Outsourcing Human Resources: What You Need To Know

Here is a great article that discusses all the things you should know when you choose to outsource your Human Resources:

http://ethicalaffluence.com/outsourcing-human-resources-heres-need-know

What is a supervisor?

Do you know what constitutes a supervisor? According to the 2nd, 4th and 9th U.S. circuit courts of appeal, a “supervisor” is someone whom the employer vests the authority to direct and oversee their employees' daily work.

So why would it matter what is legally considered a supervisor?

In the cases of Faragher v. City of Boca Raton, and Burlington Industries Inc. v. Ellerth, the Supreme Court held that under Title VII of the Civil Rights Act, an employer is liable for severe or pervasive workplace harassment by a supervisor of the victim. If the harasser was the victim’s co-employee, however, the employer is not liable absent proof of negligence.

Unfortunately, not all circuit courts think the same way. According to the 7th Circuit, just because a person is deemed a “supervisor” by their employer does not mean they are considered a supervisor under Title VII if they do not have the power to take formal employment actions against employees.

So if a few different courts are saying different things, which is correct? That is what the U.S. Supreme Court is trying to figure out. The case that is being discussed is Vance v. Ball State University. A black catering assistant was racially harassed by white co-workers and supervisors. The 7th Circuit affirmed summary judgment to Ball State University, saying that Vance failed to establish a basis for employer liability based on purported harassment by either a co-worker or a supervisor.

However, Vance is saying that one of the harassers was a supervisor, stating that the alleged supervisor did direct her work and did not clock in like other hourly employees. So according to the EEOC, is the person a supervisor or not? We will have to wait for the Supreme Court to see.

In the meantime, make sure your managers and supervisors all receive training and guidance with your company's anti-discrimination policy, and make sure that they pass their training on to employees. Remember, knowledge is power!

IRS Raises 401(k) and Pension Plan Limits!

The IRS announced that the 401(k) limits for contribution will be raised in 2013 due to the cost of living expenses rising. Curious to see the changes? Here is the IRS news release with information. Essentially, the changes are:

• Maximum elective deferral by employee raises from $17,000 to $17,500
• Catch up contribution (ages 50 and older for 2012) stays at $5,500
• Defined contribution maximum deferral for the combined amount of employee and employer raises from $50,000 to $51,000
• Employee annual compensation limit for calculating contributions raises from $250,000 to $255,000
• Annual compensation of key employees in a top-heavy plan stays at $165,000
• Annual compensation of highly compensated employee in a top-heavy plan stays at $115,000

EMT's headquarters gets new paint!

EMT's headquarters is getting a face-lift! Artists Entes and Pasimo from Peru have spray painted a wonderful painting onto the side of the building. Many buildings in the Rosemary District above 10th Street will have art on their buildings in conjunction with the Chalk Festival. You can visit Entes y Pasimo at their website: http://entesypesimo.tumblr.com/

Knowing When To Outsource Your HR

If you have employees, you have HR issues. If you are unsure of how to go about dealing with these HR issues, you are not alone. If you are like most business owners, you would rather spend your precious and limited time on generating profits than focusing on HR activities, such as benefits and compensation.

For many businesses, this problem can be solved through HR outsourcing. As we have pointed out in previous posts, the HR problem and solution is not indigenous to US business. According to The Guardian in the UK, “Generally speaking, the top three reasons cited for outsourcing HR are access to skills and knowledge, gaining better quality support than the business is able to be offer in-house and the costs saved. This saving comes from the company either not requiring an HR person in-house, or enabling the person who had taken on the HR function to focus on revenue generating work. I've found the most commonly outsourced HR activities are legal services, payroll and pensions.”

Check out more of this article about when to outsource your HR here: Knowing When To Outsource Your Small Business’s HR

Outsourcing HR Is A Global Strategy

Outsourcing HR is popular not only in the US, but also around the globe! Check out what companies in India and England are saying their reasons are for HR outsourcing:
Outsourcing Is A Global Strategy

Outsourcing To Grow

Many people consider outsourcing to be something a company does when it is attempting to cut costs while trying to stay in business. However, outsourcing is also a very helpful tool for companies looking to grow and need help managing the growth.

