Category: Management

Work Opportunity Tax Credit: What You Need to Know

Posted on by counterpoint1

If you’re not familiar with the Work Opportunity Tax Credit (WOTC), you might be missing out on an opportunity to attract and retain top talent, while also enjoying significant tax savings. The WOTC is a tax credit available to employers who hire individuals from certain target groups who have consistently faced barriers to employment. These groups include veterans, individuals with disabilities, ex-felons, recipients of certain public assistance benefits, summer youth employees, vocational rehabilitation referrals, and more.

The WOTC was established by the Small Business Job Protection Act of 1996 and has been extended multiple times since its inception. By offering tax incentives to employers who hire individuals from these target groups, the WOTC not only benefits employers, but also helps to create economic opportunities for individuals who need them most.

What’s In It for You

The WOTC has the potential to provide significant tax savings for employers. The credit available ranges from $2,400 up to $9,600, depending on the targeted group and qualified wages paid to the new employee generally during the first year of employment. Generally, the credit is 40% of qualified first-year wages for individuals who work 400+ hours in their first year of employment. This can result in substantial savings for businesses of all sizes, resulting in funds that can be reinvested in the company.

Aside from the financial benefits, the WOTC offers employers the chance to contribute positively to their communities by fostering economic empowerment for individuals from diverse backgrounds.

How it Works

To take advantage of the WOTC, employers must apply for and receive a certification verifying the new hire is a member of a targeted group. This can be accomplished by completing IRS Form 8850, together with ETA Form 9061 or ETA Form 9062, and submitting them to the state workforce agency in which your business is located within 28 calendar days after the new hire’s start date. After the required certification is secured, taxable employers claim the WOTC as a general business credit against their income taxes, and tax-exempt employers claim the WOTC against their payroll taxes. Read more from the Department of Labor.

While the process requires additional administrative effort, the potential tax savings and positive impact on communities make it well worth the investment.

How You Can Benefit

Don’t miss out on the opportunity to benefit financially from the WOTC while also making a meaningful difference in the lives of individuals facing barriers to employment. Counter Point has a solution to automate WOTC administration. This tool will identify eligible employees, apply for tax credits, while alleviating the burden of administration and compliance. 

Schedule a call to learn more.

HR Attorney vs. Consultant: Which is Best for Your Business?

Posted on by counterpoint1

Business leaders within small companies continually strive to do more with less. One area in which corners cannot be cut is compliance. When resources are limited, you may be wondering what solution is better to meet all obligations – seek help from an HR attorney or an HR consultant. Both play significant roles in managing and advising on HR matters, but they have distinct functions, expertise, and responsibilities. Here’s a breakdown of their differences:

HR Consultant

Roles and Areas of Expertise:

  • HR consultants provide advice on HR best practices, policies, and procedures. They often help organizations develop and implement effective HR strategies.
  • They typically possess extensive knowledge in various HR areas such as recruitment, employee relations, performance management, compensation and benefits, training and development, and organizational development.
  • HR consultants are often brought in for specific projects such as restructuring, change management, employee engagement surveys, or to address specific HR challenges.
  • While they provide guidance on compliance with labor laws and regulations, they do not offer legal advice or represent clients in legal matters.

Typical Services:

  • Designing and implementing HR policies and procedures.
  • Conducting HR audits and assessments.
  • Developing and delivering training programs.
  • Advising on talent management and succession planning.
  • Assisting with organizational development and change management.

HR Attorney

Roles and Areas of Expertise:

  • HR attorneys provide legal advice on employment and labor law matters. They ensure that organizations comply with federal, state, and local employment laws and regulations.
  • They have in-depth knowledge of legal issues related to employment, including discrimination, harassment, wrongful termination, wage and hour laws, employee contracts, and labor relations.
  • HR attorneys represent organizations in legal proceedings, such as lawsuits, arbitration, and negotiations with unions. They can draft and review legal documents, represent clients in court, and handle disputes.
  • They help organizations mitigate legal risks by advising on the legal implications of HR decisions and policies.

Typical Services:

  • Providing legal counsel on compliance with employment laws and regulations.
  • Drafting and reviewing employment contracts, handbooks, and policies.
  • Representing clients in employment-related litigation and disputes.
  • Conducting workplace investigations and advising on disciplinary actions.
  • Advising on labor relations and collective bargaining.

Who Will It Be?

