Health Insurance: I’m a Small Employer…What Are My Coverage Requirements?

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You’re a small business and you’re growing … you’ve finally got 10 employees! While you’d love to provide them all with health insurance, you don’t actually have to by law. At this time, there are no federal or state laws requiring small employers to offer benefit plans to their employees.

There are however a number of laws surrounding group health plans, if you do decide to offer health insurance to select employees. These include ERISA and HIPAA, and they address issues such as setting minimum standards for most voluntarily health plans in the private sector, as well as the protection of individually identifiable health information and rights granted to individuals.

While you may not be required by law to provide your employees with health insurance, health insurance coverage is a valued employee benefit that will help you attract and retain top talent. A competitive employee benefits package has the power to differentiate you from fellow employers within your market or industry, which gives your organization more ways to grow and thrive.

Does the thought of introducing additional compliance concerns to your workplace scare you? For businesses engaged in a PEO relationship, expert help with risk management and compliance protects the client from costly fines and lawsuits surrounding ERISA and HIPAA. PEOs also assume much of a business’s risk through the co-employment relationship.

For smaller or select companies that may not benefit financially from entirely outsourcing “everything HR,” Employer Solutions Plus offers Benefits-Only Management for Group Health Plans. Our health insurance experts focus on setting up your policies, while you focus on growing your business.

For more information on health insurance and compliance, visit our benefits section within this blog. For immediate questions or concerns, contact us.

Who is Eligible for FMLA leave?

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Background: FMLA (Family and Medical Leave Act) is enforced by the US Department of Labor. This act was established to help employees better balance their work and family responsibilities. It provides certain employees with up to 12 weeks of unpaid, job-protected leave per year. FMLA also requires that the person’s health benefits be maintained the entire time of their leave.

Does FMLA apply to your company? FMLA only applies to companies with 50 or more employees, as well as all public and private elementary and secondary schools, and public agencies. If you are classified as one of the aforementioned, read on!

Only employees that have worked for their employer at least 12 months, or at least 1250 hours over the past 12 months are eligible for FMLA. As an employer, this is just one of the many reasons it’s important to have accurate payroll and employee data. An eligible employee must also work at a location where the company employs 50 or more employees within 75 miles.

Employees requesting to leave work for the following reasons are covered under FMLA. Employers must provide 12 weeks of unpaid, job-protected leave (and a continuation of benefits) to those leaving:

  • for the birth and care of the newborn child of an employee
  • for placement with the employee of a child for adoption or foster care
  • to care for an immediate family member (spouse, child, or parent) with a serious health condition
  • to take medical leave when the employee is unable to work because of a serious health condition

*Source: US Department of Labor

Did you know that in addition to Professional Employer Organization options, Employer Solutions Plus offers human resource management services for FMLA, ERISA, COBRA, HIPPA, ADA and more?

If you’re having trouble sorting through countless compliance issues, employment laws, and regulations, or have a specific question regarding FMLA, please contact us.

Is Your Workforce Properly Classified (IC or Employee?)

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Do you currently employ a handful of independent contractors? Hiring independent contractors is a great way for business owners to decrease costs and tax liability. You utilize help when and where you need it, and don’t have the burden or a fulltime or part-time salary when business slows down.

But, it is critical that business owners take the time to correctly determine whether the individuals providing services for their companies are really independent contractors, or whether they should be classified as employees.

If they are supposed to be employees and a tax audit reveals that they are misclassified, you will likely be held responsible for paying income taxes, Social Security and Medicare taxes, and unemployment taxes on all wages paid to that employee.

How do I determine whether the worker is an employee or IC? Evaluate your relationship.

If you answer “YES” to the majority of these questions, the individual should likely be documented as an employee, not an IC.

  • Does your Company control the worker’s hours?
  • Does your Company control where the worker performs his/her tasks?
  • Do you pay for the worker’s supplies, equipment, tools, and resources necessary to accomplish his/her job function?
  • Do you offer the worker benefits?
  • Do you offer the worker vacation time?
  • Is the relationship ongoing versus temporary or seasonal?
  • Is the work performed by the worker a core service or product offering within your Company?

BE CAREFUL! As we mentioned above, the consequences of treating an employee as an IC can result in being held liable for all employment taxes for that worker (as well as any other misclassified workers). The IRS provides many valuable resources, forms, and answers to common questions. To access their information surrounding ICs and Employees, click here.