With human resources, the accessibility of good staff can be difficult to find. When you outsource your human resources, you are having automatic access to an expert in Title VII, payroll, benefit programs, SUTA, FUTA, FMLA, The ADA, Worker's Compensation, and so much more. Not only that, but the costs of technology is very minimal, as the outsourcing company has this technology already in place. You also don't need the time or money to train personnel on how to perform all the tasks necessary with technology they most likely are unfamiliar with.

 

In Australia, outsourcing is becoming a very essential function for growing businesses. In an article from the Sydney Morning Herald, all types of outsourcing are discussed, and the benefits of outsourcing.

"David Fincher, a partner in Ernst & Young's advisory practice, says that outsourcing can bring a range of benefits, including access to new talent, a broader skill base, access to new technology, added flexibility and allowing the company to focus on its core business. “Organisations should focus on what they're good at and what they need to be good at. Potentially anything else which isn't core or differentiating for that organisation could be delivered by someone else,” he says."

 

Read more of this article at The Sydney Morning Herald.

Don't Let Your Policies Fall To The Wayside...

A Tampa-based company must pay $2.75 million in a race discrimination case brought on by the EEOC. To some of you, this may not seem like new news, as discrimination cases, unfortunately, are opened all the time.

However, with this case, here is something interesting you should know: The Tampa-based company argued that it had an anti-harassment policy in force, which usually can be a form of "evidence" that the company has performed proper procedure.

Unfortunately, the judge noted that the company did not post the anti-harassment policy until the day after forms of discrimination had already taken place. The judge found that a jury could say that the company, “by allowing its harassment policy to gather dust in a corporate office, instead of being distributed to employees, did not take reasonable care to prevent harassment.”

It is very important that you ensure your company is performing proper procedure in the workplace to prevent cases like this from happening to you. It is not only costly, but it can leave a bad taste in the mouths of potential customers and potential employees.

If you feel concerned that you may not have all your ducks in a row, do not hesitate to contact EMT for help.

E-Verify Renewed!

Many employers are aware of the program, E-Verify, which allows employers to look up the information in an employee's I-9 and verify if said employee is legally allowed to work in the United States. The U.S. House of Representatives passed bill S. 3245 on September 13, which would reauthorize for three years E-Verify as well as certain immigrant visa programs that were set to expire at the end of September.

The bill re-authorized the following programs:

• E-Verify program
• EB-5 Regional Center program
• Special Immigrant Non-Minister Religious Worker program
• Conrad State 30 J-1 Visa Waiver program

The reauthorization of these programs would be in effect until September 30, 2015. E-Verify is a free service that allows employers to verify newly hired employees are legally allowed to work in the United States by doing so electronically. More than 300,000 employers use E-Verify, including the federal government, legislative branch and contractors.

The Immigrant Investor Program, or also known EB-5, was created to stimulate the U.S. economy through job creation and capital investment by foreign investors, with a minimum investment requirement of $1,000,000.
The Conrad State 30 J-1 program waives the two-year residence requirement under the J-1 Exchange Visitor Program for international medical graduates who have finished their medical education in the U.S. and choose to work at least three years in areas that lack medical availability.
The Non-Minister Religious Worker program provides special immigrant visas so that religious organizations may sponsor foreign nationals to come to the United States and provide religious services.

To learn more about these programs and the E-Verify program, visit The U.S. Citizenship and Immigration Services website.

What constitutes a full-time employee?

Most employers are familiar with the controversial PPACA that passed recently. Starting in 2014, employers with 50 or more full-time employees will be required to provide the minimum necessary health care coverage for their full-time employees or pay a penalty. But what constitutes a full-time employee?

The statute currently states that any employee with 30 or more hours a week in any given month would be considered an employee. But then what about seasonal employees or employees who have different hours every week?