Whether an HR attorney is better than an HR consultant depends on the organization’s needs and circumstances. An HR attorney is better when dealing with legal disputes, complex legal issues, high-risk situations, and ensuring strict compliance with employment laws. On the other hand, an HR consultant is better suited for strategic HR initiatives, operational efficiency, and general HR management. They provide valuable insights into HR best practices and help organizations develop and implement effective HR strategies. 

We’ll call this match up a tie. In most cases, organizations benefit from leveraging both HR attorneys and HR consultants. To learn more, schedule a call with a Counter Point HCM Consultant.

Cash Balance Pension Plans: Are They Right for Your Business?

Posted on by counterpoint1

Counter Point’s Senior HCM Consultant, Ron Lustberg, recently sat down with Steven Puckett of Fiduciary Pension Partners and Denise Herrick of SNAP TPA LLC for a brief, yet informative webinar to discuss a retirement plan and plan design that brings maximum benefits to business owners. With Cash Balance Pension Plans, employees have the opportunity to put away more money for retirement than with traditional 401k plans. The benefits of a Cash Balance Pension Plan vs. a traditional benefit plan include:

  • A significant tax advantage over profit-sharing plans
  • No contribution limits
  • Money can be taken out in the form of a monthly annuity or cash out as a lump sum payout
  • Ability to roll over to existing 401k or profit-sharing plan, or IRA
  • Manageable administrative burden – similar to that of a 401k plan

Learn more about Cash Balance Pension Plans, the benefits, and plan design considerations. Click here to access the 15-minute webinar.

6 Reasons to Invest in Time and Labor Management Technology

Posted on by Susan Prebola

In today’s fast-paced workplaces, where every minute counts, the significance of precise time and attendance tracking cannot be overlooked. For employers looking to ensure efficiency, compliance, and employee satisfaction, implementing robust time and labor management technology isn’t a luxury. Rather, it has become a necessity.

If you are currently relying on manual processes to track your employees’ time and attendance, your organization is being put at risk. Using a fully integrated system for all your human capital management needs, including time and labor management, helps ensure your organization’s future success.

There is much to gain from time and labor management technology, including these 6 benefits:

Mitigate risk

Many industries have strict labor laws regarding overtime, breaks, and other labor practices. Time and attendance software can help employers stay compliant with these regulations by automatically applying rules and policies to employee work hours.

Ensure accuracy and eliminate errors 

A single system with a single database means employee information is entered only once and that information seamlessly flows through each stage of their lifecycle – hiring, onboarding, time and attendance, payroll, etc. The chance for administrative errors is reduced and the need for importing and exporting data is eliminated.

Boost productivity 

An integrated system is more efficient. Not only will it increase the accuracy of your payroll, it will cut down on the time it takes to process. With more time and access to real-time analytics and reporting tools, HR leaders can take on a more strategic role. 

Create better schedules 

Supervisors can easily view, access, and build employee schedules to ensure adequate coverage. They can create customized attendance rules based on their criteria and assign employees to the appropriate shifts.

Improve the bottom line 

With time management software, hours are tracked and recorded in real time, leaving no opportunity for error. This helps cut down on costly time theft and buddy punching.

Identify issues

Alerts can be set to notify managers when employees are punching in late, leaving early, etc. so they can better address concerns before they become a problem. They can also be alerted when employees are approaching overtime.

Time and labor management technology has become indispensable for employers seeking to optimize their operations, ensure compliance, and foster a productive and satisfied workforce. From accuracy and compliance to cost savings and efficiency, the benefits are compelling. As businesses continue to evolve and adapt to changing work environments, investing in time and labor management technology is a strategic move toward maximizing efficiency and maintaining a competitive edge.

Discover Counter Point’s solution for time and labor management and how it can benefit your organization. Request a call today!

Considerations for Hiring Seasonal Employees

Posted on by counterpoint1

Every year as summer approaches, many businesses look to meet heightened demand during their busy season by hiring seasonal employees. Others seek to employ college students who are on break as a way to build their talent pipeline and help augment their workforce. Whatever the reason, bringing on temporary workers comes with challenges and considerations. Here is what companies need to know when hiring seasonal staff.

Interns

Communicate salary expectations with prospective interns, clarifying whether the position is paid or unpaid, and if there are additional benefits such as stipends or bonuses. Outline compensation details, including hourly rates or fixed amounts, ensuring interns understand their financial arrangements before accepting the position.

