Do I Need a Payroll Company?

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While on one hand doing payroll in house may seem like a great way to cut costs and keep things close to the company, the harsh reality is that payroll is an extraordinarily complex process that is regulated by fairly stringent legislation.

Employer Solutions Plus wants to help you navigate the pros and cons and aide you in making an informed decision on how to manage your company’s payroll processing.

Risk vs Reward:

Short term savings could end up costing you should there be any issues with the taxation of wages. The IRS regulations around payroll are complex, ever changing, and mistakes are not easily reversed. Not only do these mistakes cost you the value of the mistake (for instance, $1000 in additional wages) but they also result in penalties, fines and should they be large enough may require you to hire counsel and/or an accountant to sort things through.

So let’s assume that you are a CPA who happens to have the knowledge of what it takes to overcome this first challenge. That’s fantastic – on the road to saving some cash. That is if you’re willing to take on the myriad of responsibilities that come with payroll. It is not just writing checks and managing taxes. Payroll administration is not that simple. It often also includes the following processes:

  • State-level Summary Filings
  • Quarterly Financial Reporting
  • Issuing Annual W-2s
  • Processing W-9s
  • Paying out withholdings to government agencies
  • Managing Employee Contributions to:
    • Pensions
    • IRAs
    • 401ks
    • FSAs/HSAs
  • Supplemental Insurance Policies
  • Managing unemployment assessments
  • Handling state disability and family leave assessments
  • Tracking hiring/firing and notifying the government
  • Handling Administrative Wage Garnishments

While this list is long, it’s also demanding, meaning that the individual who handles payroll will have a full time (if not full time plus) job. When you consider the risks of in-house payroll coupled with the cost of bringing on 1-2 employees to manage it for multiple employees, we would wager that it no longer seems like an appealing solution.

Employer Solutions Plus can help you find a payroll processing solution that fits your business needs, size and budget. Contact us today to find out how we can get you on the fast track to better processing!

3 Tips for Preventing Workplace Lawsuits

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We are all familiar with the stories that have come out of the last decade – people making millions of dollars in frivolous lawsuits for things like being burned by hot coffee or slipping and falling while wearing 4-inch heels and holding a martini glass. Unfortunately as an employer you are at risk on a daily basis for being sued. It seems that should anything go awry, the first advice many receive is to “lawyer up” and go after the employer.

Did you have to fire an individual for poor performance? Hopefully they don’t turn around and say it’s because they are a female. Perhaps you are being sued because it took Joe or Sally 60 hours to do 40 hours of work due to their lackluster time management skills yet they still want overtime.

Whatever the reason there are 3 key things you can do to prevent workplace lawsuits. We are fortunate to have an arsenal of experts in this field that we reached out to for advice.

  1. Employ a PEO. PEOs are gurus when it comes to risk mitigation and compliance. Their job is to take the burden off of you and leverage their expertise to ensure that your business is not at risk for violations of regulatory compliance – for instance OSHA. Employer Solutions Plus has an extensive network of PEOs that we can partner you with. This takes the guess work and headache out for you and passes on some of that risk and burden to a third party. Employer Solutions Plus can work with you to find a PEO that can support your needs.
  2. Have an Employee Handbook. Employee handbooks include everything from dress codes to behavioral expectations to information about employee issues like harassment. By clearly outlining what you require of your employees and having the employees acknowledge this, you will have leverage should any instances of “well I didn’t know” come up.
  3. Document Everything. While it may seem obvious that things like performance reviews or disciplinary items should be documented, the little things – such as incidents of misconduct or underperformance should be documented as well. This doesn’t need to be burdensome – just a short paragraph that is factual and descriptive. The employee should be made aware of these infractions in writing as well.

Contact us today so we can help you start taking these three steps – we are here and ready to support you!

Do Job Titles Deliver Worker Satisfaction?

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Employee satisfaction is a complex dynamic that has seen a steady decline over the last 15 years. While this is not true for all employers – or even most, as a general population employees are less satisfied at work than they were a decade ago.

