Standard Paid Time Off

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The digital world we live in today makes it nearly impossible for us to truly “shut down” when we leave the office. 24/7 access to email, social media and work create an environment of constant contact and can often leave employees and management alike burned out. The Fair Labor and Standards Act does not set a requirement for paid time off (PTO) for employees.

The PTO model generally combines sick and vacation time under a single umbrella. This model differs from the traditional segmented sick/vacation days. While this offers more flexibility in some situations, if you use all of your PTO at the beginning of the year and end up getting sick later on, you may be required to take unpaid time off.

So what is the average PTO for employees in the United States? According to the Bureau of Labor Statistics, for full-time employees in the private sector they receive an average of 10-15 days of paid time off after one year of employment. In most instances, as you spend more time with a company you accrue PTO at a higher rate, resulting in more days on a year over year basis.

In addition to vacation and sick PTO, there is also holiday PTO which is not factored into the above statistics. Once again, there is no requirement set forth for employers to provide PTO for holidays, including federal, to their employees. Most companies in the private sector follow the federal holiday calendar, which gives 10 paid holidays to their employees.

With so many options and so little regulation around PTO for employees it can be quite overwhelming to develop your company’s policy. We recommend reaching out to a team like Employer Solutions Plus, which can provide you with guidance surrounding the types of PTO that would work best for your company. Our experience in employee management and benefits allows us to design a plan that is a best fit for your organization and company culture.

If you work with a PEO, your PEO may already have PTO templates and resources for you to take full advantage of – just ask! Contact us today for additional information.

Can I Keep My Workplace Benefits Plan if I Engage a PEO?

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As you probably know, PEOs offer the following benefits: relief from the growing burden of employment administration, improved employment practices, improved workplace compliance, HR assistance, payroll services, risk management, comprehensive employee benefits packages, and so much more!

When it comes to benefits particularly, many companies “win” through the co-employment relationship. By pooling together employees from multiple client companies, PEOs bring forth tremendous purchasing power – often passing along low rates, great options, and additional benefits you may not have previously been able to offer your employees.

But, what if you’re a young and healthy office that already celebrates low health insurance rates? Whatever the PEO is offering you may actually cost more than what you have in place for your employees.

Or, what if your current plan has extremely robust benefits such as vision, dental, and coverage for various specialists? Can you carve out the cost of benefits from a PEO contract and leave your existing plan in place?

All PEOs are different, but in most cases the PEO will consider it and it’s absolutely worth asking. If they are not willing to take employee benefits out of the proposed contract, and you are beyond happy with your existing plans and prices, we recommend that you keep shopping for a PEO.

You don’t need to settle for a PEO contract that isn’t the perfect fit for your unique situation. If you proceed with the PEO’s proposed benefits plan, you may be paying for plans you won’t necessarily utilize or dropping a plan that your employees are really happy with – resulting in employee dissatisfaction.

Please contact Employer Solutions Plus if you’re having trouble finding the perfect PEO. We represent countless PEOs across the country, many of which don’t require signing on to their insurance plan if you’d like to keep your own.

Can a PEO Assist with Deferred Compensation Plans?

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So, you’ve decided that you’d like to provide your employees with a deferred compensation plan. Now you’re just wondering if your PEO can handle that. After all, there’s no sense in bringing in another vendor if all employee management tasks can be managed under one great umbrella of cost-effective and efficient services.

Here’s the good news: PEOs not only minimize the time spent on administration and operating cost, but also provide solutions related to deferred compensation! The bad news is that options may be somewhat limited. Before dismissing the idea though, know that options for individual retirement accounts (IRAs) through your PEO will be plentiful. The reason we say “limited” when referring to deferred compensation plan options is because the general term of “deferred compensation” includes pensions and employee stock options – things PEOs don’t tend to specialize in or offer.

When it comes to retirement plans though, such as 401ks, PEOs offer:

  • Expertise: Trusted advisors to help you proactively manage your employees, and do what’s in your best interest from a tax liability perspective.
  • Risk Management: Help with avoiding compliance violations or tax violations.
  • Purchasing Power: PEOs help optimize your employee benefits by pooling together employees from other companies. This results in much stronger purchasing power than you’d have as a small standalone business and you’ll likely gain attractive retirement plan options!

In conclusion, PEOs provide a team of professional HR and retirement benefits experts to keep up with the ever changing laws and reduce your liability as an employer. If you’re looking for a deferred compensation plan outside of retirement, such as company stock options, you may need to recruit the help of additional professionals. Be sure to ask us for referrals!

Also, note that when shopping for a PEO or alternative service provider you’ll likely receive deferred compensation plan options that vary from one PEO to the next. Our dedicated staff of PEO experts at Employer Solutions Plus can prepare a custom analysis of proposals for you upon request, saving you time, money, and stress!