For additional information on human resource management, including wage and hour compliance, tax classification and more, contact Employer Solutions Plus.

 

5 Common Payroll Mistakes

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Many business owners see payroll as one nasty task … why? Because one tiny mistake can quickly become a costly error if you are not in compliance or you’ve missed a state or federal filing deadline.

Here are 5 common payroll mistakes that business owners face:

  1. Deadlines. Do you know all of the deadlines for federal, state, county and municipal tax deposits? They don’t all often fall on the same exact date each year. One of the most common payroll tax mistakes is missing deadlines!
  2. W-2 Errors.W-2’s are long, intimidating forms. Do you know what goes in each box? Do you know which boxes need to be completed and which ones you’re free to “skip?”
  3. Having Only One Payroll Professional. You may believe that having one dedicated fulltime payroll professional in the office is the much more attractive solution versus outsourcing. But, do you have a backup employee on-site that is adequately trained in the event that something happens to your current payroll manager? What if she or he falls ill, needs to take a vacation or unexpectedly leaves your Company? Payroll service providers keep payroll services in motion, even when your employees are off-site or away.
  4. Filing. Where does your office keep time sheets, cancelled checks, W-2s, specific employee records and more? If an IRS auditor asked you to pull up payroll data from 5 years ago, would you be able to retrieve it?
  5. Misclassification. Your company may be in the growth phase, and it’s often within this phase that we see a growing number of independent contractors. But are they really all IC’s? If they are misclassified and meant to be filed as employees, businesses can be held liable for employment taxes following an IRS audit. (For more information on misclassification, join us next week. We will be diving deeper into misclassification in our next blog)

Leaving payroll to the professionals will eliminate all of the above-mentioned payroll mistakes, and will deliver peace of mind surrounding payroll tax compliance. And, it’s not too late to consider payroll outsourcing for 2013. In fact, many payroll service providers provide a flexible integration process, regardless of what time of year it is.

Whether your company decides to engage in a payroll-only solution or a full-suite administrative outsourcing solution such as a Professional Employer Organization, your company is sure to save time, money, and headaches.

Employer Solutions Plus provides its clients with a variety of payroll administration solutions. To learn more, simply contact us.

How Do PEOs Improve Cash Flow?

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Professional Employer Organizations save clients time and money by eliminating the inefficiencies of dealing with multiple vendors. And, for clients that have never worked with a Professional Employer Organization, the new co-employment relationship will likely improve your cash flow as well.

The most common way that PEO clients improve their cash flow is through the PEO’s workers compensation master policy. Even if you are a small company of 10 employees, the co-employment relationship will permit you to reap “big company benefits.” This eliminates debilitating workers compensation items from your cash flow such as down payments, audits, and set monthly payments. Many PEO clients instead enjoy “pay as you go” workers compensation based on gross wages and/or class codes for each pay period.

Second, with the help of a PEO your staff can spend more time on revenue-generating activities. Does your management team lose time (and money) each month tending to payroll, health insurance, administration and employee management activities? Working with a PEO will remove these unproductive activities, permitting you to “make money” all month long through consistently maximizing your internal efficiencies.

And, last but not least, PEOs provide predictability in operating costs. Through a co-employment contract, you rarely experience “vendor surprises” or unexpected expenses each month surrounding operations or employee management. The costs are clear, and they’re consistent.

Employer Solutions Plus can help companies with as few as 5 employees quickly and easily find the right PEO provider for improving cash flow, saving time, and saving money.

To improve your company’s overall cash flow position, contact us.

Cover Your Bases: HR’s Lay-Off Checklist

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Over the past several years many of us have been directly affected by downsizing. As an employer, laying-off a dedicated employee is one of the most difficult HR tasks. We often feel as if we don’t have a choice, which makes it all the more difficult.

The only thing worse than laying-off an employee you care about, is finding out that you weren’t in compliance when doing so.

This HR Checklist is brought to you by Employer Solutions Plus.

DO:

Review protected classes. Before determining which employees need to be let go, look at your group as a whole. Laying-off an employee that is part of a protected class can unfortunately be grounds for a lawsuit. Protected classes are typically defined based on age, sex, or race. If you are laying-off multiple employees, do they all have common characteristics (for example, they are all women). If so, be careful; number 2 on this list is going to be really important.

