The REAL cost of "Free" Payroll

Should you jump on the free online payroll bandwagon?

There are a lot of promises being thrown around that you can have it all for free by some fast-moving companies trying to take over the benefits/payroll/human resource servicing world. How do you know if this is the right move for your business? They are cheaper in many ways. That’s true. But is that the only thing worth considering? Cost control is very important, and for some, this might be just what they need to grow their business. But for most businesses, there’s more to consider than just finding the cheapest solution to payroll, HR, and benefits.

1.       Know the online broker business model. It's quantity, not quality. Their business is based on volume. They make money by taking in a large volume of low-paying clients, use more automation than people, and are not focused on quality of service.

2.      Read the fine print! Not all services are completely free. There are hidden costs in all that sizzle, “if you buy this-sign up online and everything else is free.” Look closely for the disclaimers. Decide if you want to be hit with a cost later that wasn't thoroughly explained up front. Having a personal relationship with your broker means they walk you through everything you need to know, in-person so you are informed at the time of signing up.

3.      Know the benefit limits. Being hurt or having an employee with a catastrophic illness or injury is not the time to find out how limited your coverage actually is. Many of the big companies aren't focused on you and your needs. They are focused on making sales, period. You can hedge your bets that you won’t (hopefully) have to go through navigating an injury and worse, an audit from OSHA. But if you do, who do you want working with you? Someone who has never heard of you or someone with whom you've been working with on a personal level that understands your business needs and will fight for you if needed against a governing agency?

4.      Start-ups are risky. We've seen them fail before. Don’t be taken in by the hype. Remember, their hook is catering to one aspect of your benefits, payroll, and HR needs-the cost-and they are running on start up money, not profits. It takes profits to stay in business and if their start up money runs out or the broker commission model changes, there goes their longevity-and your benefits. What happens then?

5.      If it sounds too good to be true, it could be. They can offer a lot of free services when they’re running on start up investment money because someone else is paying for it. What happens when that money runs out? Do they fold up, take their profits and slink away? It’s happened before. Will your service fees go up, you can plan on it. They already have you hooked by then. What happens to you and your business? Where will you be? It’s worth thinking about before you make that jump based on one aspect.

6.      You can be talked about by Forbes and still not be a good deal for consumers. If all you're hearing is bragging about how big they are and how fast they're moving, they're not focusing on the right thing: the service they provide customers and the quality of those services. That's the real story.

Moving your administrative services over is a big decision. There’s more to consider than just the monthly price.  If you decide to move to a big box company, remember the potential impact it will have not just to your business but the overall economy as well. This point is really worth stopping and looking at. Do we really need more big businesses shutting down little ones?

They are hunting in the small to medium business benefits backyard and running their business off. This will eventually put a lot of people out of work and reduce options and services. And in doing so, this will concentrate the types of services and options that are out there to only the big players. Do we really need more big businesses running the show?

It pays to do your homework and a little forecasting on the impact. It could work out well for your or you could be left in high and dry without the robust options you have now because so many payroll/HR/benefits companies went under while everyone chased after a business model that wasn't sustainable.

http://omegacomp.com/the-real-cost-of-free-payroll/

Link: related article The 5 Flaws to a Zenefits Approach

2015 California Employment Laws Part I: Workplace Safety

Changes to California Employment Laws for 2015 Part I: Workplace Safety

In November, 2014 the California Chamber of Commerce released a list of new laws affecting employers beginning in 2015. This is the beginning aof a series on those workplace law changes and the effects on business.

Penalties for Failure to Abate Safety Hazards

Cal/OSHA can require an employer to abate (fix) serious workplace safety violations and also to issue civil penalties.

An employer can appeal the citation.

AB 1634, in effect, prohibits the state Occupational Safety and Health Appeals Board from modifying civil penalties for abatement or credit for abatement unless the employer has fixed the violation.

In cases of serious, repeat serious or willful serious violations, AB 1634 will generally prohibit a stay or suspension of an abatement requirement while an appeal or petition for reconsideration is pending, unless the employer can demonstrate that a stay or suspension will not adversely affect the health and safety of employees.

Email for Workplace Safety Reports

AB 326 allows employers to email their reports of a work-related serious injury, illness or death to the Division of Occupational Safety and Health. Previously, the Labor Code required an immediate report by telephone or telegraph. The reference to telegraph is removed and replaced with email.

Workplace Violence Prevention Plans: Hospitals

SB 1299 requires Cal/OSHA to adopt standards by January 1, 2016, that require specified types of hospitals, including general acute care hospitals or acute psychiatric hospitals, to adopt workplace violence prevention plans as part of the hospitals’ injury and illness prevention plans. The intent is to protect health care workers and other facility personnel from aggressive and violent behavior.

