Welcome to the StaffScapes Professional Employer Organization (PEO) and Employee Leasing Blog site.

This is my First Blog for our Professional Employer Organization blog site. I thought it would be good to give you a little detail about StaffScapes, Inc. and what we do as a PEO. StaffScapes is a human resource solution center based in Westminster, Colorado.  As a PEO StaffScapes is able to offer benefits and strengths that other companies cannot.  PEOs have become a popular answer for small- and medium-sized business owners’ day-to-day human-resource issues and StaffScapes has become a leading PEO in Colorado.

In 1996 StaffScapes was founded by Jim Thibodeau & Partners with a singular goal: to offer complete, comprehensive, and cost-effective payroll and human-resources solutions.  Issues such as payroll, taxes, workers’ compensation, employee benefits, human resources management, and employee discipline/discharge are all managed by the StaffScapes team of professionals.  This allows small- to medium-sized business owners to remove the obstacles created by continual paperwork to do what they do best – foster the growth of a productive business. 

Benefits of a PEO for your Business, for your Employees and for the Government

For your business, a PEO:

· Provides experienced professionals in HR, benefits, payroll and risk management.

· Assumes certain employment related liabilities.

· Delivers professional assistance with compliance (payroll, OSHA, EEOC).

· Provides secure Internet access to payroll, benefits and personnel data.

· Provides access to professional HR guidance and materials.

· Manages claims.

· Supplies clear, easy-to-read and professionally written employee handbooks, policies, procedures and practices.

· Improves cost control.

· Delivers access to better benefits.

· Reduces turnover.

· Provides quality benefits and recruiting assistance to attract and retain the best employees.

· Provides you more time to focus on your bottom line.

· Gives you the opportunity to grow your business faster.

For your employees, a PEO:

· Provides access to comprehensive benefits often previously unavailable - 401(k), Section 125 plan, comprehensive insurance benefits, Flexible Spending Plan.

· Delivers on-time and accurate payroll.

· Provides professional assistance with employment-related issues.

· Supplies easy-to-read employee handbooks, policies, procedures and practices.

· Enables more employees to receive statutory protection.

· Improves communication among and between employees.

· Offers up-to-date information on labor regulations, workers’ rights and worksite safety.

· Processes claims efficiently and responsively.

· Enables employees who move from one PEO client to another to avoid loss of eligibility for benefits.

· Provides improved access to payroll information, benefits, personnel data, vacation and sick time accrual, and specialized reports.

· May offer credit union membership and banking privileges.

· Frequently offers exclusive employee discounts and rates on travel, entertainment and services.

For government, a PEO:

· Consolidates several companies’ employment tax filings into one.

· Provides more professional preparation and reporting.

· Accelerates collection of taxes.

· Extends access to medical benefits to more workers.

· Provides access to 401(k) retirement savings opportunities to more employees.

· Improves the communication of government requirements and changes to small businesses and their employees.

· Reduces litigation by resolving many problems before they reach court.

· Allows government agencies to reach businesses through a single-employer entity.

Buying a business requires a thorough do-diligent list and the last thing you probably want to do is add yet another deal breaker.

At StaffScapes, we are an Outsource Human Resource company locally in Colorado that must gather a lot of detailed information and hidden costs for an accurate proposal.

One of my past prospects’ now a current client, was having trouble getting the Workers Compensation Declaration Page from the seller of the business prior to the sale of the business. Once explaining the importance of reviewing the workers compensation Declaration page my prospect finally demanded to see a copy.

After reviewing the Workers Compensation Declaration Page with our prospect what we found was that the current workers compensation rate had a modifier of 1.25. That 1.25 modifier was adding an extra 25% to the premium this year. In addition to the modifier we also discovered that the current employer did not have any safety programs in place as well as multiple injuries in the past years that will increase his rates significantly each year at renewal. Estimating what the new rates where going to be at the next renewal date, our prospect was able to negotiate a 25,000 difference in the purchase of the business which would have been added as an unforeseen future expense.

As a local Colorado PEO, StaffScapes helps our clients stay in compliance as well as and manage the risky life cycle of having employees.   

Reminding FSA participants that the end of year is near and to make sure that you have used all the money your FSA account. Receipts must be dated for services rendered in 2006 and claims must be submitted by March 31, 2007.

