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Regulations and Compliance Trends Only Gaining Momentum

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If the latest employment rule is any indication of what’s to come, regulations and compliance trends for employers aren’t going to slow down.

Overtime expansion

The Fair Labor Standard Act’s (FLSA) new rule will boost the salary threshold to a level that will make millions of currently exempt workers eligible for overtime. With overtime expansion on the track toward an effective date of Dec. 1, employers need to prepare now for major financial and operational challenges that may occur. The next steps involve gaining insight into the rule and estimating your company’s potential overtime costs.

Additional regulations

FLSA overtime expansion will affect the entire nation, while other rulings are enforced on a state-by-state, city-by-city or employer-by-employer basis.

    1. Raise the Wage – Since the president’s call to action in 2013, 18 states have passed laws to raise their minimum wage. Even cities are taking action, with about 40 localities rising to the challenge. In 2014, Seattle became the first city to adopt the nation’s highest minimum wage when it raised employees’ pay to $15 an hour. The “fight for $15” has just begun, and though it may not affect an area near you yet, it might soon.
    2. Paid Family and Medical Leave – Momentum is growing to balance the demands of family time versus work time. Recently, California, Massachusetts, New Jersey, Rhode Island and Connecticut have passed paid family and medical leave. The president’s 2016 budget includes more than $2 million in funds to encourage states and cities to develop paid family and medical leave programs.
    3. Affordable Care Act (ACA) – Applicable large employers (ALEs), those with 50 or more full-time or full-time equivalent employees, must comply with ACA requirements. On March 31, Forms 1095-B and –C were due, but this extension was not the only change with which employers must comply. This year, ALEs also must offer health care to 95 percent of their full-time employees; this is up from 70 percent in 2015. Businesses that may not have to comply yet still must be prepared in case the time comes, because ACA constantly is evolving, and one thing remains true: The mandate is here to stay.

The idea that employers have to be “big-picture thinkers” is never truer than it is today. Regulations always are coming down the pipeline, so processes cannot be short-sided. Consider this: “Is what I’m doing now going to work five years from now?”

Regulations and compliance trends aren’t slowing down, and businesses have to take necessary steps to stay afloat the treacherous waters. The silver lining in all of this is that businesses have never been better equipped with the right HR technology than they are today.

The content of this blog is intended to keep interested parties informed of legal and industry developments for educational purposes only. It is not intended as legal opinion or tax advice and should not be regarded as a substitute for legal or tax advice.


Lauren Toppins

by Lauren Toppins


Author Bio: Lauren Toppins is Paycom’s Corporate Attorney and has served as the head of the legal department since 2010. Prior to joining Paycom, she served in a general counsel role for three years. In addition to her Juris Doctor, Toppins also holds her Senior Professional in Human Resources (SPHR) certificate. During her position as corporate attorney, Toppins managed Paycom’s human resources department. Toppins’ practice focuses on employment law, corporate law, intellectual property and information security law. In her role as corporate attorney, Toppins also oversees Paycom's compliance department and leads a taskforce that conducts periodic reviews of existing employment laws as well as newly implemented laws and pending litigation. In addition, Toppins spearheads a quality management program through which she obtained ISO 27001 and 9001 certifications for Paycom. In her spare time, Toppins also serves her local community by serving on the Board of Leadership Oklahoma City.

WOTC Tax Credits

What Tax Credits Are You Leaving on the Table?

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Federal tax credits for businesses are far from easy if you aren’t familiar with the program, and business leaders may find themselves in unfamiliar territory when it comes to their company’s eligibility for tax credits. As a leading provider of comprehensive human capital management software, we have found that the Work Opportunity Tax Credit (WOTC) is one Federal tax credit many leaders underutilize, meaning that they are leaving money on the table when it comes time to do their taxes.

In fact, one Paycom client in the fast-food industry found $447,000 in government-appropriated funds available once they took full advantage of the tax credits available to them. Read more about this client’s experience in our recent case study.

Is your organization is leaving money on the table?

The Purpose of WOTC

WOTC was designed to encourage employers to hire people from segments of the general population who have “consistently faced barriers to employment.”

On average, one in eight new hires potentially qualifies for the WOTC, and that number increases when it comes to the fast-food industry, in which one in four new hires is potentially eligible for the credit.