The IRS provides documentation (IRS Notice 2012-58) which describes safe harbor methods that employers may use (but are not required to use) to determine which employees are treated as full-time employees for purposes of the shared employer responsibility provisions of § 4980H of the Internal Revenue Code (Code). A link to the IRS Notice 2012-58 can be found here.

This document provides ideas and examples of ways employers may determine what classifies full-time employees. Here is an example given from IRS Notice 2012-58:

For new variable hour employees, Employer B uses a 12-month initial measurement period that begins on the first day of the first month following the start date and applies an administrative period that runs from the end of the initial measurement period through the end of the second calendar month beginning on or after the end of the initial measurement period. Employer B hires Employee Y on May 10, 2014. Employee Y’s initial measurement period runs from June 1, 2014, through May 31, 2015. Employee Y works an average of 30 hours per week during this initial measurement period. Employer B offers coverage to Employee Y for a stability period that runs from August 1, 2015 through July 31, 2016.

If you are concerned about meeting these requirements for full-time employees, please call The Employee Management Team to receive assistance in all branches of human resources.

Early bird gets the internship!

If you’re thinking of applying for a summer internship, the clock has already started ticking. Internships have become one of the key ways that companies make permanent hires, so competition for them has intensified. Students hoping for an internship can no longer rely on luck or last-minute efforts to land one. To read the full article, click here. Looking to get an internship? Visit the chamber website at http://www.sarasotachamber.com/intern.

DACA and filling out I9 forms!

I'm sure some of you have heard of the new Deferred Action for Childhood Arrivals, which allows immigrants who came to the United States illegally as a child to have the opportunity to work legally. There are a lot of questions about this that employers have, and this website discusses 5 issues every employer should know about the DACA: 5 Issues Every Employer Must Know About DACA

Wages and Servers Lawsuits

The article below refers to the recent outbreak in lawsuits filed against businesses for wages paid to servers. Attorneys are looking for reasons to bring about lawsuits to businesses who have waitstaff for employees, where wages can get tricky. The Employee Management Team is here to make sure you are following proper procedure with your waitstaff, and ensuring that a law firm would have no reason to come after you.


Lawsuits over worker pay soar as economy struggles

Looking for internships?

The Employee Management Team is a proud sponsor of the Greater Sarasota Chamber of Commerce’s Internship program. EMT believes that all students should have the opportunity to learn and excel in their field of choice. Here is a small list of things that you need to know about internships from Forbes’ website.

Five Things You Need To Know About Interships

Is There a PEO in Your Company’s Future?

The services a PEO can offer may be very beneficial to your company. But you want to make sure that you are getting what you need. This article lists topic suggestions you should bring up before meeting with a PEO and  when meeting with a PEO to assist you in deciding if a PEO right for you.

Is There a PEO in Your Company’s Future? - ASFE: The Geoprofessional Business Association

PPACA: How far does it go?

The PPACA is a much talked about subject nowadays. Most people are familiar with some of the subjects the Act touches on, but some can be a bit of a surprise. Help for domestic violence victims is one of the surprising ones, but some parts of PPACA are expected, such as higher costs for businesses.

What You Might Not Know About The PPACA

Congratulations to the Human Resource Management Association of Southwest Florida!

Congratulations to the Human Resource Management Association of Southwest Florida for earning the Chapter Excellence Award. They are honored as one of the three chapters out of all 575 affiliated Society for Human Resource Management chapters worldwide for their work in Workforce Readiness.

Even more amazing is the fact that they are donating back the $1000 prize money to the Lee County School District to support the Chapter’s tutoring program for homeless children, with the goal of helping them pass the FCAT so they can have the opportunity to graduate.

Click here to find out more, including how you can help: HUMAN RESOURCES MANAGEMENT ASSOCIATION OF SOUTHWEST FLORIDA WINS CHAPTER EXCELLENCE

Applebee's Servers In Illinois Win Court Victory Over Not Getting Paid For Cleaning Toilets

The following article is a very interesting one with regards to staying out of trouble with employee wages. It is a prime example of why businesses need a PEO to keep them on top of things. Applebee's servers have sued Applebee's for wages not paid when performing tasks outside of serving, like cleaning bathrooms. Applebee’s legal bills in defense of their practices will run into the millions.