FSA - Flexible Spending Accounts – End of year coming soon

There are many reimbursable expenses that can be applied to the FSA account, prescriptions co-pays, dental treatments, contacts/glasses, eye exams, chiropractic treatments, medical visit co-pays or out of pocket medical expenses, and many more.

Please contact StaffScapes to get a full list of reimbursable expenses or to request FSA reimbursement forms.

If you are interested in participating in the FSA or would like to offer this benefit to your employees please contact StaffScapes Benefit Department at 303-466-7864

Open Enrollment for most companies offering FSA and Dependent Care accounts go’s on in December.

All enrollments for the FSA or Dependent Care Accounts for StaffScapes Professional Employer Organization (PEO) clients are due by December 22^nd 2006.  This is to enroll for expenses incurred in the 2007 calendar year.  FSA and Dependent Care are a benefit to have money set aside in an account for reimbursements.  The money is deducted from the employees check on a pretax basis.  Employees that participate will not have to pay Social Security, Medicare, Federal or State taxes on the money that is withheld.

As a Colorado PEO this is a standard benefit that is provided to all employees at no cost to the employer. Please contact StaffScapes Benefits Department to get a full list of reimbursable expenses or to request enrollment forms at 303 466 7864.

StaffScapes will remove all the administrative hassles of providing FSA and Dependent Care Accounts for your employees.  If you are interesting in offering this benefit and other great benefits to your employees please contact StaffScapes Sales Department at 303-466-7864.

PEOs allow you the freedom to custom design a plan and eliminate the testing hassles of a plan that come along with having small business.

Are you looking to add a 40k plan to your business or do you have a plan in place and hate the expense or testing problems that come with having a 401K plan? Does your plan constantly fail testing year after year because you do not have enough employees participating in your 401K plan? If you answered yes to any of the above questions your company may be a good candidate to use the service of a PEO or Professional Employer Organization. Through the co-employment agreement with a PEO you can eliminate the cost and the testing problems associate with having a 401K plan. The IRS ruled that all PEOs must have a multiple employer plan in place. This arrangement allows the PEO to custom tailor the plan for your business. The 401k plan can be a basic plan with just simple 401k participation rules that only allow employee contributions or it can be a rich plan with certain safe harbor or employer matching provisions.  A plan also can be set up and change with out extra expense and paperwork. Eliminate some of the headaches that come along with having employees, benefits and 401k plans contact a PEO today.

StaffScapes provides PEO services in Colorado and across the nation. Contact our sales or benefit department to learn more about our 401K plan. We can be reached at 303-466-7864

In November all United health care clients that used the Health One Network received a 7% discount on the November bill.

Did your United Health care bill have a discount on it in November? All participants that had coverage in October should show a discount for that time period. The discount comes from the Health One contract dispute with United Health Care. For a period of time United Health Care participants could not use the Health One network of Doctors. Because of the missing network United gave back a 7% discount to it Colorado clients. Check with you plan administrator to be sure that you received this discount.

As a local based Professional Employer Organization (PEO) StaffScapes administers all of our clients health plans. StaffScapes pays the bill, reconciles the bill to be sure employees are added and subtracted as needed and helps keep employers in compliance with COBRA or other state continuations programs. To learn more on how a PEO can simplify your benefit compliance give us a call at 303-466-7863.

Pinnacol Assurance independent contractor form must be completed before any work can begin by the sub or contractor.

Many employers use Pinnacol Assurance as their provider for Workers compensation in Colorado. Actually more than 60% of Colorado employers us Pinnacol Assurance. With that many employers using one career they have developed certain rules about using Independent Contractors or subs to complete projects. If you hire a sub to work at your site or to do work for you you must request a workers compensation certificate of coverage from that Sub. If you hire a Independent Contractor you must either have a certificate of coverage or have them complete the Independent contractor form that Pinnacol Assurance requires and must approve.  Many employers to not understand that the independent contractor must be approved by Pinnacol before work can begin. If they are not approved your company will be liable for all work comp premium related to that Independents contractors income.

When completing the Independent Contractor form be sure to have it notarized. One common mistake is that both the Independent and the employer needs to sign it in front of a notary. Once the form is completed it must be turned into your work comp underwriter and returned before work begins. Hopes this helps you understand the world of work comp a little more. As a Colorado PEO we work with and understand workers compensation in Colorado. To learn more contact StaffScapes at the number above.

