Author: Susan Prebola

New Jersey recently expanded its state retirement savings law, known as RetireReady NJ.

What changed

The state has lowered the employer size threshold from 25 employees to 10 employees for businesses that do not already offer a qualified retirement plan. This change was signed into law in January 2026.

Who is affected

You may be covered by this requirement if your business:

• Has 10 or more employees
• Has been operating in New Jersey for at least two years
• Does not currently offer a qualified retirement plan (such as a 401(k), SIMPLE IRA, or SEP)

Important timing note

While the law is now in effect, employers with 10–24 employees are being phased into the program. The State of New Jersey has indicated that newly covered employers will be notified and given specific registration deadlines over time. There is not a single immediate deadline for all 10-25 employee businesses.

For the purposes of determining whether the number of employees, part-time employees are counted the same as full-time employees. 

Employees who count toward the 10+ threshold are: 

• 18 years of age or older 
• Work or live in NJ 
• Receive wages subject to NJ income tax withholdings 
• Receive a W2 at the end of the year from the employer 

Your options for compliance

Covered employers can meet the requirement in one of two ways:

1. Participate in the state‑run RetireReady NJ program, or
2. Offer your own qualified retirement plan, which automatically exempts you from the state program

Many employers choose to explore private retirement plan options because they can offer greater flexibility, employee engagement, and potential tax advantages.

The Counter Point Team is closely monitoring the state’s rollout schedule and would be happy to help you understand if and when this applies to your business, and what option may make the most sense for you.

Not all tax preparers are created equal.

With many tax changes coming in 2026, more people may benefit from professional help. But finding a qualified preparer takes more than a quick search. Taking time to evaluate your options can help ensure your taxes are handled accurately and responsibly.

Start with a Credentialed Professional

One place to start is with a credentialed tax professional. These preparers are vetted by the IRS, a state, or a regulatory board. The most common include CPAs, attorneys, and enrolled agents.

The IRS also maintains an online Directory of Federal Tax Return Preparers with Credentials and Select Qualifications, which lists professionals with active preparer tax ID numbers.

That said, many non-credentialed preparers also provide excellent service. If you choose one, it’s worth doing a little extra homework.

Questions to Ask Before Hiring a Tax Preparer

Before hiring a preparer, consider asking:

• What credentials or training do you have?
• How do you stay current on tax law changes, including recent legislation like the “One Big Beautiful Bill”?
• How are your fees structured — hourly, per return, or based on complexity?
• Do you offer e-filing?
• Will you be available after tax season if questions come up?

You should also check their reputation through sources like the Better Business Bureau or your state’s CPA or attorney licensing board.

Watch for These Red Flags

Be cautious if you encounter any of the following warning signs:

• Fees based on a percentage of your refund
• Being asked to sign a blank return
• Being told not to review the return before filing
• A preparer who refuses to sign the return or include their PTIN

Do Your Homework

A little due diligence now can help you avoid costly mistakes later.

A simple reminder from the team at Counter Point, helping employers and business owners stay ahead of payroll, tax, and compliance issues.

In today’s competitive labor market, employee perks are no longer “nice-to-have” extras—they’re strategic investments that directly impact your organization’s performance and long-term success. Investing in employees isn’t just about offering a paycheck—it’s about providing the support, tools, and flexibility people need to thrive. Perks like mental health resources, wellness programs, flexible schedules, and professional development aren’t expenses to trim—they’re essential components of total compensation, working alongside health insurance and retirement contributions to support, motivate, and retain your workforce.

Here are three compelling reasons why investing in employee perks pays off.

1. Higher Productivity

When employees feel supported—both personally and professionally—they’re far more likely to bring their best to the workplace. Perks that prioritize well-being, such as mental health resources, ergonomic workspaces, fitness stipends, or flexible schedules, can reduce stress and prevent burnout. This leads to fewer absences, more consistent performance, and higher productivity overall. Engaged, healthy employees simply perform better, and companies that invest in their well-being often see measurable boosts in output and efficiency.

2. Increased Employee Retention

The cost of losing an employee adds up quickly. Between recruiting, hiring, onboarding, and training, turnover can cost up to two times an employee’s salary—sometimes more. That’s why thoughtful, competitive benefits packages are so important. When employees feel valued and taken care of, they’re more likely to stay. Perks like paid family leave, learning and development opportunities, and flexible work options help people feel connected to their organization and motivated to build long-term careers there. Investing in retention isn’t just about avoiding disruption; it’s about strengthening the core of your company with loyal, experienced employees who understand your business inside and out.

