What is Human Resource Outsourcing and why might it be the right choice for your company?

Most business owners would agree that you get more out of your business when you get more out of your employees. Very often employees have been viewed as liabilities or expenses, instead of tangible, bottom-line assets.  Many successful business owners understand and believe that their employees have a direct impact on their profitability.
These same business owners also understand that outsourcing their Human Resource requisites allows them to focus on their businesses’ core competencies and affords huge administrative relief from numerous employer-related responsibilities.  By eliminating this often overbearing burden, the company can now concentrate on creating solid initiatives that provide them a competitive advantage. In today’s economy, having a competitive advantage is arguably one of the most important assets a company can currently possess. 


Can Human Resources really affect the productivity and profitability of your company?

Focusing on your employees does pay off! Solid human resources practices have the ability to increase your company’s productivity and profitability, but human resource administration and management has become a massive undertaking that demands significant resources. Each time you spend even a minute on any type of regulatory or legal compliance issue is time spent away from growing your business. These minutes equate to dollars of profitability that is not going to the companies’ bottom line. We also know that most compliance issues and tasks are unfortunately not concluded in minutes, but rather in hours, days or even weeks.


Outsourcing “people strategies” can help you gain a competitive advantage, but you need professionals who cut through the clutter of HR practices to learn which have the most positive impact on your business. StaffScapes HR professionals can help you decide which strategies are best suited to your needs and then help you implement them to achieve your organizational goals.

To schedule a free client analysis consultation with a StaffScapes professional, please call 800.551.7607

Five tips for both the employer and employee. Part two Employee

No one that I know of is comfortable with the thought of preparing for a staff reduction.  Both employers and employees are often placed into unchartered waters.  Everyone has questions and finding or knowing the answers often seems as easy as walking through quicksand.  I have a unique perspective as I have personally been on the receiving end of the “thank you for your dedication and oh sorry, you don’t get the five year service award company water bottle” and the “economic times are forcing us to reduce staff, now what do we do?” sides of the current and difficult times we are facing today.  So, to help navigate, here are a few suggestions:

For the Employee

1. Acknowledge that everyone is subject to being chosen as one of the “non-essential” personnel no matter how talented you are or how long you have worked for your employer.  Don’t fall victim to believing you won’t be affected.  Even if you survive the reduction, you and your colleagues will still experience fear, stress and increased work loads due to the forced actions.
2. Prepare in advance.  Do an audit on your personal life and create a budget if you don’t already have one.  Review your expenses and determine what you might be able to cut back on and put that money away now. Remember when Mom said to “save for a rainy day?”  I hate it when I realize Mom was right!  But honestly, putting away 3-6 months of expenses makes the difference between stressing out and freaking out!  No matter what your income, saving even a little will help.  And if you are not affected by the economic downturn, you will have a nice little savings that you wouldn’t have otherwise achieved.
3. Evaluate your options.  If you do become one of the growing statistics and are laid off, take a deep breath.  Next, take a little time to think about what you like to do, what you want to do and what you need to meet your lifestyle goals.  I guarantee that you will experience a flood of emotions and they will occur at various times through the process—even when you don’t expect them.  But, stay the course and adversity will eventually become opportunity and in time you will look back at the journey and realize that it may just be the best time of your life!
4. Have a plan.  Put together a job search map to help you get from point A to point B.   Network with friends, family and contacts.  At first you might not want to tell people what has happened because of embarrassment.  Speaking from personal experience, being a part of a lay-off is nothing to feel embarrassed about.  It happens to the best of us and it is unfortunately a common thing right now.  Some of the most talented people I know have been released of their duties.  Utilize unemployment services such as training seminars and job postings. Post your resume on job boards and target companies that you want to contribute your talents to.  Spend dedicated time daily to your search and customize each application to what the employer is seeking.  In essence, show them how you will help fill their need and provide concrete examples from past performance.
5. Enjoy & have fun.  What?  How can you enjoy and have fun when everything is falling apart?  I understand this reaction and understand it very well.  It isn’t easy to experience the after affects of the storm.  Things like fearing or experiencing  bankruptcy or foreclosure, wondering how you are going to keep the lights on or if you can afford to feed your children are all a part of dealing with job loss.  However, to deal with these stressors, you have to find a way to balance the negative with the positive.  Use some of the extra time you now have to do the things you have wanted to do but didn’t have time to do.  Now is the time to get in touch with who you are or who you want to be.  Complete that soul searching and find your vocation and not just a job.  Get back in shape and enjoy the natural beauty around you while working out.  Visit your local library and let your favorite author take you away to a time and place that is stress free.  Learn that new hobby or consider taking classes to update your skills or change your career entirely.  Complete those home projects that have been on your “to do” list for years.  View this time as a gift.  It’s hard to think of loosing your job as a gift, but sometimes, what we don’t ask for ends up being exactly what we need!

