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How We Help Businesses Remain Compliant

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CorpStrat® helps local business keep compliant and simplify their HR, Payroll and employee benefit processes.

We were introduced to Galaxy Draperies (Galaxy) in Chatsworth California about three years ago. Originally, they were unhappy and underserved by their current Employee Benefits broker. Galaxy was then referred to us to review and audit their employee plans.

In the beginning, we worked with Galaxy Draperies to help put together employee benefits plans that offered the right packages and services for their 27 employees. We then brought in one of their Property Casualty partners who uncovered unnecessary insurance and we implemented the correct insurance plans that were needed for their business.

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The “Office” Has a New Meaning Today

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Companies have relaxed their environment to reflect their culture and embrace the newer, younger employee mindset. Long gone are stoic office cubicles and personal workstations.

It’s not uncommon to see dogs at offices, communal workstations, plug & play desktops, and a relaxed dress code. Some companies have abandoned hours entirely, seeking outcome-based employees. Other companies staff full-service kitchens and gyms, child daycare and even cleaners have become popular on larger-scale campuses.

Zappos CEO Tony Hsieh says there is a reason there is a key to their success: “A lot of people act different on the weekends versus the office. It’s like they leave a big part of themselves at home. We encourage our employees to be themselves. We want them to be the same person at home and in the office.”

Companies are welcoming a new unconventional office culture that offers perks such as telecommuting, flextime, tuition reimbursement, free employee lunches and on-site doctors. Business cards have faded to e-cards, and custom plastic emblazed nameplates are a thing of the past! It’s a new world and a new workplace.

At CorpStrat®, we identified a fun way to show our pride, distinguish our environment and have some fun. While our people do have dedicated workspaces, we have embraced a “FAT HEAD” culture.

What’s a Fat Head??

office culture in HR

It’s is an oversized cardboard cut-out – much like a selfie, a headshot; one that’s 2 feet big.

The FAT heads are atop all of our workspaces. They are fun, colorful, and a great way to add vibrancy to our office. They show our diversity and a commitment to employee culture. Plus, seeing big, happy smiles all day never hurt anyone that works in a challenging business like ours.

Fat heads are just one way we tackle workplace stress and cultivate a fun and interactive atmosphere at CorpStrat®. Nothing builds camaraderie in any workplace than healthy interaction and playfulness.

Fat Heads are inexpensive, and a great way to show our people we care. Its only one item in a growing list of the ways we want to show our loyalty, earn our employees’ commitment, and embrace a positive workspace.

In the end, employees who feel appreciated are more positive and are more inclined to add towards the success of their organizations. A recognition-encouraging culture is more likely to have a high retention rate and though it may sound silly, Fat heads are a real fun way to work towards betterment.

Build A More Ethical Workplace

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With summer fast approaching many employers use volunteer workers for a host of reasons. While being proactive, we highly recommend employers review the Department of Labor guidelines to ensure that they are not violating the law.

As a reminder, the Department of Labor strictly prohibits for-profit and private-sector businesses from using volunteers. Other key areas the DOL looks at in determining noncompliance are benefits for work and employer-employee relationships. These three areas are often overlooked by employers.

The Fair Labor Standards Act defines an employee as an individual employed by an employer. The term ”employee” does not include volunteers who work without any compensation, implied or not. Workers who expect to receive a benefit are employees and are entitled to mandatory wages, regardless of whether they view themselves as volunteers.

The test to determine whether an individual is an employee under FLSA is one of “economic reality” not technical concepts. If audited, the DOL and the courts review what the person expected to receive as a benefit for their work, the services provided, and if they were integral to the business. We strongly recommend a review of the DOL guidelines for potential exposures and contacting our offices for any guidance needed.

Benefits

HIPAA and Health Plans You Never Knew Applied.  Did you know that extra benefits your company offers its employees like Employee Assistance Programs and Wellness Plans are subject to HIPAA privacy and security rules? In both cases, employers must comply to the extent services are offered under a group health plan that provides medical care.

