Sovereign HR

The direct cost of hiring someone into your business on a full time, part time or contract basis is relative and straightforward to measure.
What’s not so simple is being able to identify the indirect costs and resources being used. Most businesses endeavor to concentrate on the cost of every action taken, which is especially true for large projects. But is this really the right focus?
Shouldn’t managing TIME be our primary concern? After all, time is the one resource that is impossible produce more of.
More often than not, it’s disregarded. The businesses that function most efficiently and enjoy the highest levels of productivity are generally those that have a strong appreciation for opportunity cost. Opportunity cost is defined as the ‘potential benefit loss of the other choices, when a decision is made’. Opportunity cost is a major concept that underpins numerous economic theories in relation to scarcity and consumer choice.
The message in the image is another great example of this. Far too many businesses look only at the direct cost (in every sense, not just dollars) without considering the alternatives. The ‘amateur’ may seem like the right choice for your business right now as they provide a fast and inexpensive service. However, the opportunity cost of this decision will be the time, dollars and stress that could be found down the line after the decision is made.

If you would like to discuss your outsourcing needs and fully understand the benefit of our services, please contact us at 214.497.4156
https://sovhr.com/
www.linkedin.com/in/keri-stegman-sphr-sovhr-770b0b16b

Take Advantage of ICHRA for your
Employees’ Health Care & Medical Expense Reimbursements

In an important human resources update, on June 13, 2019, the Department of Labor, Health and Human Services issued its rules on a new alternative to traditional health insurance

Individual Coverage Health Reimbursement Accounts (ICHRA). ICHRAs are health reimbursement accounts that allow employers to reimburse employees that are enrolled in individual health plans versus traditional group health insurance for medical care expenses. Employers may begin to offer these plans effective January 1, 2020.

Should Your Business Offer an ICHRA?
•If applicable, your business should offer an Individual Coverage Health Reimbursement Account.
•The ICHRA provides employers a way to offer health care benefits to employees that do not count toward their taxable wages. The option also provides smaller employers a way to offer insurance without the administrative burden of offering a traditional medical plan. Additionally, this human resource solution allows employers to offer benefits as they compete for talented employees. The plans can be offered by companies of all sizes.

How the ICHRA Works
•The ICHRA reimburses employees, including family members in defined instances, for medical expenses up to the amount the employer contributes each year. The amount contributed each year is at the employer’s discretion. However, in order to participate in the ICHRA, the employee cannot be enrolled in a traditional medical plan.
•The funds can be utilized to pay for individual health insurance that meets certain requirements that is obtained either through the Exchange or outside of the Exchange.
•Employees may or may not roll over funds left over at the end of the year. The ability to roll over the left over funds at the end of a year is defined in the plan at the employer’s discretion.

“ICHRA" provides smaller employers a way to offer insurance without the administrative burden of offering a traditional medical plan.”
The ICHRA and the ACA Employer Mandate
Employers with at least 50 full-time employees (including full-time equivalents) in the prior year are subject to the Affordable Care Act’s (ACA) Employer Mandate. The Employer Mandate requires employers to offer minimum levels of affordable insurance to full-time employees.
The offering of the ICHRA is considered an offer under the Employer Mandate. This is as long as the employer contributes an amount that makes it affordable for the employee as defined by the ACA. The IRS is coming out with additional guidance on how the ICHRA affects the Employer Mandate soon.

Restrictions and Regulations
The ICHRA does come with restrictions and regulations on how it can be used.
•First, employers have the ability to offer both ICHRA and traditional health plans. However, they cannot be offered to the same classes of employees. An employee can only elect an ICHRA if they are not offered a traditional health plan. Employers have flexibility to offer the ICHRA to classes at their discretion. However, they must be consistent in how it is offered to employees in the same class. Classes can be defined by full-time employees, part-time employees and other defined classes. However, there are restrictions on how small a class can be. These restrictions are predicated on the employer’s number of employees.
•Employees can only be offered the ICHRA if they have an individual health policy. Therefore, the employer must have a process to ensure they participating employee is in fact enrolled in an individual policy or Medicare.
•Employees participating in the ICHRA are not allowed to make have a salary deduction to pay for the individual health policy through a cafeteria plan if it is obtained through the Exchange. However, if the policy is obtained outside of the Exchange, the employee could have a pre-tax salary deduction through cafeteria plan to pay for any premiums not covered by the employer.

