MBA News - Uncategorized

Our St. Petersburg/Tampa, Florida HR company can help you in five key areas.

MBAHRO — Thu, 15 Apr 2010 17:10:00 GMT

Our St. Petersburg/Tampa, Florida HR company can help you in five key areas.

As a business owner in St. Petersburg, FL, you should know that companies that outsource their HR needs to an HR company are now doing it for many more reasons than just cost savings. Companies are now using their HR outsources to increase workforce performance, too.

Check that your HR company is acting as a strategic back office by using their experience, HR processes, and software to support these five key areas:

Payroll Administration
Employee Benefits Support
Risk Control and Workers' Compensation Insurance
Business Insurance Management
Human Resources Consulting

A comprehensive assessment of your current business practices can outline the areas that would best serve your company's human resources outsourcing needs. Please feel free to review the summary of HR services we offer at Modern Business Associates to help brainstorm your needs when looking for an HR company in St. Petersburg, FL.
Modern Business Associates is an HR company in St. Petersburg, FL. We take pride in working with our St. Petersburg and Tampa clients, as well as clients from across the nation. Our clients outsource their HR needs to us. Please contact us for more information about utilizing an HR company and any specific questions about our services. Our goal is for you to make the best informed decision for your St. Petersburg or Tampa-based company.

Pay Deductions Quiz: Hourly employee drops the computer! Can you get them to pay up?

MBAHRO — Tue, 13 Apr 2010 17:13:00 GMT

Pay Deductions Quiz: Hourly employee drops the computer! Can you get them to pay up?

Your new hourly front desk staff employee is paid $1.00 per hour in excess of the required minimum wage and works 40 hours in the workweek. The employee drops his laptop and breaks a piece off. Your existing policies require employee responsibility, so you deduct $50.00 from the employee's weekly paycheck.

Have you violated any Fair Labor Standards Act (FLSA) requirements?

Yes. Under the FLSA, the employer could theoretically deduct up to $40.00 to cover some of the loss because the employee has earned $40.00 in excess of the required minimum wage during the workweek. However, once the employer has deducted any earnings in excess of the minimum wage, no further deduction can be made without violating the FLSA.

Modern Business Associates frequently deals with payroll issues. As a Professional Employee Organization, our clients rely on us to help them effectively deal with these kinds of topics including deductions and minimum wage laws.

HR Outsourcing in Florida. HRO Options

MBAHRO — Fri, 09 Apr 2010 17:14:00 GMT

HR Outsourcing in Florida. HRO Options

As a business executive in Florida, outsourcing your HR department may be one of your biggest decisions this year. One aspect to evaluating outsource candidate companies is their location. If your company is in Florida, wouldn’t you like the increased trust factor in knowing your HR outsource is also in Florida and intimate with issues specific to your state?

MBA has been a shining star in Florida area over the last ten years. You should know that we’ve received multiple awards drawing praise for the services and support we provide our clients. As your fellow Florida HRO, we have unique aspects to our services to better serve your company:

Better understanding of your own employees and how to take action required based on issues specific to Florida. (like, “How should the housing market affect my recruiting efforts and relocation packages?” Or “How do I handle a multilingual job candidate that is still working on their citizenship?”)
More personal process to learning about how our Florida HRO can help you and starting a relationship together via face-to-face conversations with our new account staff.
Lower live training costs, due to less travel being required by MBA staff based in St. Petersburg, Florida.
An HRO based in Florida means more personal attention to your account.
We’ll have a better understanding of Florida state-wide issues, and your county legal and financial HR factors.
Better understanding of future legal and financial developments (like state laws that affect your company HR policies, etc.)

Our knowledgeable Florida HRO team includes HR specialists with legal backgrounds, employment tax professionals, certified payroll processors, licensed insurance agents and award winning customer service professionals. Our products and services are designed to offer you back-office support so you can focus on new revenue.

