being micromanaged). In addition, regular facetime can help remote employees feel like they’re a part of the company.

    While telecommuters can have flexible schedules, it’s a good idea to make sure that part of their schedules overlap with office workers and that they work together via Skype, Zoom, Slack, or other communication programs. 

     

    Payroll for Remote Employees

    Managing payroll can be a complex and time-consuming task for any business owner. However, remote employees might be subject to different payroll regulations and laws depending on where they’re located. Each state, county, and even city can have its own stipulations on how much people are paid and how it happens. This can affect multiple aspects of payroll compliance, including:

    Employers must also find a way to display federal and state labor law posters for remote employees. You can electronically share the posters via email or in an employee online workplace portal, or you can mail copies for the employee to keep.

    In addition, employers need to be aware of any state requirements for the reimbursement of business expenses that remote employees may incur, such as Internet access from a home office. Where the expense may be used for business and personal use, such as having a stable WiFi connection, consider a system to help employees monitor and record how much of the cost is related to business activities and reimbursing employees at least that amount.

    Nobody wants to be hit with costly non-compliance penalties, especially for infractions that could be easily avoided. If your employee works in a different city, make sure that you or your payroll provider checks each state’s payroll regulations to make sure that your business is compliant.

     

    Hiring Remote Employees

    While some HR functions may be impacted more by remote work locations, the hiring process can be very similar to what it would be for anyone who works on location. Aspects of the process like creating face-to-face time for an interview, assessing skills, and determining if someone is a good culture fit all apply to remote employees as well.

    While it’s not always possible to have remote applicants sit down for an in-person interview, technology gives you a way to conduct a “face-to-face” interview. Video interviews through Skype, Zoom, and other tools allow you to still get a more personal feel for how an applicant would fit through nonverbal communication and body language.

     

    Terminating Remote Employees

    As for termination, you need to take the same precautions that you would for someone located in your office. Create a checklist of matters to address when an employee is terminated, such as final pay requirements, removing IT and security access, and retrieving any company property in their possession (if the employee has anything). If the employee is out of state, make sure to review the laws in that state. For example, final payment laws can differ, impacting what’s included in a final paycheck and deadlines for when it must be provided.

    Another item to consider is how you inform your soon-to-be former employee about the termination. Even if he or she telecommutes, it’s good to let an employee hear the news face-to-face, whether it’s for an in-office meeting or through a video conferencing tool like Skype. The latter may not be as personal, but it’s much better to let someone know about a dismissal during a video conference than via email.

     

    Workplace Safety Concerns for Work-from-Home Employees

    Even though remote employees may not work in your office, they still may be subject to health and safety regulations. The level of responsibility an employer has regarding workplace safety for remote employees is hazy. 

    According to SHRM, OSHA is on record as saying that it “will not conduct at-home workplace inspections and that it will generally not hold employers liable for at-home safety issues.” However, the article also cites attorney Alec Beck stating that “OSHA continues to maintain that employers are responsible for safe working conditions regardless of location.” 

    As a result, the best plan of action is to create safety reporting systems and policies that can help protect you and your employees. SHRM suggests the following risk management strategies to help reduce the chance of claims against your business:

    • Create an at-home work policy and disseminate it to all employees.
    • Require that remote employees create and provide evidence of a dedicated work area at home that has been set up according to your specifications.
    • Periodically follow up to ensure compliance.
    • Require employees to have homeowner’s or renter’s insurance that covers any potential equipment damage or liability.
    • Review the employer’s insurance to make sure that all contingencies are covered—including business travel incidents.
    • Make it clear that computer security issues are monitored and that employees wishing to use their own computers must have safety protocols installed.

     

    Manage HR for Remote Employees with a PEO

    It takes a lot of hard work to run a business. Telecommuting adds yet another layer of complexity to HR management, a task that already requires plenty of time and know-how. This amount of work and expertise is a big reason why many businesses turn to a professional employer organization (PEO) to help manage HR.

    At GMS, our experts can help you save time and strengthen your business through payroll management,  benefits administration, and other key functions. Contact GMS today to talk to one of our experts about how we can help your company manage remote employees.

  • Like it or not, remote work is here to stay. In 2023, 12.7% of full-time employees were remote, and 28.2% were in a hybrid model, and those numbers are expected to increase in the coming years. With 98% of workers wanting to work remotely at least part of the time, all industries, specifically more remote-friendly roles and sectors such as administration and staffing, should expect a continued push for remote work. As the landscape of work continues to evolve, it’s crucial for employers to stay informed.

