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.

Are you ready for the new Immigration laws coming in January? A Professional Employer Organization is ready with a large staff of HR experts to help you stay current and within the new immigration laws

Many state are enacting new immigration rules  on January 1, 2007. Many small employers  and their HR departments are not ready for the new rules. For some of the smaller employers that do not have a Human Resource department they are not even aware of the new rules. In Colorado, you hire an employee that does not have legal status you could be fined up to $5,000.00 dollars for the first offense and $25,000.00 for each additional offense. The new laws also require for you to retain copies of the documents used for employment and completion of the I-9 form. Do you know what a real Social Security card or Green Card looks like. With some of the new laws you will need to know that.

A benefit with working with a PEO is that they must stay on top of all of the new HR, payroll and rules affecting employment. The PEO’s role as employer keeps them up to date on new rules and regulations. Small employers can benefit from this relation by needing to hire counsel or adding an extra employee to there staff. Contact a local PEO to learn how you company can Benefit from that relation ship.

StaffScpaes is a local Denver PEO with over 30 years of PEO experience. They can be reached by calling (303) 466-7864.

Late deposit penalties for federal tax deposits.

Deposit Penalties: Penalties may apply if you do not make required deposits on time, if you make deposits for less than the required amount, or if you do not use EFTPS when required. The penalties do not apply if any failure to make a proper and timely deposit was due to reasonable cause and not to willful neglect. For amounts not properly or timely deposited, the penalty rates are as follows.

2% -        Deposits made 1 to 5 days late.

5% -        Deposits made 6 to 15 days late.

10% -     Deposits made 16 or more days late. Also applies to amounts paid within 10 days of the date of the first notice the IRS sent asking for the tax due.

10% -     Deposits made at an unauthorized financial institution, paid directly to the IRS, or paid with your tax return. But see Depositing without an EIN and Payment with return shown below for exceptions.

10% -     Amounts subject to electronic deposit requirements but not deposited using EFTPS.

15% -     Amounts still unpaid more than 10 days after the date of the first notice that the IRS sent asking for the tax due or the day on which you received notice and demand for immediate payment, whichever is earlier.

Note: Late deposit penalty amounts are determined using calendar days, starting from the due date of the liability.

Exceptions to the 10% Penalty:

Payment with return.   You may make a payment with Form 941 instead of depositing if one of the following applies.

* You report less than a $2,500 tax liability for the quarter on line 10 of Form 941, and you pay in full with a timely filed return. (However, if you are unsure that you will report less than $2,500, deposit under the appropriate rules so that you will not be subject to failure-to-deposit penalties.)

* You are a monthly schedule depositor (defined below) and make a payment in accordance with the Accuracy of Deposits Rule. This payment may be $2,500 or more.

Depositing without an EIN.   If you have applied for an EIN but have not received it and you must make a deposit, make the deposit with the IRS. Do not make the deposit at an authorized depositary. Make it payable to the “United States Treasury” and show on it your name (as shown on Form SS-4), address, kind of tax, period covered, and date you applied for an EIN. Send your deposit with an explanation to your local IRS office or the service center where you will file Form 941. The service center addresses are in the Instructions for Form 941 and are also available on the IRS website at www.irs.gov. Do not use Form 8109-B, Federal Tax Deposit Coupon, in this situation.

Order in which deposits are applied.   Deposits generally are applied to the most recent tax liability within the quarter. If you receive a failure-to-deposit penalty notice, you may designate how your payment is to be applied in order to minimize the amount of the penalty. Follow the instructions on the penalty notice that you received. For more information on designating deposits, see Rev. Proc. 2001-58. You can find Rev. Proc. 2001-58 on page 579 of Internal Revenue Bulletin 2001-50 at www.irs.gov/pub/irs-irbs/irb01-50.pdf.

StaffScapes, a Professional Employer Organization (PEO), takes over the responsibility and liability of tax deposit and reporting for our clients.  Please call (303)466-7864 and ask a StaffScapes’ representative how we can reduce your tax administration liability.

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

Small business employees trail in retirement savings and preparedness, survey shows

Small business employees are at a disadvantage when it comes to retirement savings, according to the results from the Eighth Annual Transamerica Retirement Survey.

StaffScapes, Inc. a Denver based PEO or Professional Employer Organization helps small businesses owners by providing them with all the tools to provide a 401k retirement program to their employees. By partnering with Transamerica StaffScapes has been able to allow small business owners the opportunity to have a full 401k program that they could not otherwise afford.  StaffScapes handles all the enrollment and fiduciary liability for its clients. Instead of worrying about the operation of a 401k plan the owner is better able to run his or her business.

For more information on 401k plans and employee benefit program contact StaffScapes, Inc.

