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  • Over the past few decades, the freight and transportation industry has undergone massive changes. The rapid globalization of the world requires rethinking freight operations, including how you manage freight audit and payment (FAP), meaning being more cost-efficient and data-driven than ever before. However, many resources are provided to small business owners who manage a fleet that ultimately helps them focus on more important aspects of their business.

    Partnering With A PEO

    When you partner with a professional employer organization (PEO), they take on the administrative burdens that companies don’t have the time or expertise to manage effectively, including:

    • Human resources
    • Benefits
    • Payroll and tax
    • Risk management

    This allows you to put your focus back on client relationships, building an effective team, and growing your profits. In addition, a PEO helps you reduce costs, limit your business risk, and save time and money. Continue reading to learn more about each product offering through a PEO.

    Human resources

    Human resources are one of the most time-consuming components for any transportation company to manage. From recruiting and retaining employees to training employees to tracking vacation time, there are many functions when it comes to human resources management. However, you didn’t start your business to become an HR expert. When you outsource your HR functions to a PEO, it allows you to spend more time growing your business and less time on human resource management.

    Managing a fleet is challenging enough in itself. On top of that, retaining and attracting quality drivers amidst the COVID-19 pandemic makes it even more complicated. A report by the American Trucking Association (ATA) stated that the truck driver shortage could reach 160,000 by 2030. When you outsource your HR functions to a PEO, they take on the burden of retaining and attracting top talent.

    How much time do you currently spend on writing a job ad or going through resumes? PEOs help you recruit faster and easier by doing all the legwork before an interview takes place, so you can focus on choosing from a pool of qualified candidates.

    Attracting quality employees to join your growing business is one challenge. Ensuring that you can retain your top talent is another. From improving skills to making employees feel valued, employee education and other measures are powerful retention tools. A PEO can help you retain employees and limit turnover costs by consulting with you on:

    • Team building activities 
    • Employee reward programs
    • Employee incentives
    • Survey tools
    • Suggestion systems

    Finally, a PEO can perform human resource audits to review your current HR policies, procedures, documentation, and systems. Conducting HR audits help your business reduce costs and improve its HR functions in a fraction of the time.

    Benefits

    As a business owner, it’s crucial to keep and attract quality employees to continue growing your business. One of the easiest ways to retain and attract top talent is by offering a quality benefits package. An employee benefits package includes all the non-wage ways a company compensates its employees. They’re the little perks and additives that employees receive as a standard part of the job offer. A basic employee benefits package includes:

    • Insurance
    • Retirement plans
    • Paid time off
    • Additional compensation

    With an extreme shortage of truck drivers, it’s crucial to provide your employees with a quality benefits package to stand out from the competition and retain and attract top talent. Organizations that aren’t leveraging a PEO or an online benefits platform are likely wasting valuable time and energy. A PEO works with employers to help them decide which benefits make the most sense for their business operations, employees, and bottom line.

    In addition, partnering with a PEO offers you more flexibility, control of premiums, access to data and networks, and options you can’t find elsewhere.

    Payroll

    Managing payroll and tax filings can be one of the most time-consuming and challenging tasks for small business owners. Between time tracking, tax calculations, payroll compliance, and every other payroll function, there’s too much to do and not enough time to manage properly.

    If you’re struggling in this area of your business, it might be time to consider outsourcing payroll administration to a PEO. Within this partnership, you gain access to proprietary technology, dedicated support, and operational efficiencies to enjoy the benefits of a large business without all the excess. Did you know that as many as 40% of small businesses incur an average of $845 in IRS penalties each year?

    Fear no more. A PEO keeps you up to date with the complex tax filing requirements as they inevitably change and complicate your payroll process. Additionally, you and your employees have access to payroll information and tax information anytime, anywhere. Let’s say your drivers are on the road and need to check their payroll information. They can access it right from their phone. Partnering with a PEO will save you time and give you peace of mind through expert payroll management services.

