NAPEO
In the not-so-distant past, options to provide a pay advance prior to payday were not only limited, but they also were potentially expensive for the employee and were viewed in a negative light by some segments in our society.
Performance metrics can provide valuable insights into different aspects of your business from financial health to client satisfaction. However, it can be challenging to determine which metrics are essential and which ones are merely background noise.
Rewards and benefits are a core part of the HR and People functions at any organization. As the Senior Director of People Experience at Oyster HR, a global employment platform with employees in 70+ countries, my team and I are responsible for the experience of our employees from the day they sign their offer letter to their last day with the company. That includes managing performance, progression, and total rewards.
To achieve success, a PEO must build and maintain a strong foundation. Without this, the weight of the inevitable operational stresses and changes to be encountered as the year progresses will not be sustainable. With the new year rush behind us, take this opportunity to get your house in order. While there are multiple financial items to tackle such as budgets, forecasts, and tax rate reviews along with sales and marketing initiatives, this article focuses primarily on operations-related steps.
As we head into the midpoint of 2022, wage and goods inflation continues to be a hot topic because it continues to negatively affect the vast majority of industries, as well as the people working within them. How has the PEO industry managed to, in large part, avoid a phenomenon that has had such high-cost implications? It’s all relative. Literally.
Although the tax credit and tax deferral parts of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and subsequent legislation expanding certain parts of the CARES Act have expired,1 some of its effects (some advantageous and others not) on PEOs continue through 2022. This article discusses the opportunities that remain for PEOs and their clients, as well as the risks not to be forgotten.
This article presents excerpts from NAPEO’s 2019 paper, “Best Practices for Reducing the Risk Associated with PEO Payroll Fraud.” These days, it’s not unusual to read or hear stories in the news about fraud occurring within businesses. Many times, these businesses are victimized when an individual in a position of financial authority makes unauthorized withdrawals or disbursements from bank accounts or misdirects cash deposits. Generally, the response to these is to put controls in place to prevent and detect fraud relating to cash, but the possibility of payroll fraud is often overlooked. The PEO industry has a high risk for the potential of payroll fraud. We must be ever-vigilant about the various schemes that fraudsters put into play to cheat PEOs out of their hard-earned cash, including through automated clearing house (ACH) fraud, check fraud, and identity theft.
The Employee Retention Tax Credit (ERTC) was designed to give relief to employers that retained their employees, whether working or not, by paying them throughout COVID. Initially, employers could get $5,000 total per employee for the whole year of 2020. The parameters changed in 2021, giving employers the opportunity to claim $7,000 per employee, per quarter, for the first three quarters of 2021. While this is a great idea in theory, the mechanics of administering it are very burdensome for PEOs.
Employees are vital to your organization and a significant investment for most businesses, typically averaging 70 percent of operating expenses. This essential business asset deserves a well-crafted strategy. While compensation is only one factor to consider for recruiting and retaining talent, it is critical to your overall HR strategy. Whether initiating or updating your compensation strategy and philosophy, the following best practices may help guide your process and decisions.
Wouldn’t it be nice if everything you needed to comply with the Affordable Care Act (ACA), incorporate it’s requirements into your operation, and keep healthcare coverage for your clients and worksite employees affordable were packaged up in a neat little box? All you would have to do is open it up, read the instructions, and boom—done!
