Challenging Time for Businesses

In today’s challenging economic environment, business owners have to look for ways to increase efficiencies while reducing expense.

As we continue to try to stimulate the economy with implementation of small business, one of the most expensive and frustrating aspects for small business owners is understanding and complying with employment laws.

Along with the statutory requirements to provide workers’ compensation benefits, employers today are also faced with a gamut of other employment-related challenges such as ADA, ERISA, benefit requirements, not to mention hiring practices.

In recent years, there has been an increase in employment practices lawsuits which are not only frustrating, but expensive to defend. For most small business owners, the decision to go into business themselves surrounded a dream and special talent as well as an entrepreneurial spirit.

Most small business owners are not insurance experts, nor are they employment law attorneys. While the cost of workers’ compensation insurance has dropped significantly in the past several years, insurance is an industry that cycles up and down and employers are generally at the whims of those market cycles, making it unpredictable to budget into their business model.

Defending employment practices claims can cause a small business owner to go out of business if they don’t have insurance to protect themselves.

One solution to the increasing challenges presented to most businesses is utilization of aProfessional Employment Organization, or PEO. A PEO provides services such as payroll administration, workers’ compensation, safety services, human resource management, along withemployee benefits, if desired. By entering into a contractual co-employment relationship, business owners can transfer or outsource most of, if not all, of their human resource issues to experts and focus on the business itself.

A PEO can be a more competitive way to manage those aspects of the business. PEOs have been around for years and there are many different companies out there.

Some focus on payroll services with human resource services and products added on an á la carte basis while others are large publicly trades companies that offer profit sharing to their clients.

Most business owners approach their insurance program renewal dates dreading the process and results. It takes time and energy to evaluate the many options — time that could be better served focusing on the business of business.

PEOs often offer increased cash flow by eliminating deposit requirements, stabilizing expenses while eliminating the need for the annual renewal process and removing the cyclic nature of the insurance industry allowing business owners to better plan and budget these types of expenses.

In today’s challenging business economy, one alternative might be the use of a good PEO. To learn more about a Professional Employer Organizations, go to www.napeo.org.

By Andre Olivan

The Perks of Professional Employer Organizations

Does this scenario sound familiar? You are a small business owner in the computer technology field and you have recruited the best talent in the area. You landed a large contract for services with a local company, you covered all of your bases and you’re ready to rock and roll … or are you?

Are you certain that your new-hire procedures are in compliance with your local employment laws? Are you up to date on the regulations that govern your benefit plans? Do you know all of the laws you have to follow that relate to the workplace? Chances are you don’t. In this situation, aprofessional employer organization (PEO) may be the answer you need to ensure your company not only thrives, but stays competitive in your industry.

PEOs originated when accounting firms started providing human resources-related services to their small clients. They expanded their standard accounting services to include payroll processing, payroll tax filing and other HR administrative functions. The difference between a PEO and other HR or payroll-outsourcing companies is the unique “co-employment” relationship between the company’s worksite employees and the PEO. The PEO, as the statutory employer, assumes the responsibility of specific employment-related liabilities. In this relationship, you as a small business owner do not have to be an expert on workplace regulations, since the PEO handles that for you.

The basic services offered by a PEO include:

• Payroll Processing
• Payroll Tax Filing
• Risk Management
• Workers Compensation Administration
• Unemployment Administration
• Benefit Administration

Furthermore, many PEOs offer additional HR services for an additional fee. In most instances, the client company retains complete control of the recruiting, hiring and firing processes. The PEOensures the client is in compliance with current employment laws. Additional fee-based services can include: employee and supervisor training programs, performance reviews, employee counseling, preparation of policy and procedure manuals and creation of employee handbooks.

There are two primary advantages for a small business when it comes to retaining PEO services. First, the PEO’s trained HR professionals perform the payroll and HR functions. The client company can focus on growing their core business. An individual at a small company who has “taken on” these HR duties may lack the required experience and understanding of all the rules and compliance complexities surrounding employment administration. Researching employment regulations, processing payroll and filing tax returns takes time away from the client company’s primary business, costing the company money. Until the company reaches a size that allows for a full-time HR professional, enlisting a PEO is a cost-effective alternative.

In my experience, I have found that a PEO is an excellent alternative for small businesses. A PEOallows client companies to concentrate on what they do best. At the same time, the PEO helps the company differentiate itself from its competitors by giving them a recruiting and retention advantage. After all, in the end, it’s all about getting ahead of the competition.

By: Anthony Jernigan

Form I-9 Section 2 & 3 Overview - Part 2

SECTION 2 - Completed by the EMPLOYER

List A - One Document Only

• Cannot be completed in conjunction with B & C documents.
• Employer verified approved documents selected by employee.
• Complete title, issuing authority, document # and expiration date (if any).

List B - 2 Documents

• Cannot be completed in conjunction with B & C documents.
• Employer verified approved documents selected by employee.
• Complete title, issuing authority, document # and expiration date (if any).

Certification

• Completed by employer representative who verified documents for authorization to work.
• Must be authorized and completed with 3 days of hire.
• Representative must print and sign name and date .
• Business name and full address must be completed.