What WOTC Means for Your Company

Depending on which target group your new hire represents, the number of hours they work and the wages they earn determine the amount of the credit, you can receive up to $9,600 for each eligible new hire.

Like the client in our case study, you may find, that many of the people in your hiring pool are already eligible for the tax credit. They received an average of $1,128 per certified employee.

Who You Can Hire

Qualifying new hires can be full- or part-time workers. They must belong to specific “target groups” designated by the U.S. Department of Labor. These target groups are populations of people who are able and willing to work, but have found barriers to employment for a variety of reasons. Target groups include:

  • veterans
  • Temporary Assistance for Needy Families recipients
  • SNAP recipients
  • designated community residents (living in empowerment zones or rural renewal counties)
  • summer youth employees living in designated communities
  • long-term unemployed

 

 How You Can Receive These Tax Credits

To receive these tax credits, 8850 and 9061 forms must be completed on or before the job offer and sent to your state employment agency within 28 days of the employee’s first day of work. The client in our case study was able to save 75 hours (nearly two weeks of work!) by working with Paycom to process their available tax credits.

If you’re intimidated by or unaware of Work Opportunity Tax Credits, you’re not alone. But you might be missing out by leaving money on the table. Paycom clients using its tax credits service pay nothing for the search if they are found to have eligible employees. Want to learn more about WOTC? Sign up for our August 3 webinar “What’s New With WOTC” to learn the most up-to-date information on WOTC and ask questions specific to your business.

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Posted in Blog, Compliance, Featured, Franchises, Hospitality, Restaurant

Rich Stupansky

by Rich Stupansky


Author Bio: Rich came to Paycom in January of 2010 from Cleveland Ohio and is the Director of Tax Credits at Paycom. Rich was instrumental in developing and creating our tax credits program. Rich has more than 12 years’ experience with federal tax credits and an extensive background in working with companies of all sizes to maximize their full tax credit potential.

Orientation

Orientation or Onboarding: Does It Matter?

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“Onboarding” and “orientation” are buzzwords you’ll see thrown around a lot in discussions on human capital management (HCM), and with good reason: It’s a costly investment to hire the right person for a valuable position, and it’s important to ensure that your new hires feel valued and engaged so that they can remain a contributing member of your team.

What can you do to ensure that your new hires become quality employees? A good place to start is figuring out the distinction between onboarding and orientation. Orientation should be part of your onboarding plan, but it shouldn’t be the sum total of it.

“Orientation” refers to the brief period during which a new hire receives all-employee training and information (often in a classroom setting) and fills out the required paperwork. “Onboarding,” however, is a way to ensure the long-term success of a new hire, and often lasts between six months and a year.

Making strategic use of your HCM technology can streamline your orientation process, but it also can significantly improve your onboarding process, helping you retain and engage new hires. We explore this concept in our white paper, 4 Ways Your HCM Technology Should Enhance Your Onboarding Processes.

Robust HCM technology can help you improve engagement and retention of new hires, plugging them into your company culture and giving them the opportunity to start doing real work sooner.

Improving Employee Engagement From the Beginning

Utilizing HCM technology during onboarding gives you unparalleled opportunities to improve engagement and retention of your new hires. A study by the Brandon Hall Group found that 54% of companies that invested time and resources into their onboarding processes noted improved turnover, improved attendance, productivity and satisfaction. (And 78% of the companies in the study saw an increase in revenue!)

Making the onboarding process simpler is one way to improve the engagement of new hires. Using a true single-application HCM system, for example, will allow your new hires to complete important paperwork for taxes and benefits efficiently.

Onboarding Beyond Orientation to Promote Success

The first few months of your new employees’ time at your organization are crucial for their long-term success and even for their retention at your organization. Almost a third of new hires look for a new job at the six-month mark, so what can you do to keep your valuable new team members?

A strategic onboarding program can help your new hires become increasingly more comfortable with and invested in your company. Having training and time-management capabilities in the same HCM system that your new hires already have become familiar with minimizes onboarding strain on your new hires (and on your HR department). A new employee typically takes about eight months to reach his or her full productivity level, according to research from the 2012 Allied Workforce Mobility Survey. Anything you can do to help them get up to speed more quickly, particularly in those crucial first several months, will allow them to become more productive and more engaged employees, which contributes to an enhanced employee experience. 