HIRE Act Requires Individuals to Sign an affidavit

MBAHRO — Thu, 01 Apr 2010 17:18:00 GMT

HIRE Act Requires Individuals to Sign an affidavit

The HIRE Act requires that an individual sign an affidavit attesting to certain requirements that would make the employer eligible for the payroll tax exemption available under the law. MBA has received several recent inquiries regarding where this affidavit can be obtained. Please be advised that the IRS is expected to issue a model affidavit to be used for this purpose (see http://www.irs.gov/businesses/small/article/0,,id=220749,00.html).

When the IRS publishes this affidavit, MBA will make it available to you. In the meantime, please exercise caution using any affidavits located on the internet, as they have not been approved by the IRS.

Will your Professional Employer Organization bring top-notch human resource software to the table to meet your large business HR system needs?

MBAHRO — Sat, 20 Mar 2010 22:49:00 GMT

Will your Professional Employer Organization bring top-notch human resource software to the table to meet your large business HR system needs?

As a large business executive, you may be considering outsourcing your payroll or HR processes. Savvy Professional Employer Organizations have developed specialized services and delivery systems that cater to needs specific to larger companies.

A common requirement from large businesses working with professional employer organizations is for the PEO’s technology platform to meet the HR system needs of a large company.

Prior to pursuing a PEO relationship, you’ve probably already made a substantial capital investment in human resource software , sometimes called an HRIS system.
Therefore, as you look at partner companies to help with things like your payroll processing and benefits administration, here are some great questions to ask:

“Why do you believe your technology system will provide reliable data?”

Have the PEO explain their expertise in providing reliable data, and how their HR technology is backed –up. Getting a message that payroll processing will be unavailable for a few days can cost you employee angst. Also, finding problems with data that their system is feeding yours, months after the integration, can be a nightmare to fix.

“Does your HRIS system have the features I need, and what features should I be using?”

Making sure the PEO’s HR system has the features you need is an obvious question, but also taking to time to get the PEO’s advice on what features you could benefit from can provide valuable insight. For example, larger companies are increasingly seeking human resource software platforms with an integrated self-service station that assists with leave administration and that provides employees with access to information such as workplace policies and procedures.

“Can you show me why you think your HRIS platform is an integrated solution, and not a jumble of independent software and online tools?”

Many PEOs arrive at the meeting with you prepared to talk about all their HR technology and online services they have for you, but if they don’t talk to each other, you may get frustrated with extensive training for your people to learn all the different systems. There may also be a need to enter data more than once, which is a data management sin.
For example, can the system handle all of the payroll, benefits, and human resources information needs too?
“In case it’s needed, how customizable is your software package, or online service?”
Understanding that there’s room to customize the software for your specific needs helps you feel more confident in a PEO choice.

“Can your system integrate with what we are already using?”

Seeing the greats features of the PEO system can be exciting, but if it doesn’t tie into pieces of your current HR technology that you will continue to use, then what’s the point?

“How hard is it to train my staff to use the HR system tools?”

In addition, large clients want an HRIS platform that allows for easy access and operation by the end users — both management and non-management workers alike. Get the PEO to paint a picture of how the training is performed and how much time it will take your employees to finish it.

“How will you adapt to our future needs?”

Asking for example of how the PEO has adapted their HR system for a client’s changing needs can help you understand the PEO’s process for changes their offerings to meet your needs and to execute any additional integration and staff training that may be needed.

At Modern Business Associates, our knowledgeable Florida HRO team includes HR specialists with legal backgrounds, employment tax professionals, certified payroll processors, licensed insurance agents and award winning customer service professionals. Our products and services are designed to offer you back-office support so you can focus on new revenue.

Payroll deductions should include state income tax and payroll insurance deductions

MBAHRO — Wed, 17 Mar 2010 22:52:00 GMT

Payroll deductions should include state income tax and payroll insurance deductions

As a Professional Employee Organization, our clients ask us to handle their payroll responsibilities including two of the most talked about deductions: their state income tax and payroll insurance deductions.

The state income tax is part of the statutory payroll tax deductions.

As required by law, statutory Payroll Tax Deductions are payroll taxes that must be withheld from your employees paycheck. You must hand these withholdings over to the multitude of tax agencies on all levels of government.

