Small businesses account for over 99% of America’s workforce and many of them are ill-prepared for the human resources compliance challenges that they will inevitably face.

Smaller companies tend to have fewer resources to dedicate to best practices and policy. Most owners are focused specifically on sales and growth. In terms of HR compliance issues, it’s important to know what to look for and understand what steps you can take to be prepared.

Recruitment, Interviewing, and Hiring

• Questions you are legally allowed to ask a candidate
• Phrases that should be avoided in job descriptions
• Obtaining authorization to conduct background checks / drug screenings
• Reference checks should comply with labor codes
• Properly constructing an offer letter
• Employment “at-will” versus a contract
• Ensuring your hiring practices reflect non-discrimination
• Age, Gender, Disability, Race, Religion

Harassment and Discrimination

• Outlining harassment and discrimination policies clearly in your employee handbook
• Scheduling training for supervisors and other employees
• Pregnancy and maternity leave issues
• Americans With Disabilities Act

Payroll & Taxes

• Filing 940, 941, State & Federal Unemployment promptly
• Knowing which forms need to be filed and when
• Accurately processing payrolls
• Pre-tax versus after tax benefits
• Deductions from garnishments and liens
• Minimum wage

State and Federal Laws

• Record retention and accurate bookkeeping
• Workers compensation coverage and claims processing
• Liability coverage
• HIPAA, FMLA, COBRA, and Civil Rights Act compliance
• New hire reporting and I-9 forms
• IRS limits of 401k retirement plans

Wage and Hour Issues

• Understanding overtime: Exempt vs. Non-exempt employees
• Equal Pay Act
• WARN Act
• Union vs. non-union

How a PEO Can Help

A Professional Employer Organization brings together experts from the world of human resources to assist your business with compliance problems, without you having to employ a full-time department. We take on these responsibilities so you may focus on growing your business. Our knowledge and accountability makes us an asset to any small business. We are available to help you.

Speak with a compliance expert today if you have any questions or concerns about any of the compliance issues noted above (727) 895-4700

With the economy slowly growing again, it has become harder to retain employees. Many will stay with an employer during a sluggish economy, but many businesses are reporting larger turnover due to alternative opportunities. A MetLife annual survey of employee benefits, trends, and attitudes released earlier this year found loyalty at a 7-year low. In a CareerBuilder survey last year, 76 percent of full-time workers said they would leave their current employer if the right opportunity came up, even though they weren’t all actively looking for new jobs. It costs a typical employer the equivalent of 6-9 months in salary each time they have to replace a salaried employee.

More Employee Retention Statistics

• Over 50% of people recruited will leave within two years
• 1 in 4 new hires leave within six months
• Nearly 70% of organizations report having difficulties in replacing staff

How To Retain Top Talent

1. Keep Your Promises

   All of those great offers that got someone to come and work for you have to be easy to implement after they’re hired. Try to avoid steep changes in your benefits programs from year to year. Maintain a positive culture and environment so people feel good about coming to work each day.

2. Employee Handbook

   Manage expectations by having an employee handbook that is up-to-date and clearly explains your polices, benefits, and flexibilities.

3. Personalize

   It’s not one size fits all. Find out what is important to your supervisors and your employees and try to work that into your company.

4. Long-Term Benefits

   Structure benefit programs that get better the longer an employee is with the company, such as: Extra vacation time at a 5-year anniversary or an employer 401k match that vests at 20% per year.

5. Conduct ‘Stay’ Interviews

   Exit interviews are very common for when someone is leaving your company. These can provide both positive and negative feedback, but it’s too late to change anything for the one that’s moving on. Instead of finding out at the end, why not find out while they’re still there? Don’t just find out why people are quitting, find out why they are staying and what can be improved upon.

6. Provide Growth Opportunities

   Whenever possible, promote from within. You want to encourage a culture where someone is on a career path and not that you’re simply filling the gaps.

7. Foster Employee Development

   Encourage training and mentoring. Provide opportunities for people to learn new skills and enhance the ones they already have.

8. Open Communication

   Make sure you set very clear expectations for employees and encourage them to speak openly and freely without blowback.

9. Professional HR Management

   An experienced human resources manager will already understand these. Not only do they ensure compliance, but they have intuitive knowledge of everyone that works at your company. They can implement programs that will positively affect efficiency and retention.

Continually recruiting and retraining new employees slows a company’s growth. It’s important to have someone on your team that understands the fundamentals of employee retention. This will save you money and make your business more productive.

Contact the experts at Human Resources Inc. to find how how easy it is to implement great features and benefits.

One of the biggest investments your business will make is in its people. With the economy slowly improving, the demand for sourcing talented individuals will increase. How can you position your company to land the best personnel?