Ensure the intern understands the role by providing clear expectations and goals, and by outlining responsibilities. Determine whether the internship is part of the intern’s educational program. If so, you may be required to include integrated coursework or receipt of credit. Foster a supportive environment that promotes growth, learning, and professional development, while also protecting their rights. While internships are a great way to scout future talent, be sure to communicate there is no guaranteed employment following an internship. 

Worker Classification

Just like with permanent employees, you need to assess if your seasonal staff are independent contractors or employees based on labor law guidelines. Classification of employees determines their pay structure and eligibility for overtime. Employees classified as exempt must be paid on a salary basis and are not entitled to overtime pay. Employees classified as non-exempt (hourly) do not pass the duties test and must be paid overtime based on 40 hours in a workweek (in most states). 

A new rule under the Fair Labor Standards Act (FLSA) is in effect starting July 1, 2024. Most salaried workers who earn less than $844 per week will become eligible for overtime pay. On January 1, 2025, most salaried workers who make less than $1,128 per week will become eligible for overtime pay. Wage law violations from misclassification can be costly, so it’s important to keep on top of any changes.

Minimum Working Age

Be aware of both the FLSA rules and their state’s laws whenever employing people under 18 years old. As a general rule, the FLSA sets 14 years old as the minimum age for employment and limits the number of hours worked by minors under the age of 16.

Health Benefits

Seasonal workers aren’t typically offered company health insurance, 401(k), or other benefits you’d normally extend to your full-time employees. When it comes to ACA and determining whether you are an applicable large employer (ALE) with 50 or more full-time employees, it’s important to understand the definition of a seasonal employee. To be classified as an ACA seasonal employee, the duration of the employment is six months or less and the job is performed around the same approximate time each year.

Time Off Policies

Finally, make sure seasonal workers have your handbook/time off policy and understand how to request it. Be aware of state-mandated sick leave, which applies to seasonal and part-time workers as well. 

Are you hiring seasonal employees? Whether you’re looking to bring on board temporary or permanent, full-time staff members, we can help. Contact us today.

Does Your HCM Solution Need an Upgrade? Ask These 8 Questions

Posted on by Susan Prebola

When was the last time you evaluated your human capital management (HCM) solution? If your organization is like those studied by Bersin by Deloitte, it’s likely you’ve had the same system in place for nearly a decade. According to the report, companies tend to upgrade or replace their core HCM technology every 7-8 years and when they do it’s a massive change.

For many companies, the mindset is often: “If it’s working fine, why change it?” With so many advancements in the world of HCM, there is no need to settle for “fine.” HCM software not only keeps track of your employee’s information, but robust systems also handle recruitment, performance management, attendance tracking, compensation, benefits administration, work force analytics, scheduling, and more. Cloud-based solutions eliminate the need for software upgrades, provide self-service tools, allow for complex reporting, and give you access to your data from anywhere at any time.

Every organization has its own unique needs when it comes to workforce management. But as businesses grow, even seemingly simple tasks become more complex. What has worked for years, may now benefit from an upgrade.

If you’re not 100% confident in your solution, we’ve identified eight questions to ask yourself to determine the next steps.

Do you need to access multiple systems to get the information you need?

Find yourself piecing together data from various systems to accomplish a single task? There is a better way. With a modern HCM platform, all common HR tasks are accessible from one platform, with a single database, accessible from a single login. No more exporting and importing necessary.

Are you drowning in paperwork?

Your solution should act as an electronic filing cabinet. All documents associated with an employee are stored in one place. Since data is never purged, you can always go back and pull a document quickly on any current or former employee.  

Does onboarding overwhelm your new employees?

Starting a new job is scary. The last thing you want to do is bombard your new hire with forms on their first day. With a robust HCM system you can send out, retrieve the new employee’s electronic signature, and collect all documents. All this can be automated and accomplished before your new employee sets foot in the door. Simply put, onboarding is made simple.

Is your HR department inundated with administrative requests?

If your HR staff spends most of their day fielding questions from employees and tracking PTOs, seek out an HCM solution that provides self-service features. With self-service, employees and managers have 24/7 access to request, view, and approve time off, update personal information, view pay history, manage benefits enrollment, communicate with each other, and more.

Are you noticing a surge in administrative errors?

With a single database you enter employee information only once. Doing so not only saves time, there’s less opportunity for error.

Do you dread open enrollment?