    Risk management

    As a small business owner in the freight industry, this is perhaps the most important and relevant service a PEO provides. Many small business owners struggle to avoid the risks associated with workers’ compensation and workplace hazards. The good news is that there are several ways to protect businesses against these dangers, but you didn’t start your business to become a risk analyst. That’s exactly why you should outsource your risk management functions to a PEO. A PEO provides you and your business with the following:

    • Workplace safety strategies
    • Workers’ compensation
    • Los prevention strategies
    • Workplace noise monitoring
    • Workplace injury reporting and nurse triage
    • Fleet management
    • Safety inspections 

    Whether in a monopolistic state where workers’ compensation is funded through the state or not, a PEO is here to provide you with the support you need. PEOs workers’ compensation management experts help employers control costs and avoid the notable impacts of work-related injuries. Should one of your employees get injured on the job, experts are there to help you throughout the entire process.

    Workers’ compensation insurance costs can range from less than $100 to thousands of dollars per employee per year. Fortunately, if you partner with a PEO, they help you save money and prevent your workers from being injured on the job by implementing cost containment and loss prevention strategies.

    Some PEOs have the capabilities to provide employers with fleet management. This product allows companies to organize and coordinate work vehicles to improve efficiency, reduce costs, and monitor unsafe driving habits. As a business owner who must manage a fleet of trucks, it’s vital that you have rules and policies in place to ensure all employees stay safe and compliant.

    GMS Is The Perfect Match For You

    If any of the pain points from above hit home with you, it’s time to outsource some or all of your HR functions to a PEO like GMS. At GMS, we have it all. It’s configurable to your business needs. If you need help with payroll, we’ve got you covered. If you only need help with benefits, we’ve got that covered as well. From handling the entire payroll process to providing you with top candidates to ensuring your fleet stays compliant, GMS does it all. Don’t let the shortage of drivers associated with the freight industry and HR functions keep you up at night. Contact us today to learn more.

  • A bill amending workers’ compensation benefit requirements for employees who sustain an injury while working from home goes into effect on September 23rd. House Bill 447 states that an employee who works from home and is injured is compensable under Ohio’s workers’ compensation system only if:

    • The injury arises out of the employee’s employment
    • Was caused by a special hazard of the employee’s employment activity
    • It is sustained during an activity undertaken by the employee for the exclusive benefit of the employer

    The bill restricts the definition of injury for employees who work from home. Previously, if a remote worker was injured, it was compensable if sustained during and arising out of their employment. The bill is meant to codify the limitations of work-from-home injury claims, says Philip Fulton, a Columbus-based injured workers attorney.

    Lower Your Risk Of Workers’ Compensation Claims 

    GMS helps you lower your risk of workers’ compensation claims. By helping you reduce the risk of accidents and potential claims, you receive a much lower rate than what the Bureau will offer. Should an injury happen to an employee while working from home, GMS will make the overall claim determination and will cover all medical and compensation costs. Learn more by contacting us today.

  • In yet another year of COVID-19 regulations, the workers’ compensation industry will face more challenges. Workers’ compensation covers the cost of medical care and rehabilitation for workers injured on the job. Businesses are still experiencing staffing shortages, evolving regulatory changes, and more. This means new guidelines for compliance, new coverage options, and the need to be adaptable.

    Workers’ compensation remains to be a stable and profitable segment of the commercial insurance industry. However, since the beginning of COVID-19, claims are rising at exponential levels. Experts have stated that there is a variety of factors that are driving up the costs of claims when a workplace injury occurs. Below is a list of factors that are driving up the costs of claims:

    • Aging workforce
    • Medical inflation
    • Rising wages
    • High indemnity costs
    • Catastrophic injury severity 

    According to the Bureau of Labor Statistics (BLS), in 2021, 23% of the U.S. workforce was older than 55. Workers’ compensation claims for these employees accounted for 31% of the total cost. The changing workforce and rising medical costs were top concerns within the workers’ compensation sector. If you have elderly workers who take longer to recover from an injury and less-experienced workers who get injured more often, you end up with a handful of claims. The International Labor Organization (ILO) reported that 2.3 million men and women experience work-related injuries every year. With many businesses experiencing labor shortages, they are forced to hire someone who may be less experienced and may need additional training, which could put them at a greater risk for injury.

