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Reinvesting for Growth

As PEOs progress, and by necessity, grow, various things happen, creating different possibilities. For example, your company might be topping out of its current capacity. Having trouble keeping up with client needs might be an indicator of this. You may feel like you don’t have the right internal numbers and skill sets to answer every call promptly and easily. Maybe you feel as if your PEO is not keeping up with its competition. You have come to a fork in the road: You could stay the same, or you could bump up to the next level. Bumping up to the next level, however, requires an investment.

Know More

Departments

Legal Currents

More Paid Time Off?

Effective January 1, 2017, certain enumerated contractors to the federal government were required to provide up to 56 hours of paid sick leave per year to those of their employees working on contracts entered into, extended, or amended on or after January 1, 2017 (covered contracts). The Paid Sick Leave for Federal Contractors Rule, created by Executive Order 13706, has no application to contracts in existence prior to January 2017, unless and until amended or extended. 29 C.F.R. § 13.2 (2016). If you service no clients having federal contracts or subcontracts, you may stop reading right now.

Benefits

A Parting Gift from the 114th Congress

On December 13, 2016, President Obama signed into law the 21st Century Cures Act (Cures Act), which is designed to commit funding for medical research, streamline the Food and Drug Administration (FDA) approval process, fund Joe Biden’s “Cancer Moonshot” cure initiative, and allow for stand-alone health reimbursement arrangements (HRAs), called Qualified Small Employer Health Reimbursement Arrangements (QSEHRA), at least for small employers.

Operations

Best Practices for Managing Your PEO Staff

To ensure our clients receive outstanding customer service, our management team has implemented best practices for our internal staff that focus on communication, professional development, and accountability. At SWBC PEO, our vision to be recognized as a leader and trusted business partner stems from the principles originally adopted by Charlie Amato and Gary Dudley in 1976, when they founded our parent company, SWBC. Their idea was to create a work culture that embodies the core values of integrity, service, trust, commitment, accountability, excellence, and teamwork—a culture that continues to be top of mind 41 years later throughout SWBC’s 18 financial service divisions and national footprint.

Start-up Guide

What is Co-Employment and Why Does It Matter?

No matter what role you may have starting out in the PEO industry, you will hear about co-employment. In fact, you hear the term “co-employment” enough to think this concept must be pretty important to PEOs. Your intuition is correct, as the concept of co-employment is the legal backbone on which the PEO concept exists. This article is intended to give you an introduction to what co-employment means and why it matters to PEOs.


Columns

The Inside Word

Accentuating the Positive

It is really easy to get caught up in what is happening around us, regardless of the challenges we face and the goals we are pursuing. It is pretty rare to read a story in the newspaper, watch the news, or view a 60 Minutes episode and see any shining examples of how good things are. In a world of instant news and all sorts of social media challenges, it seems most people want to focus on what is broken, what they are mad about, or what they want to change. I hope this column serves as a reminder of how truly fortunate we are as PEO operators, Americans, and for that matter, simply humans.

NAPEO Notebook

Adjusting to ‘Interesting Times’ Patrick J. Cleary

Living in the Nation’s Capital these days, I can’t help thinking about the apocryphal adage—rumored to be a Chinese curse—“May you live in interesting times.” These times are, well…interesting. As I write this, President Trump has just delivered his address to the joint session of Congress, to near-universal plaudits from pundits of every stripe. He was measured, and he laid out an optimistic vision for America and a far-reaching agenda going forward that includes Affordable Care Act (ACA) “repeal and replace,” tax reform, immigration, and infrastructure, among other items.


Guest Column

Your Associations’ Role in PEO Legal Matters Abram Finkelstein

Since its inception, the PEO industry has been faced with serious legal issues. Indeed, the very existence of the co-employment model created a number of existential questions. The tension between the rights and obligations of the PEO and the rights and obligations of the client company, when it comes to the safety and welfare of the employees and the public, continues to be tested on a regular basis.

NAPEO Advisor

DOL Fiduciary Rule, Browning-Ferris Update, Pay Equity Farrah L. Fielder, Esq.

Q. Is there really a non-enforcement policy regarding the ‘fiduciary rule?’ If so, for whom and why? A. Yes, but it is only temporary. The U.S. Department of Labor (DOL) recently issued Field Assistance Bulletin Number 2017-01, which announced that the DOL would not enforce compliance with its fiduciary rule in the following...