This is likely related to many factors – including but not limited to cultural shits, the recent recession, an increase in telecommunications and constantly being tied in to work and of course, being expected to do more for the same salary. Of course – all businesses are interested in how they can improve worker satisfaction. Happy employees always outperform unhappy employees.

Unfortunately – we are often trying to increase employee satisfaction without detracting from our bottom line as business owners. With that being said, we have asked questions like “Do job titles deliver worker satisfaction?” and while the answer wasn’t exactly what we hoped, it was promising. Our research shows that while job titles contribute to employee satisfaction, they are not solely responsible for generating happy employees.

As we previously mentioned – employee satisfaction or “ESat” is a complex dynamic that includes the following:

  • Compensation
    • Job title: Directly effects – especially in large companies where there are pay thresholds based on titles.
  • Workload
    • Job title: If you call someone an analyst but they’re also managing people, they will likely feel as though their workload is not commensurate with their job title.
  • Work Perks
    • Job title: Things like tickets, flexibility, working from home, etc. Perhaps your company has a policy that only directors can work remotely – yet your analyst regularly is stuck working in the office until 8pm simply because of a title.
  • Career Pathing
    • Job title: Building your resume – a more impressive title leads to a better career path.
  • Workplace Environment/Culture
    • Job title: Respect – titles relate to the respect that individuals can command from their peers and colleagues.

We essentially identified that an individual’s job title has a trickle effect – we have shown how job titles impact the areas listed above. Particularly important is that job titles directly relate to the respect and authority – perceived or actual – that an employee has and this DOES weigh heavily on their satisfaction. Having a job title that is correctly aligned with their responsibilities and authority is extremely important and critical to an employee’s satisfaction.

Not sure how to align your job titles with responsibilities? Do you need more information or guidance on how to manage the complex structure of Esat? Contact us today for a free consultation!

Are Surveillance Cameras Permitted in the Workplace?

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It seems that in this day and age nothing goes unmonitored thanks to technology.  Whether it is at a Target or at a stop light – cameras are everywhere.  Does this mean that they are now welcome in the workplace?  What are the rules and regulations around visual employee monitoring?   

Surprisingly – many workplaces do have cameras to mitigate risks such as employee theft, for general security purposes and to ensure that their assets are protected. Additionally, there are benefits from an HR standpoint – by recording employee activity you can address issues around performance, hours worked or harassment accusations. 

The laws around surveillance cameras in the workplace vary on a state by state basis but as a general rule, if the business can provide a valid reason for recording then it is generally acceptable.  Employers must make their employees aware that they are being recorded and have the employee formally acknowledge that they received and read the communication.

There are certain areas and activities that may be excluded from employer surveillance.  These include but are not limited to:

  • Secretly filming or recording union meetings.
  • Filming employees without consent outside of the office.
  • Filming employees in break rooms, lounges, bathrooms or fitness facilities.

As we mentioned previously – these are all on a state-by-state basis. Employer Solutions Plus can help you ensure that you are protecting your business without violating employee privacy rights.  Contact us today for a consultation!

What is OSHA’s Whistleblower Protection Program?

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OSHA, the Occupational Safety and Health Administration, has a protection program that enforces the provisions of more than 20 statutes that protect employees who report violations of workplace safety, airline, commercial motor carrier, consumer product, environmental, financial reform, food safety, health insurance reform, motor vehicle safety, nuclear, pipeline, public transportation agency, railroad, maritime, and securities laws.

The included statutes cover many areas, specifically worker participation in health & safety activities, reporting work related injuries, illness or fatality as well as reporting a violation of the statutes. The protection afforded to employees by these standards ensures that these individuals who blow the whistle are not subjected to adverse action by their employer. Adverse action can include being fired or laid off, blacklisting, demoting, denying promotions, reducing pay, intimidation among other “disciplinary” measures.