    Technological advances have made it easier for employers to provide work-from-home privileges to employees. However, this increase in remote and hybrid roles raises an important question: How does workers’ compensation apply to employers who work from home? Whether your employees are temporarily working from home or are full-time telecommuters, it’s your responsibility to understand exactly how workers’ compensation applies to remote employees and what steps you should take to protect yourself and your workers.

    Are Remote Employees Eligible For Workers’ Compensation?

    In short, yes. Even if your employers work from home or some other remote location, they are covered under workers’ compensation. A work-related injury is compensable under workers’ compensation regardless of where the injury occurs. In general, the courts found that hazards in a remote employee’s home also count as a work hazard if that person completes their duties in that space. This means employers are still responsible for providing a safe work environment, even if that environment is not on company property. However, workers’ compensation is designed to protect both employers and employees in these situations.

    It’s essential to understand that not every injury or illness suffered in a work-from-home space is automatically considered work-related. To be eligible for workers’ compensation, a remote employee must experience an injury or illness that “arises out of and in the course of employment,” which refers to the employee’s actions and the timing of the injury. These two details are crucial because remote employees must demonstrate that their injury or illness occurred while acting in their employers’ interests. Having a clear understanding of these criteria will empower you and your employees to confidently navigate the workers’ compensation process.

    Carpal tunnel syndrome is an easy example of an injury that could happen at home and would be covered by workers’ compensation. Repetitive injuries, brought on by excessive typing, occur in many desk workers, whether in the office or at home. Though you can offer ergonomic desk equipment to limit the chance of this happening, it does not guarantee the prevention of this syndrome. Therefore, workers’ compensation would still apply.

    How Can I Limit Workers’ Compensation Liability For Remote Employees?

    While you can’t monitor employees who work from home as closely, you can still take measures to limit work-related injuries and protect your business. This process begins by creating and implementing a detailed at-home work policy outlining remote work expectations. This policy should include general expectations and reporting procedures and offer safety guidelines for a home office or designated work area.

    Moreover, you can limit your liability through the following:

    • Defining core work hours and specific job duties for each employee: By providing your team with an established role, you ensure that every employee is equipped with the necessary training and knowledge, minimizing the likelihood of errors or accidents that could result in injuries. Setting core hours also aids in safeguarding against employee burnout and the risks associated with overworking.
    • Providing training on ergonomic workstations and safety measures: This involves training your team on workstations that can promote good posture, reduce strain, and enhance overall well-being. In addition, it includes educating them on essential safety practices to prevent workplace-related injuries, specifically in a home environment. In most cases, injuries from slips, trips, and falls at home are covered in workers’ compensation, so stay vigilant and train your team.
    • Conducting periodic home office checks: When appropriate, reviewing an employee’s remote office can help identify and eliminate work area safety hazards. This doesn’t mean barging into an employee’s home unannounced; instead, it should be offered as a safety initiative employees can opt into.
    • Setting fixed meal and rest periods: Establish fixed meals and breaks outside of core hours, specifically for telecommuters. If an incident does occur, these defined hours can help determine whether an injury was “in the course of” employment.
    • Requiring homeowner’s or renter’s insurance: Most employees will already have this but making it a requirement for remote privileges can help cover any potential equipment damage or liability if anything happens in their home. Be sure to review said insurance to ensure all contingencies are covered.

    It’s also important to note that states can have differing laws about what constitutes a work-related injury. These laws can shift over time, so try to keep up to date with your state’s rules and regulations to help keep your workers safe and protect your business against improper claims.

    Employee Safety With GMS

    Every year, U.S. businesses suffer the consequences of workplace injuries. Not only do these injuries result in lost time, but safety violations can and will lead to costly fines. Ensure your team has the tools they need to succeed while creating a culture of safety. Professional employer organizations (PEOs), like GMS, can help you take a proactive approach to workplace safety.

    Want to take the appropriate steps to stay current on labor regulations and protect your business? Contact GMS today to talk to one of our experts about professional risk management and other workplace safety issues.

  • Over time, it’s becoming more apparent that people’s personal and professional lives will occasionally overlap. The Bureau of Labor Statistics found that 63 percent of families with children under the age of 18 had both parents employed. Add in millions of single parents trying to balance home and work responsibilities and you have a lot of employees who seriously value a family-friendly workplace. 

    Managing work and family obligations can take a serious toll on people, which can have a direct impact on your business. Not only can this balance impact the quality of their work, but it can also lead frustrated mothers and fathers to look for more family-friendly workplaces. Fortunately, family-friendly policies are beneficial to employers as well as employees. According to the University of Kansas, a family-friendly workplace can help you:

    • Make employees more productive
    • Create a less stressful work environment
    • Attract more top talent
    • Retain quality employees

    So what can you do to make your business more family-friendly? Here are four policies that can help your business appeal to existing and potential family-oriented employees.

