Category: Management

Below are common payroll items to consider for Workers’ Compensation premiums. Items subject to state exceptions are noted, particularly in New Jersey. Be sure to check the specific inclusions and exclusions for your state.

Payroll Inclusions for Workers’ Compensation Premium

• Wages or salaries including retroactive wages or salaries
• Commissions and draws against commissions
• Bonuses including bonus plans*
• Straight time portion of overtime*
• Pay for holidays, vacations, or sick-paid by employer*
• Payments by an employer of amounts otherwise required by law to be paid by employees to statutory insurance or pension plans, such as the Federal Social Security Act
• Payments to employees for piece work, profit sharing, or incentive plans
• Payments or allowances for hand tools or power hand tools provided by the employees and used in their work operations*
• Rental value of an apartment or house provided for an employee (permanent lodging – based upon comparable accommodations)*
• The value of meals received by employees as part of their pay to the extent shown in the employer’s records*
• The value of store certificates, merchandise, credits, or any other substitute for money received by employees as part of their pay
• Payments for salary reduction, retirement, or cafeteria plans (IRC125) that are made through deductions from the employee’s gross pay
• Davis-Bacon wages paid to employees or placed into third-party pension trusts (wages paid above employee’s normal pay to meet prevailing wages for government jobs).*
• Expense reimbursements to employees to the extent that an employer record does not substantiate that the expense was incurred as a valid business expense*
• Jury Duty Pay

*Subject to State Exceptions

Payroll Exclusions for Workers’ Compensation Premium 

• Premium portion of overtime, premium pay is the extra money paid to employees for working overtime. If overtime is paid at time and a half, one-third would be excludable as premium pay If overtime is paid at double time, half would be excludable as premium pay*
• Note: an overtime credit is not permissible in PA, DE, UT, and NV. Also, note that increased wages for time differentials such as extra pay for night shifts are not considered overtime.
• Stock options (Stock given as a bonus or as a substitute for a wage is chargeable)
• Severance pay (Accrued vacation is not considered severance pay)*
• Third-party sick pay
• Expense reimbursement to the extent that the employer’s records substantiate that the expense was incurred as a valid business expense and that the amount of each employee expense reimbursement is shown separately in the records of the employer (Note: NJ is an exception – non-business expense reimbursement is included)
• Moving expenses
• Value of special rewards for individual invention or discovery*
• Tips and gratuities* (Note: NJ is an exception – tips and gratuities are included)
• Payments by an employer to group insurance or pension plans
• Payments for active military duty*
• Employee discounts on goods purchased from the employee’s employer
• Supper money for late work
• Work uniform allowances
• Employer-provided perks such as use of an automobile (taxable amount for personal use of auto), an airplane flight, an incentive vacation (contest winner, etc.), a discount on property or services, club memberships, tickets to entertainment events*
• Flex-Credits – when a specific amount is set aside for employees for the employee to purchase group insurance, any portion that is used to purchase the insurance is excluded. Any amount that the employee receives that is not used to purchase the insurance would not be excludable
• Travel time (Note: NJ only)

*Subject to State Exceptions

Counter Point introduces a smarter way to shop for workers’ compensation insurance 

Through a marketplace of 25 top-rated carriers, we help you find the best coverage at the best price, with the added benefit of eliminating the down payment and offering pay-as-you-go workers’ compensation. 

Schedule a call today to explore our solution.

Source: E-COMP

While an employee handbook is not legally required by federal or state law, it is essential for any business. More than a simple document, the employee handbook establishes expectations and protects both employees and the company. Here’s why having one matters.

Acts as a Key Communication Tool

An employee handbook is the “rulebook” for your workplace, explaining company policies and procedures. This resource serves as a direct line of communication between employer and employee, clearly defining expectations and detailing how the employee-employer relationship functions. This clarity is invaluable, particularly as your company grows.

Sets Clear Expectations for New Hires

For those new to the company, the employee handbook is a vital part of onboarding. Employees appreciate a document that answers common questions about company culture, benefits, and operational standards. Receiving this on day one helps them feel prepared and welcome, providing an organized resource they can rely on as they transition into their roles.

Provides Legal Protection for the Business

A handbook offers a layer of legal protection for your business. When employment-related disputes arise, a documented handbook becomes a vital reference, demonstrating that company policies are applied fairly and consistently. This can protect against claims, particularly in areas like harassment, discrimination, or termination. Having a comprehensive, well-maintained handbook helps ensure that your business operates within legal standards, promoting a safe and compliant workplace for everyone.