3. Better Attraction of Top Talent

The fight for skilled talent continues across nearly every industry, and job seekers are paying close attention to what employers offer beyond salary. A strong benefits package can be a powerful differentiator. Candidates consistently report that perks such as professional growth opportunities, remote work options, wellness benefits, and comprehensive insurance plans influence where they choose to work. When your organization demonstrates a commitment to supporting the whole employee—not just their job function—you become more attractive to high-caliber candidates who want to grow with a company that invests in them.

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Investing in employee perks isn’t just good for morale—it’s a strategic business decision that boosts productivity, improves retention, and strengthens your ability to attract top talent. In the end, supporting your employees supports your bottom line.

As a small business owner, understanding exactly how much you spend on employee compensation is essential. Your team is your greatest, and often most costly, asset. But do you really know the full cost of keeping your business running?

Having a clear picture of your labor costs allows you to identify trends, make informed financial decisions, and plan strategically for the future. It also helps you prepare for annual raises, budget for new hires, and manage your overall payroll expenses more effectively.

What Is a Total Compensation Statement?

A total compensation statement outlines the full pay package an employee receives annually, including both direct and indirect compensation.

• Direct compensation includes base salary, hourly wages, bonuses, commissions, overtime pay, and profit sharing.
  
• Indirect compensation covers employer-paid benefits such as health insurance, retirement contributions, paid time off, and other perks.

When you add these up, you may find that the real cost of an employee is 120% to 140% of their gross base wages. That’s valuable information when evaluating your bottom line—or explaining your investment in your team.

What to Include in Total Compensation

Here are common elements that should be factored in:

• Base Salary/Wages
  
• Bonuses and Commissions
  
• Overtime Pay
  
• Profit Sharing or Stock Options
  
• Employer-Paid Insurance
  
• Retirement Plans
  
• Paid Time Off
  
• Professional Development Opportunities
  
• Wellness or Recognition Programs
  

Why Sharing Compensation Statements Matters

Once you’ve calculated total compensation, share it with your employees. Many don’t realize how much their employer spends on benefits beyond their paycheck. Providing this information can improve transparency, strengthen trust, and boost morale.

As benefit costs rise, a total compensation, or “total rewards”, statement reinforces the company’s financial commitment to its people. It’s a simple but powerful reminder that employees are valued and supported.

Don’t wait until open enrollment to share this information. Include it during new hire onboarding or performance reviews to maximize its impact.

A Smart Recruiting and Retention Tool

In a competitive hiring market, showcasing your total compensation can also help you stand out to job candidates. It highlights your full value proposition, not just salary, making it easier to attract and retain top talent.

Understanding and communicating total compensation benefits both your business and your employees. It’s a small step that delivers big returns in engagement, loyalty, and long-term planning.

The workplace is evolving faster than ever. Staying competitive means being intentional, flexible, and people-focused. In 2026, success will come from using smart tools, leading with empathy, and offering work environments that attract and retain talent without unnecessary complexity.

Here are key workplace trends business leaders should keep on their radar.

AI-Ready Workspaces

By 2026, artificial intelligence won’t be a “nice to have,” it will be part of everyday work. This means using AI to save time, reduce manual tasks, and improve decision-making rather than replacing people.

Think AI-assisted scheduling, customer service chat tools, marketing support, or payroll and compliance automation. Roles will increasingly blend human judgment with AI support, and employees will be expected to know how to use these tools responsibly. Investing in basic AI training now can give your team a major productivity edge without increasing headcount.

Human-Centric, Empathetic Leadership

Business owners already wear many hats, and in 2026, leadership expectations will lean even more toward empathy and connection. Employees value managers who listen, offer regular feedback, and create a culture of trust.

You don’t need layers of management to do this well. Simple habits like clear communication, aligning employee goals with company success, and recognition for effort go a long way. Leaders who act as coaches rather than controllers will see higher engagement, lower turnover, and stronger loyalty.

Conscious Unbossing

Not every high performer wants to be a manager, and that’s okay. Many employees, especially younger workers, value flexibility, purpose, and skill development over traditional titles.

For business leaders, this trend is an opportunity. Create growth paths that reward expertise, ownership of projects, or cross-training instead of defaulting to management promotions. This keeps top talent motivated without forcing them into roles that don’t fit, and without expanding your org chart unnecessarily.

Total Compensation and Pay Transparency

Raising salaries isn’t always feasible, but employees are increasingly looking at the full picture. Benefits like flexible schedules, remote or hybrid options, paid time off, learning opportunities, and wellness support matter more than ever.