PEOs in the Community

Donating Time, Talent, and Treasures to Local Organization Anne Swenson, PHR

In January of 2015, MidwestHR launched its giving back program called the 180 Initiative. This program provides our employees an opportunity to donate time, talent, and treasures to local organizations. The 180 Initiative Committee organizes five offsite events each year, along with six onsite events, to accommodate many schedules. We partner with an array of non-profit organizations that align with the interests of our employees, ranging from Habitat for Humanity to children’s health organizations. We strive to make the programs engaging and inclusive to our staff.

Small Business Perspective

Half of Small Businesses Say Regulations are a Problem, NFIB Research Finds

Roughly half of all small business owners say regulations are a “very serious” or “somewhat serious problem,” according to new research made public recently by the National Federation of Independent Business (NFIB). “Small business owners are drowning in regulations imposed by every level of government,” said NFIB President and CEO Juanita Duggan. “It’s a major problem affecting millions of businesses, and the federal government is the biggest contributor.” Half of Small Businesses Say Regulations are a Problem, NFIB Research Finds Cost is the single biggest regulatory headache, followed by confusion over how to comply, according to National Federation of Independent Business Roughly half of all small business owners say regulations are a “very serious” or “somewhat serious problem,” according to new research made public recently by the National Federation of Independent Business (NFIB). “Small business owners are drowning in regulations imposed by every level of government,” said NFIB President and CEO Juanita Duggan. “It’s a major problem affecting millions of businesses, and the federal government is the biggest contributor.” According to the survey, 25 percent of small employers say regulations are a “very serious problem.” Another 23 percent say regulations are a “somewhat serious problem.” While regulations affect small businesses of every size, firms with 20 to 249 employees seem to be struggling the most. Among that cohort, 38 percent described regulations as a “very serious problem.” Another 26 percent said regulations are a “somewhat serious problem.” “Some regulations exempt firms with fewer employees,” said NFIB Research Director Holly Wade. “Regulations are a problem for employers in every size cohort, but the pain gets more intense with more employees. This creates a clear disincentive to add jobs, and overregulation should be the first consideration for policymakers.” Twenty-eight percent of small employers cited cost as their biggest regulatory problem. Other problems cited were: “understanding how to comply” (18 percent); “extra paperwork” (17 percent); and “time delays” caused by regulations (10 percent). Slightly more than half of small firms said the number of regulations with which they must comply has increased in the last three years. Within that figure, 65 percent of firms with 20 to 249 employees said their regulatory burdens have increased in the last three years. Other key findings include: • The volume of regulations is the largest problem for 55 percent of small employers, compared to 37 percent who are most troubled by a few specific regulations coming from one or two sources. • One-third of small employers have had a government official enter their places of business to inspect or examine their records and/or licenses or otherwise check on their compliance with some government requirement in the last 12 months. For larger small businesses, 57 percent were visited in the last 12 months, compared to 28 percent for the smallest ones. • Over the last three years, 41 percent of small employers have contacted a government agency for help complying with a regulation. About 19 percent of those were very satisfied with their experience. • Almost one in 10 small employers has been fined, sued, or penalized for a regulatory violation in the last three years. Larger businesses are twice as likely to have this occur compared to smaller ones. • Twenty percent find that regulations affecting their businesses have no relevance to safety or consumer protection. Thirty-one percent find them of little or no value for customers or consumers and not worth the cost of compliance. “In simple terms, regulatory compliance uses valuable human and financial capital, which is in short supply for small employers,” said Wade. “Regulations drain trillions of dollars from the economy and the value of many is questionable. Employers and the public are not getting their money’s worth.” The full report is available at http://411sbfacts.com/files/Regulations%202017.pdf. To explore broader business issues and relate them to the PEO world, PEO Insider® has obtained permission to reprint material from the National Federation of Independent Business (NFIB). This broader perspective from the business world at large can help connect the PEO industry with the larger business community and help NAPEO build coalitions with organizations with similar goals.


PEO Spotlight

AlphaStaff, Inc.: Kyle R. Kelly Chris Chaney

For most people, smoothie days and tax filing might seem like an odd combination, but for the employees of Fort Lauderdale, Florida-based AlphaStaff, it’s just another day at the office. At the helm of this PEO is President and CEO Kyle Kelly, who is spearheading an effort to infuse the company with a fast-paced entrepreneurial spirit, while also building a transparent and open culture.

The Big Picture

Regulatory Relief Is on the Way Thomas J. Donohue

After a relentless, eight-year regulatory onslaught that loaded unprecedented burdens on businesses and the economy, relief is finally on the way. The president and leaders in Congress have quickly made good on campaign pledges to rein in the regulatory state.


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