If navigating your way through challenging Human Resources issues has you perplexed or you want to free up time to focus on you business, call StaffScapes for your FREE Human Resources audit and see how we can help you.  800-551-7607.

By:  Eugena Bellamy, StaffScapes

Bells are ringing, lights are blinking and yummy goodies are being shared with holiday cheer.  Although the good feelings and warm wishes surround us during this winter time of celebration, it is also the time for stress and accidents.  Here’s a list of tips from StaffScapes to make sure you and your employees bring in the New Year safely.

Around the Office
1. Make sure walkways are clear from snow daily.  Use an ice melting product to help prevent slips and falls.
2. Tape down any electrical cords that are being used for holiday décor.
3. Provide hand sanitizer and desk wipes to help prevent the spread of germs from colds and flu.

At the Party
1. Limit or prohibit alcohol for the festivities.  If you do serve, monitor your staff and call taxi’s for anyone without designated drivers.
2. Provide plenty of food and non-alcoholic drinks for guests.
3. Keep it professional.  It may be a party and a relaxed atmosphere, but it is still the office.

For You
1. Get as much sleep as you can.  Being well rested will help you fight off airborne illnesses.
2. Drink plenty of water and eat healthy.  Enjoy the Christmas cookies but avoid overindulgence.
3. Keep Your Routine.  Tis The Season to stress out with holiday parties, work deadlines, end of year requirements, shopping, multiple requests from others etc.  Sometime it just seems like it is too much for one person to handle.  To help assist with the demands of the season, do your best to maintain a routine that closely matches what you do during less busy times of the year.  Write down your “To Do” list, delegate tasks that you can and schedule a little “me time” whenever you can—even if it is just for a cup of coffee at your favorite little java joint. 

Happy Holidays!

Did you know there is a new government program that will allow you to save for retirement?  The Retirement Savings Contributions Credit allows for up to a $1,000 credit for single individuals and $2,000 credit for married couples for contributions made to 401(k) or IRA programs during the 2010 tax year.  The plan is available for those workers who are 18 years of age or older and who meet the following income guidelines:

• Filers who are single or married filing separately, with adjusted gross income of $27,750 or less in 2010
• Filers who are the head of a household and have made less than $41,625 in 2010
• Filers who are married and filing a joint return and have a combined income of less than $55,500 in 2010

If you are eligible, here are some helpful tips for claiming your credit:

• If you use tax preparation software for your tax returns, you should use Form 1040A, Form 1040 or Form 1040NR. The credit is not available with Form 1040EZ.  Be sure to watch for and answer questions that refer to the saver’s credit, retirement savings contributions credit and/or credit for qualified retirement savings contributions.
• If you prepare your tax returns manually, you should complete Form 8880, Credit for Qualified Retirement Savings Contributions, to determine the credit rate and amount. Transfer the amount to the designated line on Form 1040A, Form 1040 or 1040NR.
• If you use the services of a professional tax preparer be sure to ask about the saver’s credit.

Additional online information can be found on the IRS website.

Are you looking for a candidate to fill a position you are recruiting for?  If so, StaffScapes may be able to help.  As a service to our clients, we keep a list of employment opportunities as well as resumes of former StaffScapes employees who are seeking new opportunities on file.  If you are recruiting, contact us with the details regarding the position, job duties and the qualifications you seek.  If we have someone with skills that match what you are looking for, we are happy to provide a referral.