Local tax withholdings (city, county, or school district taxes, state disability or unemployment insurance).
State income tax withholding
Federal income tax withholding
Social Security tax withholding
Medicare tax withholding

The payroll insurance deductions are part of the Voluntary Payroll Deductions

Voluntary deductions pay for various benefits which the employee has chosen to participate in. Voluntary payroll deductions are withheld from an employee's paycheck only if the employee has agreed to the deduction.
Voluntary payroll deductions include the following:

Retirement plan contributions (such as a 401k plan)
Health insurance premiums (medical, dental, and eyecare)
Life insurance premiums
Meals, uniforms, union dues and other job-related expenses
Employee stock purchase plans (ESPP and ESOP plans)

Voluntary deductions can be paid with pre-tax dollars or after-tax dollars, depending on the type of benefit being paid for.

As a business owner, decisions you make about state income tax and payroll insurance deductions issues are important ones to make correctly. Always consult with your HR advisors when these issues come up.

At Modern Business Associates, we deal with state income tax and payroll insurance deductions as a daily part or our business. Our clients outsource their payroll processing to us. We take pride in working with our St. Petersburg and Tampa clients, as well as clients from across the nation. Please contact us for more information about utilizing an HR company and any specific questions about our services. Our goal is for you to make the best informed decision for your St. Petersburg or Tampa-based company.

What else do they look for during a Department of Labor (DOL) gov. compliance audit?

MBAHRO — Mon, 15 Mar 2010 22:54:00 GMT

What else do they look for during a Department of Labor (DOL) gov. compliance audit?

During a DOL gov. compliance audit, the investigator covers many areas of your business.

The primary focus is on your pay records.
DOL investigators also usually review the employer's adherence to federal child-labor laws, which prescribe the number of hours and times of day-night youths may work, as well as the jobs they may perform.

Click here for a link to the DOL’s FAQ on child labor laws
DOL investigators will also perform at least a cursory analysis of the employer's compliance with the Family and Medical Leave Act and will make sure mandatory posters are displayed. See DOL's Web site for poster information.

Click here for a link to the DOL’s FMLA information page

Modern Business Associates helps our clients deal with DOL gov. compliance audit issues. As a Professional Employee Organization, our clients rely on us to help them effectively deal with these kinds of labor issues.

Why national unemployment levels mean legal hassles for you.

MBAHRO — Sat, 13 Mar 2010 22:56:00 GMT

Why national unemployment levels mean legal hassles for you.

As a business owner, you should understand that a significant level of unemployment is the largest predictor of an increase in employee lawsuits relative.

Understandably, employers face difficult questions and concerns during a weakened economy

What is the process for an employee’s layoff?
Which employment laws are relevant?
How can I avoid an employee lawsuit?
How do I combat lowered employee morale?

A downsizing employer is expected to navigate a complex legal and human resources minefield, and must get its answers right the first time. Employers will increasingly seek legal guidance to minimize risk when answering these critical questions and dealing with laws.

You may need compliance assistance (or a shoulder to cry on) during an isolated layoff,
You should develop a strategic reduction-in-force plan while consulting your legal resources. In this way, you can avoid looming legal hassles that are characteristics of high levels of unemployment.

Modern Business Associates frequently deals with layoff issues. As a Professional Employee Organization, our clients rely on us to help them effectively deal with these kinds of topics including designing layoff plans and educating clients about lowering the chance of an employee claim.

Employer Payroll Taxes – How to stay out of trouble

MBAHRO — Wed, 10 Mar 2010 23:03:00 GMT

Employer Payroll Taxes – How to stay out of trouble

Many growing companies have questions like, “How do employer payroll taxes work?” At Modern Business Associates, many of our small clients come onboard with our payroll processing to let us handle their entire payroll processing burden, which includes payroll taxes. Our systems are set up to ensure your business does not get into trouble by missing withholdings or taking the wrong amounts.

As background, you should know that employer payroll taxes are the state and federal taxes that you, as an employer, are required to withhold and/or to pay on behalf of your employees.

After having each new employee complete their IRS form W-4, we’ll use this information to calculate the amount of federal income tax to withhold from the employee’s wages. Most all of the states have income tax structures that are based on the federal blueprint, so you will use the same W-4 to calculate the amount of state income tax to withhold as well.