How Do I Implement an ICHRA?
•As employers you can start offering ICHRAs on January 1, 2020. If you elect to offer an ICHRA, you will need to make sure to offer the required notices for eligible participants.
•You can start offering the ICHRAs in January 1, 2020. However, you must make the decision well in advance. This is because employees must enroll in individual health coverage during the open enrollment period. This period lasts from November 1, 2019 to December 15, 2019 (unless they have Medicare).

If you would like to discuss your outsourcing needs and fully understand the benefit of our services, please contact us at 214.497.4156

SOVEREIGN HR You didn't start your business to be an HR expert. Allow HR experts at Sovereign HR save you time and money, while allowing you to focus on improving profits.

HR & Benefits News: 5 Employee Handbook Tips

1. Be sure to have an employee handbook that is current
Some HR professionals will tell you that having a non-compliant employee handbook will set you up for greater legal risks than not having a handbook at all. However, in the event of an employee lawsuit against your company, the court most likely will request a copy of your handbook. Having a handbook with defined policies provides companies with a better foundation as they face litigation.

2. Use language that is sound, yet flexible
There is often a fine line between ensuring protection from legal action, and leaving room for interpretation. Policies that are subject to law—such as employment at-will, wages and hours, EEO, discrimination and harassment, and FMLA—must be distinct. But it is important to include flexibility in company-defined policies. For example, most companies will define a progressive disciplinary process that outlines the typical steps that will be followed. However, if employee misconduct is particularly deplorable, there should also be a clause that allows for immediate termination.

3. Implement formal handbook acknowledgement for all employees
Making the handbook available to all employees, and having each employee sign and date an acknowledgement that they have received and read it is vital. Failure to require employees to sign handbook acknowledgement forms can lead to significant problems if an employee issue becomes litigious. Some employers require all employees to view an introductory webinar that outlines all policies and procedures reviewed in the handbook as an extra assurance of recognition.

4. Include a detailed sexual harassment policy
The movement has brought this issue front and center in every industry. Having a robust sexual harassment policy—and enforcing it—is the best risk mitigation tactic there is. This policy must define, prohibit and address the consequences of sexual harassment. Employees should be encouraged to report violations and be assured that complaints will be taken seriously. It is advisable to provide an anonymous avenue to report harassment without fear of retaliation. Many states now are requiring that all supervisory staff be trained regarding sexual harassment prevention, and the training must satisfy specific requirements and laws.

5. Provide training and support to managers
It is important to train managers on the policies in the employee handbook, as well as provide them support when they must enforce those policies. Training managers on all handbook policies and procedures enables them to handle employee issues properly when they arise and makes them aware of the resources that are available to them to guide their decisions.

A well-written handbook will serve as a roadmap to guide managers and employees through situations that are subject to employment laws and also will provide workplace conduct expectations. We advise our clients to have their employee handbook reviewed annually for legal and regulatory requirements in order to ensure compliance with all state and federal labor laws, as well as best practice policies.

SHRM on LinkedIn: "Ever-evolving laws make routinely reviewing and updating handbooks critical for employers. Here are some of the key state and local issues employers should note." January 15, 2019: SHRM posted an article on LinkedIn

Benefits of Outsourcing HR

Human Resources departments are responsible for a lot of different activities in a company, not the least of which is recruitment and hiring. These activities need the dedicated skills and education that HR professionals bring to the table. However, even though HR is a critical component of most businesses, it doesn’t always get the attention and resources it deserves.