Referral Bonuses

Use your employees’ connections. This is one of the most cost effective strategies and one with the least amount of turnover that employers use to find the right people. Not only are internal references more reliable, but the candidate will have been given information on your company that cannot be learned through internet research or during the interview process. This eliminates any surprises about company culture, working conditions, or the people that already work there. Referral programs represent about 27% of all hiring and have proven to increase retention, boost overall morale, keep costs down, and streamline the search process.

Become Involved in the Community

Sponsor an event or local sports team. Participate in projects that improve the way of life of people in your area. Just about anything that takes people out of the office and into the public eye can have a positive effect on your brand and how your business is perceived. It will also help to make invaluable connections and find networking opportunities.

Attend Career Events

Candidates who take the time to attend career fairs and other similar events are undoubtedly more motivated than someone who just sits in front of their computer looking for work. These people are ready to go and can have a lot of enthusiasm.

Volunteer as a Mentor

There are programs that exist in career development that are always looking for people in likewise industries to become involved to help those looking for a job. By utilizing these kinds of resources, you are elevating awareness of your business. Your level of involvement can be something as simple as contributing to online newsletters or other communication from the viewpoint of an “industry insider.” The outcome of this approach is two-fold: You will simultaneously be promoting your company while expanding access to a larger talent pool.

Use Social Media

Your business needs to have a social media presence. Having your employees create individual accounts on sites like LinkedIn increases awareness of your company and what you offer. Traditionally, employers don’t like their people using social media like Facebook during office hours. However, at the same time they can be reaching out to prospective hires. One of the first things someone sees on a Facebook page is where they work. Let it be displayed proudly and have it link to information about your business.

Keys to Recruiting Top Talent Through Benefit Programs

The difference between hiring and losing a candidate to another company may be attributed to your benefit programs and employee perks. These items will add to the overall proposed value of your company to future employees.

Health Benefits

At a minimum, most companies should offer some form of medical, dental, and life insurance. Avenues of opportunity are being created so that small businesses can pool their risk with other small employers or to participate in exchanges that can make the cost of health benefits cheaper. This also could include flexible spending plans for medical and dependent care.

Retirement Benefits

A 401k plan can be relatively inexpensive to manage year to year and any employer contributions are tax deductible. A profit sharing program can also be linked to retirement benefits, which will give an employee a stake in the company performance and overall success.

Signing Bonus

If a certain kind of talent pool is in particular demand, you may want to consider offering a signing bonus. A survey conducted in 2011 found that 54% of employers are using this method to gain an advantage on their competition. This may also be a negotiating tool if the annual salary being offered is average or less than average.

Work/Life Balance

Studies have shown that working more than 40 hours a week actually makes employees less productive in the long-term and result in higher burnout rates. As it stands today, email and mobile devices create an expectation of always being on-call. What was once time spent with family can be easily interrupted. Since employees are expected to be more flexible with the idea of being contacted at all hours, employers should be more flexible as well in regards to family life.

Look For Recognition as a ‘Best Employer’

Find out what publications and organizations are awarding businesses in your area with Best Employer awards and sign up to be in the running. This can give incredible visibility to your company and make the concept of being employed by you something that people will compete for.

Contact an expert today at HRI and learn more about how you can position your company to recruit top talent!

Tax Credits for Small Businesses

Small business tax credits differ from deductions, as they reduce your overall liability as opposed to reducing your reportable income. For example, if you owe $5,000 in taxes and you apply a $3,000 business tax credit, your liability is reduced to $2,000. In addition to new provisions of the Affordable Care Act, there are many programs in place that are often overlooked by business owners who do not engage in effective tax management strategy.

Below are some common small business tax credits for which you may be eligible.

Small Employer Health Insurance Premiums

If you have less than 25 full-time employees (you can have more than 25 employees as long as you have fewer than 25 full time equivalents) and an average annual payroll of less than $50,000 per individual, you may qualify for this credit that pays for 25%-35% of healthcare premiums.

Work Opportunity Tax Credit

If you hire veterans or other targeted groups, you may qualify to receive up to $9,600 in tax credits and up to $6,240 if your business is listed as a nonprofit. A qualifying veteran under this plan is defined by the following:

• Served on active duty (not including training) in the U.S. Armed Forces for more than 180 days
• Been discharged or released from active duty for a service-connected disability
• Not have a period of active duty (not including training) of more than 90 days that ended during the 60-day period ending on the hiring date

To determine how much you can claim will depend on your total payroll, the number of hours your veterans work, and how long they were unemployed before you hired them. There are administrative qualifying steps required in order to receive this credit that must be completed at specific times and cannot be done retroactively. To find out more about other types of new hires that would qualify your business for a Work Opportunity Tax Credit, contact Human Resources, Inc.