An Employee Handbook Boosts Morale 

Clearly outlining company policies in an employee handbook reduces misunderstandings and promotes fairness. With consistent application of rules, employees know what is expected of them, fostering trust in management. This clarity enhances morale and boosts productivity, creating better employee engagement overall.

Saves Time and Increases Efficiency

A detailed employee handbook serves as a go-to resource for essential company information, providing answers to frequently asked questions. The handbook reduces the need for employees to interrupt managers with basic inquiries. This accessibility encourages self-sufficiency, allowing employees to find answers quickly and independently. As a result, productivity increases, management can focus on higher-priority tasks, and daily operations run more smoothly.

What to Include in Your Employee Handbook

At a minimum, the employee handbook should cover:

• General standards of conduct
• Compensation and benefits
• Attendance guidelines
• Performance evaluation process
• Leave and time-off policies
• Health and safety protocols

A compelling handbook is concise, well-written, and clearly communicates what the company culture is like. Keeping it up-to-date with employment laws and company policies ensures a well-informed, smooth-running workplace.

Counter Point can assist with the development of a new handbook, as well as help you update an existing one. Reach out to us today to learn more.

As we welcome 2025, several key workplace trends are poised to reshape how businesses operate and manage talent. From expanding talent pools to the growing role of AI collaboration in daily tasks, here are five trends to keep an eye on in the new year.

1. Remote Work Will Expand Talent Opportunities

The way we work is becoming increasingly flexible, thanks to technological advancements. Businesses can now hire talent from virtually anywhere, not just their local area. This shift to remote work opens doors to a broader pool of skilled candidates, allowing organizations to benefit from better job-worker fit, improved work-life balance, reduced turnover, and potential savings on labor costs, ultimately making companies more competitive and adaptable in today’s fast-changing job market.

2. AI Collaboration Will Reshape Workplaces

Work is changing as AI moves from being just a tool to becoming a teammate. In today’s workplace, employees and AI systems are working together, sharing tasks to get things done. AI can handle cognitive tasks, while robots take care of physical ones. For this partnership to succeed, businesses need to adapt. HR teams should be trained to manage AI responsibly, job roles should be updated to ensure smooth collaboration, and systems must be created to track AI’s role and monitor its impact on decision-making.

3. Pay Transparency Will Continue to Impact Business

The wage gap remains a significant issue, driving growing support for pay transparency. More states are introducing or will soon introduce laws requiring businesses to disclose pay ranges, and this trend is expected to keep growing. To stay ahead, companies should regularly assess and ensure that their salaries are fair and aligned with their pay strategy. Establishing a solid pay framework, updating salary ranges, and conducting salary analyses—either internally or with outside help—can help maintain fairness. Clear communication about updated pay practices is also crucial to ensure transparency with employees.

4. More Gig Workers Will Transition to Traditional Jobs

Due to economic pressures and shifts in healthcare access, many gig workers may start seeking full-time, traditional jobs. This creates an opportunity for businesses to tap into a pool of skilled, self-driven workers. However, companies will need to meet these workers’ expectations for flexibility and independence. This could lead to greater demand for remote or hybrid work options, which may complicate company policies. To attract this group, businesses should improve benefits and create more flexible work options, while adjusting hiring strategies to better connect with this changing workforce.

5. Data-Driven Decision-Making Will Impact HR

Data-driven decision-making will transform how organizations manage their workforce. By using analytics, HR teams can make more informed decisions on recruitment, employee performance, and retention. Tracking key metrics allows businesses to identify trends, spot potential issues early, and refine HR processes. This data-centric approach helps organizations create strategies that boost productivity, enhance employee engagement, and improve overall business performance.

Counter Point is here to support your unique business goals, helping you stay ahead of these changes and thrive in the dynamic work environment of 2025. Schedule a call to learn more.

Issues with cash flow often make it challenging for small businesses to meet payroll demands. In fact, according to a recent study, 32% of small business owners have paid their employees late due to cash flow problems. Payroll financing, also known as payroll funding, has become essential to solve for payroll shortfalls. Payroll financing helps small business owners maintain their workforce without the worry of losing valuable team members.