Applebee's Servers In Illinois Win Court Victory Over Not Getting Paid For Cleaning Toilets

The Power of Outsourcing for Small Business

Operating a small business is a rewarding and unique experience. It presents many challenges and owners have to wear many hats to ensure that the business operates smoothly. This includes human resources issues, employee management, money management, and being the face of a business as it grows from infancy. But not all business owners have the passion, or the time, to handle all of these tasks. More and more are looking to outsource tasks such as accounting and human resources. This isn’t outsourcing in the common sense, where an overseas professional handles your account, they’re typically local professionals who you can meet with and ensure that everything is in order, allowing owners to get back to the business they love. Below are some of the common reasons why outsourcing is becoming popular for small to medium sized businesses.

More Time – Operating a business is not a full-time job, it’s almost two whole jobs except it’s handled by only one person. It’s becoming increasingly difficult to run a business and make it home in time for dinner. Outsourcing allows the vital tasks to get completed quickly, while allowing the owners get out of the office and back to work. While having your accounting books in order is necessary, owners are needed in more front-facing roles to ensure that the company moves forward.

Accuracy – Business owners always have a lot on their mind, and part of that is continually keeping up with various regulations in the accounting and human resources industries. It’s hard enough work to keep with the industry their business operates in, let alone tracking even more. Falling behind on revised regulations and laws can result in missed steps and potential lawsuits or audits. This would potentially devastating to the business, so these tasks are often left to capable parties by outsourcing. This allows for accurate, and efficient, handling of delicate issues.

As you can see, there are many benefits for smaller businesses outsourcing some of the more technical tasks of running their business. Don’t let your business suffer because you’re strung across too many tasks, call in the professionals!

- Luke Phillips, Business2community.com

Greater Sarasota Chamber of Commerce’s Sarasota Tomorrow Internship program

The Employee Management Team is pleased to announce that we are a sponsor of the Greater Sarasota Chamber of Commerce’s Sarasota Tomorrow Internship program. As a provider of human resource services and member of the local business community, EMT understands a company is only as good as its people. It’s essential that we invest in training the next generation to enter the workforce, and ensure a prosperous future for Sarasota.


If you are wish to learn more about how you can help a young person while at the same time helping your business, go to http://www.sarasotachamber.com/benefits/make-a-difference.-hire-an-intern./. Also, check out the article below to learn about how to avoid problems in an internship situation.


Tips To Hiring An Intern Legally

What services do PEOs provide?

You may have asked yourself "what services can a PEO provide my company?" This article from the Personal Finances Guide website provides a list of 20 services that PEOs can provide their clients. The Employee Management Team is one such PEO that can provide these services to you and your employees. If you would like more information, please check out our website, www.emtpeo.com

Find the article here: Client Functions Performed Through Human Resource Outsourcing

Should You Try Outsourcing?

There are many reasons why you may consider outsourcing your human resources. This article discusses why you might need outsourcing and how outsourcing your human resources can benefit you. Please call us for your outsourcing needs!


Should You Try Outsourcing

How much should you outsource?

Processing payroll is not as simple as it might seem to be. This article outlines all of the steps involved in doing it right. After reading, you will either be glad you are using EMT, or wishing you did.

Call us – we can help!

Payroll Services - How Much Should You Outsource?

What should you outsource?

Here is a great article regarding what parts of your business you should outsource and what parts you should keep at home:
CBS News: 5 Things You Should Never Outsource and 5 You Should.

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Health Care Reform Could Cost You - NASDAQ.com

Some information of the latest health care changes and how it will effect employers and employees:

Health Care Reform Could Cost You - NASDAQ.com

Check out our updated website

We are very pleased with the clean look that was achieved by Michael Clifford at  infolytical.com.  He has done a most excellent job of conveying our major objective of providing small businesses with the best tools for managing employees.  Our one-on-one approach to hurman resource management is even more valuaable in today's economy.

Check out the new look at www.emtpeo.com.