Call today to take the guesswork out of retirement options and find the perfect service provider for your organization and its employees, whether that perfect fit is a PEO or a standalone service provider! Employer Solutions Plus: 727-698-6207.

What is Deferred Compensation?

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New to investments? Trying to arrange something that’s beneficial for both you (the employer) and your employees? You may have stumbled upon the term “deferred compensation.”

A deferred compensation plan is an arrangement between an employer and an employee in which a portion of the employee’s compensation for work performed is deferred for payment to a later date.

Your first impression may be “why on earth would anyone not want the money they’ve earned right now?” But, there are a number of benefits to deferred compensation plans deemed eligible by the IRS. The most obvious is the deferral of tax to the date at which the employee actually receives the income.
Because they are not earning the income at this exact time, there is no federal or state liability for that portion of income. Also, by deferring some of the income, the employee may fall into a different tax bracket, resulting in a lower tax rate.

Upon retirement (or the future date of choice), the employee or the surviving spouse of a deceased employee then receives a periodic payment or lump sum payment based on their contributions over the years.

Examples of deferred compensation include:

  • Pensions
  • Retirement plans
  • Employee stock options

So, how do you know if your deferred compensation plan is eligible according to the IRS? You can refer to IRC section 457, which describes plans of deferred compensation available for certain state and local governments and non-governmental entities (tax exempt under IRC 501). Or, you can rely on a tax/investment professional or Professional Employer Organization (PEO) which we’ll talk a little bit more about next week.

For immediate questions or concerns regarding your workplace retirement plans or deferred compensation models, contact us at Employer Solutions Plus.

 

Lower Your Company’s Health Insurance Costs… Immediately!

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Do you cover some or all of your employees’ health insurance premiums? Depending on the number of employees at your workplace, health insurance could be a very large outgoing expense each month. As business owners, it’s only smart for us to look at our accounts payable each month and decide what needs to go, or what can be cut back on.

However, cutting back on health insurance and benefits for your employees is NOT a good approach! Offering benefits comes with its own list of great benefits.  Do you want to continue offering benefit rich plans but decrease your company’s overall health insurance costs each month?

It IS possible – here are a few ways:

  • A lot of health insurance costs are related to chronic conditions like obesity or cardiovascular disease. These most often are conditions that are preventable and reversible. Many health insurance companies are willing to reduce premiums for companies or organizations that take proactive steps to promote a healthier workforce/workplace. Does your company have an employee wellness program (EWP) or employee assistance program (EAP) in place?
  • Explore the marketplace for more competitive bids. You don’t have to lose special perks or settle for higher deductibles to save money on health insurance. It is always smart to get an outsider’s opinion from a professional with access to multiple providers and plans.
  • Don’t be afraid to bundle! Insurance companies love loyalty – especially if you’re a large group. Bundling multiple lines of coverage with the same insurance carrier (health, dental, life, and disability) can significantly reduce your premium costs each month. If you are currently utilizing multiple providers, consider condensing all benefits under one provider’s umbrella instead.
  • Partner with a Professional Employer Organization (PEO). Partnering with a PEO offers small to mid-sized employers access to “big company benefits.” PEOs have stronger purchasing power when it comes to health insurance due to the overall population size of their employee base. They pool employees from numerous client companies on to a single company policy (the PEO’s policy) through the co-employment relationship. They also offer access to ancillary benefits you may not have been able to offer in the past!

Is it time for your company to save on health insurance? At Employer Solutions Plus, we represent the “best of” in employer solutions – whether it’s a company health insurance plan, or a full-suite PEO solution.  We represent multiple providers in each product category which allows us the flexibility to customize a cost effective solution to meet the individual needs of our clients.

Contact our team for more ways to save on your company’s health insurance premiums.

 

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.

Why Should I Offer Ancillary Benefits?

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Ancillary benefits are health benefits offered by employers in addition to a standard health plan. Examples include dental, vision and accident/injury benefits, as well as non-insurance products such as retirement plans.

Over the past few years, many employers have been working toward decreasing costs and limiting spending, so you may be wondering why you should offer your employees additional benefits on top of their standard health insurance plan.

Here are just a few reasons:

  • Offering a health plan is not enough to keep employees healthy. An all-encompassing plan promotes a healthy and productive working environment.
  • Rich benefits packages also help attract and retain top talent.
  • Research shows that ancillary benefits (especially dental and vision) are helpful in the early detection of diseases and/or conditions and therefore support lower medical claims in the long run.
  • Ancillary benefits are AFFORDABLE! Purchasing at a group level is much less than purchasing an individual policy. With group ancillary insurance products, the risk is spread out amongst your company, which keeps premiums reasonably priced.
  • Many premiums are paid with pre-tax dollars.