    • Increase in treatment per injured worker
    • Services rendered in a hospital setting
    • More expensive care
    • Mergers between medical facilities 
    • Consolidation of physician practices
    • Outpatient “ambulatory” hospital services 

    Partner With A PEO Today!

    As a business owner, do you feel that your workers’ compensation claims are through the roof? A Professional Employer Organization (PEO) like GMS partners with businesses to control their workers’ compensation insurance rates and protect them from costly claims. Our team of experts work hard to help you save money and prevent your workers from injuries on the job. Embrace workers’ compensation management so you can keep the focus on growing your business. Contact us today! 

  • For the majority of small businesses, workers’ compensation insurance is simply an unavoidable cost. The exact requirements vary by state, but any company that needs coverage faces a simple scenario – carry workers’ comp insurance or face the consequences.

    While workers’ compensation coverage is a must for many small businesses, figuring out how much your business will owe is complicated. The exact rates can change every year and there are a variety of factors that impact how much workers’ compensation will cost your business. Let’s break down what impacts your workers’ compensation rates (and what you can do to save on these costs).

    How To Calculate Workers’ Comp Rates For Your Business

    The first step toward understanding workers’ compensation rates is to identify what factors directly impact premiums. There are three main elements that insurance companies use to calculate your workers’ compensation rate:

    • Workers’ compensation classification codes
    • Payroll
    • Experience modification number

    Workers’ compensation classification codes

    Your business’ line of work plays a major role in determining your workers’ compensation rates. Insurance companies use class codes assigned by the National Council on Compensation Insurance (NCCI) to adjust your rates. These three- or four-digit codes represent the overall risk level for different types of work.

    Insurance agents and underwriters use this information to adjust your overall costs based on your line of business. As you may expect, class codes that indicate greater risk will typically yield higher workers’ compensation insurance premiums. For example, an electrician will be more expensive to cover than an office worker.

    While many states use NCCI codes for their workers’ compensation rate calculations, some locations can complicate these calculations. There are several states that use their own code system, meaning that your rates could vary from the NCCI’s rules and regulations if your business is located in the following states:

    • California
    • Minnesota
    • New York
    • North Carolina
    • Massachusetts
    • Pennsylvania
    • New Jersey
    • Delaware
    • Indiana
    • Michigan

    To complicate matters even further, there are four monopolistic states: Ohio, Washington, Wyoming, and North Dakota. These states have special legislation in place where workers’ compensation coverage is only provided through a state program. For example, employers in Ohio must go through the Bureau of Workers’ Compensation (BWC) for workers’ compensation insurance by themselves or with a partner like a Professional Employer Organization. This difference means there is no open market for workers’ compensation insurance and the states may use separate class codes from the NCCI.

    Payroll

    While class codes impact your insurance rates based on risk factors, your payroll serves as the basis for your overall costs. Class code rates are assigned a dollar amount for every $100 of payroll, so your overall costs will naturally increase along with your total payroll.

    Of course, the rates will make a major difference in just how much you owe. Let’s imagine that you need workers’ compensation coverage for an employee making $50,000 a year. If that employee’s rate was $1.50 per $100, those costs would amount to $750 for that salary. Meanwhile, a higher rate of $15 per $100 will bump those premiums up to $7,500 for that one employee.

    Experience modification number

    Your business’ past also plays a part in your exact rates. Insurance companies factor in your overall workers’ compensation claims history and workplace safety into their calculations. In short, safer businesses with fewer, less severe claims will end up paying less than a similar business with more past incidents or infractions.