SECTION 3 - Completed by EMPLOYER

Updating & Recertification

• Update if employee is rehired, changes their name or has a new authorization document as the previous document expired.

TrendHR can help! Contact us today at 1-866-582-1578!

Form I-9 Section 1 Overview - Part 1

Do you understand the basic sections of the Form I-9 and what you need to look for and complete?

Here's a general overview of what you need to know regarding each section of the Form I-9:

SECTION 1 - Completed by the EMPLOYEE

Employee Information

• Address must be a street name and number (current or most current residence).
• No PO box or work address.
• Must be legal name.

Social Security Number

• Social Security number NOT REQUIRED, Voluntary only (except for employers who participate in the E-Verify Program).

Citizenship Status

• Employee must have identified his or her citizenship status by checking appropriate box.

Signature & Date

• Employee must sign and date stating that the information they've provided is true and accurate.

Preparer/Translator

• NOT completed by employee
• Completed only if employee was physically unable to complete the form or needed a translator because they didn't understand English.

TrendHR can help! Contact us today at 1-866-582-1578!

HR Hot Topics Alert!

Immigration compliance is HUGE!

What you, the employer and HR professional, should be aware of:

I9 audits are still increasing which means its not a matter of IF but WHEN. These audits don’t require a disgruntled eployee to file a claim, these are random and/or requested audits. No one is immune.

In 2010 there wre 2,200 audits but since the heat has been turned up for 2011, there has already been 1,000 audits in February alone!

There have been 180 grand jury and criminal indictments and $50MM in civil fines due to non-compliance.

Example of 2011 Audit – Teen retailer Abercrombie & Fitch fined $1MM fine due to electronic system failure!

HR personnel must be aware that they are now being held personally liable / responsible for paperwork compliance. So if you are the one signing off on the forms and the forms were completed incorrectly…. you may be held liable for paper and hiring violations.

• Paper violations – $110-1100/violation (missing, incomplete, inaccurate)
• Hiring violations – $375-3200/EE
• No match SSN letter – not required to retain

Healthcare:

Nothing much has changed here and very little new information has been given to the public. There is still some uncertainty with all the provisions and there’s expectations leaning toward 2012 elections repealing or significantly limiting the actions as part of the legislation.

Whistleblower, investigation and retaliation issues:

Employers must not retaliate against any employee who may be a “whistleblower” by alerting state and/or government entities about employer practices. Understnad that “retaliation” leads all EEOC charges with 36.3%! Treat your staff consistently, fair and never retaliate against them as it will only lead to trouble.

The Department of Labor had a $10B increase in their budget which primarily will be spent to help claim filing easier and processing quicker.

Understand that you, the employer and HR professional, have the burden of proving that claims are not true and that your practices are compliant, fair and consistent.

Contact TrendHR today if you need help understanding how to be compliant! You can reach our friendly staff at 866-582-1578.

Safety in the Warehouse

Materials Storage

• Make sure shelves and racks are sturdy, in good condition, and can bear the weight.
• Place heavier items close to the floor and lighter/smaller ones higher.
• Don't block sprinklers or store items where they could contact overhead lights.
• Read the label and material safety data sheet (MSDS) before storing hazardous materials.

Good Housekeeping

• Keep all areas clean and neat, with everything in its proper place.
• Keep floors and aisles clear and well lighted at all times.
• Clean up spills immediately.
• Dispose of trash promptly in proper containers.

Powered Vehicles

• Operate powered vehicles only if you are trained and authorized.
• Forklift operators must follow safe operating procedures for loading, traveling, and unloading.
• Forklift operators should look out for pedestrians, being extra careful at blind corners, aisle intersections, etc.
• Pedestrians must watch out for forklifts and remember that the operator's range of vision may be limited when the forklift is loaded.
• Pedestrians should avoid forklift traffic lanes and cross only where it is safe.

Safe Work Habits

• Follow safe work rules and make safety a constant priority.
• Use ladders, not boxes, shelves, or chairs to reach high places.
• Always wear any assigned PPE.
• Use the safe lifting technique (bend your knees and lift with your legs) to save your back.
• Ask for help from a co-worker or use a mechanical aid to move a load that is too heavy for you to lift and carry by yourself.

Safety Daily Advisor

Top 10 Reasons Clients use TrendHR

1. Payroll Processing
2. Deposit & File federal, state and local tax liabilities
3. WC Insurance 
4. WC - Injury Management
5. Risk Management / Safety Inspections
6. Employee Counseling & Disciplinary Actions 
7. Employment Termination Practices
8. Benefits Enrollment
9. Benefits Consulting / Plan Management
10. Unemployment Claims

TrendHR also offers employment paperwork audits to ensure compliance to reduce your liability for having to pay penalties and fees before ICE, DOL or EEOC shows up at your worksite. Call us today before you get the notice, otherwise it’s too late.

We understand the importance and true impact of these types of audits on our clients and care about your risk of being next on the audit list. The penalties and fees posed on employers can put you out of business depending on the types of errors and number of errors. If it doesn’t put you out of business, it will definitely leave a mark that you’ll never forget.

Contact TrendHR today at 214-553-5505 for more information about our services and how we can help!