Small businesses often struggle to provide comprehensive HR services to their employees. Many of us who have spent time in small companies have experienced working with the multi functional office manager who performs HR duties. It doesn’t have to be this way. HR outsourcing is a well-established industry that businesses of all sizes can turn to for high-quality, customized HR packages.

What HR services can businesses outsource?

Nearly any service found in a traditional HR department can be outsourced to one or more PEO - HRO providers. Here are some of the more common HR services businesses can contract out.

Payroll Administration:
Everyone likes to get paid, but no one likes an unprofessional mistake to have an impact on their paychecks. Payroll administration is one of the most commonly farmed out HR functions for this reason.

Benefits Program Management:
Benefits programs are an important part of employee compensation. They are also difficult to manage, as plan providers are constantly revising their packages. An PEO-HRO vendor can tailor a benefits program for your employees, and handle the ongoing program administration for you.

Training and Development Systems:
A growing number of employers want to provide business skills training and career development initiatives to their employees, but creating these programs from scratch takes significant time and resources. Several PEO -HRO vendors offer customization of training systems that can be delivered to your staff online.

Incentive and Reward Programs:
Incentive and reward programs contribute to creating a positive workplace. PEO - HRO vendors can build a program for your business that includes a selection of monetary rewards, perks, and employee recognition events.

Recruitment and Hiring:
This is the bread and butter of HR departments. An PEO -HRO vendor can bring additional features to hiring programs that in-house HR teams can’t easily provide for, including things like background checks, drug screening, and temporary staffing campaigns.

What are the benefits of HR outsourcing?
Deciding to outsource any business function only makes sense if there are tangible benefits gained by doing so. Here are some of the noteworthy benefits associated with HR outsourcing.

It lets you concentrate on your core business. The scope of HR activities is pretty large, and keeping all of your HR functions internal can take its toll on your primary business. HR outsourcing lets you focus on your key operations.

It avoids the trap of “good enough” HR. Internal HR departments can quickly find themselves under-resourced, especially during periods of company growth. This can result in employees receiving only “good enough” HR services, leading to unhappy staff and a negative work environment. PEO - HRO providers can easily scale their programs to keep up with your personnel growth.

It reduces liability and compliance issues. It’s not easy to stay informed on all of the federal and state laws concerning employee rights and workplace requirements. PEO - HRO providers take responsibility for maintaining the appropriate standards, lowering your liability and compliance risks.

Are there any potential downsides to HR outsourcing?
There are pros and cons to every business solution. If you decide to go ahead with PEO - HRO, here are a couple of potential issues you should keep in mind.

HR outsourcing involves some security risk. Depending on the level of PEO - HRO services you select, you will have to provide some sensitive information to the vendor. This can include employees’ personal information (SSNs, banking information, etc.), salary and compensation numbers, and exposure to proprietary business processes.

Before signing an agreement with an PEO - HRO vendor, ask about confidentiality agreements and the security measures they have in place to avoid sensitive data. Also, check if they offer some form of insurance for any business losses incurred due to a data theft incident.

Employees may find a PEO - HRO to be impersonal. Some staff may find having their HR services provided by an external vendor to be impersonal, which can cause employee disengagement and negative feelings in the workplace. To avoid this, you should clearly communicate the advantages of having the HRO to employees. For example, suggest that using a dedicated HR provider allows for more feature-rich programs than you could provide internally.

Should You Outsource HR?
The growth of the human resource outsourcing industry has given all businesses a viable alternative to operating their own onsite HR departments. PEO - HRO offers a flexible “pick-and-pay” solution where your company can choose which services they want to contract out, while maintaining focus on your core business. HRO providers can also help you to train and develop personnel, resulting in more engaged and happier employees.

If you would like to discuss your outsourcing needs and fully understand the benefit of our services, please contact us at 214.497.4156 or

SOVEREIGN HR You didn't start your business to be an HR expert. Allow HR experts at Sovereign HR save you time and money, while allowing you to focus on improving profits.