Empowerment Zone credit

An empowerment zone are highly distressed urban and rural communities that experience high poverty or emigration. These areas are decided upon by the government and if your business is located in a designated zone, you may claim the credit which could be a 20% of qualified wages.

Disabled Access Credit

If you have fewer than 30 full-time employees and your annual sales are under $1 million, there are tax credits available if you made physical changes to your place of business to comply with the Americans for Disability Act. This includes expenditures such as removing barriers that prevent your business to being accessible by individuals with disabilities or acquiring/modifying equipment for said individuals. You should see a 50% tax credit of your expenditures, capping at $5,000.

If you would like more information about these and other small business tax credits, contact the experts at Human Resources Inc. today at 727-895-4700.

January 30th Marks the Beginning of the 2013 Filing Season

The IRS will begin accepting tax returns on January 30th after updating forms and completing programming and testing of its processing systems.

The announcement means that the vast majority of tax filers — more than 120 million households — should be able to start filing tax returns starting Jan 30.

Read more of the IRS's announcement here.

Be Sure to Provide All Records and Receipts Needed to Prepare Your Return

It is against IRS e-file rules to file your return using your last pay stub – you must use your Form W-2.

Read more about the IRS's recommendations for proper tax filing and choosing the right preparer.

Here is a brief list of the most impactful legislation approved by both houses of Congress yesterday regarding the Fiscal cliff.

1. Taxes were increased to the 39.6% of the Clinton era on individuals earning $400,000 and on families earning $450,000 or more.
2. Capital gains and dividend rates for those same households increase from 15% from 20%.
3. There has been a one-year extension to unemployment insurance.
4. The ‘sequester’ on automatic spending cuts have been delayed for two months.
5. The estate tax will rise from 35% to 40% on assets over $5 million, $10 million total per couple (with proper estate planning.)
6. A 5 year extension has been implemented to a number of middle class tax breaks including American Opportunity Tax Credit, and the Child Tax Credit
7. A fix to the Alternative Minimum Tax, which should exclude the non-targeted middle class households permanently.
8. Personal exemptions have been phased out for individuals making over $250,000 and itemized deductions will be limited for taxpayers making over $250,000
9. Extensions have been made for business tax breaks that were scheduled to expire.

What is not included in this legislation is an extension to the payroll-tax cut which will mean all families will see a 2% tax increase in 2013 on earned income up to the maximum of $110,100.

If you have any questions about how this legislation affects you, call Human Resources Inc. today.

A Payroll Paycard is your one-stop alternative to pay checks, checking accounts, and benefits access. It has all the security of a bank card with your own personal PIN to access cash at millions of ATMs across the globe. As a debit/credit card you can make purchases at stores or online in addition to getting cash back.

1. No bank account or credit check is required to have a Paycard

   Upon verification of your identity, a Paycard is automatically issued without the need of credit checks or banking history. Everyone qualifies.

2. Immediate access to your money through the Paycard

   Use your card to shop online or in stores anywhere MasterCard is accepted. Establish a PIN to access your cash 24 hours a day, 7 days per week from any ATM. You may also view your account at any time online or check your balance over the phone.

3. FDIC insured

   Your funds will be safe and secure as they would be with any regular checking account at a bank.

4. Avoid Fees/ATM Fees

   There are over 43,000 surcharge-free ATMs for card carrying members. What’s more, transaction fees can be circumvented by using your Paycard as a credit card rather than a debit card.

5. Flexible Communication

   If you travel, quick and easy communication solutions such as email, voicemail, or text message can be used to receive alerts regarding your account. Find out when you have been paid or if your balance is low.

6. Automatic bill pay

   You may set up manual or automatic bill payments online through your Paycard. Monthly reports can be generated by expense category to track spending.

7. Other payments can be loaded onto your card

   Tax refunds, disability payments, government benefits, and payroll from other companies you work for can be direct deposited into your account.

8. You can get up to 5 free companion cards

   Want to give family members access to emergency cash or allowance? Transfer money instantly from one to another. The companion cardholder only has access to money transferred to their individual card.

9. You are not liable for unauthorized Paycard transactions

   Have peace of mind and security by knowing that if your card is lost or stolen, you will not be held responsible for any charges that are incurred once it’s reported. Certain conditions must apply.

10. 24/7 Customer Service

    Customer Service agents are available at all hours to assist you in both English and Spanish. You may contact them at any time for general questions, lost/stolen card emergencies, transaction history, or balance inquiries if you don’t have access to it online.

Contact the payroll professionals at Human Resources, Inc. to inquire about setting up a Paycard system.

Group Indemnity Medical Insurance coverage can assist in supplementing your present medical coverage. There are five benefit categories: hospitalization, outpatient, diagnostic & wellness, surgery, prescription drug. Within these benefits, a predetermined amount is payable for common services performed by your health care provider. Below is some helpful information about this type of plan.