Have a justifiable business reason for laying-off. Your reason needs to be based on a legitimate business reason that stands up in a court of law. It needs to be based on downsizing, eliminating certain functions within your Company, relocating or closing certain office locations… NOT reasons having to do with characteristics, or that can accidentally appear as having to do with characteristics.

Have a witness. It is always recommended that you involve a third person in the room. This provides you with someone who can testify on your behalf in the event that the employee or employees feel you have violated their rights. Your witness should be another HR professional so that they can intervene and correct you in the event that something is accidently misstated.

Work with an attorney, or your PEO. Are you up to speed on all of the countless employment laws? An attorney or Professional Employer Organization will be up to speed. They can help you navigate the complex issues surrounding lay-offs, hiring, and firing.

Be honest, compassionate and QUICK! Losing your job stinks. Although you may simply be seen as a co-worker or manager to the individual, don’t forget to be human, and don’t lengthen an already difficult process. Be sure to provide recommendations to future employers to help the person re-enter the workforce as quickly as possible following termination.

DO NOT:

Give false hope. As we mentioned above, be honest, compassionate and quick!

Play favorites with severance. Pay out severance according to a worker’s title and length of service at your Company. Make sure your severance packages are fair and distribution standards are consistent across the board.

Blame the employee. If the Company is going through some hard times, again, be honest. NEVER lay-off anyone based on their performance, and reinsure them of the real reason for lay-offs, letting them know it has nothing to do with their performance.

For more information on lay-offs, or the advantages of hiring and firing with the help of a Professional Employer Organization, contact Employer Solutions Plus.

Outsourced HR for Restaurant Franchises

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You’re the owner of a successful restaurant franchise, with multiple locations operating in various states. You’ve mastered and streamlined the following processes:

· Operating Expenses

· Inventory & Logistics

· Marketing

· The Menu

· Customer Experience

· Atmosphere

When someone invests in your franchise, they’ve got a solid foundation for success. But wouldn’t it be nice to build all of the backend headaches and behind the scenes administration into your franchise model, to further ensure success?

Eliminating HR headaches and hurdles makes your franchise model and business solutions much more attractive to new investors looking to open a restaurant of their own.

First step, is partnering directly with a PEO or a business partner that represents the “best of” the most critical services a restaurant owner requires to make informed decisions regarding PEOs, Payroll Only Solutions, Health Insurance Options / Employee Benefits and Ancillary Benefit Programs.

Here’s why you need to do this:

Managing restaurant employees is a dangerous and costly proposition. There are literally hundreds of employment laws and regulations in which a business owner needs to comply. Failure to comply could result in a lawsuit big enough to shut down an entire location.

More restaurants are finding it advantageous (and profitable) to outsource “everything HR” to professionals which result in the following: relief from the burden of employment administration, improved risk management, improved employment practices, streamlined hiring and firing processes, and better benefits packages.

By partnering with a PEO to manage your corporate locations, you’ll have established a relationship that can be passed along or recommended to each new franchisee.

An alternative to outsourcing “everything HR” to a PEO is to find an HR specialist, such as Employer Solutions Plus, that is an expert in HR, payroll, benefits and risk management… and can quickly piece together the perfect HR package.
An HR specialist will also let you know if a PEO is your best (and most cost-effective) option.

Employer Solutions Plus workplace solutions allow your restaurant(s) to focus on what it does best … Let us handle the rest by calling us today!

What are EAPs?

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If you’re in the process of putting together an employee benefits package, or updating your existing package, you may have stumbled upon the term “EAPs.” EAPs (Employee Assistance Programs) are offered by many employers, but what are they?

EAPs help employees obtain assistance for personal issues that may be directly impacting their performance at work and their overall sense of health and well-being.

EAPs typically provide the following:

  • Coverage for employees and their household members
  • Short-term counseling
  • Various forms of support for:
  • Substance abuse
  • Depression
  • Major life events
  • Work issues
  • Relationship issues
  • Financial concerns
  • Healthcare concerns

EAPs are traditionally offered to employees free of charge and are prepaid by the employer. Companies that are engaged in a PEO relationship often reap the benefits of an already established Employee Assistance Program, whereas employers that do not work with a PEO often rely upon other vendors or contracted professionals to manage their EAP.