The bill would require the division, by January 1, 2017, and annually thereafter, to post a report on its Internet Web site containing specified information regarding violent incidents at hospitals. The bill would exempt certain state-operated hospitals from these provisions.
Because this bill would expand the scope of a crime, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

http://omegacomp.com/changes-california-employment-laws-2015-part-workplace-safety/

Workplace Conflict Resolution

Avoid These Actions in Effective Conflict Resolution

By Susan M. Heathfield
Human Resources Expert

Organization leaders are responsible for creating a work environment that enables people to thrive. If turf wars, disagreements and differences of opinion escalate into interpersonal conflict, you must intervene immediately. Not intervening is not an option if you value your organization and your positive culture. In conflict-ridden situations, your mediation skill and interventions are critical.

Actions to Avoid in Conflict Resolution

Do not avoid the conflict, hoping it will go away. Trust me. It won't. Even if the conflict appears to have been superficially put to rest, it will rear its ugly head whenever stress increases or a new disagreement occurs. An unresolved conflict or interpersonal disagreement festers just under the surface in your work environment. It burbles to the surface whenever enabled, and always at the worst possible moment. This, too, shall pass, is not an option - ever.

Do not meet separately with people in conflict. If you allow each individual to tell their story to you, you risk polarizing their positions. The person in conflict has a vested interest in making himself or herself “right” if you place yourself in the position of judge and jury. The sole goal of the employee, in this situation, is to convince you of the merits of their case.

Do not believe, for even a moment, the only people who are affected by the conflict are the participants. Everyone in your office and every employee with whom the conflicting employees interact, is affected by the stress. People feel as if they are walking on egg shells in the presence of the antagonists. This contributes to the creation of a hostile work environment for other employees. In worst case scenarios, your organization members take sides and your organization is divided.

How to Mediate and Resolve Conflict

These are the steps you'll want to take to help employees resolve conflicts in your workplace.

Meet with the antagonists together. Let each briefly summarize their point of view, without comment or interruption by the other party. This should be a short discussion so that all parties are clear about the disagreement and conflicting views. Intervene if either employee attacks the other employee. This is not acceptable.

Ask each participant to describe specific actions they’d like to see the other party take that would resolve the differences. Three or four suggestions work well. An example is, “I’d like Mary to send the report to me by Thursday at 1 p.m. so I can complete my assignment by my due date of Friday at noon.” A second example is, “I would like to have responsibility for all of the business development and follow-up with that client. The way the work is divided now causes Tom and I to never know what the other person is doing.”

Sometimes, as in the second example above, you, as the supervisor, must own some of the responsibility for helping the employees resolve their conflict. Always ask, “What about the work situation is causing these staff members to fail?”

 If the situation needs further exploration, use a process I've adapted from Stephen Covey in which you ask each participant to additionally identify what the other employee can do more of, less of, stop and start.

 All participants discuss and commit to making the changes necessary to resolve the conflict. Commit to noticing that the other person has made a change, no matter how small. Commit to treating each other with dignity and respect. It is okay to have reasonable disagreements over issues and plans; it is never okay to have personality conflicts that affect the workplace.

Let the antagonists know that you will not choose sides. It is impossible for a person external to the conflict to know the truth of the matter. You expect the individuals to resolve the conflicts proactively as adults. If they are unwilling to do so, you will be forced to take disciplinary action that can lead to dismissal for both parties.

Finally, assure both parties that you have every faith in their ability to resolve their differences and get on with their successful contributions within your shared organization. Set a time to review progress.

Mediating a conflict is challenging, but as a manager or supervisor, the role of mediator comes with your territory. Your willingness to appropriately intervene sets the stage for your own success. You craft a work environment that enables the success of the people who work there. I believe you can learn to do it. Conflict mediation is an example of “practice makes perfect.”

 This article is reprinted from about.com, About Money http://humanresources.about.com/od/managementtips/a/conflict_solue.htm

http://omegacomp.com/workplace-conflict-resolution/

California Wage Garnishment Laws

California Garnishment Law and Exemptions

The California [wage] garnishment law is complex. Any specific questions regarding California garnishment exemptions, or other areas of garnishment law in California should be directed to a California wage garnishment attorney.

However, under California law, the following types of income [types] are usually not subject to wage garnishment:

~Public and private retirement benefits (such as IRAs and 401Ks)

~Most forms of public assistance, including unemployment and workers’ compensation benefits, county assistance, student financial aid, and union benefits

~ Insurance benefits, including payments received from life and homeowners insurance policies

~Under federal law, Social Security benefits are exempt from garnishment (except in cases of debts owed to the federal government, such as delinquent taxes, and garnishments for overdue child support)

California Garnishment Limits

California does not provide its own law in terms of the maximum amount of earnings that can be subject to garnishment – therefore the federal rule applies. Under federal law, the maximum amount of an employee’s earnings that is subject to garnishment is the calculated as the lesser of the following:

~ 25% of the debtor’s disposable income (disposable income is defined as what’s left after federally-required deductions, such as income taxes)

~ The amount by which the garnishee’s weekly incomes exceeds 30 times the federal minimum wage

Note that larger amounts are allowed for debts related to taxes or child support. The amounts exempt from garnishment in these cases varies by state law, as well as by other circumstances.