1. A vast PPO network

   The network consists of 535,000 individual practitioners and over 87,000 facility locations, including over 4,800 acute hospitals. GIM provides in- and out-of-hospital benefits that correspond with medical expenses.

2. Shop around

   If you find a provider that offers the service for less than what the plan allows, the plan will give you the difference for that medical service. It pays to do some shopping.

3. Pays daily for hospital and intensive care stays

   GIM insurance coverage can help supplement current medical coverage by providing cash benefits if you are injured or ill and must visit a doctor, go to the ER, or stay in the hospital. Plus, the coverage includes benefits for transportation, ambulance, diagnostic X-ray, and wellness / preventative tests.

4. Access your benefits 24/7

   Register online to track history and claims. You may also upload claim requests and review coverage. Payment processing can be expedited by filing claims online. Be prepared with your social security number, zip code, and birth date when registering.

5. Program loyalty rewarded

   Benefits increase by 5% after the first coverage year and each coverage year thereafter for the next 5 years. This increase does not apply to optional elections, such as short term disability and other chosen enhancements.

6. EyeMed & ScriptSave

   Included with the base coverage are two free discount programs for vision and prescription medication that work in addition to your benefits.

7. Faster payments

   You can expedite the payment process by filing online. Receipts and forms can be uploaded onto our website.

8. Name your provider

   Reduce up front out-of-pocket costs by assigning benefits to a medical provider.

9. Don’t forget to sign it

   Whether mailing claim forms or submitting them online, it is very important to remember to include your signature and receipt when submitting. This will prevent complications and delays.

10. Portable benefits

    The plan benefits are portable and COBRA eligible. If you leave your employer, you may elect to continue under the same level of coverage and pay monthly premiums. You must choose whether to keep your coverage within 60 days.

We are here to answer your questions. Call the professionals at Human Resources, Inc.

There is a common misconception that payroll services are limited to compensation. Paying your employees is only part of the service.

The specialists here at Human Resources, Inc. will work with your company to ensure not only that your payroll is executed accurately and efficiently, but also help in handling the assortment of regulatory filing and reporting that accompanies it. We manage a full suite of back office responsibilities such as:

• Filing tax deposits and tax returns, including: 941 quarterly withholding & FICA taxes, state and federal unemployment, W2 generation, and special localized taxes.
  • Failure to file these returns on time could result in thousands of dollars in unwanted fines.


• Accurate computations of overtime and correct designation of employees who are eligible.
  • Misclassification of exempt and non-exempt employees not only costs your company money, but could also result in labor violations.


• New Hire Reporting
  • As required by law; businesses must register their latest employees, re-hires, and temporary workers to a central database.


• Liens and garnishments
  • These are requested by state and federal government agencies if a person has an unpaid tax debt or court ordered remittance, like child support, that isn’t being fulfilled. We help you make sure that these payments are made properly and in a timely manner.


• We will even assist you with benefits administration, from enrollment to termination

Additionally, we host an online time management system, which have convenient web, email, or fax ports of access for the submission of your employees’ time sheets.

For more information, view our payroll section here

Callus today at 727-895-4700 to speak with an expert and find out all the ways we can administrate your payroll operations.

Employers will see a significant face lift applied to the new I-9 form, issued by the USCIS this year. This document is used by employers to verify identification of new employees. Throughout the year, it has undergone a couple of revisions based on input and comments from thousands of individuals.

On August 31, 2012, the current revision I-9 has expired. The USCIS has stated that employers should continue to use this version of the form, despite being past the date, until a new notice has been created. Even though the form is still being reviewed, all employers should continue to comply with the changes and update any company handbooks or policies accordingly. Many employers have voluntarily enrolled in the e-Verify system in order to make this process more efficient. In some states, it’s required.

Some new additions and changes to the I-9

Entry Fields

• “Maiden Name” is now “Other Names Used (if any)”
• “E-mail Address” and “Telephone Number” fields have been added
• Barcode fields for electronic processing
• Clearer indications that aliens authorized to work can provide either the A-Number/USCIS Number OR the Form I-94 admission number.

• Only Canadian or Mexican residents commuting over the border are allowed to enter an international address
• The employer or legal representative are the only ones allowed to fill in Section 2, which asks for acceptable forms of identification: Passport, driver’s license, social security card, etc.

Don’t get stuck paying fines

The importance of keeping accurate and up-to-date I-9 forms cannot be overstated. In the last three years, ICE (Immigration and Customs Enforcement) has audited over 8,000 employers and levied nearly $88 million in fines. Ask the professionals at Human Resources, Inc. about the laws that apply in your state and what you can do to prevent unwanted violations.