The HRK Blog

Health Care Reform: What HR Professionals And Employers Should Know

Some of the provisions of the Patient Protection and Affordable Care Act are created to improve affordable health coverage for many.  The Act is effective beginning in 2014.  The Department of Labor has released a series of FAQ's related to automatic enrollment, 90 day waiting periods and employer shared responsibility. 

Federal agencies such as Treasure, Human Services, Health and Labor are in the process of proposing additional regulations.  At this time, we are awaiting additional FAQs with guidance and will keep you informed as these are released. 

Required Automatic Enrollment
The Affordable Care Act required employers with over 200 full-time employees must automatically enroll new full-time employees after any waiting period that is legally authorized,  in  their health benefits plan. The Affordable Care Act will also require employer to provide the opportunity for an employee to opt out of any coverage in which the employee was automatically enrolled, with adequate notice.  At this time the DOL has realized that the auto enrollment guidance may not be ready for the 2014 timeline, therefore at this point, employers are NOT required to comply with auto enrollment.  Final regulations will be issued and then will become applicable. 

90-Day Limitation 
The Affordable Care Act, beginning on or after January 1, 2014, limits group health insurance or group health plans to a 90 day or less waiting period.  That means that a new employee would wait just 90 days before the group health plan enrollment. The FAQ clarifies that this does  not increase coverage to different classes of employees, merely it defines that eligible classes of employees would wait no longer than 90 days before being added to the plan.

Shared Responsibility
The Affordable Care Act also requires employers with 50 or more full-time employees to make a "shared responsibility payment" if any of the employer's full-time employees is certified to receive a premium tax credit or cost-sharing reduction payment if the employer does not offer minimum essential coverage or if the coverage is not affordable to the employee. 

Anticipated FAQ updates and interpretation and guidance regarding ways to determine status of current employees and new employees, and also whether they are full time for the purpose of empoyer shared responsiblities are covered in the newly released FAQ. 

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

Considerations Of Outsourced HR Services: PEO's or PEO Alternatives?

Considering an outsourced HR service?  There are many to consider including PEO's, payroll solutions, our outsourced integrated business processes.

Integration of human resource services is one of the most important factors to consider when evaluating truly effective HR Outsourcing. As part of integrated hr services, payroll is the most important basic function that the HR provider must provide. Everything that occurs in a business occurs through payroll. For example, termination, hiring, COBRA, Maternity Leave, Military Leave and more all have to be accounted for and administered to be in compliance with federal and state laws and standards.  

An additional benefit that should be proviced by an outsourced HR service is to evaluate the group benefits program and add value by reducing expense and improving the group benefits and health insurance package for your company. 

Everything for the most part triggers off of payroll, without this function you don’t have integration. When you have multiple vendors handling any one of these three core service functions you get into a finger pointing match and no one takes responsibility and the reality is the issue created could be a by-product of no one company taking full and total responsibility for the HR/Payroll and Benefits functions. Integration is part of HR Outsourcing or the service model is likely not to succeed.

Starting a business is no easy task, and once started the next 3-5 years will test you like you have never been tested in business. There are all sorts of “land mines” that can affect you in all kinds of ways mostly negative. You have to be able to withstand the storm, think quickly and react nimbly all of the time. One example of this I believe is many times the people you start the business with are pioneers just like you. They often times do a fabulous job. My experience was that many of those employees are no longer with us as when we were just a few clients they could handle the volume of business but as we started to grow rather quickly they had a hard time growing with the business. You must have the ability to recognize who you can grow with as employees and who you cannot. This can be the difference in quality of service to your client.

How many companies do you call that a recording answers, and you are now in the “vat of numbers” trying to get a human being on the phone. Such a simple concept but few companies want to spend the time/money to answer the phone. My thought is in the day and age where we communicate with Text/Email and other non-personal forms of communication, if a client or prospect calls your company on the phone doesn’t that mean they want to speak to a human being? I think yes!

Its the same thing that you should be concerned with in an outsourced HR service.  Do they provide excellent customer service?  If not, keep looking.  One key question you should always ask - how long have their clients been with them. If the outsourced HR service cannot give you a list of long standing clients, there may be a reason. 

How do you handle your hr services? Have you considered a PEO or PEO alternative? 

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

Human Resource Best Practice: Which Records To Retain

 

Human resource record retention in many instances has federal or state requirements for retention.  Whether it's Federal or state mandated, there are forms that must be filed, some of which must be retained.  

As well any human resource professional can attest, there is a lot of paperwork associated with hiring a new employee.

Some of these forms are necessary for complying with federal and state recordkeeping laws, while others are used to process payroll or to communicate workplace rules and practices to new employees.