    The way insurance companies take your business’ experience and loss history into account is through your experience modification number, also known as a MOD. In general, agents and underwriters will look at your last three years of claims data, such as the type, severity, and frequency of claims to assess your overall risk level. The resulting MOD is then used as a multiplier in the following way.

    • Class code rate x (Annual payroll/$100) x MOD = Your business’ workers’ compensation premium

    If a business meets the expected losses for their type of work, they’d receive a MOD of 1.0 that won’t impact the calculation at all. Businesses with more losses than expected will have a MOD greater than 1.0, while businesses with a good claims history will have lower MODs. These MODs can drastically impact your overall costs. For example, a MOD of 0.8 will cut your premiums by 20%, while a MOD of 1.2 will increase them by 20%.

    Lower Your Workers’ Comp Costs With GMS

    Calculating your company’s workers’ compensation rates is a complex process, but that doesn’t mean lowering them has to be difficult for small business owners. GMS is a PEO that partners with businesses to save them time and money by taking on critical administrative burdens for them. That partnership includes utilizing cost containment and loss prevention strategies to help you lower your workers’ compensation rates.

    GMS partners with businesses of all sizes to minimize exposure through workplace safety and expert claims management. Our experts work directly with you to limit the potential for workplace injuries or illnesses through safety training and risk assessments. Meanwhile, we’ll be there to quickly and properly manage claims to control extra costs and protect your business.

    Ready to lower your workers’ comp premiums and focus on growing your business? Contact GMS today to workers’ compensation risk under control.

  • Be Prepared for worker's compensation claimsAlthough it’s still warm and the swimming pools are still open throughout Ohio, you’ve probably already started thinking about what needs to be done to prepare for the cold months ahead.

    This preparation for the inevitability of winter is a fact of life in this part of the country. Similarly, because you have some time to prepare for worker’s compensation claims (it takes two years before a claim impacts your premium), you can prepare yourself to mitigate the cost and impact on your BWC premium.

    Follow the tips below to protect yourself in the face of worker’s compensation claims: 

    Preparation Tip 1: Full and Final Settlement

    The most permanent way to address worker’s compensation claims, full and final settlement is an agreement on financial compensation to a claimant. In this scenario, the settlement covers all future medical and indemnity costs in a claim. The employer and the claimant sign the settlement, which is reviewed by the BWC. Once approved, the BWC disburses a check to the claimant.

    Preparation Tip 2: Worker’s Compensation Investigation

    In cases where an employer feels it’s likely that a claimant is working or active while on temporary total disability, a worker’s compensation investigation, which comprises of video surveillance, background checks, and life checks, can be initiated by the employer. Catching a claimant in the act of fraud will terminate the disability compensation.

    Preparation Tip 3: Independent Medical Exams

    Independent medical exams (IME) are assessments which are completed by a physician of the employer’s choosing.  The exam consists of a central idea or question that needs medical clarification. This can range from extent of disability, additional diagnoses allowance, appropriateness of treatment, and whether the claimant has reached a level of maximum medical improvement.  If the examining physician has all available medical information, the report can benefit the employer when the issue is presented to a hearing officer.

    Functional Capacity Exams (FCE) are a more specialized form of an IME in which the claimant’s heart rate is monitored during specific actions such as walking, reaching, or lifting. During these actions, if pain increases, the claimant’s heart rate should increase as well. This testing can provide definitive proof about whether the claimant is telling the truth, and the end report can help set a new range of restrictions or secure a complete return to work.

    Preparation Tip 4: Be Thorough

    Thorough and consistent hearing preparation keep your costs down. In order to present a complete case to a hearing officer, all of the facts should be available to clearly illustrate the employer’s position on a claim. Full medical disclosure, affidavits and statements, in-person testimony, and any additional information provided by the employer is crucial to successful hearing preparation.  Without a clear and convincing argument, the chances for winning the hearing greatly decrease.

    Are you prepared to handle worker’s compensation claims? Not sure where to start? Give GMS a call at 330-659-0100 today. We can help!