See Also

• Independent Contractor Form
  Pinnacol Assurance Independent Contractor Form

Another big snow storm is expected in Colorado late this week, is your payroll department ready?

To ensure that every clients receives their end of year payroll  and bonus on time StaffScapes will be delivering payroll early this week. Payroll will also be delivered overnight UPS early am so as not to have any delays in employees getting paid this week.

This is also a good time to bring up direct deposit again. All employees are eligible to have direct deposit. If you get a check and can’t make it to the bank what do you do? If you have direct deposit is is sitting in the bank waiting for you on payday. On payday you can write checks and pay bills on line if you need to.

Be careful with this new snowstorm and have a great New Year.

StaffScapes a Denver based PEO has been a member of NAPEO since we opened our doors in 1996. NAPEO is a great partner to all PEO’s from regulator compliance to marketing.

NAPEO, the National Association of Professional Employer Organizations, is the recognized “Voice of the PEO Industry.®” NAPEO has more than 370 PEO members found in all 50 states, representing more than 70 percent of the revenues of the $51 billion PEO industry. PEOs enable clients to cost-effectively outsource the management of human resources, employee benefits, payroll and workers’ compensation. PEO clients focus on their core competencies to maintain and grow their bottom line. To learn more about the PEO industry and how PEOs contribute to small businesses’ success, visit the NAPEO Web site: www.napeo.org

See Also

• NAPEO- Voice of the PEO Industry
  NAPEO home page

California Employment Training Panel (ETP) recognizes the value a PEO brings to small business and is reviewing policy on funding ETP programs with PEO’s and there clients under a c0-employment relationship.The Employment Training Panel is considering funding employers that contract with a Professional Employer Organization (PEO) to perform employment-related services. Following a presentation by members of the PEO community at its January meeting, the Panel recognized that it is increasingly common for small and mid-sized employers to retain PEOs for payroll, Human Resources, and other administrative services.

The PEO representatives explained to the Panel that the contracts between employers and PEOs identify shared risks and responsibilities, and create a legally valid “co-employment” recognized by the courts. In general, PEOs charge services fees, but the client companies still make the hiring decisions and set out the salary and benefits for each employee. PEO services may range from processing personnel documents to negotiating for insurance coverage options. The PEO handles paperwork, while client companies are still in charge of the day-to-day business operations.

The Panel also heard from Christine Cobb, Director of Development at Sparkhill, LLC, in written comments. Sparkhill is a small production company within the entertainment industry, and contracts for payroll and related administrative services with a PEO. In the past, Sparkhill was considered ineligible to participate in ETP-funded training under a Multiple Employer Contract, due to questions about eligibility stemming from its co-employment relationship. In a letter to the Panel, Ms. Cobb stated that “although we contract out our payroll services, we are still paying payroll and other taxes to the state and should be able to take advantage of ETP as a result . . .”

Speaking to this issue, Chairman Barry Broad observed that “employers using the administrative services of a PEO should not be prohibited on that basis alone from applying for ETP funding.” He asked ETP staff to prepare guidelines for Panel’s consideration in March. The guidelines will address employer eligibility and performance standards for a pilot program to fund training in this area. The guidelines will clearly distinguish the co-employment model from temporary agency employment.

The Panel has no plans to revise its long-standing policy against contracting with temporary agencies for training employees of client companies due to concerns about job security, wage progression, and other employment issues

See Also

• ETP News Link
  ETP Funding of PEO’s

Payroll accuracies are a simple requirement from all clients that hire the services of a Professional Employer Organization or payroll company.

During a recent interview with an employee that worked at one of the largest PEO’s in the nation he expressed amazement that we double check each payroll before delivery to clients. The company he worked for could not get payroll done correctly and was a big issue for his clients. As a regional PEO based in Colorado we are hired by employers to help them overcome a myriad of employment problems. Human resources are a large concern for bigger employers along with the potential pitfalls if an employer misses an HR deadline with requirements such as COBRA or FMLA. Other employers need a method to control cost and look at safety and workers compensation and what a PEO may do for them in that area. But the backbone to all HR, Workers compensation, Safety programs or employee benefits is payroll. If a company cannot provide accurate payroll how good will they be on other issues of employment. By having a second set of eyes review payroll before it leaves our offices it makes for a very happy clientele on payday. The employees are happy on payday and in turn so is the employer on payday.

If your payroll is not accurate give StaffScapes a call we may have a solution for you.