The following is a list of some of these key forms:

• I-9 (Required). Every employer must complete and retain an I-9 Form (Employment Eligibility Verification) for each newly hired employee. Section 1 of the form must be completed by the end of the employee's first day of work and Section 2 must be completed within 3 business days. (While you may complete the I-9 before the employee's start date, you must wait until after the job offer has been accepted.) 
  Retention Period: I-9 forms must be retained for at least three years, or for one year following the employee's separation from the company, whichever is later.

• W-4 (Required). All new employees must complete a federal W-4 Form, Employee's Withholding Allowance Certificate. This form tells you how much federal income tax to withhold from the employee's pay. Some states also require a tax withholding form. Check your state law to ensure compliance. Retention Period: The W-4 must be retained for at least 4 years.

• New hire reporting (Required). Federal law requires that employers submit certain information to their state regarding each new hire within 20 days of the employee's start date. To fulfill new hire reporting responsibilities, employers must report: their company’s name, address, and federal Employer ID Number; and the employee’s name, address, Social Security Number, and date of hire. Typically, providing the W-4 form is sufficient for new hire reporting purposes, but some states require electronic filing and/or additional data elements. Check your state law to ensure compliance.

• State-required forms (Required). Many states require specific forms to be provided to employees at the time of hire. For example, California requires several notices be given to new hires, including but not limited to information pertaining to state disability insurance, paid family leave, workers' compensation, unemployment benefits, sexual harassment, and wage theft prevention laws. Many of these forms are available for download in the State & Federal Resources section of our website. Be sure to check your state law and provide new hire notices in accordance with applicable requirements.

• Documentation to claim tax incentives (Recommended). The federal government and many states have enacted tax breaks for employers that hire new employees. Many of these tax incentives require certain forms to be completed to verify eligibility. Employers should ensure these forms are completed on or soon after the employee's first day so they may be submitted when filing taxes. Visit the IRS website or your state's department of revenue website for more information.

• Payroll authorizations (Recommended). If you offer direct deposit, you should provide new hires with a direct deposit authorization form. This authorizes you to deposit their pay, or a portion of their pay, directly into their bank account each pay period. A payroll deduction authorization should also be provided for voluntary deductions, such as health insurance premiums and retirement savings plans.  Retention Period: It's recommended that these forms be retained for at least 3 years.

• Benefits (Recommended). All new hires should receive information about the benefit programs you offer as well as any forms required to enroll. Most major health insurers have websites with information that may help employees make their enrollment selections; refer new hires to online resources for additional information.

• Emergency contact (Recommended). An emergency contact form lets you know who to contact in the case of an emergency. This form should be completed within the employee's first few days of work.
  Retention Period: Indefinitely

• Receipt of company property (Recommended). If you provide employees with company property, such as laptops, cell phones, or keys, be sure to complete a "receipt of company property" form. This form typically indicates that the employee acknowledges receipt of the company property,  and that they have a responsiblity to maintain the property in good condition. It also stipulates that the property is to be returned to the company upon separation, or earlier if requested.
  Retention Period: This form should be retained until all company property is returned.

• Handbook acknowledgment (Recommended). Requiring employees to sign a form acknowledging that they have received and read the handbook not only demonstrates that you provided employees with important information (some of which may be required under law), but that the employee is aware of and understands the company's policies. While the handbook should be provided to all new hires, make sure you give employees enough time to read and ask questions about the handbook before they are required to sign the acknowledgment form.
  Retention Period: Indefinitely

Since the paperwork can be overwhelming to complete, when permitted by state and federal law, new hire paperwork can be sent before the start date for the new hire.   Creating a checklist and setting timelines for completion of paperwork can help track what's been returned and meet compliance details.  

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

HR Management: Workaholics And Healthcare 5 Tips To Work/Life Balance

As an HR Manager, should you be concerned about work/life balance of your employees?  

Sure we want dedicated associates who work hard, but we also want a workforce of employees who are happy.  Employee retention is dependent upon workplace satisfaction.

Americans are working harder than ever before.  According to a recent Life Inc. article on MSNBC, the percentage of employees who almost always take a lunch break is significantly low - only 35 percent.  The majority work through lunch, skipping it altogether or they eat while they work.   

Not only is the lunch break becoming a thing of the past, working late or bringing work home seems to be the new norm.  Are we all simply overworked or are we workaholics?  The answer is both.  With employers doing more with less, it's not uncommon for one overworked employee to do the job of three.  In order to stay on top, keep producing and get results, that employee becomes a workaholic.   