Exit Interviews – Why They Are Important

Employee turnover is costly. However, losing or terminating an employee provides an organization with a unique opportunity to obtain information about the company climate, company morale, and the attitude of employees toward management through the use of an exit interview. Exit interviews, conducted with departing employees before they leave, may help the employer to understand why the employee is leaving.

Many employers do not utilized exit interviews because they have not been given much emphasis in the past, or the results were seen as questionable, coming as they did from an employee who was leaving and may have an ax to grind.

However, many experts feel that departing employees will be more forthcoming and objective than employees who remain in their jobs since they may fear losing their jobs. Therefore, departing employees often provide a better source of feedback regarding the work environment.

Why Conduct Exit Interviews

There are two main reasons to conduct exit interviews:

1.Companies can learn a lot from departing employees and the information can be used to improve employee morale and productivity, retention and the company’s bottom line.

2.The exit interview also offers the employer one last chance to retain a good employee. By asking the right questions and listening to the responses, the interviewer may discover that the departing employee doesn’t dislike the job or the company, but is leaving because of only one aspect of the job.

Employee Retention

By asking the departing employee, “Is there anything we can do to keep you?” the interviewer may find out that there is an opportunity to retain a valued employee. However, once asked, the company should be willing to act upon the information it obtains. If the employee does express a willingness to stay if conditions change, then the employer must be prepared to determine if they will meet the condition and act on it if necessary.

Even if the employee will not stay, an exit interview can leave the employee with a positive impression. Therefore if they do not like their new position, they required their old position back. There is no better in-house recruiting tool than an employee who has gone out to “test the waters” and come back to report that the “grass isn’t greener” out there.

General Information Gathering

The questions you ask will be driven by what information you wish to obtain. However, how the questions are asked, will go a long way toward determining how fully the departing employee will participate, as will the circumstances under which the employee is leaving.

Asking the Questions

How you question the departing employee is important as well. Allow the employee time to answer the question. Keep calm and don’t try to defend the company or argue with the employee. Also, be aware of body language, posture, and facial expressions that might inhibit answers. The goal is to get information from the departing employee, not to debate.
The interviewer can always probe for more information by asking “Why?” or by asking the employee to restate an answer. The interviewer should ask open-ended questions.

Using a Third Party

Using a third party, outside source to perform the exit interview may encourage employees to participate and to be more open with their thoughts about the organization, although they may also be more critical. A third party interviewer, removed from any workplace associations, may help elicit more information and avoid negative, hostile, or irrational responses.

If you are having turnover issues and would like to discuss Sovereign HR Exit Interview Services, please contact us at 214.497.4156 or

SOVEREIGN HR You didn't start your business to be an HR expert. Allow HR experts at Sovereign HR save you time and money, while allowing you to focus on improving profits.

PROFESSIONAL RESUME WRITING : Preparing a resume to achieve the most responses can seem nearly impossible without the proper resources. An effective resume should contain certain key/buzz words specific to your industry or targeted objective for applicant tracking systems (ATS), include a clearly defined summary of relevant qualifications that will show the reader you meet their requirements, and be free from obvious mistakes such as grammatical and formatting issues. We can significantly increase your resume's response rate and substantially decrease your job search time by developing a powerful presentation that gains immediate interest.
Contact SOVHR and maximize your hiring potential.

4 Immigration Violations that can put Employers in Hot Water:

In the United States there has never been a more confusing time to be a foreign worker or their employer.

#1 The Location of the Company is Important
“Many states, including Alabama, Arizona, Tennessee and others, require employers who hire foreign workers to send the names and identification through a program called E-Verify. This is an internet-based database that allows companies to determine if foreign workers are eligible to work in the United States. If the company is not using a PEO like us, the employer must register with E-Verify and the federal government.
As a PEO, we utilize E-Verify. This allows our clients who might be located in states that require this eligibility database to use us for this verification. This is a time-saver and potentially a money-saver because of fines for violations.
Even in states where this law is not in effect, if the company is working on state or federal contracts, they are required to check the eligibility of these foreign workers. We handle these background checks for our clients.”

