Keep an Eye on these Important Employee Issues!

The US economy continues to surge forward. Many companies are expanding and hiring new employees. This is generally great news. However, hiring new staff can make payroll management (already a challenge for many firms) far more difficult. If your firm is in the hiring cycle keep an eye on the following three critical employer issues:

1. Increased Employer Costs

Most employers understand they must withhold taxes from employee checks. However, employer taxes such as Social Security, Medicare and unemployment tax are your firm’s financial obligation. These employer tax burdens increase with each new hire. Additionally, firms should consider their increased worker’s comp and benefit costs when hiring new employees.

2. Proper Employee classification

Employee misclassification is always a hot IRS topic. However, in recent years the DOL has also entered agreements with many state agencies to cooperate in pursuing enforcement against employers for misclassification of employees as independent contractors.

Independent contractor misclassification isn’t the only type of misclassification on the government’s enforcement radar. Special attention must also be paid to regulations regarding the determination of whether employees qualify for the “white-collar” exemptions from the FLSA’s minimum wage and overtime requirements. Employers must ensure compliance with minimum salary requirements and worker “duties” tests.

3. Recordkeeping

The DOL requires every employer covered by the FLSA to keep time clock records for each nonexempt worker. The law doesn’t specify the form of records, but they must include certain identifying information including the employee, the hours worked and the wages earned. Payroll records should be retained for at least 4 years including records for wage computation. These records include time cards, wage rates and records of additions or deductions from wages.

Ongoing challenges

Employers must remain vigilant regarding changes to federal and state laws/regulations that affect payroll taxes and other employee compensation issues. Do NOT assume you can put payroll management on autopilot!

©2019 Thomson Reuters

Contempo HCM launches to provide Arizona business owners with payroll and human capital management technology

Payroll executive and entrepreneur, Lawrence Bailliere, BeachFleischman PC, one of Arizona’s largest locally-owned CPA firms, and Pinnacle Plan Design, LLC, a third-party administrator (TPA) for employer-sponsored qualified retirement plans, announce the formation of a joint venture to launch Contempo HCM, LLC, an Arizona-based payroll and human capital management company. Bailliere has been named CEO and will lead the company’s growth and strategic vision. BeachFleischman and Pinnacle Plan Design will offer Contempo’s services to its clients. Additionally, BeachFleischman will provide the company with operational support. Contempo HCM was launched to meet the workforce management needs of Arizona business owners operating in the small business and middle-market sectors.

Contempo HCM operates as an iSolved Certified Network Partner. The iSolved Network is an ecosystem for elite, high-growth payroll service providers utilizing the iSolved platform to deliver a complete set of workforce solutions to their clients. Contempo HCM’s cloud-based workforce management solutions include payroll, time & attendance, HR administration, and electronic benefit administration.

According to Lawrence Bailliere, “We shared the same vision with BeachFleischman and Pinnacle Plan Design, and that made this new venture possible. We are excited about the opportunity to help business owners drive down the cost and complexity of managing a workforce. Our system provides real-time data and immediate access to information for better decision-making. We want our clients to focus on their core objectives while outsourcing the risks and burdens associated with the changing employer and workforce management environment. We mitigate the need for separate workforce management solutions by delivering a customized, configurable, end-to-end experience using one technology solution.”

Marc Fleischman, BeachFleischman’s CEO said, “We are thrilled about the incredible opportunities that Contempo brings to the marketplace. It’s locally-owned, and Larry is a proven industry thought leader and entrepreneur who will leverage the talents of his team to help our current and future clients accomplish their goals.”

Kevin Donovan, Managing Partner of Pinnacle Plan Design, LLC said, “We’re really excited about the opportunity to deliver a more seamless administrative process to our 401(k) clients, and removing their burden to provide complete and accurate indicative employee data which can now be accessed by us directly, 24/7.”

Contempo HCM is headquartered at 5872 E. Pima Street in Tucson, AZ and has an office at 2201 E. Camelback Road in Phoenix, AZ.