Studies have shown that more than 50 percent of workers believe that their work/life balance is a significant problem.  Of those workers, more than half are dissatisfied with the dwindling amount of time they are able to spend with family.  So, what can employers do?

1. Offer flexible schedules.  Some healthcare organizations allow their employees to choose and adjust their hours on a monthly or quarterly basis.  This could be a viable option for companies in other industries.  
2. Empower workers to have more control over and be accountable for their work.  
3. Offer "lunch and learns".  Employees who are motivated to make their time count will appreciate enriched lunch programs where they can make their time productive.  
4. Encourage exercise.  Creating a walkers program or other incentive to have employees take a midday mental break will result in a happier and more effective team.  The endorphins released will improve mood, and the break from the ongoing pace can reinvigorate upon returning to the task.
5. Include the family.  Incentives that motivate exceptional performance may include earning a day off to spend with the family. 

It is becoming apparent that in order to preserve the health of employees along with organizational "health", we must not only attract and retain employees, but to also empower them.  One way to accomplish this is to allow staff to manage their schedules and have greater control over their time and their work.

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

7 Keys To Effective HR Leadership And Motivated Employees

Great HR Leadership results in employees who are motivated to strive for excellence. To be an excellent manager or a great business leader isn’t always charging ahead first - because if you charge ahead and no one is following you, you aren’t really leading, are you? 

So, what does it take to be an excellent leader? How can an HR leader motivate employees to work more effectively? Are there steps to achieving leadership that helps employees function in the workplace?

7 Steps to Motivated Employees:

1. Share a clear vision.  If you have a roadmap, share it.  Post it in places where employees can view it, like an intranet or on a shared board.  Make the goals clear. Define the steps to move forward. If you consider Steve Job’s legacy, you can be sure that Apple has a roadmap that can take them into the future.  Are you as prepared?
2. Communicate, communicate, communicate.  Spend time among your employees and ask and listen. The rules of active listening include getting others opinion and seeking their buy-in to your plan. 
3. Engage your team.  Do your associates feel that they are empowered to make decisions and do they feel that they have ownership of their actions?  By creating a sense that you have control over your environment leads to more active engagement in the workplace. 
4. Determine the route.  Having a plan and mapping it out will keep everyone on track. Don’t keep changing the destination.  If everyone knows where you are going and how you will get there, there’s a greater chance of making it to the destination.  This doesn’t mean being doggedly inflexible if the parameters change, but just like a GPS that can “reroute” if necessary having a destination is paramount to know if you are getting there. 
5. Reward and recognize.  Saying thank you in a number of ways means that you’ve noticed a job well done, or going above and beyond.  When these actions are recognized it encourages and flourishes.  Pay it forward and catch people doing things right, and thank them.
6. Think, breath and share “success”.  People want to do well, but may need a bit of coaching or guidance to stay motivated.  Coaching and encouraging associates to a better way to do things by giving them feedback and showing them has incredible power, especially when it comes from someone in a leadership position. 
7. Be fair.  Real things happen in a real world, and one size does  not fit all. Make exceptions if warranted, but be consistent and fair.  Take circumstances into consideration - as a leader you are expected to have great wisdom and the perception of being fair goes a long way to establishing that. 

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

Human Resource Benefits: Cut Employee Benefits To Reduce HR Expense?

Employee benefits are expensive. What is the hidden cost of cutting employee benefits to reduce overhead and expense?   The job market is tough out there, and the number of executives looking for employment far exceeds the number of jobs.  As a company, you may be tempted to take advantage of that and reduce cost by cutting back on your offerings - namely various retirement and benefit plans. 

Does it make sense and is it practical to reduce expenses by cutting benefits?  What is the risk of cutting benefits from a human resources perspective?

You may wind up sacrificing talented employees and trained employees who become disatisfied when their benefits are taken away.  Studies prove that adding rewards is much easier than cutting benefits.  Consider the impace on morale and potential employee turnover.

Talented executives know their worth and typically have realistic expectatations of the types of benefits they need and want.  

Benefits that a job-seeking executive looks for in an employer, and gives consideration to, include:

• Life and Disability Coverage
• Deferred Compensation Plans which may include 401-(k), 403-(b) or 457 plans
• Defined Benefit Plans
• Executive Long Term Care Insurance
• Bonus Plans
• Employer Sponsored Supplemental Life Insurance
• Employer Sponsored Supplemental Disability Insurance
• Employer Sponsored Individual Long Term Care Insurance

How does your company measure up?  Many corporations are looking for ways to attract, retain and reward their key team members and executives. Our Executive Benefits Team can provide guidance and expertise in creating a customized plans to meet your long term objectives. We can also evaluate your benefits package to assure that you are receiving a competitive program.

