Archive for March, 2011

CPEhr is Now Approved as a Credit Provider by the HR Certification Institute

Thursday, March 31st, 2011

We are very pleased to announce that CPEhr was recently approved by the Human Resources Certification Institute as an authorized provider of recertification credits for PHR, SPHR and GPHR professionals.

For close to three years, we have offered free online HR training courses on a monthly basis to our clients, and the small business community. With our new status, we can now broaden our training services to include HR professionals who require 60 hours of renewal credits every three years.

“The content of our webinars and trainings will no longer be directed exclusively towards management and supervision, but also to the HR professional,” says Linda Robinson, PHR, CPEhr’s Training Manager. “Becoming certified allows us to add additional value to our presentations by providing renewal credits, and emphasizes our primary function:  to provide accurate, timely and comprehensive HR guidance and support to our clients.”

Robinson led the application and approval process. Following the initial request, one of our designated HR representatives took an exam demonstrating our knowledge of the certification process, standards and requirements.  Once the exam was passed, we became an “approved” provider!

“Our certification broadens our base of services to our clients and keeps us competitive in the marketplace,” says Robinson.  “We can now provide our clients and prospects up-to-date trainings and certifications with ‘personal’ appeal that many of our larger competitors have lost.”

For more information or to register for our next webinar, visit our free online HR training information webpage.

About Us

CPEhr was founded in 1982 and provides human resources outsourcing solutions to over 15,000 worksite employees. Beyond training, services include HR compliance, safety, employment administration, insurance packages, payroll and tax management. With corporate headquarters in Los Angeles, CPEhr is one of the largest Human Resources Outsourcing and PEO firms in California.

 

 

Avoid Common Payroll Mistakes with HR Outsourcing

Monday, March 28th, 2011

With few exceptions, small businesses expend significant resources ensuring that their core operations run smoothly. However, attention must also be paid to peripheral business functions such as workplace safety, employment law, employee benefit administration, and more.  Any misstep in the human resource aspect of a business can derail management’s focus on core activities. To ensure management can remain focused on their job, outsourcing Human Resources is an excellent option for dealing with all aspects of HR operations.

Let’s take a look at one feature of HR – payroll. Of all employee-related processes, there is no doubt that the laws surrounding payroll processing and payroll tax submission are some of the most difficult to master, even for the tax accounting specialist. Consider the following statistics:

  • The tax code (the basic law written by Congress) is 2,840 pages.
  • The IRS regulations add an additional 46,000 pages.
  • The combined number of forms for businesses and individuals is now over 480

Internal Revenue Code (IRC) 6656 reviews penalties for late payments of payroll deposits. A deposit only ONE day late will result in a penalty equal to 2% of the delinquent amounts. It jumps to 5% for payments made 6 days late, and doubles to 10% for payments made 16 or more days late. A recent report states that over 1 MILLION tax penalty statements are sent out quarterly.

Common Payroll Tax Mistakes

Simple attention to the details can often reduce the risk of missing a tax payment, or making an incorrect deposit.  Below are three common mistakes that Human Resource Outsourcing services can help prevent:

1. Submitting Late Deposits

Once you have withheld taxes from the employee, it is important to know when and how these taxes, along with the employer contributions, must be paid.  There are many regulations at the Federal and State levels that dictate when and how payments are to be remitted.  If payments are late, penalties and interest can be assessed. Contact your accountant, bookkeeper or payroll vendor to find out your payment obligations.

2. Late or Incorrect Payroll Tax Return Filings

There are numerous Federal and State returns that must be filed for payroll taxes, including withholding, unemployment, local and school district taxes.  All have different reporting requirements (paper, e-file, mag media, etc.) and due dates.  If proper procedures are not followed, penalties and interest can be assessed.

3. State Unemployment Insurance Rates not updated

Most States update employer SUI rates annually.  It is important to update the payroll software with the new rates, so taxes are properly paid.  Underpayment of taxes can result in penalties and interest. Once again, contact your CPA for this information.

Avoid the Obligations Altogether – Outsource it

Most small employers recognize they are unable to stay abreast of all their payroll tax obligations. Many already outsource payroll to an outside payroll vendor. However, many employers are now outsourcing this HR function to a Professional Employer Organization (PEO). A PEO “co-employs” the client’s worksite employees and assumes the payroll and tax obligations of the client. The payroll is reported under the PEO’s Federal Tax ID Number, which in turn provides a layer of compliance to the business. IRS audits, payments and inquiries are directed to the PEO, which has teams of payroll and tax specialists on staff. Thousands of employers have found that a PEO is precisely the cure to the payroll tax headaches they have been looking for.

Discover today how outsourcing human resources can help your business keep its payroll running smoothly!