See Also

• Eighth Annual Transamerica Retirement Survey
  Transamerica Survey Results

What others are saying about PEO’s

“Thousands of businesses have turned to professional employer organizations (PEOs) for relief. A typical PEO takes over the time-consuming task of HR management, freeing companies to refocus resources on their core discipline. Besides handling a company’s payroll processing, full-service PEOs often provide small and medium-sized businesses with access to big-company benefits they could not offer on their own.”
“Small Businesses Confront HR Woes with the Help of PEOs,” American Payroll, July 7, 2007

“Many PEOs now behave much like consultants, helping clients tap into the latest health benefits and comply with complex labor regulations related to discrimination and workplace safety. PEOs are becoming one-stop shops for business owners eager to outsource all their HR functions and focus instead on their core business. … PEOs make the most sense for business owners who can’t afford a dedicated human resources staff and don’t have the time to handle day-to-day HR issues themselves.”
“Fed Up with HR?” Inc. Magazine, May 2006

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.

Top Ten Reasons Terminated Employee Sue Their Employers

1. They don’t know why they were fired.
2. Bad Treatment when fired.
3. Perception of being treated differently from others.
4. Being treated differently by a new supervisor
5. Harassment immediately preceding termination.
6. Employee believes employer doesn’t know the “whole story”.
7. Inadequate investigation of a complaint.
8. Not being treated with loyalty and respect.
9. Loss of control/feeling helpless
10. Lack of financial security.

While the facts underlying the employee’s feeling may not alone be actionable, they are often the motive behind their desire for vindication. Employers may often be able to avoid that employee’s first call to an attorney by understanding termination from the employee’s perspective and taking simple steps.

StaffScapes, Inc. recommends that all employers have a disciplinary action and termination plan/policy in place.  At times a disciplinary meeting with an employee may be necessary. By having a disciplinary plan in place the employee will know what is expected of him or herself after the first incident occurs StaffScapes has developed a few helpful tips to assist and protect clients in this type of situation

The disciplinary tips should include:

• Talk with the employee promptly in a nonpublic area after the offense or problem.
• Avoid an emotional discussion.
• Determine the facts of the situation.
• Emphasize the seriousness of the situation.
• Determine the best disciplinary action to prevent the incident from recurring.
• If possible, agree upon a plan of corrective action.
• Maintain documentation of the events that took

StaffScapes a Denver based Professional Employer Organization (PEO) can help set up policy and procedures as mentioned above. Our Human Resource Department specializes in policy and procedure development, by having a few simply policies in place it can save a company countless dollars and man hours resolving a claim. Contact StaffScapes Human Resource Department or our Sales team with any questions on how a PEO can assist in developing proper termination policy.

StaffScapes is a Denver based Professional Employer Organization serving small to medium sized companies in the Colorado region.

StaffScapes a regional Professional Employer Organization, PEO is expanding it’s business model.

Are you a PEO Broker or insurance agent looking to place business with a PEO or an insurance agent looking to keep your client from going to a PEO? StaffScapes is your solution for Colorado and the Rocky Mountain area. StaffScapes is a Denver PEO covering all of Colorado and the surrounding area. StaffScapes provides both PEO and ASO services.

Along with cost effective rates, StaffScapes has a superior Human Resource, Safety and Risk management program, Payroll processing, Benefits and aggressive claims management.

Contact Jim Thibodeau at StaffScapes, Colorado’s premier PEO provider.

Still looking for a Professional Employer Organization (PEO) or Employee Leasing firm in Colorado for 2009 payroll?

StaffScapes a Denver based PEO is still enrolling clients for payroll beginning in 2009. If you have less than 50 employees and our considering the use of a PEO for 2009 and have not made a decision StaffScapes provides a simple enrollment process with no start up fees or new employee set up fees for all clients starting in 2009.

Looking for a payroll service provider with assistance on HR, workers compensation and other employee related issues? StaffScapes has a basic payroll service division that can handle payroll anywhere in the US.

Contact Jim Thibodeau at StaffScapes for more information about PEO and employee leasing services.

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

With over 14 years in Business StaffScapes is your source for PEO services in Denver & Colorado.

StaffScapes was created with a single goal - give you the freedom to focus on what you do best; grow your business.  StaffScapes was fonded with a singular goal to provide cost effective payroll, workers compensation and Human Resources Solutions.

Focus on your business. Not your staffing.

New rules and new minimum wage rules can make being an employer a confusing job.

One week Colorado minimum wage is higher than the Federal min wage and the next week it is lower? What is an employer to do? On January 1st 2010 the wage will drop 1 penny below the Federal Minimum wage. Employers need to pay the higher of the two wages at the least to keep out of trouble. If you want to lower your employees wage you can but be careful about the negative effects that can have around the work site.