    An employee working at home with her daughter thanks to a family-friendly workplace policy.

    Flexible Schedules

    A little flexibility can go a long way. Back in 2017, the Harvard Business Review asked 2,000 U.S. workers which benefits they’d consider when deciding between a higher-paying job and a lower-paying job with better perks. According to that survey, a whopping 88 percent of people said they’d consider a lower-paying job that offered more flexible hours, with roughly 40 percent of them giving the offer heavy consideration.

    While the Department of Labor defines a traditional schedule as a 9-to-5, 40-hour workweek, family responsibilities can wreak havoc on such a schedule. Whether employees need to drop off or pick up kids at school, stay home to watch over the little ones, or adjust their hours for any other reason, a flexible schedule can help them maintain a regular workload (and their sanity). 

    Another option is to offer employees the ability to opt for condensed workweeks. Instead of five eight-hour days, your workers can choose to work four 10-hour days and take off Friday, do four nine-hour days and work a half-day Friday, or some other weekly schedule. Regardless of which option(s) work best for your employees, having the flexibility to come in late or leave early can help relieve stress, reduce absenteeism, and increase productivity for workers who now have less to worry about while they’re at work. 

    Another big advantage is that flexible hours are a free benefit you can offer. It doesn’t cost extra money for you to provide employees some wiggle room and you can offer ground rules as to what is and isn’t allowed, such as maintaining core hours where employees must be present. In return, you’ll have a happier workforce that recognizes that you know that there’s life outside of work.

    Work From Home

    Similar to flex time, the ability to work from home gives employees a chance to be home when they need to for their families. In fact, that same HBR survey found that 80 percent of people would consider taking less money in exchange for work-from-home options.

    This interest in telecommuting is embraced by more than just employees. The number of people who telecommute has more than doubled over the past decade, with millions of people spending at least half their schedule working outside the office. Over time, business owners have recognized the value of allowing employees to work off site if possible. 

    Not only does telecommuting help out any employees who need to stay home with young or sick kids, it can even boost productivity. According to Global Workplace Analytics, two-thirds of businesses reported increased productivity among telecommuting employees. Whether it’s because those workers had more control over their personal and professional lives or some other reason, allowing employees to work from home can make your business a more family-friendly place for people who need to be home during business hours.

    Daycare Assistance

    Childcare is a major commitment, both in terms of time and money. Whether you opt to provide work flexibility or not, daycare assistance is another way to develop a family-friendly workplace.

    Between the daycare costs and conflicting schedules, childcare issues can have a direct impact on whether an employee decides to join or leave your company. According to Care.com’s Cost of Care report, 69 percent of parents have said that childcare has influenced their career decisions. That’s a lot of talent hanging in the balance depending on your benefits plan. To help out these employees, consider offering one or a combination of the following perks:

    • On-site daycare services
    • Child care subsidies
    • Flexible spending accounts for dependent care

    Parental Leave

    Welcoming a new child into the family is an exciting time for any parent, but it can also be incredibly stressful. A parental leave policy can help you take some of the stress out of the situation. As an employer, you have a few options if you decide to offer parental leave:

    • Unpaid parental leave
    • Paid parental leave
    • A combination of paid and unpaid parental leave

    As expected, paid leave is the most attractive option for employees, but it means you’re still on the hook for paying the new parent while he or she is out. On the flip side, not having a parental leave plan – or one that doesn’t offer any form of paid leave – makes it much more likely that prospective parents will look for better benefits elsewhere. Regardless of which route you chose, adding a parental leave policy to your company’s benefits plan will help show your workers that you care about them and their families outside of work, which can go a long way toward creating a family-friendly culture.

    Make Your Company a Destination for Good Employees

    The average employee spends more time at work than home, but that doesn’t mean your company can’t make it a bit easier to maintain a healthy work-life balance. Establishing family-friendly workplace policies can help you attract and retain top talent so that you have the right people in place at your business.

    Of course, your employees aren’t the only people who deserve a little help maintaining a good work-life balance. In addition to employee benefits administration, there are several key business functions that can eat up your schedule. Fortunately, a PEO can provide the comprehensive HR administrative service you need to manage your business’ HR needs so that you can focus on your business – and the occasional day off – instead of handling payroll or some other time-consuming task.