Your solution should simplify the benefits enrollment process. With it, employees can easily compare plans and make elections from anywhere (thanks to self-service.) Smart systems can identify once a dependent ages out of a plan, and remove them automatically from eligibility.

Are confident that your company is compliant with all labor laws?

This is one area where you should not settle. Failure to adhere to labor laws can be costly and detrimental to success. With a modern solution you can build the reports you need to make critical decisions, identify trends, recognize trouble spots, and gather the employee data you need to analyze your organization’s compliance.

Are you able to control access to certain data?

You should be able to. A sophisticated HRIS gives you the ability to set administrative permission levels for all users. When logged in, they can only see the information they have been granted access to.

Ready for an Upgrade?

When it’s time for a change, consider Counter Point HCM. Our state-of-the-art cloud based HCM solution simplifies all of your workforce management needs. And it’s scalable so it grows with you. To learn more, request a call today!

4 Tips to Effectively Manage Employee Time and Attendance

Posted on by jess

It’s vital for every organization to accurately manage employee time and attendance. Tracking time off is a key function of every HR department. It ensures that all employees are fulfilling their obligations, and that the employer is accurately compensating them in accordance with the law.  

To help you go about it the right way, we have identified the following tips to manage employee time and attendance.

Know the Law

The first step in managing employee time and attendance is creating a compliant workplace policy. To do so, you need to be proficient in the laws that govern time off.

This can be challenging considering the complexities of ever-changing employment law, yet it’s imperative. Failure to do so can have costly consequences. In fiscal year 2023, The U.S. Department of Labor Wage and Hour Division recovered over $274 million in back wages and damages for more than 163,000 workers nationwide.

Where your company is headquartered, where your employees work, whether they are exempt, non-exempt, full- or part-time, all have an impact. Familiarize yourself with the laws that affect your organization. New Jersey employers should pay particular attention to the following laws governing the state:

  • Earned Sick Leave
  • Worker Classification
  • Wage and Hour
  • Wage Payment
  • Family Leave

Create and Communicate Your Policy

Creating a time and attendance policy is just the beginning. You need to ensure that it’s clear and effectively communicated to your team through your employee handbook. State your expectations for attendance in it, and the procedures that employees need to follow to use their time off. Include the potential consequences for those who violate the policy.

You also need documentation that the information was received by your employees. An important step is requesting that all employees sign an acknowledgment that the handbook has been received and read. In the event of an audit, your handbook and these acknowledgements could serve as crucial documentation to protect your organization. An HR Information System (HRIS) is a valuable tool for collecting this information.

Utilize a Reliable Time and Labor Management Solution

The Society for Human Resources Management (SHRM) offers advice for avoiding costly penalties related to wage and hour violations. In addition to training managers and conducting periodic wage and hour audits, SHRM recommends maintaining accurate timekeeping and record keeping practices through robust time and labor management technology.

According to federal law, employers are required to retain specific records containing timekeeping data, and payroll information. With cloud-based time and labor management solutions important records are readily available, should you be called upon to produce them.

Relying on manual processes and spreadsheets to calculate employee time and attendance is not only inefficient, it puts your organization at risk. A fully integrated solution helps you collect, manage, and process your employee’s time data with ease while safeguarding your organization from litigation.

Discover Counter Point’s Solution

Find out how your company could benefit from a fully integrated time and attendance solution. Request a call today!

Compliance Alert: Beneficial Ownership Information Report

Posted on by Susan Prebola

As of January 1, 2024, small businesses that fall under the definition of a reporting company are required to file a Beneficial Ownership Information Report (BOIR) with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).

The BOIR aims to shed light on criminal activities that threaten national security, fair business competition, and our financial system. The reporting system is designed to be simple and minimize burdens on small business owners.

Key Points

The BOIR provides information about the ultimate owners or controllers of companies. It helps track beneficial ownership, which includes details about the entity, its beneficial owners, and, in certain cases, its company applicants.

Companies are required to report this information to the (FinCEN). The reporting process began on January 1, 2024. FinCEN provides guidance on deadlines, exemptions, and how to file. 

You can file the BOIR using three methods:

  • PDF: Fill out the report manually and submit it.
  • Online: Use the FinCEN’s BOIR E-Filing System to create and submit your report.
  • API: For more advanced users, there’s an API option for filing.

To keep up with updates and alerts related to the Corporate Transparency Act, subscribe to FinCEN updates.