For help with HR, Payroll and workers compensation in Colorado give us a call at 303-466-7864

Let’s face it, litigation is a fact we all have to deal with.  And, if you are a business owner, chances are even greater that at some point in your career you will be directly impacted.  Lora Manternach, Benefits Administrator for StaffScapes, Inc. recently attended a legal updates seminar presented by Fisher & Phillips, LLP.  Here’s a few key statistics that they shared that you need to know:
 
1.    Lawsuits are up almost 400% over the past 20 years
2.    Most common target for lawsuits is private employers with 5-100 employees
3.    In federal court, 67% of all awards exceed $100,000 with the average compensatory damages awarded at almost $500,000

One large area of litigation centers around EEOC (Equal Employment Opportunity Commission) claims.  As expected, filings have increased and in fact set a record high of 95,402 in 2008.  This marked a 15.2 % increase from the year before.  The response is that the EEOC has become more aggressive aided by a $23 million dollar budget increase.  After hiring an additional 300 employees, the EEOC has collected $274 million, filed 290 “merit” lawsuits, focused additional attention to class actions and systemic violations and worked to change enforcement policies.

What’s the best way to mitigate potential claims?  We recommend establishing policies and procedures and/or making sure current handbooks are up to date.  Keeping consistent is key in how you deal with daily operational situations.  For further assistance, please contact StaffScapes, Inc. at 303-466-7864 or info@StaffScapes.com.

You probably walk by it everyday.  That wall in the break room that is covered with posters.  Posters that you probably never look at.  Posters that may not have been updated since parachute pants were popular.  Many businesses do not know what is required of them and many do not know the degree of fines that could be leveled upon them if they are not compliant. 

Did you know that posters must be visible in a common area where employees will visit frequently?  For example, the break room or by the time clock.  If your business has multiple locations or operates on several floors, each requires their own set of posters to be easily viewed and accessible.  Where applicants apply for employment, the FMLA (Family Medical Leave Act),  EEO (Equal Employment Opportunity), and EPPA (Employee Polygraph Protection Act) posters are required to be posted as well.

What about other languages in addition to English?  Posters are not required to be in another language unless your business employs a non-English speaking workforce.

What are some of the fines for not having or not updating required posters and not adhereing to their policies?

*Fines from $100 to $70,000 depending on the infraction.
*Not posting the OSHA Job Safety & Health poster can get you a fine of up to $70,000.
*Federal FMLA non-compliance gets you a fine of $100 per offense.
*Violations of the Fair Labor Standards Act, (Minimum Wage) are up to $10,000 per violation. 
*Violations of the Employee Polygraph Protection Act could result in you having to appear in court and pay a penalty of up to $10,000 per violation.

Can you afford to not be compliant?  Here at StaffScapes, one of the benefits that we provide our clients include a packet of all required posters as well as updates mailed as soon as new laws are passed that dictate changes.  You know, the changes you planned to make but never did.  Now, with StaffScapes, you don’t have to worry about it.

For an updated list of all required posters, including the FLSA (Fair Labor Standards Act), FMLA (Employee Rights and Responsibilities under the Family and Medical Leave Act) and the EEO (Equal Employment Opportunity is the Law), please view the following links for Federal and State of Colorado Requirements.

For further assistance or more information, please contact StaffScapes, Inc. at 303-466-7864 or info@StaffScapes.com.

Summer is here!  With no papers to write or tests to take, many high school and college students are hanging out at the pool enjoying their much anticipated time off.  But many others are looking to earn some extra money and a chance to improve their skills.  For many employers, this is a great opportunity to get caught up on tasks without the need to hire an employee long-term.  Due to the planned length of employment and the demographic involved, some employers easily confuse these jobs believing that the on the job training students receive qualifies as an internship and may offer the position as unpaid.  The Fair Labor Standards Act (FLSA) has specific requirements you need to know when evaluating the type of position you have available.  To qualify for an unpaid internship, the following criteria must be met according to the Department of Labor:

1.    The internship must be similar to the training the student would receive in an educational environment.
2.    The experience will benefit the intern.
3.    The intern does not take the place of another employee and is supervised by existing staff.
4.    The employer receives no immediate advantage from employing the intern and may in fact have their operations interrupted due to the training involved. Typically, more supervision and training is required for the intern compared to other employees. 
5.    The intern is not guaranteed a job at the end of the internship period.
6.    The employer and the intern understand that the intern is not eligible for wages for the time spent in the internship.

If all of the above criteria are not met, chances are the position would be viewed as an employment relationship and would be subject to wage and hour laws.  For more information, please review this Fact Sheet.

For further assistance or more information, please contact StaffScapes, Inc. at 303-466-7864 or info@StaffScapes.com