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

PEO Services And Alternatives To PEO Services: 3 Reasons Why

PEO services also referred to as Professional Employer Organization is a form of outsourced HR services that enables a company to shift their hiring and HR processes to a third party.  It can be argued that having a PEO offers a comprehensive approach to human resources management, but is there a downside to a PEO?

First, what is a PEO?

A PEO offers a variety of professional HR and business services to a company that may include:

• Hiring employees
• Recruiting employees
• Administering government compliance
• Creating hr policies
• Managing Payroll and Benefits

What a PEO isn’t:

PEO Services are not a temporary staffing firm or hiring agency, they are also not a payroll administrative function.

Is there an alternative to PEO services?

Yes.  If you like the idea of having the staff on your payroll, yet like the concept of having an outsourced human resources department that acts as human resource support, you may want to explore a BPO or business process outsourcer.  With a BPO, your employees are still on your payroll, yet you have the advice, experience and knowledge of an outsourced HR service.  
A BP gives you some of the following advantages:

1. Hire and retain your own staff.  You may rely on the BPO to interview and recruit potential employees, yet you want to hire your staff and have them on your books.  A BPO can assist with this and acts differently than a PEO. With a PEO, the employees are direct hires of the PEO, with a BPO they are your employees.
2. Improve HR Regulatory Compliance.  Both PEO services and BPO services help with assuring regulatory compliance and are expert in understanding the federal and state requirements.
3. Reduced HR liability.  With a PEO the thought is that the employee is the employee of the PEO. In reality, the employer is only part of the equation. Both the company that utilizes the employee as well as the PEO could be subject to litigation. With a BPO, the employer-employee relationship is clear, but the BPO supplies HR support and services to guide the employer and advise through situations to avoid litigation.

The workplace has changed dramatically in the last few years and PEO services and alternatives to PEO’s provide creative ways to control cost and mitigate risk of litigation.

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

Human Resource: What An Employer Needs To Know About MCAD

What is MCAD?  

The Massachusetts Commission Against Discrimination (MCAD) is the state’s Chief Civil Rights Agency.  This government body in essence ensures that all businesses within the State of MA are compliant in their employment of employees.  Any employee that feels they have been discriminated against may file a “Charge” or a “Complaint” against that employer at MCAD.  Most all complaints must be filed within 300 days of the alleged infraction.

MCAD provides employees and employers with a wealth of information about their rights as employees in this state.  The website provides them with detailed information about Maternity Leave, Discrimination, Sexual Harassment and more…

Employees Know Their Rights, Do You?

Employees today are well aware of their rights in the workplace do you know what they are as the Employer?  In most cases I find this is not the case.  As a matter of fact I just learned of an employer that makes their employees sign an agreement at hire that they cannot take a lunch break or coffee break at any time during the day.  They must work their full eight hours daily without any breaks.  This is in clear violation of a number of work rules that being primarily those employees are allowed a minimum of two/ten minute breaks every four hours worked. 

The shame of this whole thing is that most employers we believe are good employers; it is the few that treat their employees terribly that affect the rest of us.  Nonetheless laws are laws.

What you don’t know can hurt you:

Unfortunately, what you don’t know can hurt you when it comes to employment laws and regulations.  Ignorance is not bliss!  If you are caught not following process/procedure/law it can be a very painful experience.  It is imperative to have the proper “blocking and tackling” in place as an employer to prevent frivolous lawsuits from occurring.  How can you do this?

HR Audit:

We recommend a complete and thorough HR Audit as this audit can show you as the employer where you are not compliant or at risk.  This audit should review your employee handbook, process/procedures for hiring, firing, interviewing, reviews, job descriptions and much more…  This audit should help determine what areas you as the employer need to shore up and improve.  Once these areas are identified a clear and concise implementation process should be commenced to improve the HR processes.  Once these policies and procedures are in place they should be adhered to.

Employee Rights:

Employees do know their rights and if they don’t there is a wealth of information about these rights on the internet.  There are also many attorneys that would be thrilled to take on many of these cases on “contingency” which means the employee has a “gun for hire” at no cost to them.  The attorney is confident enough in the case that he/she will represent the employee on a percentage of the settlement.  This can be very painful for the employer as they have to pay for their own legal representation which can cost an employer thousands of dollars and settlements can be in the hundreds of thousands to millions of dollars. 

HR Boot Camp:

We recommend proper training as a key ingredient to effective prevention of unnecessary litigation in the workplace.  Sexual Harassment Training on a yearly basis is vital to teaching your employees of what to do what not to do in the workplace.  We provide to our clients a HR Boot Camp which teaches all supervisors of employees the key components to effective management of employees thus helping prevent unnecessary litigation in the workplace.