Are you interested in introducing an Employee Assistance Program in 2013? Benefits go far beyond the direct impact of employee wellness. Happy and healthy employees result in lower medical costs, higher productivity and reduced turnover in the workplace!

To learn more about EAPs, contact Employer Solutions Plus. We’ll provide you with a complimentary evaluation to determine your Company’s best benefits options for the New Year.

Small Business Property Insurance – Your Checklist for Disaster Prevention

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When it comes to our homes, we’re often quick to insure them so that in the event of a nature disaster or accident our property is financially protected. Why wouldn’t you do the exact same for your business?

Following Hurricane Sandy’s recent destruction in the northeast, formerly mundane business considerations and administrative tasks have now become high priority for countless small business owners.

Employer Solutions Plus offers the following small business checklist for disaster prevention:

1. Selecting the right coverage, in advance: Property Insurance, Business Interruption Insurance, Liability Insurance… which ones are right for you and your business? The amount of coverage (and types of coverage) will depend on the type of business, size of business and amount of risk. You will want to work with an insurance professional to make sure you have adequate protection.

2.Buildings: Do you own your building? If so, do not under-insure it; this is a common mistake. Buildings are not insured for their market price, but instead for the amount that it would take you to rebuild its structure.

3. Property: Have you created a master list of everything you own? Has it been updated within the past few months? Make a list and place a value next to each and every property category.

a. ComputersProcessed by: Helicon Filter; Minolta DSC

b. Phones

c. Equipment

d. Printers/Scanners/Copiers

e. Merchandise

f. Furniture

g. Fixtures (Including Lights, Shelving)

h. Promotional Items

i. Office Supplies

j. Fridge/Microwave/Coffee Maker

k. Artwork

l. Signage

m. Anything tangible! Even if its value is small, it can quickly add up in the event of a loss.

4. Property in Transit: Do you import or export your products? These items need to be insured as well! Do you have remote employees? Don’t forget to account for their equipment.

And, speaking of employees….Are they all insured? Unexpected natural disasters and workplace emergencies can also result in employees injured at your place of employment, which directly affects your workers compensation insurance. And, it’s within every employee’s best interest to have adequate health insurance for accidents that could occur on or off the job.

Maintaining the proper coverage for all types of business loss is the best possible way to protect the financial health of any small business. You must continually analyze your company’s assets and areas of exposure to help limit your risk. Businesses that are prepared are financially safer in the event of a catastrophic loss.

To learn more about the various types of insurance that are extremely important for the small business owner, contact Employer Solutions Plus.

 

What are Source of Hire Metrics?

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One of the attractive benefits of working with a Professional Employer Organization (PEO) is recruitment assistance and new hire support. PEOs assist employers with job descriptions, employment postings, resume screening, applicant interviews and compensation structures… and when a new employee is brought on; I-9 verification, new hire forms, orientation programs and more!

PEOs certainly make the hiring process less stressful and less time consuming for the employer, but did you know that it’s technology that actually tends to be one of the greatest strengths PEOs bring forth? Technology, particularly Source of Hire Metrics, provide employers with the data they need to identify bottlenecks in the application/recruitment process and fix any existing problems that may be hindering opportunity with great candidates.

Many PEOs utilize Source of Hire Metrics as a powerful tool in the recruitment process. Source of Hire Metrics accurately capture important recruiting metrics, such as the number of candidates that click on a particular job link or advertisement, the number of applications, the source of the lead, keywords that drive candidates to your landing pages, how candidates navigate your website, and more.

Source of Hire Metrics provide employers with insight into the recruitment funnel and measure how well they are doing at converting candidates from one stage to the next. They also identify which channels aren’t working, so that employers can stop wasting recruitment or marketing dollars on particular platforms.

For an individual employer without a large HR department, or strategic PEO partnership, the cost of this specialized technology cannot often be justified. It’s too large of a financial burden, and requires time and resources to be able to review on a consistent basis. When working with a PEO though, it’s just one of the many benefits the employer can take advantage of!

To learn more about Source of Hire Metrics, and the recruitment and new hire support of a Professional Employer Organization, contact Employer Solutions Plus.