    Ready to focus on growing your work family? Contact us today to talk to one of our experts about how we can take on the burden of HR administration for you.

  • Working from home creates a few challenges – more distractions, an inability to work in the same room as your coworkers, etc. Each of these realities can have a direct impact on productivity. With more employees working from home than ever before, it’s important to take steps to set telecommuting employees up for success. Here are four ways that you can help your employees stay productive when working from home.

    A remote emplyee using video conferencing technology to stay productive. 

    Set Regular Check-ins

    Just because you’re not in the same place as your employees doesn’t mean you can’t connect with them. While emails and group chat platforms are helpful for regular communication, regular face time is still very important. As such, consider scheduling regular check-ins that can help you or appropriate managers set work priorities and build a rapport with the team.

    In terms of facilitating these check-ins, phone calls and video chats can help employees hear other people’s voices and even see faces to help create a sense of normalcy. Depending on the size of your company or specific departments within your company, you can hold group check-ins and sprinkle in some one-on-one meetings as well. You’ll also want to figure out a frequency that makes sense for you and your employees. For some groups, you may want to consider daily check-ins. That may sound like a lot, but a 10-minute video chat every morning can mean a lot if it helps employees set priorities and feel less separated from their coworkers.

    Use Technology and Productivity Tools to Your Advantage

    Speaking of group chat platforms and video conferencing technology, you should consider investing in some tools to help everyone stay connected. These tools can take on a few different forms, including:

    • Group chat
    • Video conferencing
    • Project management platforms

    Group chat tools like Slack and HipChat are a great way for people to quickly connect with each other in a way that’s more convenient than an email chain. Whether someone has a quick question or needs to pose a question to a group, these tools can help people communicate in a more natural and immediate way. Similarly, video chat platforms like Zoom or Microsoft Teams add an even greater level of connection – when someone is stuck at home, seeing a friendly face can help increase engagement between coworkers and even clients during meetings. 

    Finally, project management platforms like Trello and Asana allow people to track tasks, share details, and set deadlines and priorities in a place where multiple people can see them. That level of transparency can be very helpful when you or a manager needs to identify which tasks are falling behind or need more attention.

    Help Establish Dedicated Workspaces

    Not only are dedicated workspaces a good safety measure, they can make a big difference in terms of productivity. Working from home offers a lot of advantages for employees – no need to commute to work, more time with your family, etc. Those same advantages can also tank employee productivity if they’re not careful.

    While you can’t completely cut out the normal distractions of home life, dedicated workspaces can help mitigate their impact on your employees. If you haven’t already, encourage your employees to create some form of home office that helps separate them from communal spaces and potential disruptions. You can also give them some pointers as to how they can help improve at-home work life. For example, you can share these tips from Fast Company with your remote workers.

    • Follow ergonomic rules to create a healthy working space
    • Embrace natural light when possible and use lamps to provide ample lighting when necessary
    • Set up a storage system to make sure you have papers and files on hand when you need them
    • Create some comfy space for occasional breaks or if you need to work in a different position
    • Personalize your space and rotate items to add some spark to your environment
    • Hide items you don’t want to look at, such as bulky power cable or items that will distract you 
    • Overstock on items you may need so that you don’t need to leave your workspace every time you need something

    Provide Ongoing Support

    While working from home has its advantages, it’s a much less social experience than being in the same space as coworkers. It’s not uncommon for remote employees to feel lonely or more detached. As such, it’s important to provide emotional support to employees as they’re separated from everyone else. 

    One way to offer this support is through frequent, clear communication. Regular emails, company messages, and check-in meetings can help ease concerns and restore some sense of normalcy. You also want to make employees aware that you and appropriate managers are readily available for employees. Consider setting up regular “office hours” for any employees who have questions or concerns, or share preferred ways that workers can contact you if necessary. 

    Another method of support is to encourage employees to take time to de-stress and take time to get away from work. It can be easy for remote employees to develop bad working habits when they live where they work. Take some time to stress that quality sleep, exercise, and mental health breaks are an important part of every work day. 

    Give Employees Non-Work Socialization Opportunities

    You can also help break up some of the telecommuting monotony by embracing team building events and other non-work interactions. Video happy hours, game nights, and other social interactions can help employees relieve stress and connect, so consider adding in a few regular events to give workers a chance to decompress together.

    Put Your Business in the Position to Succeed

    No matter where your employees work, it’s important to have procedures in place to help your employees succeed. Want to find out other ways you can set your business up for success? Contact GMS today to talk to one of our experts about how human resource outsourcing can help you free up more time to focus on your business and prepare for the future.