  • There are a lot of factors that go into determining what your business’s workers’ compensation rates will be. But the simple truth is this: the more claims your employees file, the higher your rate will be.

    Fortunately, there are two strategies you can follow that will limit the amount of time and money you spend dealing with workers’ compensation claims.

     Protect yourself from worker’s compensation issues with Group Management Services.

    Loss Prevention Strategies

    They say that prevention is the best medicine. That holds true for workers’ compensation management, too!  Here’s a quick list of actions that you can take to reduce the risk of workplace injuries, and, therefore, claims:

    Provide safety training programs

    • Create employee safety manuals
    • Clearly establish workplace safety guidelines
    • Undergo regular workplace inspections
    • Implement drug-free and drug–testing programs
    • Implement  injury reporting procedures

    Cost Containment Strategies

    In the State of Ohio, if a company has a better safety record than the average company of  their industry,  the company may qualify for what’s called a group rating program.

    In essence, all this does is gives a group of companies with good safety records the opportunity to qualify for workers’ compensation rate discounts. In some cases, companies can qualify for discounts of 50% with the group rating program.

    If you’re not taking advantage of these strategies, the time to start is now. And if you’re not sure where to begin, give us a call at 330-659-0100 today.

  • Cashflow is key for any business. That’s an easy concept. What’s more difficult to understand is how to effectively manage all the things that pose a risk to that precious cashflow.

    As a business owner, one of your biggest risks is workers’ compensation. According to the Liberty Mutual Workplace Safety Index, workers’ compensation cost business owners nearly $60 billion in 2012. That’s a lot of money!

    The good news is that you don’t have to accept rising costs – and a strained cashflow – as a fact of business life.

    Loss prevention can help limit workers’ compensation claims and lower your rates.

    Avoiding Claims

    It may sound obvious, but prevention is the best medicine. The safer the environment, the less likely you’ll have to deal with workers’ compensation. This is just one of many ways a professional employer organization (PEO) can help. 

    Specifically, PEOs can help your business implement loss prevention strategies that will reduce the risk of unfortunate incidents in the workplace.

    Some of these strategies include

    • Safety training programs

    • Development of safety manuals

    • Development of safety guidelines for employees

    • Workplace inspection and guidance on OSHA compliance

    • Development of drug-free and drug-testing programs

    Better Cashflow Through a PEO

    A study released by OSHA claims that a 15% reduction in injuries and illnesses from businesses that don’t have safety and health programs could result in a savings of $9 billion per year. On an individual level, that means more money that can be invested in the growth of your business.

    Have you thought about the potential impact loss prevention strategies can have on your bottom line? Ready to learn more? Contact GMS today.

  • Accidents happen, which is why workers’ compensation is a mandatory expense. Still, high rates can destroy your cashflow. 

    In my last post, I talked about how loss prevention strategies help prevent accidents in the first place, which can lower your rates. Today, I’d like to explain how an effective Cost Containment strategy can cut your costs, even if a claim is filed. 

    Risk management can benefit your business’ budget. Contact GMS to find out how a PEO can help.

    Cost Containment Services

    Many business owners consider worker’s compensation a cost of doing business. But professional employer organizations (PEOs) give you options to contain that cost.

    PEOs help you:

    • Choose the most appropriate workers’ compensation coverage for your group

    • Negotiate competitive programs with insurance providers

    • Implement a return-to-work program

    • Keep good records that can be used during the claims process, and more.

    Packaged together, these services make a huge difference in what you spend on workers’ compensation.

    More Than Just Cash Savings

    It is often said that your time is your most valuable asset. If you’re spending too much time fighting workers’ compensation claims, you aren’t focused on growing your business. 

    Many PEOs save you time by offering the following services:

    • Claims investigation

    • Claims certification

    • Hearing representation

    • And merit rate predictions

    We handle the details so you have the time to grow your business again.