PS: did you remember to adjust your employee wages for the new minimum wage rate change?

A Colroado based PEO StaffScapes overcomes objections of business owners.

Most business owners are apprehensive about turning over certain functions and responsibilities to an outside resource. The perception vs. reality is far from that.

Loss of Employee Loyalty

Perception: If I no Longer sign my employees paychecks, I will loss my staff allegiance.

Reality: After signing on with StaffScapes, business owners find that there is no negative impact on employee loyalty. In fact, with the added benefits and programs a PEO brings clients report an improvement in moral.

Loss of Control

Perception: After signing with StaffScapes, I’m afraid I’ll  no longer have total control over my business

Reality: StaffScapes clients actually find they have more control over critical business objectives since they spend less time dealing with administrative issues and employment details. Less hats more control.

One of the many choices you may have to make when changing jobs or retiring is deciding what to do with your hard-earned money that’s invested in your previous employer’s 401(k) plan. There are many options available to you when you leave your employe

Maintain your tax-deferred benefits by moving your money into an IRA

An excellent way to preserve the tax-deferred benefits of your investment from your previous employer’s 401(k) plan is to transfer or “rollover” your money into an IRA. By moving your money into a Rollover IRA, you gain the following benefits:

• Avoid Paying Federal Taxes and IRS Tax Penalties
  “Cashing out” or taking out all of your money from your previous employer’s 401(k) plan has negative financial consequences. 20% will be immediately withheld for federal taxes. Depending on your tax bracket, other federal taxes may apply when you file your income taxes (additional state and local taxes may apply). In addition, you must pay a 10% IRS penalty if you are under the age of 59 ½ (additional state penalties may apply). By moving your money into a Rollover IRA, you pay no taxes or penalties.

• Investment Flexibility
  You have the freedom to reallocate and diversify your investments as you see fit. You can take this opportunity to rebalance your retirement portfolio to conform your investment strategy.  You also have the possibility of moving your money into a future employer’s plan. In addition, you can consolidate other retirement money into the Rollover IRA.

Leave your money in your previous employer’s 401(k) plan.

Keeping your money in your previous employer’s 401(k) plan will help you maintain the tax-deferred benefits of your retirement savings, but you typically have less control of your investment options, will not be able to consolidate with other retirement accounts and may not be able to borrow money from your plan.

Transfer your money into your new employers plan.

If your new employer offers a 401(k) retirement savings plan, you may be eligible to roll over your money into the new plan. There are often different rules and requirements with each plan. You also may not be eligible to participate in your new employer’s 401(k) plan upon hire and may have to wait many months before you are able to participate.

Take cash from your 401(k) plan.

You may take all of your money out of your 401(k) plan by taking a lump sum distribution, but you may lose a substantial amount of your savings in the process. Once you take all of your money out of your 401(k), you lose your tax-deferred investment benefits.

Here’s what you can expect if you cash out:

1. 20% will be immediately withheld for federal taxes.

2. 10 % Early Withdrawal penalty for IRS if you are under the age of 591/2 (additional state penalties, where applicable, may apply).

3. Depending on what tax bracket you are in, you may have to pay additional taxes when you file your yearly income taxes. For example, if you are in the 28% tax bracket, you will have to pay an additional 8% when you file your income taxes (20% was already taken in advance when you cashed out). Additional state and local taxes may also apply. If your tax rate is lower than 20%, you may receive money back from the federal government when you file your yearly taxes. 

4. You no longer have a retirement savings! You no longer have a nest egg and your money is no longer earning interest! Long-term investment strategy is sacrificed for short-term gain.

Do the math

If you decide to take a lump sum distribution from your 401(k) plan and you are under the age of 59^1/2, and you fall within the 28% tax bracket, here’s what will happen to your savings balance:

Original Account Balance:                                                           $30,000

20% immediate Federal Tax Withholding                  - $6,000  

8% Additional Federal Taxes Due at Filing                               - $2,400  

10% IRS Early Withdrawal Penalty                                            - $3,000  

What’s left …                                                                                $18,600

Not including any additional state penalties or state and local taxes you may have to pay, it would cost you $11,400 to take all your cash out of your plan! If you rollover your $30,000 into a Transamerica Premier Funds Rollover IRA, you get to avoid paying all those taxes or penalties.

StaffScapes a leading Colorado Professional Employer Organization is going Green in 2008.