Hiring.  Some companies are planning to hire in 2011 and others are still “waiting to see how things go”.  Whichever situation you are in, knowing what you can ask and what you should not ask during an interview is important.  A good piece of advice from PEO Insider Magazine is to “avoid making a direct inquiry into an applicant’s membership in any protected category”.  Title VII of the Civil Rights Act of 1964 makes it unlawful for employers to discriminate against individuals based on Race, Color, Sex, Religion, and National Origin.  Since then, disability, age, veteran status and genetic information have been added as well to the list of federally recognized protected classes. 

So, what guidelines should you follow?  Here’s a quick list of a few Do’s and Don’ts for asking common questions and keeping you out of hot water.

Don’t Ask:
• If an employee has childcare
• Are they a United States citizen
• Where the employee is from
• If they are disabled
• Are they in the National Guard

Do Inquire:
• If required to work overtime or travel overnight, are you available?
• Are you able to give us proof of eligibility to work in the United States?
• Do you speak any other languages?
• Are you able to perform the job functions listed with or without accommodation?
• Do you think you will need any extended time off from work?

In addition, avoid asking questions around topics such as arrests, alcohol consumption,  home ownership, religious practices, political views, and physical characteristics such as height and weight.

Hiring employees based on their skills and the ability to do the job as detailed in your description and keeping your questions to relevant duties will help you to avoid discrimination claims. 

StaffScapes helps its clients review interview questions, draft job descriptions and provides guidance for the hiring process as a part of its services.  If you need help in any Human Resources related area, contact us today at 303-466-7864.

All small business owners need a team of trusted advisors to help them manage their operations and make decisions that will achieve success.  The following are recommended experts that you should make a part of your Board of Advisors:

1. CPA/Accountant.  Whether you do your accounting in-house and use an outside source for review only or you rely heavily on their number crunching, a CPA/Accountant is vital to ensure that your books are correct and will help with audits, taxes, bank compliance and many other key functions.
2. Attorney.  This expert will be available for advice on setting up your business, creating contracts, litigation, mergers & acquisitions, business structure changes, closures and various matters resulting from doing business.   
3. Financial Planner.  Planning for your future, be it retirement, succession planning or forecasting growth, a Financial Planner is a great source for ensuring you are on the right path. 
4. Insurance Representative.  Why allow all your hard work to be at risk?  A knowledgeable insurance professional will help you understand your specific needs.  Do you need General Liability or Professional Liability protection?  Perhaps specialized coverage for your industry?  Finding someone that underwrites your industry will help you feel confident that you are covered for potential risks that may occur.
5. Accountability Partner.  Just like New Year’s resolutions, we all have great intentions when we start something.  But frequently, time constraints, to do lists and unplanned developments can steer us from our paths.  Checking in with someone on a routine basis will allow you to keep on task and end each year achieving your goals. 
6. Human Resources Specialist.  Often overlooked but extremely important. Workplace issues are becoming more and more complex as State and Federal legislation impact the responsibilities and requirements of small business owners today.  Dealing with areas like benefits, workers’ compensation, payroll, unemployment, employee relations, safety, risk management, taxes and finances are challenging.  Having an advisor whose main focus is HR can help you with compliance issues related to having employees, required employment & labor laws, claims and employee relation issues.

When assembling your team of trusted advisors, make sure that each person has some familiarity with your industry.  And don’t fear outsourcing.  No one person can be an expert in all areas.  Trusting your team and delegating tasks will help you ultimately grow your business and allow you to make key decisions with confidence.

You’ve hired your employee and they start tomorrow.  That’s all you have to do, right?  Technically, you could.  Not considering all of the requirements surrounding payroll, taxes, State and Federal regulations etc., any business could follow this approach.  However, engaging your employees and following a procedure to ensure they get off to a great start will increase the probability of being able to retain your new employee.  This can result in better buy-in, production, employee satisfaction and reduced costs associated with turn-over.  First impressions aide in creating a welcoming and genuine feeling of acceptance for your new employee.  Here are a few tips for creating an effective Onboarding program for your company:

1. Have all forms and paperwork required prepared in advance and presented in a professional manner.  Appoint a trained employee with your company to review the documents with the new employee and answer any questions they may have.  An organized presentation of the materials from a knowledgeable source will help get the process off to a great start.
2. Provide a complete tour of the building they will be working in.  Be sure to point out common areas they will need to know about such as conference rooms, supply rooms and break areas.
3. Point out locations of equipment the new employee will use and provide an operational review.  Most new employees are often overwhelmed when they begin a job and will not ask questions.  For example, all copy machines produce the same results, however, each operates differently and can lead to confusion for new employees when tasked with their first duplexing job.
4. Discuss policies and procedures fully with employees and ensure they understand the key reasons for these adoptions.  Simple safety procedures, as an example, can lead to lengthy workers’ compensation claims and prolonged employee issues if not reviewed and followed properly.
5. Make sure that the new employee feels welcomed by ensuring their work area is set up in advance with the necessary supplies to do their job.  It may seem simple, but arriving to a fully stocked work area can make an employee feel welcomed compared to finding their new home lacking.
6. Introduce the new recruit to the other staff members. Provide unique details about each person during the meet and greet sessions to help break the ice and allow the new employee to feel as if they are already a part of the team.
7. Follow a checklist.  By doing so, you can ensure that each new employee is treated the same way and receives all the required information you have determined is necessary.

Getting off to a great start with your new employee can help reduce turnover.  Following these tips sets the foundation for your employment relationship but it can’t stop there. You must now build upon this great start and continue to encourage your employees, provide feedback and engage them as a contributing part of your team.

Every day we are faced with potential emergencies.  Car accidents on the interstate, tornadoes, fires, emergency health developments, etc.  As a business owner, it is your responsibility to provide a safe environment and plan for how to respond in a crisis.  Training your employees and making clear what the expectations are may just save a life should the situation arise.

As a recent example, the tornadoes that violently ripped through much of the south and east portions of the United States created many nightmares for those affected. We heard of one story that exemplifies the need for emergency preparedness.  On a small picturesque quiet little street, two businesses went about business as usual.  As part of their operations, one had a plan in place for what to do should an emergency occur and had conducted training for its employees.  The other owner had done nothing to prepare in advance.  Unfortunately, the results were as you can guess, disastrous.  When mother nature unleashed its wrath, the proprietor who planned ahead successfully gathered emergency supplies and staff together in the safest location of the building.  The second owner who had ignored safety preparedness experienced confusion and panic from their employees while trying to figure out how to respond during the emergency. 

What can you do to help prevent a bad situation from becoming worse? 
1. have a written emergency evacuation procedure that includes floor plans and indicate exit locations and fire extinguishers.  Communicate these procedures with your staff.
2. have an emergency kit stocked and accessible in each building of your business.  Include in this kit, contact phone numbers for medical treatment facilities in your area.
3. have a designated location for all staff members to report to immediately after an emergency is declared.  Keep a staff roster with emergency contact information in an easily accessible location and account for all individuals by roll call to ensure safety and well-being of all employees.
4. Appoint an employee as your safety manager if you do not already employ someone in this capacity.  Ensure that they review procedures and update deliverables at least once a year and as changes occur.
5. Stock bottled water and non-perishable food snack items in your emergency area.  This can help extend survival in the event you need it.

For more tips and information on preparing for and responding to an emergency, please contact us for a complimentary copy of our Emergency Response Plan whitepaper. 303-466-7864 or .(JavaScript must be enabled to view this email address)

Did you know a dental or eye exam can help detect developing issues beyond oral and vision health?  Issues including Diabetes, Hypertension, Neurological disorders and several additional health care concerns are often discovered during routine check ups.  As a result, many insurance companies today are increasing the number of visits you can make to your dentist and offering vision coverage through standard medical plans or stand-alone voluntary benefit programs according to Business Insurance Magazine. 

Studies show that routine maintenance leads to early detection and in many situations can prevent the onset of serious conditions.  By finding potential issues before they develop into medical problems, you can often reduce the amount of doctor and hospital visits as well as the costly treatments and expenses associated.  With less on-going claims payments, the insurance companies find that their costs have been reduced and that lower premiums can be offered to employers and their employees.  A benefit for all. 

StaffScapes, Inc. offers flexible benefit plans as a part of its services.  Call us today at 303-466-7864 to discuss our Human Resource Outsourcing program and how we assist you to save time, make money and reduce liability.

If you haven’t already heard, come July, Colorado employers will receive bills from the Division of Unemployment for interest due on borrowed money from the federal government. The first assessment will pay interest for January 2011 through April 2011.  These borrowed funds are those Colorado agreed to pay back to the Federal Government when premiums paid by employers to the Colorado Unemployment Insurance Trust Fund ran dry and were no longer sufficient to pay unemployed workers.