One of the main benefits of a robust HCM system is that new hires are able to start actively contributing to your organization more quickly.

To know more ways your HCM tech can improve your onboarding processes, and in turn improve your retention and productivity of new hires, download our white paper.

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Posted in Blog, Employee Engagement, Featured

Chad Raymond

by Chad Raymond


Author Bio: With over 19 years of experience in employee engagement, benefits administration and government compliance, Chad has unparalleled knowledge in the fields of leadership and human resources. Chad has worked in several different capacities with Paycom including leading our product development team and HCM initiatives as well as the former director of Paycom’s service department. Chad’s vision and execution helped empower executives and their teams to reach their full potential, ultimately leading to his role as Paycom’s vice president of HR.

Break Down Silos

How to Break Down Silos: A U.S. Military Formula for Today’s Business Execs

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Some business leaders find that “silos” develop within their organization, where departments do not communicate effectively with one another, hindering efficiency (particularly in interdepartmental goals and projects). Implementing interdisciplinary task forces when appropriate can give your organization the agility necessary to innovate and respond to external challenges.

In Deloitte’s 2017 Global Human Capital Trends survey, just 11% of survey respondents stated that they understood how to build “the organization of the future.” Deloitte notes that one key element of a forward-facing organization is an emphasis on successfully implemented interdisciplinary teams.

A focus on this interdisciplinary teamwork doesn’t require moving away from a traditional business model, but it does allow increased agility and efficiency by encouraging interdepartmental cooperation, no matter the size of your organization

Deloitte refers to the United States Department of Defense (DOD) as one organization that makes excellent use of its teams. With over 7 million personnel in total, the U.S. military has developed agile teams based on thorough information about employee skills and experience – no small feat for an organization of that size!

Whether you have 70 employees or 7 million, you can prevent the silo effect and improve your organization’s efficiency and agility by taking a cue from the U.S. military’s successful team-based structure.

Tracking Employee Skills and Experience

The U.S. DOD keeps detailed record of the skills and specialties of each member, including a history of their service and any relevant non-DOD skills. Levels of experience, responsibility and authority are recorded in a way that everyone in the organization recognizes.

Because of this, the DOD is able to coordinate agile teams based on a particular assignment or project. These teams achieve highly targeted goals. Once a deployment or another project is completed, these teams can be re-formed or new teams can be developed relatively easily because of the detailed data.

Creating Agile Teams for Specific Goals

It’s important to know what skill sets and experience are available within your employee pool in order to make and break teams quickly. And because the teams the DOD creates are based on experience and expertise, they can work to accomplish very specific goals.

One key element of the DOD’s creating, disbanding and re-creating of teams is job security. Military personnel know that if they are assigned to a team or project, they will not lose their jobs once that project is over. Instead, they will be added to another team where their insight and experience can make an impact.

This creates an agility to the DOD organizational structure that rarely is paralleled in the business world.

Applying This to Your Business

What does this mean for your business? For starters, the success of the DOD’s team-based organization demonstrates that interdisciplinary teams can be used effectively, even in a very large organization.

Their teamwork is enabled by up-to-date, robust information on employee skills and experience to allow the creation of the right teams to solve specific problems. Often these are project-based teams that may reform or disband after the completion of the project while maintaining job security.

Having a reliable record of the skills and experience of your employees gives you the flexibility to put the right people to work solving a problem, even if they don’t typically work together. In a quickly changing business world, looking to the U.S. Department of Defense as an example of successful interdepartmental teamwork can help your organization find more agile and effective solutions to the challenges you face.

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Posted in Blog, Featured, HR Management, Leadership, Talent Management


Author Bio: A writer, speaker and business leader, Jason has been the communications pulse for a number of organizations, including Paycom where he is the director of public relations and corporate communications. A featured writer on human capital management technology, leadership and the Affordable Care Act, Jason launched Paycom’s blog, webinar platform and social media channels, helping empower organizations around the nation. Jason is attuned to the needs of businesses and helped develop a tool to aid organizations in their pursuit to comply with the ACA; one of the largest changes in healthcare the country has seen. While working in athletics for ESPN and FoxSports, Jason learned the importance of hard work and branding. In his free time he enjoys adventuring with his family, reading and exploring new areas to strengthen his business acumen.

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