EPLI:

What is EPLI?  It is Employment Practice Liability Insurance.  This is the only liability insurance that will protect an employer from lawsuits in the workplace as discussed in this article.  Without this insurance the employer stands alone in claims made against them.  We recommend this insurance to all of our clients so if they are sued by an employee the insurance company will provide legal and financial support in any claims.  In order to secure this insurance however, your HR House must be in order and the insurance company will require proof from you that it is.  

Who  is HR Knowledge, Inc.:

HR Knowledge is a provider of integrated HR, payroll and benefits services. Our offices are located in the Boston, MA metro area and we service companies throughout the United States.  This article has been written by Jeffrey C. Garr, CEO at HR Knowledge, Inc.

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

5 Keys To Recruiting Process Management

Hiring new employees can be a challenge.  For recruiting process management,  it is vital to hire the right person because the costs for not hiring the right person the first time can be very high.  As a matter of fact statistics say the cost for not hiring the right person can be as low as $30,000 and as high as $120,000 depending upon the position being hired.

1. Make sure prospective employees have the right attitude. A person can possess all of the skills in the world but if their attitude is not great good luck in working with this new employee.  Attitude is everything when hiring good employees.  If they have the right attitude they will go through the wall for you.  They will be eager to learn new things, and not be afraid to admit where they might be insufficient.  In this day and age many people have a hard time admitting fault in anything or taking accountability for their own actions, attitude is vital!
2. Don’t hire family and friends!  This can be a fatal mistake by employers.  Hiring family and friends is the wrong thing to do as when there is a family illness, death or crisis this can affect your family and friends thereby creating challenges and stress on the business.  When hiring family and friends if things don’t work out, you now have a major challenge moving forward with that family member.
3. Don't sell the interview candidate.  Explaining the positives to working at your company is effective but going beyond that can end in the result that you sell that person to work for you.  You want new employees that see the outstanding value to being an employee at your company on their own.
4. Trust your instinct!  If your instinct is telling you something then ask more probing questions from the candidate.  Listen to your gut.  Check references, after offering the job make sure you perform a background check in case there is something in their past that would make you think twice about hiring that person.
5. Get the background information. Their historical success or failures are likely to be a forecast as to how they will do in the future.  Make sure you inspect their past and understand their past.  If they have been moving from job to job every year, multiple times then that candidate is likely to continue that moving forward.  Get to know their past by asking probing questions.  Make sure there are no gaps in their resume, if you notice that they were employed on 2-2009 through 3-2010 and their next job commences on 11-2010 ask probing questions to find out what transpired during that 8 month gap.

Making bad hiring decisions can be costly.  Understanding the hiring process and how to hire the best candidates for employment isn't always easy, but these short tips can help.

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

Tax Cut Continuation And The Pros Of Outsourced Payroll Services

The Temporary Payroll Continuation Tax Cut of 2011, where employers must implement the 2% point reduction in the Social Security tax withholding rate for two months, is just one example of a payroll task that could be handled quickly and efficiently by an outsourced payroll service provider.  

 A payroll service provider can actually decrease the cost of outsourcing payroll, while providing accurate, efficient, timely and secure service. Before choosing a payroll service provider, do your homework:

• Ensure the highest level of security.  A payroll software application must transmit payroll data easily and efficiently, while ensuring security through advanced encryption technologies and multiple firewalls to prevent unauthorized access. 

• Empower your employees.  Some payroll service providers offer an innovative Employee Self-service feature which gives employees simple and continual access to their payroll and benefits information. This feature enables them to access their personal information about their employment history, earnings, and performance reviews, as well as make any necessary changes to phone numbers, addresses and emergency contacts.   According to recent studies, companies that invest in technology which allows their employees to service a number of their own human resources needs, can save up to 60% on HR transactional costs, and can expect to see a return on their investment (ROI) in less than one year. 

• Provide accessible assistance.  Not only should a payroll service provide error free payroll, they should also provide exceptional customer service.  Are they accessible?  Can you reach them immediately by phone or do you have to wait for a return call?  Do they only respond via email? The more time you spend trying to get answers, the less satisfield you'll be.

HR Knowledge Inc. is one of the largest providers of integrated HR, payroll and benefits services on the East Coast and a leading provider of online, state-of-the-art payroll processing solutions.  

 For more comprehensive guidance on all things HR, contact HR Knowledge, Inc. at Sales@hrknowledge.com or call at 508-339-1300.

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.