Payment is due within 30 days of the billing date of the business owner’s notification.  Kindly, check or money orders are accepted by the Colorado State Treasurer.  Don’t forget to put your unemployment account number on the payment stub as they need to track compliant business owners.  If you happen to have an unpaid balance on your account, this assessment will take precedent in respect to how your payment is applied.  Any premium penalties, interest or general premiums owed will remain subject to payment. 

If you would like more information regarding this assessment or any other Human Resource program or assistance we provide, please contact us at 303-466-7864.  For the full Department of Labor notice regarding the Federal Interest Repayment assessment, please visit their website. 

Our hearts go out to the many victims and their families of the natural disasters we have recently seen.  From the floods in Louisiana to the Tornado this week in Joplin, Missouri.  Many of you have expressed concern and have asked how you can help our fellow Americans.  At StaffScapes, we support the American Red Cross.  Their ability to respond in a crisis immediately and to deploy thousands of individuals to help relief efforts is to be commended.  According to their website, www.RedCross.org, 20 separate operations have been coordinated since March 31 with more than 4,500 aid workers assisting in over one half of the United States to help those in need.

How can you help?  Quoting the Red Cross, there are several ways that you can help. 

1. Make an online tax deductible donation.  The Red Cross website will allow you to make an online donation at www.RedCross.org.  You can choose for your monetary donation to be applied to the greatest need, disaster relief, military members and their families, your local American Red Cross or International relief efforts such as the earthquake in Japan. 
2. Go mobile.  Make a $10 donation by texting REDCROSS to 90999
3. Mail your donation to the American Red Cross, P.O. Box 4002018, Des Moines, IA 50340-2018
4. Call 1-800-REDCROSS to make a donation via phone.

Although your monetary donations are appreciated, the Red Cross also depends on its volunteer workforce and supporters and offers opportunities to assist outside of financial contributions.  You can:

1. Search online for volunteer opportunities in your home area.
2. Give blood.  Only 38% of Americans are eligible to donate blood and of that, only 3% actually give.  Statistically, that’s 3 out of every 100 Americans.  Did you know that just one pint of blood can save up to 3 lives and that every 2 seconds someone needs a blood transfusion?
3. Learn CPR.  Become certified and teach others. 
4. Host a fundraiser, donate a portion of sales, coordinate a drive or auction something and donate the proceeds.  Just be sure to check with your local Red Cross first for rules and regulations.

One of our greatest human strengths is our ability to come together in a time of need.  If you have a desire to help, we hope this overview of ways to assist through the American Red Cross will be a great resource to you. 

Congratulations!  Your business is growing and you are now in need of a quality employee to help you with the increases in work load, sales and fulfillment of your product or service.  Should you just put an ad in the paper or post on-line somewhere to find your first employee?  Should you ask your network for referrals?  All of these methods are good options to help you, however, before you do, there are several suggestions we have for making sure you attract and retain the best employee possible.  With this in mind, we asked Beth Smith, Owner of A-list Interviews and a business associate of StaffScapes to add some of her thoughts as well and we thank her for her contributions. Here are the 8 key things you need to know about hiring your first employee: 

1. Determine what skills your new employee should have.  What job functions will they be performing and what soft skills will they need to be a good fit with your management style? “Dream BIG. This is your opportunity to think outside the box about your company’s needs.”
2. Write down all of the job tasks you plan this person to do.  Create a job description from this list. 
3. Take the key functions from the description and use these to draft your job placement ad.
4. Develop a list of interview questions.  Ask the same questions of every candidate that you interview.  Make sure the questions are centered around the job duties as well as questions regarding your mission, vision, values and ethics. “Make sure that you listen. Interview questions are important, but not nearly as important as the applicants’ responses.”
5. Prepare a manual for orientation that reviews all of your policies and procedures, including those that are required by State and Federal regulations.
6. Use a check-list for your orientation.  Make sure key areas are identified such as expectations, company culture, lunch rules, office hours etc.  Use this as well to keep track of action items you have such as key or uniform distribution.
7. Create a follow-up system for evaluating your new employee.  Review their performance more frequently in the first six months to provide input and guidance on small tweaks that can be made to improve if necessary their abilities.  This also helps to provide information for a formal yearly review and ensures that surprises won’t occur when you meet to review performance.
8. Plan incentive opportunities or team building by rewarding your employee with small tokens of appreciation.
 