The California Domestic Workers Bill of Rights Movement

Monday, March 21st, 2011

In the fall of 2010, New York passed the first ever domestic workers bill of rights, which gives domestic workers the same benefits and rights that many other workers have had for years. The passing of this law marked a huge victory for domestic workers’ rights activists, and may have served to pave the way for a similar law now under consideration in California. Although the bill has not yet been officially introduced in the state legislation process, there is a growing movement in the state to support it.

California labor laws have long been known to favor employees, often providing them with more benefits and flexibility than other states. Consider the California Family Rights Act, which, among other things, grants employees more lenient leave provisions than those of the Family and Medical Leave Act. So it’s no surprise that the state would follow quickly on the heels of New York in working to grant domestic workers solid rights and protections.

What are the proposed “rights” of the bill?

So what, exactly, are the legal aspects of the proposed bill of rights? The activists and labor rights groups lobbying for such legislation seem to have largely modeled it off of the current New York laws. The campaign for the California bill recommends some very basic, but essential rights for domestic workers.

  1. The right for domestic workers to cook their own food and to receive at least five hours of uninterrupted sleep. These rights are important because many domestic workers live at their place of work, and because of that, some have lost their ability to make decisions for themselves regarding these basic human functions.
  2. Another right in the list is the right for domestic workers to receive paid sick and vacation leave as well as overtime pay. This right aligns with the majority of rights other employees receive. Domestic workers are especially abused regarding overtime pay, as many work more than forty hours a week for standard rates.
  3. Finally, the right to three weeks notice before termination is listed in this bill to protect domestic workers’ source of income as well as their home. Because many domestic workers live where they work, a sudden termination could also take away their shelter. This protection would allow them to have some time to seek out other places to live and other jobs.

These are just a few of the key rights listed in the proposed bill; for a full look at all of the proposed rights, check out the National Domestic Worker Alliance campaign for the bill.

The legal consequences of this would essentially force employers of domestic workers to honor these rights or else face lawsuits from employees whose rights were infringed. However, there’s no real word yet as to whether or not this law will actually make it through the legislative process, so this could turn out to be a long road ahead for advocates of the bill.

 

Guest post by: Lauren Bailey, a freelance writer and blog junkie, who blogs about online colleges. Questions and comments can be sent to: blauren99 @gmail.com.

20 Recruiting Tips to Help Prepare for the Rebounding Economy

Wednesday, March 16th, 2011

While reports of a “rebounding economy” are still mixed, the fact that so many companies are hiring is an indication that things are beginning to turn around. With 2.5 million people looking for work, hiring managers must be prepared for a massive influx of resumes for each open position they post. For the first time in a decade, employers are in the driver’s seat with an abundance of qualified candidates who can, and have done, the job before.

However, employers must be certain to have a system in place to advertise, receive, review, interview and select the most qualified candidates. If not, be prepared to be overwhelmed! Here are 20 tips to help you manage all phases of the recruiting process to help you hire the most qualified candidate, without losing your mind!

1. Identify the needs of the job.

  • Make sure the job description is accurate and clearly reflects the needs of the position
  • Is the need temporary or full time?
  • Check the salary ranges

 

2. Advertising for the Position

  • Make sure jobs are posted to high quality, reputable web sites – you get what you pay for
  • Post jobs to industry specific sites when necessary for more qualified candidates

 

3. Selecting Resumes

  • Set some immediate disqualifiers (i.e., don’t consider candidates asking for more money than allotted in the budget, don’t consider candidates who live 100 miles away, etc.)
  • Don’t try to keep up with all the resumes as they are delivered – they will be hitting your inbox fast and furious, and it’s the easiest way to become overwhelmed!
  • Let the bulk of the resumes come in for about a week and then set aside a few hours to go through everything in one sitting.

 

4. Conducting Interviews

  • Don’t rush the interview process!
  • Don’t let the need to fill a vacant position lead to a hasty hiring decision you will almost certainly regret
  • Conduct a phone interview first to make sure everyone is on the same page regarding salary expectations, job duties, hours, etc.
  • Have a different purpose for each interview (i.e., pre employment screening during 1st interview, job specific role playing scenarios during 2nd interview, etc.)
  • Never hire someone after just one in-person interview
  • Involve trusted members of the potential new hire’s team in the latter stages of the interview process

 

5. Selecting the best candidate

  • Consider the person’s strengths and don’t just focus on imperfections
  • Consider more than scores and numbers – personality counts!
  • Select the person who wants the job the most –

o      Views the job as an opportunity

o      Is happy to be there

o      Will work hard in the position

 

And here are a few final tips:

  • Don’t treat an open position as a thing that needs to be handled, but rather a need for a person to join, or perhaps be the start of, a new cohesive unit
  • Update the needs of the position to accurately reflect the company structure in 2011 and not years past.  This includes, but is not limited to, reevaluating job descriptions and salary ranges
  • Don’t be afraid to tread lightly and slowly when filling an open or new position.