The cost of ancillary benefits doesn’t necessarily need to be picked up by the employer either. It can of course be completely covered by the employer, but it can also be shared with the employees by arranging an employer/employee split.

To learn more about ancillary benefits and what will work best to complement your standard health plans in 2013, contact Employer Solutions Plus.

Benefits: How Small Franchise Locations Gain Large-Company Purchasing Power

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Franchising is an attractive way of doing business, there’s no doubt about it. Rather than relying on a new brand or concept to “take off,” franchisees utilize corporate image and power as a tool to expand their market share more rapidly and less expensively.

With a brand that’s already recognized, franchise owners reap many benefits when it comes to hiring and marketing services and sometimes even an overall business model and/or growth plan. It’s already been established, and that certainly beats starting from scratch!

However, franchisees could face some challenges when it comes to: employee benefits. While you may be part of a very large “corporate image,” you may not be part of a corporate policy for vendor services such as health insurance. Large companies tend to get more attractive (and cost-effective) health insurance options because there are hundreds, sometimes thousands, of employees on their policy. You may only be a small employer but realize the importance of offering health insurance benefits to attract and retain quality employees.

So, where does this leave you? A great solution is a Professional Employer Organization (PEO). PEOs present purchasing power for health insurance due to the overall population size of their employee base. They pool employees from numerous client companies on to a single company policy (the PEO’s policy) through the co-employment relationship.

Employer Solutions Plus has established partnerships with many national PEOs who understand the unique needs of a franchise owner. With a PEO, clients gain better service, better pricing, and more options – beyond health insurance and into payroll processing, employee administration and more!

If you are with corporate… Providing health insurance options (such as master group health) to new franchisees makes your business model and franchising set-up much more attractive. You help new locations get off to the right start by keeping their vendor expenses as low as possible. Suddenly, “corporate benefits” is added alongside the value of a franchisee’s corporate image … further ensuring their success!

If you are an individual franchisee… If corporate doesn’t currently offer PEO or health insurance options, give Employer Solutions Plus a call to discuss your employee benefits. We work with many PEOs interested in providing you with economical options for health insurance!

Click here to reach us!

How to Become an Employer of Choice

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That’s right; a competitive employee benefits package has the power to differentiate you from fellow employers within your market or industry. An attractive benefits package can be an excellent way of retaining the talent you already have, and recruiting your market’s cream of the crop.

In a great article released by Inc.com, “How to Build a Competitive Employee Benefits Package,” the author addressed endless options to include as part of your package. But how can the small to medium sized business owner afford all of these great options?

There are many reasons we love the PEO/co-employment solution; but the benefits they bring to the table is definitely one of our top reasons. Every day, PEOs help companies put together benefits packages that are powerful enough to blow their competition out of the water.

Because of their size, PEOs have the power to negotiate more competitive benefit packages than your small business may be capable of. As they say, there’s power in numbers. The results are rewarding: employers save money on competitive benefits packages, and employees gain access to better benefits surrounding health care coverage, other various medical benefits, and even lifestyle benefits such as recreation access, credit union membership, and financial counseling.

Want to learn more? Contact Employer Solutions Plus today for a complimentary consultation. We can quickly help you determine if the co-employment solution is a good fit for you. And with a stronger benefits package, you’ll be attracting top talent in no time!

What are Section 125 Tax Savings Plans?

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As a small business owner or HR professional, you can only know so much! Navigating the ins and outs of tax compliance can be a full time job in itself, which is why Employer Solutions Plus offers clients assistance in Section 125 Tax Savings Plans.

What you need to know: A Section 125 Plan provides tax savings for both the employer and employee by reducing employee benefits from gross salary prior to the calculation of federal income and social security taxes. This is allowed under Internal Revenue Code Section 125 – which is where this plan gets its name! You may have also heard this plan referred to as a “Cafeteria Plan” because employees “choose” from a selection of two or more benefits – similar to the cafeteria concept, where visitors choose from different foods.

This plan provides employee participants an opportunity to receive certain benefits on a pre-tax basis. A Section 125 Plan is a separate written plan maintained by an employer for employees that meet the specific requirements of, and regulations of, section 125 of the Internal Revenue Code (IRC). Do your employees meet the specific requirements of the IRC?

How we can help: Employer Solutions Plus can almost immediately tell you upon consultation if your company and employees qualify for such a plan. If your company does qualify, the written plan must specifically describe all benefits and establish rules for employee eligibility and elections – another area Employer Solutions Plus can help with.

Qualified benefits include: accident and health benefits, dependent care assistance, group-term life insurance coverage and HSAs (Health Savings Accounts). If you currently have a plan that only offers employees a choice between taxable benefits it is not considered a Section 125 Plan.

For more information on Section 125 Tax Savings Plans or Cafeteria Plans, contact Employer Solutions Plus today.