Most PEO clients offer Health Insurance to their employees

A majority of small businesses that use a professional employer organization (PEO) offer health benefits to their employees.  More than 700 small businesses that use PEOs, responded to a recent survey commissioned by the National Association of Professional Employer Organizations (NAPEO).  The survey found that an unusually high percent (95%) of these businesses offer health benefits.  The survey also found that the majority of participants do not plan to raise the cost of these health benefits to the employee, even though average premiums rose 7.7% this year. 

Based on the results of this survey it appears that clients of PEOs deem health insurance to be a vital benefit to employees. Small businesses that use PEOs can reduce the time and cost burden of offering a healthcare plan by allowing the PEO to assume the administration of the plan.  PEOs also offer additional options to manage medical costs through health savings accounts (HSAs), health reimbursement accounts (HRAs), and flexible spending accounts (FSAs).

If you are interested in reducing the burden and cost of providing a health plan to your employees, contact a StaffScapes, Inc. representative to discuss the benefits of partnering with us. You can contact StaffScapes, Inc. at (303)466-7864 or info@staffscapes.com.

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

Small businesses weighed down by government compliance

A recent study by the Small Business Research Board (SBRB) finds that small businesses continue to be hindered by government regulation. The study reports that 88 percent of small business owners state that it takes more time than it did just two years ago to comply with government regulation.

The results show slight differences among seven leading industries, with construction and contracting businesses reporting the highest impact.  The industry results are as follows: 93% construction and contracting business, 92% transportation; 90% automotive; 90% retail; 85% distribution/ wholesaling; 83% manufacturing; and 80% food industry.

StaffScapes, as a Professional Employer Organization, takes this government compliance burden away from our clients, allowing them to focus on the core functions of their business. To find out how StaffScapes can make your business more profitable and efficient please contact us at (303)466-7864 or email info@staffscapes.com.

State plans on raiding assets of Pinnacol Assurance and taking away their ability to operate as an independent company.

Senate bills SB09-281 and SB09-273 are being heard today with a third reading on Monday April 13. These bills are trying to remand Pinnacol Assurance back to a state agency so the reserve assets that Colorado businesses have been paying into can be raided to pay for 500 million dollars of deficit in the state budget.  Since Pinnacol has been operating as a private insurance company, workers’ compensation insurance premiums have been reduced and additional dividends paid out to those companies with good claim history. Pinnacol and all Colorado businesses need help fighting these bills. 

Marcia Benshoof, Chief Business Officer for Pinnacol Assurance, explains the effect of the legislation even further: 

• Pinnacol is not a state agency, and it receives no state funding. In fact, it is required to be self-sustaining and, therefore, does not expose the state to financial losses.

• Current law expressly prohibits any transfer of Pinnacol’s assets to the State General Fund.

• Pinnacol has a 5 year history of distributing dividends back to policyholders ($300 million), which will cease if these bills are passed.

• Pinnacol has reduced rates by 42%  ($212 million) over the last 4 years, which will cease if these bills are passed

• Pinnacol’s assets are not public funds! They are private funds set aside from premiums paid by Colorado businesses to ensure the safety and soundness of the company’s obligations to injured Colorado workers.

• This legislation is a shortsighted, ill-advised effort to fill a budget deficit. The ramifications are multi-faceted, including higher workers’ compensation costs, instability in the marketplace and uncertainty for injured workers and their families.

• Pinnacol Assurance provides workers’ compensation insurance to 58,000 Colorado businesses.

Help Colorado’s businesses and economy, please take action now, and contact your state representative.

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

Cell phones are a way of life.  We update our Facebook accounts, check e-mail, find a restaurant, text our significant others and even occasionally talk to someone.  But increasingly, cell phones are becoming a vehicle for what is being labeled as “textual harassment” or harassment via text messages.  It’s easy to discount, thinking that this is a simple issue and one that won’t ever affect you, but “textual harassment” is becoming a problem for all age groups and it is an issue that employers must deal with.

Employees today are using their cell phones as new weapons for sending threatening and abusive messages to co-workers.  They are spreading non truths about others including their supervisors and/or the companies they work for.  They are sexually harassing colleagues and employees alike and even bullying co-workers.  Considering all of this, it is important for employers to have clear policies in their handbooks that detail what is and is not acceptable when it comes to texting.  This form of harassment can also apply to social media posting. When drafting your policies, consider the usage of not only personal cell phones but also privacy issues related to company paid for and company reimbursed cell phones as well. Once your policies are in place, you should establish training for staff members that explains your position and outlines procedures for complaints to management.  Dealing with reports immediately, documenting the complaint, investigating the claim and evaluating the evidence for potential corrective action will go a long way in defending you and your company should the EEOC get involved. 

StaffScapes is experienced in dealing with claims of textual harassment and works with its clients to have clear policies established.  For more information or assistance for your company, please call StaffScapes at 303-466-7864.

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.

The IRS recently announced that a little more than 228,000 taxpayers had claimed the Small Business Health Care Tax Credit for tax year 2010. As of Mid-May, these taxpayers received a total amount of more than $278 million. This amount is significantly lower than the estimated Credit for tax year 2010 of $2 billion. Why is the difference between the estimate and actual so large?

The Treasury Inspector General for Tax Administration (TIGTA) audited the plan to determine if the IRS “adequately implemented and accurately processed the Credit”. TIGTA found that the Credit was “mostly successful, but some improvements are needed”. TIGTA reports that the IRS did timely complete the actions related to the Credit and put more of the responsibility on the taxpayers making mistakes on the form used to request the Credit (Form 8941). I do not agree with their assessment of the discrepancy.

I believe the problem is that the Credit was over-estimated due to the Full-Time Employee and the Average Annual Wage restrictions. Most small employers that provide health insurance provide them to full time employees, and most of those full time employees, at least here in Colorado, make more than $25,000 per year. What we found with our clients was that only about a third of them could claim some part of the Credit, and of them only one could claim the full Credit. The third that could take a portion of the Credit had to decide if the Credit was more than what they would have to pay their tax accountant to claim it. If the IRS and TIGTA want to know what they can do to get more small business to claim the Credit, then they need to look at and change the Full-Time Employee and Average Annual Wage restrictions.