You are also required to withhold social security and Medicare taxes from your employees' wages.

Social security and Medicare taxes (FICA taxes) must be withheld from your employees' wages.

You are required to withhold the social security taxes from the employee’s wages, and to pay a matching amount in social security taxes until the employee reaches the wage base for the year. At higher salary levels, there is a cap on the total amount of social security tax per year that must be paid per employee.

You will withhold the Medicare portion of the FICA tax and pay a matching amount. There is no cap for the Medicare portion of the FICA tax. Both the employer and the employee continue to pay Medicare tax, no matter how much is earned.

Employer payroll taxes also include State and Federal unemployment tax.

The employer also must pay State and Federal Unemployment Taxes (SUTA and FUTA). There may be some tax credits available for some businesses for the FUTA amounts.

Generally, your SUTA tax rate is based on the amount of unemployment claims that are filed by employees that you have terminated. Generally, when your business is brand new, your SUTA tax rate is at its most, and declines as you build a history of few unemployment claims.

Modern Business Associates is an outsource company that deals with payroll processing and employer payroll taxes all the time. If you are considering a payroll company, why not call us to help answer your questions and offer important information for making this kind of decision?

Benefits of Performance Appraisals include Compliance Protection

MBAHRO — Fri, 05 Mar 2010 23:06:00 GMT

Benefits of Performance Appraisals include Compliance Protection

A performance appraisal system, when properly managed, provides you with a means of measuring, maintaining, and improving your employee’s job performances. Through the job performance appraisal program, your company can:

Validate hiring decisions
Recognize employees' job performance strengths and weaknesses
Identify employees who are ready for promotion or greater responsibilities
Assess training needs

From a compliance perspective, you should be able to rely on performance appraisals to justify the full range of personnel decisions, including discipline and termination actions.

For example, if a performance appraisal reflects poor job performance by the employee and this employee is later terminated, the you can point to the performance appraisal to show the employee was not performing to standards. If, however, an employee with overall weak performance is given a good or even average appraisal, and the employee is later terminated without interim discipline, the performance appraisal will have the opposite result — the employee may use it to show the termination decision was not justified and instead, was based on a discriminatory or other unlawful factor.

A well designed and administered performance appraisal program can go far to protect employers from certain legal challenges to employment decisions.

Modern Business Associates frequently deals with performance appraisals. As a HR outsource organ, our clients rely on us to help them effectively deal with these kinds of topics including compliance protection.

How to avoid age discrimination issues during layoffs.

MBAHRO — Thu, 04 Mar 2010 23:07:00 GMT

How to avoid age discrimination issues during layoffs.

There are a variety of reasons for an employer to offer severance to an employee who is separating from employment (e.g., to settle threatened or actual litigation, as a goodwill gesture in the event of a layoff), but in virtually all situations, the employer is going to insist that the employee sign a release as a condition to receiving the settlement payment.

This article outlines some of the most important issues, specific to age discrimination, employers should consider when drafting such waivers. In all circumstances, it is advisable that outside counsel review all agreements.

The Age Discrimination in Employment Act (ADEA) has a list of requirements that must be incorporated into your release. They focus on making sure the departing employee does not waive any right or claim under ADEA unless the waiver is “knowing and voluntary”. This means the release must:

Be "written in a manner calculated to be understood" by the employee; and
Specifically refer to the employee's rights or claims under the Age Discrimination in Employment Act; and
Only waive rights or claims that arose prior to the date the waiver was signed; and
Provide consideration; and
Advise the employee to consult an attorney prior to executing the release; and
Allow the employee at least 21 days to consider whether she will sign the agreement; and
Allow the employee at least seven days to revoke the agreement.

Keep in mind, a release under the Age Discrimination in Employment Act may not preclude an employee from filing a charge of discrimination with the Equal Employment Opportunity Commission (EEOC) or participating in an EEOC investigation.

A release agreement can serve useful business purposes, including, but not only, litigation prevention and avoidance. To achieve its objective, however, the waiver must be carefully drafted to ensure that if challenged, it will be enforced.