By planning ahead, your search for a quality employee should be easier and the results will be better.  According to Ms. Smith, “a well executed interview process can be the key to finding the right person the first time.”

School’s out and kids are looking for summer employment.  Your niece asks to work for you but you want to make sure allowing her on the payroll will not be a violation of employment laws.

According to the Department of Labor, the following rules must be considered when employing youth during summer breaks:

Youth ages 13-14 may only work in the following jobs:

• Newspaper delivery
• Baby sitting
• Acting or performing in movies, television, live theater or radio
• Helping in a business solely owned or operated by their parents.

Kids who are 14 & 15 are allowed to work with less restrictions to the job type as long their “on the clock” time worked is between the hours of 7 a.m. and no later than 9 p.m.  This is valid for the time frame of June 1 until Labor Day.  Working hours outside of these months, students are required to end work by 7 p.m.

Example jobs suitable for this age group include:
• Office work
• Grocery or retail store
• Restaurant
• Movie theater
• Baseball or amusement park
• Gas station

Work may not be performed in:
• Construction or repair jobs
• Driving a motor vehicle or helping a driver
• Manufacturing and mining occupations
• Operating machinery
• Door-to-door sales
• Sign waving
• Warehousing and storage

16 years of age and older have no restrictions regarding working hours and months like their younger counterparts.  However, they do remain subject to all standard work rules. Hazardous working environment jobs such as mining are not allowed. 

Once a child reaches the age of 18, they are not subject to youth employment laws and may choose to work for any business.  They remain covered by all employment rules and regulations.  For more information, we suggest you check with your state laws as well for additional rules.  For Example “Colorado Youth Law” .

Source: Department of Labor

Yesterday, the Internal Revenue Service announced an increase to mileage reimbursements beginning July 1, 2011.  For business miles driven, the rate will increase from 51 cents per mile to 55.5 cents per mile. With the costs of fuel combined with those associated in maintenance of vehicles, the IRS made this special adjustment to help tax payers. 

In addition to business miles, reimbursement for medical and moving mileage expenses were also increased from 19 cents per mile to 23.5 cents per mile.  For more information, view the IRS update.

Summer is here and with its arrival of warm weather and evening light comes company sponsored events and sports teams.  What do you need to concern yourself with when planning the annual watermelon smash?  Are you liable for injuries sustained when the Dugout Rebels from IT take the field for the Tuesday night game?  The answer depends.  To help guide you as you plan and promote these great events, we have listed a few key points to consider below.  Remember, these events often serve as additional perks and enhancements to morale.  Therefore, don’t let concern regarding workers’ comp claims keep you from planning great events for your employees.  Just plan accordingly, be prepared and enjoy.  Here are the guidelines:
 
1. Is the event during working hours?  Events that are held after hours are often associated with less liability than those offered during core work hours.  That said, all factors are considered when determining the validity of a claim. After hours events do not always ensure a claim will not be approved.
2. Consider the location of the event.  If off property, generally the event is seen as voluntary and not subject to workers’ compensation eligibility.
3. Make sure that the event participation is optional.  Requiring all employees to attend and/or participate suggests that the event is a part of required job duties. Correct perception of your expectations by your employees is important.  They need to truly understand the event is optional.  Sometimes strongly encouraging employees to attend implies that “optional” means “required” and employees feel forced to attend regardless of their desire to do so.
4. If employees are compensated for their time playing or attending, this may increase their eligibility for workers’ comp should an injury occur.
5. Do not allow alcohol at your events.  Doing so will potentially hold you liable.
6. Consider having employees sign a waiver stating they are participating at their own risk and by their choice.  This suggestion applies more to sponsored sports teams and other physical activities at events.

The above will help reduce your liability, however, no business is exempt from the possibility of claims and/or legal action.  We suggest you create a policy for company sponsored social and team events and communicate it to your employees.  By incorporating all of these suggestions in to your planning, your company will be better prepared to deal with potential situations this season.  Enjoy your summer!