As an employee management partner and outsourced HR solution one of our key roles is to maintain the most up to date knowledge on all things compliance – especially whistleblowing. This is one area where our partners are skilled and experienced. They can help a company build their whistleblowing program to ensure that it meets regulations, provides a safe and secure process for employees and also protects the employer.

Need some help? Contact Employer Solutions Plus to get yourself out of the seas of compliance!

What is Whistleblowing?

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The term whistleblowing has received a lot more spotlight in recent years due to the collapses of the mortgage and banking industries as well as with the rise of social media. It is defined as raising a concern about a wrong doing within an organization. The concern must be a genuine concern about a crime, criminal offense, miscarriage of justice, dangers to the health and safety of an environment and/or the cover up of any of these things. It is officially called “making a disclosure in public interest”. Corrupt business practices are often unearthed by whistleblowers before they are found by regulatory agencies.

Whistleblowing can be nerve racking for the individual who is submitting the information. Often they are worried about repercussions, their own reputation and their ability to continue to maintain gainful employment. Many of us have hear the mantra “nobody likes a tattle tale” for the majority of our lives however when it comes to blowing the whistle on corrupt or inappropriate business practices, fear of being a “tattler” needs to take a back seat to doing the right thing.

The first whistleblowing law was enacted on July 30th, 1778 by the Continental Congress after two Navy corpsmen blew the whistle and were subjected to severe retaliation by then commander-in-chief of the Continental Navy. Since then, the policies surrounding whistleblowing and protection of those who do it have been changed and modified to suit current times.

Most companies have enacted their own policies and procedures to ensure the protection of whistleblowers. Employer Solutions Plus can help you design yours or help you find a great partner (such as a PEO) that offers support as one of its many benefits! Contact us today for a consultation.

Be sure to stay tuned! Our next blog will feature an overview of the OSHA Whistleblower Protection Program.

What is the Federal Register?

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The Federal Register is the daily newspaper of the Federal government that contains Federal Agency Regulations, Proposed Rules and Public Notices, Executive Orders, Proclamations and other Presidential Documents.  It is coordinated and published by the National Archives and Records Administration (NARA) every business day.  The paper is distributed by the Government Printing Office on microfiche and on the internet.

Our blog features many posts on compliance and regulation – because in this day in age it is a hot button topic that is ever changing.  The Federal Registrar is where these regulatory changes are published on a day to day basis.  It is officially the most daunting newspaper to read and sift through to find out what is important to you and what you can skim past.

According to the .gov website, if you fall into any of these categories, reading the Registrar should be implemented in your daily business practices.

  • If you need to know about the day-to-day operations of the Federal Government
  • If your business is regulated by a Federal agency
  • If you are an attorney practicing before a regulatory agency
  • If your organization attends public hearings or meetings or applies for grants
  • If you are concerned with Government actions that affect the environment, health care, financial services, exports, education, or other major public policy issues

We know what you’re thinking – so exactly when am I going to have time to do this?  We have an answer – you don’t need to…if you choose a PEO.  PEOs are on top of all federal notices, rules and proposed rules so that their clients don’t have to be.  We know that what is important to a business owner is focusing on their employees, on their bottom line and on growing their business.  By selecting a PEO, you can offload the stress of regulatory compliance management on a seasoned, experienced team.

Contact us today for a consultation on ways Employer Solutions Plus can help you manage your operations more efficiently!

Current Employment Statistics

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At Employer Solutions Plus we know how critical it is to stay on top of current topics, statistics and reports that come out of the Department of Labor. We know that employers are also interested in this information but that navigating the reports, outputs and government speak can be exhausting and often pushed to the back of the to-do list.

Need a quick update? You’re in luck! This week we are spotlighting highlights from the latest reports on employment statistics, published May 16,2014. These reports are important as they give us insight into state-wide and national employment trends.