Modern Business Associates deals with these kinds of issues on a frequent basis. As a Professional Employee Organization, our clients rely on us to help them effectively deal with these kinds of topics including issues around age discrimination.

Outsource Human Resources – Tampa

MBAHRO — Wed, 03 Mar 2010 23:08:00 GMT

Outsource Human Resources – Tampa

Outsourcing some, or all, of your human resources processes for a Tampa company is an important decision. As a Tampa business owner, your human resources capabilities can hinder your growth with time-consuming paperwork and expose you to legal complications that can be avoided by leveraging a local Tampa Bay human resources partner.

We enable you to off-load your:

Payroll Administration
Workers’ Compensation
Benefits Support
Human Resources
Tampa Bay local knowledge. Possibly the most important aspect of our business is the monitoring of legislative changes and keeping your HR procedures and policies up to par.

These services are designed to offer you back-office support so you can focus on new revenue and avoid situations that lead to lawsuits.

Our knowledgeable Tampa Bay human resources team includes employment tax professionals, certified payroll processors, licensed insurance agents, employment law attorneys, and award winning customer service professionals.

The Local Advantage:

As a Tampa Bay human resources outsource, that is a local company just like you, we bring a unique style of support to you through our understanding of Tampa Bay legal, weather and political issues. For example, you probably want your HR outsource to understand the legal and policy complications that come with hurricane season:

Staff refusing to come to work do to sandbagging their house
Staff demanding to leave early to get batteries from the hardware store.
Staff asking for paid leave when their house takes some damage and they need the time to repair it.

Your contacts at MBA will be looking at the same weather map at their desk as you are when you contact them with urgent questions.

Get upfront PEO-contract clarity on HR and Payroll Outsourcing fee structures from a professional employer organization, to prevent hassles down the road.

MBAHRO — Mon, 15 Feb 2010 17:03:00 GMT

Get upfront PEO-contract clarity on HR and Payroll Outsourcing fee structures from a professional employer organization, to prevent hassles down the road.

With the changing business environment and the need to focus on generating revenues, many business owners are considering outsourcing the payroll, tax, insurance and employee benefits support tasks for their businesses. Professional Employer Organizations (PEOs) are designed to take on these duties for you. It is not uncommon for one PEO company to structure its fees differently from others. Building trust with your HR outsourcing company is critical to the relationship’s long term success.

When looking at a PEO contract, here’s a list of things to ask upfront, to prevent misunderstandings down the road.

“Do you bundle your fees?”

Traditionally, PEOs bill their service package in either a bundled or unbundled format.

PEOs opting for the unbundled invoice method list the services individually on the invoice.

The payroll amounts
Employment-related taxes (FICA, FUTA, SUTA)
Workers' compensation premiums
Administration fee charged by the PEO
Benefit costs

PEOs using the bundled invoice approach combine all the service fees, occasionally breaking out the Benefit Costs. Either method is fine, just be sure that you understand what is included in a bundled fee.

“What if the workers’ compensation rates or group health insurance premiums change during the contract? How will those changes affect my bill?”

It’s in the best interest of the PEO company to secure the best rates from insurance carriers, but those rates do change. You need to have a clear understanding regarding how those rate changes will affect the PEOs fees during the contract period.

“Does your Client Service Agreement cover all of these questions?”

A PEO agent should be able to provide a well drafted client service agreement (CSA) that outlines the responsibilities of the PEO and identifies all services for which the client is being charged. Just like with any other contract, it is important that you, as a business owner, understand the agreement you are entering in to.

“Do you utilize an IRS Section 125 plan in calculating payroll taxes?”

PEOs can use an IRS Section 125 plan to reduce the tax liabilities for your company, which means they can calculate the payroll taxes based on the reduced taxable wages. Check to see if the PEO utilizes a Section 125 plan and find out how the tax reduction is reflected on your invoice.

The PEO contract should be drafted in such a way that little question can be raised during the contract period of how fees will be applied. The partnership between client and PEO can be mutually beneficial, provided these considerations are addressed early in the business relationship.

At Modern Business Associates, we handle these kinds of questions every day. Give us a call and we’ll be happy to professionally answer any questions you may regarding this topic and how it applies to your specific company.