Category: Management

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

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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.

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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.

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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.

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.

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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.

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.

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!

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!