Pay transparency, often influenced by new regulations, also builds trust. Clear pay ranges and open conversations about growth help employees feel valued and reduce misunderstandings. In 2026, retention will depend less on pay alone and more on how supported employees feel overall.

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Smart technology choices, people-first leadership, flexible career paths, and thoughtful compensation strategies can help small businesses compete for talent—and thrive—in 2026 and beyond.

For small business owners, time is your most valuable asset. Every hour spent chasing paperwork, reentering data, or fixing payroll mistakes is an hour not spent growing your business. That’s why human capital management (HCM) is about far more than payroll—it’s about efficiency, employee experience, and long-term business growth.

When HCM is done right, it creates a seamless employee experience that helps you recruit great talent, reduce turnover, improve productivity, and ultimately drive revenue. It’s no surprise that HR leaders are prioritizing better technology—and the data proves it. The global HR and payroll technology market is expanding rapidly, projected to grow from $25.89 billion in 2024 to $58.12 billion by 2033. Businesses are investing because the payoff is real.

Today’s business leaders expect more from their HR technology. They want software that is secure, scalable, user-friendly, and capable of supporting every stage of the employee lifecycle—from hire to retire. And with the number of modern solutions on the market, no business should settle for outdated, inflexible, or disconnected tools.

Here’s what the best HCM platforms have in common—and what to look for when evaluating your options.

1. Secure and Cloud-Based

When it comes to employee data—Social Security numbers, banking details, medical information—security isn’t negotiable. Outdated or locally installed software increases the risk of breaches, data loss, and compliance issues.

A cloud-based platform delivers enterprise-level protection. Data is encrypted, automatically backed up, and stored in secure data centers designed to guard against cyberthreats. Role-based access ensures only authorized users can view sensitive information. And because it’s cloud-based, there are no manual updates, servers to maintain, or IT headaches—just secure, 24/7 access from any device.

2. Scales With Your Business

Maybe today you only need payroll. But what about in six months, when you’re hiring? Or next year, when you want to offer benefits or streamline performance reviews?

Choosing a platform that grows with you ensures you’re never stuck starting over with another system or piecing together mismatched software. A scalable HCM platform gives you what you need today with the flexibility to activate new functionality when you’re ready. A single connected platform means fewer logins, fewer manual steps, and fewer headaches.

3. Easy for Employees to Use

Employees expect workplace technology to work just like the apps they use daily. Your HCM platform should be intuitive, mobile-friendly, and simple enough for everyone—from your front desk to your field technicians—to navigate without training.

If your people struggle to use the system, they won’t use it. And if they don’t use it, the investment doesn’t pay off.

4. Reduces Human Error

Payroll mistakes are more costly than most small business owners realize. Research shows that just two payroll errors can push nearly half of employees to consider looking for another job.

A connected HCM platform allows data to be entered once, flowing across the system automatically. Fewer manual entry points = fewer errors.

Ready to simplify HR and strengthen your business?

An intelligently connected HCM platform brings everything together—from hire to retire—ensuring a better employee experience and freeing up your time to focus on what matters most. Let’s talk about how we can streamline your HR needs, simplify your workflows, and support your growth.

Schedule a call today and see what Counter Point HCM can do for you.

On November 21, the Treasury Department and IRS issued guidance for workers eligible to claim deductions for tips and overtime under the One Big Beautiful Bill Act (OBBBA) for tax year 2025. Notice 2025-69 clarifies how employees can calculate deductions even if employers do not provide a separate accounting of cash tips or qualified overtime on Forms W-2 or 1099, which remain unchanged for 2025. The IRS is updating tax forms and instructions to assist employees in claiming these deductions.

Tips Deductions

Eligible tipped workers may deduct up to $25,000 per year, phased out for modified adjusted gross incomes above $150,000 ($300,000 for joint filers). Employees can rely on amounts reported in box 7 of Form W-2, on Form 4070 (tips reported to employers), or on Form 4137 (unreported tips). Self-employed individuals may use substantiated tip logs or third-party payment records, even if tips are included in a Form 1099-K without separate identification.

Overtime Deductions

Employees may deduct qualified overtime pay that exceeds their regular rate—typically the “half” portion of time-and-a-half pay required under the Fair Labor Standards Act (FLSA). Maximum deduction is $12,500 per individual ($25,000 for joint filers), with phase-out at the same income thresholds. Employees must meet FLSA eligibility; deductions apply to both itemizing and non-itemizing taxpayers.

IRS Penalty Relief and Voluntary Reporting

Notice 2025-62 provides relief for errors in filing or furnishing information returns or payee statements under the Internal Revenue Code (IRC 6721 and 6722). While reporting OBBBA tips or overtime is optional, businesses may voluntarily include amounts in box 14 of Form W-2, provide separate statements, or use secure portals.