Why Comply?

The BOIR is an essential tool for promoting transparency and accountability in business ownership. Failure to comply can result in penalties, including:

Civil Penalties: Companies that do not submit the required BOIR or provide false information may face civil penalties. These penalties can be substantial and may vary based on the severity of the violation.

Criminal Penalties: In cases of willful non-compliance or deliberate misrepresentation, criminal penalties may apply. These can include fines and even imprisonment.

Business Disruption: Non-compliance can disrupt business operations. Financial institutions may refuse services to companies that fail to provide accurate beneficial ownership information.

Reputational Damage: Public knowledge of non-compliance can harm a company’s reputation. It may affect investor confidence, business relationships, and overall trust.

Legal Action: Authorities can take legal action against non-compliant entities. This may involve investigations, court proceedings, and legal expenses.

It’s important file the BOIR correctly and on time to avoid penalties and fines. Schedule a call to learn more about how we can help support your small business’ compliance needs.

Compliance Alert: 2023 EEO-1 Component 1 Data Collection

Posted on by Susan Prebola

What you need to know:

The U.S. Equal Employment Opportunity Commission (EEOC) announced on February 26, 2024 that the 2023 EEO-1 Component 1 data collection will open on April 30, 2024. The deadline to file all 2023 EEO-1 reports is June 4, 2024. The EEO-1 help desk will also be available starting April 30, 2024 to answer any questions about the 2023 collection.

Background:

The EEO-1 Component 1 report is a mandatory annual data collection that requires all private sector employers with 100 or more employees, and federal contractors with 50 or more employees meeting certain criteria, to submit workforce demographic data, including data by job category and sex and race or ethnicity, to the EEOC.

The help you need:

All updates about the 2023 EEO-1 Component 1 data collection can be found at www.eeocdata.org/eeo1.

To learn more about how Counter Point can help support your compliance, request a call today!

Avoiding Time Theft Within Your Remote Workforce

Posted on by jess

Right now, as you’re reading this article, an on-the-clock employee is binge-watching their favorite show. Another is walking their dog. And another is taking a nap.

All employees, even your top performers, are guilty of time theft from time to time.

Time theft, when an employee accepts pay for work and time that they didn’t work, is easy to spot when employees are present on the worksite. Mindless scrolling of social feeds, socializing with coworkers, and taking longer-than-allowed breaks are visible signs a worker has mentally checked out.

However, when it comes to remote workers, it’s not as easy to see, but it’s happening. According to a survey conducted by the Bureau of Labor Statistics, employees who worked at home report doing so for 5.4 hours on days they worked vs. 7.9 hours for those who worked at their workplace.

Working Hard vs. Hardly Working

Just because your employees are sitting in front of their laptops, it doesn’t necessarily mean they are working effectively. In fact, taking periodic work breaks throughout the day can boost well-being and performance.

But how much downtime is acceptable? Followers of the 52/17 Rule, work intently for 52 minutes, then take a break for 17 for optimal productivity. This popular hack is proven effective in the workplace.

Studies show that employees who take frequent breaks are more productive than those who don’t. If that’s true, then employees only need to actively work for 5 ½ hours of an 8-hour workday.

Time theft becomes a problem when it impacts productivity. So how do you know when your remote employee is taking advantage of the situation? These are signs to look out for:

  • The employee isn’t responsive to calls and emails
  • The employee is late with assignments or their work is sub-par
  • You been receiving complaints about the employee’s performance from clients and colleagues

Avoiding Time Theft 

Fortunately, there are ways to deter time theft among your remote team. Here’s how.

Encourage accountability

Create an environment of accountability to ward off time theft. Keep your remote employees engaged by building a sense of community, providing ample feedback and recognition, and investing in their development. Demonstrate that out of sight doesn’t mean out of mind.

Establish a policy

All workforces with remote or flexible working models should have a formal work-from-home policy. In addition to legal rights and security protocols, the policy should clearly communicate expectations for employee availability and responsiveness, along with methods used for measuring productivity. The policy should be included in your employee handbook.

Utilize time and labor management software

Integrated time and attendance software makes it difficult for employees to steal time. With Counter Point HCM’s time and labor management solutions, you can track and monitor your employees’ meals, breaks, and overtime, calculate and manage comp time, track employee locations when they clock in and out, monitor errors, and manage other time policies for complete and accurate timecards.

If your company could benefit from time and attendance software, request a call today!