Examples of EAP medical care include providers that are staffed by healthcare professionals such as licensed counselors and therapists. Wellness programs are subject to HIPAA as it provides medical benefits at a reduced rate. Benefits like drawing blood, disease management, smoking cessation services, and flu shots all fall under HIPAA regulations.

Employers should review its compliance responsibility with its plan administrator or HR Consultant to develop and implement all the necessary documentation for compliance.

Payroll Compliance

The IRS has released an updated Backup Withholding Rate that has been reduced from 28% to 24% on payments made after December 31, 2017. The backup withholding requirements apply to information that is filed with a missing or incorrect taxpayer identification number. Filers may be required to withhold a specified percentage of certain reportable payments made to payees for whom the information return was filed. For more information visit www.irs.gov/pub/irs-pdf/p1281.pdf

For these and all other HR, Benefits, and Payroll related issues CorpStrat® is here to help. Contact us today to learn more.

Do Small Businesses Really Need HR?

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Who said starting a small business was easy? When it comes to human resources and small business, the role and value of human resources is often questioned. Over the past 10 years, the role of HR has been evolving beyond just hiring and firing. Many CEO’s feel hiring and firing is simple, so why have the added cost of engaging a Human Resources Professional?

Today’s HR is very complex and time consuming. HR professional’s wear many hats and need to have expertise in employment law, human rights, health and safety, behavior and culture, compensation, benefits, and recruiting to name a few.

Efficiency and Knowledge

The do-it-yourself approach often leads small business owners into legal trouble with the lack of necessary HR knowledge, legal updates, and people-related requirements. When partnering with a HR professional, you will receive appropriate guidance on important legislative updates such as wage increases, overtime compliance, health and safety, employment agreements, and mandatory leaves.

Scalability

No matter what the size of your organization, continual investment in your staff via culture development and growth opportunities is key to being competitive and staying ahead of the competition are key. An HR professional can provide key consultation and assist in attaining, retaining, and developing your staff. By investing in HR you are telling your staff that they are important and you will make sure they have the resources they need to achieve the necessary goals to move forward together.

Bottom line, if you want a successful and profitable business in the long run, there comes a time when your management-related tasks should be handed off to a knowledgeable and talented HR professional. Ensuring the necessary human resources support is important for all businesses; it will guarantee your best assets are well taken care of, and it is a step towards building success. If you were facing a legal challenge you would call a lawyer. Why take the chance with do-it-yourself HR? Make the investment and call today.

2018 HSA Contribution Limits Have Changed (Again)

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New HSA Family Contribution Limits For 2018

As part of the recent Tax Reform law, the IRS reduced Health Savings Accounts (HSA) limits of the HSA family contribution limit.

The revision is due to a change in ‘how’ the amount is calculated. “Chained CPI” will be used for annual inflation adjustments beginning with the 2018 tax year instead of using the CPI (Consumer Price Index).

For the tax year 2018 the new “Chained CPI” calculation will reduce the HSA contribution limit for family coverage to $6,850, instead of $6,900. This is a reduction of $50. The self-only limit remains unchanged from the previously announced amount of $3,450. Client and participants should take action to ensure everyone is within compliance. Anyone who has contributed an amount more than $6,850 for 2018 should contact their HSA administrator to address the contribution.

According to Kiplinger, the IRS recalculated the inflation adjustment used to regulate the maximum HSA contributions for the year. The IRS then announced that $6,850 was the new limit, but this caused problems for participants who had already contributed the maximum amount.

The complete IRS bulletin 2018-10, can be found by here.

Steps to take as a participant:

  • If you’ve removed $50 from your HAS due to the reduction in price, you may repay the $50 to your HSA as a mistaken distribution without taxes or penalties.
  • If you decide not to repay the distribution, you may treat this as excess contribution.

Steps to take as an employer:

  • Employers who offer High-Deductible Health Plans and HSA, should review their staffer’s contributions and decide whether or not if employer contributions would exceed the family maximum.

Be prepared because the contribution limits for 2019 will likely be announced in the next month.