Payroll financing offers immediate access to funds, ensuring businesses can meet payroll obligations even when cash flow is tight. This is particularly valuable for businesses that need to pay employees before receiving customer payments. For example, if a business offers 30- or 60-day payment terms on invoices, there may be a gap in cash flow when it’s time to run payroll. Payroll funding bridges this gap by providing a cash advance to cover employee salaries, ensuring payroll runs smoothly while awaiting customer payments. This support can make all the difference in keeping business steady and the team secure.

If you are considering payroll financing, here are 5 benefits to explore:

1. Ensure Consistent Cash Flow

Payroll financing takes the uncertainty out of cash flow by ensuring funds are available to meet payroll obligations each week, eliminating stressful delays in paying employees. Payroll financing provides peace of mind that payroll will be met, so business leaders can focus on the business.

2. Support Business Growth

With payroll financing, businesses can confidently expand into new markets and increase hiring without worrying about the immediate cash flow impact. This reliable access to capital enables businesses to pursue new opportunities they might otherwise have to pass up due to cash flow constraints.

3. Maintain a Debt-Free Balance Sheet

Unlike traditional bank loans, payroll financing is not recorded as debt on a balance sheet. It provides the necessary cash without increasing liabilities, allowing businesses to finance growth without burdening the business with debt. 

4. Enable Timely Bill Payments

By removing the wait for customer payments, payroll financing helps ensure that bills can be paid on time. This consistent cash flow can even make it possible to create a rainy-day fund, adding an extra layer of financial stability.

5. Facilitate Business Investment

With access to steady working capital, payroll financing enables businesses to reinvest in their growth. Whether it’s upgrading technology, enhancing tools, or implementing efficiencies, payroll financing supports the business in staying competitive and efficient as it grows.

When it comes to navigating payroll demands, payroll financing offers a viable solution, while providing the flexibility needed to support growth and stability. By eliminating the stress associated with cash flow gaps, businesses can focus on their core operations and seize new opportunities without the burden of additional debt. 

If you think payroll financing might benefit your company, we have access to a partner who can provide a solution. Schedule a call with us today to learn more. Your business’s financial health and growth depend on it!

As the end of the year approaches, it’s time for employers to distribute W-2 and 1099 forms, marking an important reminder to review worker classification. Properly categorizing workers is crucial to compliance, yet misclassification is a mistake employers often make. It is estimated that 10-30% of U.S. employers incorrectly categorize their workers as independent contractors. Misclassification, whether accidental or intentional, can lead to significant penalties, fines, and legal issues.

What are the differences?

A business can hire both employees and independent contractors, but it’s important to understand the significant legal differences between the two, including tax implications, benefits eligibility, and workplace rights.

Employees have income tax, Social Security, and Medicare withheld from their paychecks and may be eligible for protections under employment and labor laws. They receive a W-2 form that serves as a record of compensation, certain benefits, and taxes withheld. 

Independent contractors, on the other hand, have no taxes withheld and are not entitled to the rights and standards provided by employment and labor laws. They receive a 1099 form that shows how much an organization has paid them. It is provided when a business has paid a minimum of $600 for a service and taxes were not withheld.  

What should I look for?

Determining the correct classification can be challenging. There are several factors to consider. Here is a breakdown of what they are:

Employees (whether full-time, part-time, temporary, or seasonal) 

• Commit to specific hours, a designated place of work, and how the work is done
• Are hired for an indefinite period of time
• Typically work for one employer
• Get paid on an hourly or salaried basis
• Receive company benefits, such as health insurance and paid time off
• Are protected by the Fair Labor Standards Act (FLSA) for overtime, wages, and other employment protections
• Use company-provided tools and resources
• May be trained

Independent contractors (often referred to as consultants, gig workers, or freelancers) 

• Perform a specific job within a certain amount of time 
• Perform work for multiple companies 
• Provide their own tools and resources 
• Hired for their expertise  
• Control their own method of work 
• Do not receive employment benefits or overtime 
• Pay their own taxes 
• Receive payment per project or a flat fee

Are you confident in the classification of your employees? If not, Counter Point can help. Making the determination can be tricky and non-compliance can be costly. We can help your organization navigate compliance so you can focus on more strategic tasks.

Small businesses have long been the foundation of New Jersey’s economy, fueling innovation and creating job opportunities across the state. Recognizing their importance, the New Jersey Economic Development Authority (NJEDA) supports their growth and success through initiatives like the Small Business Improvement Grant, designed to strengthen and revitalize small enterprises across the Garden State. Your NJ-based business might be eligible for this economic incentive.