Bottom Line for Employers

Voluntary reporting can streamline year-end payroll, reduce confusion, and help employees claim deductions correctly. By tracking FLSA status, keeping clear records of tips and overtime, and communicating proactively, employers can minimize errors and support workers as these new 2025 deductions roll out.

Closing out the year doesn’t have to be stressful. Use this checklist to keep payroll accurate, employees happy, and your business compliant.

Before the Final Payroll

1. Verify Employee & Contractor Information
Check that names, addresses, Social Security numbers (SSNs), and vendor Federal Employer Identification numbers (FEINs) are correct. Errors here can lead to penalties on W-2s and 1099s.

2. Review Wages, Benefits & Deductions
Look at year-to-date wages, bonuses, overtime, health insurance, retirement contributions, and other withholdings. Catch discrepancies early.

3. Review Disability Paid to Employees
Review any disability paid to employees throughout the year. The totals will need to be recorded on their W-2. This will need to be done before the first of the new year.

4. Reconcile Payroll & Tax Reports
Compare payroll reports with bank statements and quarterly filings to ensure everything adds up.

5. Handle Special Payments & Adjustments
Schedule final bonuses, reimbursements, and any other special pay runs.

During the Final Payroll

1. Process Your Last Payroll
Run your final payroll of the year, making sure all payments are correct.

2. Pay Out Accrued PTO
Follow your policy for unused paid time off.

3. Apply Any Final Adjustments
Include any remaining bonuses, special payments, or corrections.

After the Final Payroll

1. Prepare & Distribute Year-End Tax Forms

• W-2s: For employees, reporting wages and taxes withheld.
• 1099-NEC: For contractors. Distribute forms by IRS deadlines.
  

2. File With Tax Authorities

• W-3: Summarizes all W-2s for the SSA.
• 1096: Transmittal for 1099s to the IRS.
• 941 & 940: Quarterly payroll and unemployment tax filings.
• ACA: Be aware of your Affordable Care Act  (ACA) filing responsibilities.
  

3. Plan for the New Year
Update payroll policies, review benefit changes, and request new W-4s for employees whose circumstances may have changed.

Following this year-end payroll checklist ensures accuracy, compliance, and a smooth transition into the new year—so you can focus on running your business, not chasing paperwork.

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Schedule a call to find out how Counter Point can protect your business and streamline your compliance processes.

Cybercriminals are increasingly zeroing in on HR departments, exploiting their trusted role within organizations to steal sensitive employee and company data. These attacks often arrive in the form of phishing emails disguised as legitimate HR communications, making them especially dangerous.

Instead of the usual suspicious-looking scams, these emails mimic everyday HR processes—vacation requests, W-4 updates, or performance reviews—subjects that employees are used to seeing. Because of this familiarity, research shows employees are more likely to interact with them, with nearly one in three users clicking on suspicious links.

One tactic gaining traction is “quishing,” or QR code phishing. In these cases, the email includes a QR code that, once scanned, directs the user to a fake website designed to steal login credentials or financial details. The blend of familiarity, urgency, and clever disguise makes HR impersonation phishing one of the most effective attack methods today.

KnowBe4, a leading cybersecurity awareness training company, recently analyzed attacks from 2025 and identified four major phishing trends HR and business leaders should watch:

Changes to Payroll and Benefits

Cybercriminals send emails claiming updates to an employee’s salary or benefits elections. These are often customized with the recipient’s name, company logo, and financial details to look legitimate. The goal: to trick employees into sharing sensitive information.

HR Policy Updates

Attackers exploit urgency by requesting employees to review and acknowledge fabricated policy changes. By adding tight deadlines and threatening consequences, they push recipients to act quickly without verifying the legitimacy of the request.

401k Updates

Financial security is top of mind for most employees, which makes 401k updates a prime target. These phishing emails often resemble automated alerts, complete with fake tracking numbers and system-generated templates, and may carry malicious attachments to bypass security filters.

Electronic Contracts and Financial Documentation

This approach involves fake contracts or business documents that appear to come from HR or legal departments. With forged signatures, disclaimers, and even the company’s name in the subject line, they closely resemble authentic automated emails.

As phishing tactics become more sophisticated, HR departments must stay vigilant to reduce cybersecurity risk. Employee education, regular phishing simulations, and clear reporting procedures are essential to building a culture of security awareness. By recognizing these deceptive trends, businesses can protect both their workforce and their sensitive data from falling into the wrong hands.