    Better Cashflow Through a PEO

    We are extremely successful at fighting our clients’ workers’ compensation claims, saving them clients thousands of dollars in the process. If you’re tired of dealing with rising worker’s compensation costs, or simply want to know more let’s talk.

  • Unfortunately, confirmation alone of a positive test for drugs or alcohol is not solely enough to obtain a denial of a workers’ compensation claim. Per Ohio statute (ORC 4123.54), there are several specific qualifications that must be met prior to the ultimate denial of a claim.  

    There are four “statutory hurdles” that an employer must clear in order to have a claim denied in which the claimant tested positive for illegal substances:

    Learn the four hurdles an employer must clear in order to have a claim denied in which the claimant tested positive for illegal substances.

    Hurdle No. 1

    The employer must post a written notice indicating that failure to take a post-accident test could “affect their eligibility for compensation for injuries.” This statement is provided with your workers’ compensation certificate, and should be posted in a common area accessible to all employees. The key to this requirement is that it must be in clear view to any employee at any time. Additionally, we highly recommend that you consult with your GMS Account Manager to ensure that your company policy clearly spells out the effects of a positive drug test on employment.  

    Hurdle No. 2

    The employer must obtain a “qualifying chemical test.” This test must “exceed the positive test level” established by statute. In addition, a blood alcohol test must be administered within eight hours after the injury occurs. A valid controlled substance test should be administered no more than 32 hours after an injury occurs. This step is critical in proving that the substance was the cause of the incident (and resulting injury). 

    Hurdle No. 3

    The employer needs to demonstrate “reasonable cause” that required an employee to undergo a post-accident screen. According to this aspect, suspicion must exist on the employer’s behalf that the claimant was under the influence. This suspicion must be documented, and testimony from the employer is necessary as well.  

    Hurdle No. 4

    The employer is also required to create “rebuttable presumption,” which includes the opinion of a physician that indicates “the injury would not have occurred had the employee not been under the influence of drugs or alcohol.” Rebuttable presumption is simply placing the burden on the employee to prove that their intoxication or drug use was not the cause of the incident and resulting injury.

    Handling a Positive Test

    With a situation such as this, it is important to remember that the process merely begins with a positive test for illegal drugs or alcohol. As indicated above, there are several requirements that must be met before a claim can be denied at the administrative level. Despite the difficulty of doing so, claims such as these can be successfully denied when following the procedures outlined above. 

    While each of the “hurdles” may appear overwhelming, GMS and its team of workers’ compensation specialists will help you skillfully navigate through this process. Contact us today to learn more.

  • Why did you start your business? Maybe because you are good at doing something. Maybe because you can offer a service that not many others can.

    You worked hard to grow your business, to show everyone why they should use your company for their needs. You are a professional, and nobody knows your business better than you do. So why would you ever consider outsourcing back office tasks to a PEO if you can do them yourself?

    At the end of the day, we all want the same thing: to be successful. Sometimes, to succeed we need to embrace the fact that we can’t always do everything ourselves.

    Image of a human resources outsourcing company.

    Why it Can Pay to Outsource to a PEO

    PEO stands for Professional Employer Organization. Just like you are a professional in your industry, GMS is a professional in ours. If you care about your business and your employees, you want to make sure that your company is a well-oiled machine! That’s why our team of well-versed, educated, and honest specialists help small to mid-sized businesses thrive every day. 

    We believe that just because you don’t have thousands of employees doesn’t mean you shouldn’t have access to the same buying power or experts! 

    As a business owner, doing everything yourself can be overwhelming, especially when you find that some areas are getting neglected or are distracting you from the business. 

    By outsourcing basics like payroll management, workers’ compensation claims, benefits administration, and any human resource function to GMS, you can acquire better, less expensive services than if you were to go hire an individual to do that for you. 

    A PEO can help you go back to focusing on your business knowing that these things aren’t just being done, but that they’re being done right. Contact us today to talk to a GMS representative about how we can help you and your business.