If you are investigating contracting with a Professional Employer Organization (PEO) for your human resources and payroll processing needs, we encourage you to contact us at 303-466-7864 or info@StaffScapes.com. As a PEO, we are your local trusted advisor dedicated to helping you focus on your employees, increase your profits and protect your assets.  Recently, we read an article by Anthony Jernigan entitled The Perks of Professional Employer Organizations.  It is a fabulous overview on the differences between a PEO and a payroll processing firm.  The article details the services our industry provides and informs the reader as to the benefits of partnering with a PEO.  We encourage you to read this article and contact us if you have questions or would like to learn more about how you can benefit from working with a PEO and StaffScapes.

Recently, the Labor Department announced that they would be getting more aggressive on businesses that improperly pay workers.  In an effort to ensure employees receive all monies due to them, the Labor Department has signed agreements with several states and the Internal Revenue Service to share information unilaterally regarding businesses that improperly classify their employees as independent contractors when they are actually employees.  Some factors that may indicate an employment relationship could include:  the person is directed by you, they are paid an hourly wage, they receive training, they use your tools and supplies and they are required to work when scheduled.  Alternatively, an independent contractor is in business for themselves, has other clients, is able to direct themselves and does the job when scheduling works best for them and they can complete the project. 

To learn if you are compliant regarding the person you have hired, ask yourself: 
1. Do I pay my "employee" using a 1099?
2. Did I review the "IRS 20 factor test"?

If you answered yes to either of the above questions, you may be out of compliance. The IRS no longer uses what used to be called the "IRS 20 factor test". In its place, they now offer an essay style questionnaire in which your responses are submitted for their review. Improper classification of employees can result in large fines from multiple agencies.  As just one example, in August we reported that the Colorado Department of Labor and Employment had submitted a draft proposed rule to establish fines associated with employee misclassification.  If approved, The CDLE will fine first offenders 5% of each misclassified employees annual gross wages or $100, whichever is greater. Repeat offenders will be fined 25% of each misclassified employees annual gross wages or $500, whichever is greater. Do you really want to start a conversation with the IRS?

StaffScapes can help you determine the proper classification and avoid penalties from the IRS. Why not work with a local partner to ensure you are compliant?  StaffScapes is a full-service Human Resource and payroll company that helps small businesses with important tasks such as:
 

• Human Resources
• Workers' Compensation
• Employee Relations
• Unemployment
• Benefits
• Risk Management
• Payroll
 

For more information, please contact Jim Thibodeau at 303-466-7864 or info@StaffScapes.com.

Last week, UNUM announced that all eligible employees with enrolled dependent(s) will be able to cover their children until age 26 regardless of their marital or student status. This announcement is effective for benefits such as the life insurance policy StaffScapes currently offers for all employees that work 30 or more hours per week. Prompted by regulations outlined in the Patient Protection and Affordable Care Act (PPACA), UNUM made the move to streamline benefits administration and increase satisfaction among its policy holders .  This decision is completely voluntary as supplemental insurance carriers are not subject to PPACA regulations.  StaffScapes is pleased to have added the Unum products in January of 2011.

If you have any questions or would like information regarding the UNUM life insurance policy and enrollment, please call us at 303-466-7864.

As a requirement for OSHA under the Hazard Communication Standards, employers are responsible for informing employees of exposure to chemicals and hazardous materials in the workplace. According to the OSHA 3084 – Chemical Hazard Communication, employers are responsible to:

• Identify and list hazardous chemicals in their workplaces
• Obtain MSDSs and labels for each hazardous chemical
• Develop and implement a written hazard communication program
• Communicate hazard information to employees

Failure to comply with these regulations could result in penalties and fines. In September, OSHA proposed penalties of up to $49,200 for two manufactures and two distributors in Florida citing failure to protect employees from exposure to formaldehyde and failure to communicate hazards of products to its employees. The two distributors received penalties of $12,600 each for not posting accurate MSDS that correctly identified formaldehyde as an included product.  In addition, the companies were reprimanded for failure to maintain a written hazard communication program. The entire DOL OSHA statement can be viewed here.

If you need assistance with compiling or updating your MSDS sheets or a written program, please contact the Workers’ Compensation department at StaffScapes at 303-466-7864.