  • Regional and state unemployment rates were generally lower across the United States during the month of April. 43 states saw decreases, two saw increases and five had no change.
  • The national jobless rate fell to 6.3% percent, which was 1.2 percentage points lower than April of 2014.
  • Texas led the way in job growth, adding over 64,100 jobs over the month.
  • Illinois lost the most jobs month over month seeing 6,800 jobs lost.
  • The west continued to lead the way in regional unemployment, 7.0%
  • The south continued to have the lowest regional unemployment at 6.9%

Employment trends are important pieces of data for you and your business. Staying abreast of unemployment numbers on a local, regional and national level helps you understand the labor markets available to you as a business owner.

Stay tuned in to our blog for changes in the Consumer Price Index and other HR related topics! Contact our team if you have any questions.

Compliance: Does Federal Law Require Lunch Breaks?

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As a business owner, one of the most challenging issues you face is compliance with government regulations. From taxes to lunch breaks – the government lays out fairly stringent requirements for businesses to comply with. On one hand, this is great; many of them protect you as an employer. On the other hand, it requires quite a bit of time, energy and research to ensure you maintain compliance.

As a PEO broker, one of the most common questions we receive about compliance is regarding breaks and what the laws are surrounding them. The Department of Labor has very specific requirements regarding breaks, times and what is considered as compensable and work time.

Federal Law does not require breaks, for time or meals to be provided however the Fair Labor and Standards Act does classify what is considered compensable time. According to the dol.gov website:

Rest and Meal Periods: Rest periods of short duration, usually 20 minutes or less, are common in industry (and promote the efficiency of the employee) and are customarily paid for as working time. These short periods must be counted as hours worked. Unauthorized extensions of authorized work breaks need not be counted as hours worked when the employer has expressly and unambiguously communicated to the employee that the authorized break may only last for a specific length of time, that any extension of the break is contrary to the employer’s rules, and any extension of the break will be punished. Bona fide meal periods (typically 30 minutes or more) generally need not be compensated as work time. The employee must be completely relieved from duty for the purpose of eating regular meals. The employee is not relieved if he/she is required to perform any duties, whether active or inactive, while eating.

We understand that the vague nature of these regulations can pose a lot of confusion for employers and employees alike. Navigating the compliance scene is something that can easily be transferred to a PEO who specializes in this area.

Contact Employer Solutions Plus to find out how you can streamline your business processes!

How to Verify Education and Employment

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It has become a common employment practice to conduct background checks on potential employees. Some background checks are more extensive than others but at the most basic level, verifying education and employment are critical to ensuring you are getting what you are about to be paying for.

We wanted to share with you the process for completing these checks:

Education Verification:

Verifying an individual’s educational background may seem simple and straightforward – right? The truth is it consists of far more than just being able to pick up the phone and call their alma mater. The first step is to ensure that you obtain written consent to pursue this information from the employee. Once you have that, you will likely need to provide this to the educational institution who will likely only verify if they attended, not that they graduated, their GPA or provide a transcript. The schools are generally prohibitive from allowing individuals access to additional records or files and often charge fees for obtaining what information they are willing to provide. This can take as little as 3-5 days or weeks, depending on what you require and the policies.

Employment Verification:

Could you pick up the phone and call the references? Certainly. However if you are calling on behalf of the company as a third party vendor you are likely to get more honest and accurate information than if you call saying “I’m <Joe/Jane>’s new boss, I’d like to verify their history and references. Having a third party presents a level of trust and anonymity that is not present when you just pick up the phone yourself. It can take a significant level of effort to get people on the phone these days, taking away from valuable (and profitable) time you could be spending elsewhere.

Both processes are fairly tedious, require effort, follow up and also financial investments. And then what happens if the facts don’t check out? You have wasted all of those efforts. A simple way to circumnavigate this tedious process is to outsource it to a third party.

Employer Solutions Plus is an experienced HR solutions provider and we can help you choose the perfect partner for outsourcing employment, education and additional background verification in an efficient, effective and affordable manner. Consider us your HR “easy” button!

Contact us today for a consultation!