Here’s to great recruiting in 2011!

 

CPEhr Announces Small Business Medical Insurance Renewal Rates, 10 Percent Below Regional Average

Monday, March 14th, 2011

We are proud to announce that we have just released our 2011 group insurance renewal rates with Anthem Blue Cross of California, and that our  HMO rates fall more than 10 percent below the regional average for comparable plans.

As part of our broad Professional Employer Organization (PEO) services, we offers top tier small business medical insurance plans to our clients and currently provide insurance coverage to thousands of employees throughout California. Our Benefits Manager, Haig Hagopian, conducted a detailed analysis of health insurance plans offered by carriers in the Southern California region. The analysis revealed that the average premium across comparable HMO plans was 10.3 percent lower than HMOs offered by the other carriers. More than half of California employees who take insurance access their health care through an HMO.

“CPEhr applies solid health risk management techniques to keep the overall premiums down as much as possible,” explains Hagopian. “This includes working with carriers to help those with chronic conditions manage their illnesses more effectively. Furthermore, Anthem Blue Cross has done an exceptional job with providing our groups with a strong network, rich plan features and lower out of pocket costs.”

In addition to offering HMO plans, we provide our clients a range of PPOs and qualified high-deductible health plans (HDHP), alongside a wide range of voluntary benefits and perks including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), dental, vision, life, disability and limited medical policies. Hagopian and the rest of our Benefits Department review plan options with our clients and generate creative solutions to mitigate increasing health insurance costs. They also administer the plans and negotiate renewals directly with the carriers to further contain the rates.

“We analyze the types of benefit features that are most helpful to our groups and make sure that our plan designs are a good fit for their employees,” says Hagopian. “To obtain the right to offer Anthem, CPEhr established a sophisticated underwriting and health management infrastructure, which no other PEO has managed to do at this time. As a result, we are the only PEO that has been approved by Anthem Blue Cross.”

We feel that our clients clearly see the value in our insurance programs, since enrollment has increased seven percent over the past two years, despite state-wide increases.

Contact us today for a quote for your small business medical insurance plan!

Outsourcing Human Resources: Smarter – and More Cost Effective – than Keeping HR In-House

Wednesday, March 9th, 2011
One of our sales reps recently returned from the field, after signing a human resources outsourcing contract with an infomercial marketing and distribution firm. This was a growing company with fundamental HR needs shared by many, many employers. Their challenges were not unique or exceptions to the rule – they are the rule! Their concerns included:

  1. Unsure if all their employees were classified properly
  2. “Needed more structure” in their HR processes
  3. Grew from 20 people to 55 but still had no dedicated HR person or expertise
  4. Two office locations were not in sync with the other; had no consistent policies or protocol
  5. Wanted training for supervisors on progressive discipline
  6. Looking for HR advice, “independent of management”, to help with compliance and work around internal politics

 

The Cost of HR Management

Experience reflects that until an employer has approximately 50 employees they do not employ a dedicated HR manager to administer all employee administrative functions. These functions, such as payroll, benefits administration, employee files maintenance, recruiting, training and employee relations, are shared by different employees in various departments. Usually, only after a business employs 50 or more employees, do they require a dedicated employee to manage all of these tasks.

This position, typically titled HR Manager or Director of HR, is a senior position that reports directly the President or CEO of the company. They also carry a hefty price tag. According to Salary.com, the median salary of an HR Manager in Los Angeles, California in 2011 is $95,000. Adding tax and benefit load, a small employer of 50-100 employees is looking at a position that will set them back $130,000!

 

Human Resources Outsourcing

Alternatively, employers are turning to Human Resources Outsourcing firms, or PEOs (Professional Employer Organizations) to manage the entire process for them. The HRO firm employs a team of experts that are able to manage the complete gamut of human resources administration more efficiently and cost effectively than private employers. And this comprehensive service comes with a price tag at a fraction of hiring a single, internal HR manager.

The HRO’s team of experts manage:

  • Labor law compliance
  • Employment administration
  • Personnel files, documentation and forms
  • Mandatory postings
  • Payroll and tax
  • Vacation and benefit accruals
  • Health Insurance
  • Voluntary/optional employee benefits
  • Workers’ Compensation
  • Safety Consulting
  • Management training
  • Recruiting

If your company faces challenges in any of the above areas, consider outsourcing human resources functions before bringing it in house. Like our newest client, you will not only receive superior human resources support, but you’ll do it at a fraction of the cost!