In the coming months you can help StaffScapes go Green and create a paperless environment. Encourage your employees to sign up for Direct Deposit this will allow us to stop printing checks for employees. Employees and Employers can review the check stub on line and print it at home if necessary. Employers can also view invoices and other reports on line as well. By not having to print check or invoices we can cut the amount of paper used and can also eliminate shipping or delivering weekly payroll packages to employers. Employers can also elect to receive invoices via email. The 2008 new hire package will be available on line as a fill in form with electronic signature capability in 2008.

Contact Jim Thibodeau to learn how you can help make StaffScapes Green and how StaffScapes can provide your employees with direct deposit or payroll cards to create a paperless payroll environment.

StaffScapes a local Professional Employer Organization provides PEO services as well as basic payroll for companies with less than 50 employees.

Are you looking to replace ADP or Paychex with a local Colorado company willing to provide quality customer service. Look no further than StaffScapes, if  you are looking for a payroll provider or a full service HR outsourcing firm we can help. StaffScapes will keep you in compliance with the ever changing HR, Payroll and Worker Compensations laws around the nation and in Colorado.

Contact us at 303-466-7864 to learn more about the Services StaffScapes provides.

Colorado Governor Signs NAPEO Tax Credit BillColorado Governor Bill Ritter has signed NAPEO-backed legislation that provides certainty for PEOs and client companies with regard to tax credits.  HB 08-1034 will assure that PEO clients can receive tax credits.  In certain situations, clients of PEOs had previously been denied these valuable tax credits because of the PEO arrangement.  This new law is a collaborative effort by both NAPEO and the Department of Revenue. The new law is retroactive for tax credits to eligible employees hired on or after August 3, 2007.  

See Also

• HB08-1034
  PEO Tax Credit Bill

Compliance poster made easy with a PEO

Over the next few months business will be hit hard with adds selling compliance poster. some of these adds sounds like a demand letter from the IRS requiring you to update every year. Certain poster did change this year but not all posters have changed an example of this is minimum wage. Colorado has been constant for the year but Federal minimum wage changed this summer. If your state poster is current then all you have to do is update the federal wage poster.

Contact StaffScapes if you need order updated poster. We can send you one or a laminated set for all state and federal requirements.

Controlling cost and optimizing resources with a PEO.

Is your business generating a small profit? Are human resources and benefits eating away at that profit? Insurance benefits are the one area that is increasing the most over the past few years.  Professional Employer Organizations remove the burden of employment and help small companies get a handle on ever increasing employee benefits and government compliance. A commonly overlooked cost are is when employers hire or have to fire an employee.

In today’s market place employers need to have certain controls in place to help maintain profits. With more people available to work then in the past few years employers need to make smart hiring and firing decision.  A simple way to increase the probability that you are hiring a good employee is to do reference checks and pre employment drug screening. Recent court rulings have stated that employers may give out more information to prospective employers than in the past. A PEO like StaffScapes can assist in the hiring process making it easier for employers to find the best employee.

The second area that PEO’s can help employers is when it is time to fire an employee. We all hate firing an employee but at times it must be done. Be sure the employee is treated with respect by setting consistent expectations for all employees. Establish a separation policy. Properly mange the separation by having a trained person assist on the separation along with the employees imitate supervisor. Conduct a exit interview to try and gather information that may give your business directions on improvements that need to be made. Lastly promptly handle all post separation details to insure the employee receives his or her last check, is notified of any continuing insurance coverage available, and any workers compensation benefits due if any.  A PEO will be able to help in the correct steps involved in hiring and firing employees.

The link below provides employers with information about the unemployment process. If not familiar or if you need further assistance contact StaffScapes today at 303.466.7864.

StaffScapes a full service PEO serving Colorado and the Rocky Mountain region.

See Also

• Unemployment Claims
  UI Claims process

Claims Managament with Pinnacol Assurance

Have you every wandered if you are managing a workers compensation claim correctly. Come learn the in’s and outs of claim management with Kay Carnahan Director-Agent Loss management Programs of Pinnacol Assurance

Wednesday, September 10, 2008

1:30-2:30

Pinnacol Assurance Offices

7501 E Lowry Blvd.

Denver, Co 80240

For further information on claims management and what you should do during an injury contact StaffScapes a leading Professional Employer Organization serving the Rocky Mountain region.

See Also

• Pinnacol Assurance
  home page