The Grant provides businesses and nonprofits reimbursement for costs associated with making interior or exterior building improvements or purchasing and installing new furniture, fixtures, and equipment. Landlords are not eligible.

Small businesses, as defined by statute, will be reimbursed for 50% of eligible total project costs incurred after March 9, 2020, but no more than 2 years prior to the time of application, with a total grant amount not to exceed $50,000. Only one award is allowed per EIN for the life of the program.

Additionally, to meet eligibility for the Small Business Improvement Grant…

• The project cost must be at least $5,000
• You must provide a current tax clearance certificate prior to approval
• Your business must be in good standing with the Department of Labor and the Department of Environmental Protection
• You must certify at the time of application that you are not in default of any other EDA or State assistance
• Your business must remain in the location for at least two years for grants up to $25,000, or at least four years for all other grant award amounts

Read more about the Small Business Improvement Grant specifications.

Apply for the Small Business Improvement Grant.

Counter Point supports your small business. When you thrive, we thrive! To learn more about our payroll and HCM solutions that can be tailored to meet your unique goals, schedule a call with us.

Workforce management (WFM) solutions have become a game-changer for businesses looking to streamline HR operations and maximize efficiency. According to Nucleus Research, companies achieve an impressive return on investment (ROI) of $7.88 for every dollar spent on WFM solutions. These impressive gains are a result of the following benefits:

Enhanced Payroll Accuracy

One of the most critical advantages of WFM solutions is the ability to minimize payroll errors. Payroll accuracy is essential for keeping employees satisfied. In fact, nearly half of employees will look for a new job after only two payroll errors. WFM solutions also ensure compliance with labor laws. Even minor mistakes in payroll can lead to legal issues, financial penalties, or strained employee relations.

WFM solutions help prevent these issues by automating and streamlining HR functions like time tracking, scheduling, and attendance management. By integrating WFM systems with payroll software, companies eliminate the need for manual data entry—a common source of payroll errors. The system accurately records employee hours, calculates pay rates, and ensures compliance with overtime rules, labor laws, and company policies.

Additionally, real-time monitoring ensures that any discrepancies, such as missed punches or shift entry errors, are quickly flagged for correction before payroll is processed. This level of automation reduces the likelihood of mistakes and ensures employees are paid correctly and on time, which helps maintain a positive work environment.

Decreased Administrative Burden

WFM solutions significantly boost productivity by optimizing scheduling and automating routine HR tasks. With WFM tools, managers can create efficient schedules based on real-time business needs, ensuring that the right employees are available when demand is highest. This reduces the risk of under- or overstaffing, both of which can negatively impact productivity and profitability.

By automating time-consuming tasks like time tracking and payroll processing, WFM solutions free up both employees and managers to focus on core business activities. This increased efficiency allows companies to make better use of their workforce without the constant administrative burden. Employees can access their schedules, track their hours, and request time off using mobile apps, minimizing workflow disruptions and improving engagement.

More Accurate Time-Off Tracking

Managing employee time can be a challenge for businesses, but WFM solutions simplify and streamline the process. WFM systems centralize leave data, allowing for seamless tracking of various leave types, such as vacation, sick time, and personal days. Employees can request time off through the system, which automatically updates schedules and leave balances in real-time.

This automation reduces the risk of errors, ensures accurate leave accruals, and helps prevent scheduling conflicts. By integrating WFM tools with payroll, companies can also ensure that time-off deductions are applied correctly, avoiding discrepancies in employee pay. 

Additionally, managers benefit from increased visibility into team availability, which allows them to plan schedules more effectively and avoid understaffing or overstaffing during key periods. With real-time access to leave data, they can ensure that operations run smoothly while still accommodating employee needs for time off.

Greater Flexibility and Availability

Cloud-based WFM solutions provide businesses with scalability. As a company grows, it can easily adapt its workforce management system without the need for costly infrastructure changes.

Cloud-based solutions also offer accessibility, allowing managers and employees to access the system from anywhere and from any device. This capability is especially valuable in today’s increasingly remote and hybrid work environments, ensuring that businesses remain agile in managing their workforce, regardless of location.

WFM solutions deliver significant returns for businesses and are a valuable tool for companies looking to streamline HR processes, optimize their workforce, and drive business growth. By automating key tasks and providing real-time insights, WFM solutions empower businesses to focus on what truly matters—delivering value and staying ahead of the competition.  

To learn more about Counter Point’s WFM solution, request a call today!

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.