California Garnishment Statute of Limitations

In most cases, a creditor must bring a lawsuit against the debtor within four years of the debt occurring. Note that this doesn’t mean that the garnishment must take place within four years, just that the lawsuit resulting in the garnishment order must have been filed within that time.

Once the judgment allowing the garnishment has been issued, the creditor can continue to garnish wages for up to 10 years (or until the debt has been paid in full.)

Article Excerpt from Garnishment Laws, GarnishmentLaws.org

http://omegacomp.com/california-wage-garnishment-laws/

Automated Payroll and Timekeeping Systems - Is It Worth the Cost?

Are you shocked when you see how much your payroll is costing you? Payroll is typically an employer's number one expense. Wasted money in payroll is one of the biggest obstacles facing an employer who is poised for growth.

An employer can’t be everywhere, all the time. Monitoring employee hours can be easily automated and is modestly priced as most systems are typically scalable, after the initial equipment purchase and set up, you pay per user of the system on a monthly billable basis.

The system cost is often offset by savings due to increased accuracy. Payroll errors are costly in many ways. For example, an employee who is “fudging” their time card by even a few minutes does more than cost the employer more money in direct pay, it also affects the amount of accrual time that qualifies an employee for benefits.

 Did you know that just 15 employees clocking in an additional 4 minutes a day can add up to 1380 minutes (23) hours of additional pay per month!

Automated payroll systems can offer an employer many advantages:

§  Enforce good employee habits. Have a policy and be prepared to enforce it with employees clock in and out at their required start, break, lunch and clock out times-eliminating those overages because even a few minutes over the course of a year can add up to hundreds of dollars.

§  Use a mobile system for remote employees to log their location through GPS. This allows an employer to see if the employee is actually at the location they claim to be. Not only does this eliminate the employee deceiving their supervisor about being on a job site, it also alleviates the employer responsibility should anything happen accidentally to that employee when they should not have been on the clock.

§  Lock employees out of the timeclock for non-clock times. Automated timekeeping often has the capability of locking out punch in and out times for employers who need to lock down early punch in and late punch out.

§  Biometric technology can use hand print, fingerprint and retina recognition software to verify an employee is actually onsite. This prevents the dreaded “buddy punching” system.

Often times, an employer will need to use a combination of these systems to bring their payroll into compliance. Timekeeping can do more than just keep their employee hours accurate. With a compatible payroll enterprise system, employers can enjoy having a team of outsourced experts process their payroll. Payroll agencies will file all taxes, pay insurance premiums and deductions, and contribute to employee-chosen investments and optional health care coverage, as well as managing garnishments. It’s well-worth an employer’s time to check in to these options, and shop around. Some agencies offer free payroll processing in exchange for purchase of other services. Some agencies offer deep discounts on their payroll if an employer bundles HR, Workers’ Comp, Benefits Administration, or Risk and Safety Management.  For more information on these with OmegaComp HR, contact one of our Business Consultants today.  Call  toll free: 888-540-0752 or email omega@omegacomp.com

http://omegacomp.com/outsourced-payroll-timekeeping-worth-cost/

When Does it Make Sense to Outsource Payroll and HR?

Most business owners know they are more effective spending time on the core mission than being bogged down in administrative tasks. Outsourcing payroll and HR can cut the ball and chain that slows so many business owners down. When does it make sense to outsource payroll and HR?

Keeping staff tied up figuring out the the complex issues of payroll and workplace compliance, staying on top of the ever-shifting sands of tax and benefit deductions, not too mention keeping up with software updates and training are hidden costs that many business owners don’t think about as part of an in-house payroll & HR.

Payroll is one of the biggest costs for an employer. It’s not just the direct cost, it’s the hidden costs that really add up. From running down bookkeeping and payroll errors, garnishment paperwork, tracking paid time off and benefits accrual.

HR and workplace compliance is a cumbersome and complex undertaking. Keeping from one to a small band of employees dedicated to doing just these core functions is time and payroll consuming. In-house HR managers are proven to be much more revenue positive when they can concentrate on core business vision such as strategic planning, team building, direction monitoring and workplace enhancements and business improvements. Outsourcing can give even small businesses a full department of experts and documentation to rely on without the direct cost of multiple, specialized employees.

Outsourcing can solve some of the following headaches:
• Increased compliance with workplace and tax laws
• Accurate bookkeeping with less chance for error
• Enhanced security-many outsource solutions have bigger pockets than small businesses and can house sensitive data with higher levels of data security than a small business can afford.
http://omegacomp.com/when-to-outsource-payroll-and-hr