#2 Trouble-Shooting the Requirements of I-9 Forms
There is a difference between E-Verify and completion of I-9 forms. First, the I-9 is mandatory throughout the country. Second, it must be used to verify expired employment authorization.
This becomes complicated when a worker has been involved in training by an employer. The requirements of I-9 are different if the worker goes from one employer to another and sometimes the worker’s documents have expired and therefore are not compliant. We assist our clients in ensuring that all of the I-9 forms are accurate and completed to the letter of the law.

#3 Employers Must Request Visas
We cannot sponsor a foreign worker for a visa on behalf of our clients – this must be done by the employer.
If the number of visas is cut by 50 percent, as proposed by the President, this will make these visas very scarce. Employers will have to make persuasive, skills-based arguments. Plus, clients may have to work with immigration attorneys to assist them in applying for foreign worker visa applications.

#4 Ensuring That All U.S. Employment Laws are applied to Foreign Workers
If you are allowed to work in the United States, all U.S. laws apply to your employment. This includes workers compensation, minimum wage and fair labor standards. This becomes problematic even if a worker is found to be ineligible. The U.S. laws still apply to them and there are substantial fines that can be assessed to employers who fail to adhere to this.

Fines for Violations of these Laws Can be Substantial
Not following these laws can be an expensive proposition and, as with all legal violations, ignorance is no excuse.
Employers are facing potential fines for violations of the I-9 forms, and they are very specific.For the first offense of an I-9 form violation, the minimum fine is $216 per violation while the maximum fine is $2,156 per violation. So, if an employer has many workers and makes mistakes on the I-9 documentation, it can get very expensive.
If it is determined that an employer has hired unauthorized workers, the minimum fine is $539 per worker and the maximum is $4,213 per worker. If it is found that this hiring of unauthorized workers is a recurring problem, these fines can go up further.
Obviously, it pays to be compliant.

Skilled foreign workers can greatly improve the productivity of many companies. However, violations of federal laws governing these workers can be costly. Contact us for the information you need to be compliant

FOUR WAYS TO AVOID SEXUAL HARASSMENT PITFALLS

Here are four ways you can protect yourself from the growing risk of non-existent or bad sexual harassment policy.

1. If you don’t have a published sexual harassment policy…get one now!
This first step lays the groundwork for protecting your organization from the risks of sexual harassment. Clearly communicating how employees and your organization should respond when harassment occurs is essential in today’s environment.
A well-written sexual harassment policy published in an up-to-date employee handbook serves as a foundation for reporting these types of accusations as well as fairly investigating and remediating them.

2. Review your sexual harassment policy and non-disclosure documents…right away!
Reviewing and updating your sexual harassment policy is a great way to jumpstart the annual review of your employee handbook, non-disclosure agreements and other related documents.

Ask yourself two key questions when reviewing the policy:
1) How well does it educate workers about their rights in the workplace?
2) How well does it outline what does and does not constitute harassment?

“Harvey Weinstein used elaborate non-disclosure agreements to silence accusers…,” according to a recent Huffington Post article. This is one of the reasons that non-disclosure agreements are facing increased scrutiny.
Some attorneys advise against agreement or settlement language that prohibits a victim from going to law enforcement or taking part in an EEOC claim. Title VII and the National Labor Relations Act nullify agreements that attempt to limit discussions of workplace conditions and charges of discrimination by workers.

3. Give employees multiple ways to report sexual harassment and register complaints.

Employers put themselves at risk if they don’t practice and enforce what’s outlined in their sexual harassment policies. That includes providing multiple ways for employees to effectively report incidents.
Many companies are adding anonymous worker tip lines. It’s a relatively inexpensive way to give employees another way to confidentially report harassment. An anonymous employee tip line empowers workers to speak up about workplace concerns. They can remain nameless. And it gives employers a chance to deal with harassment and other complaints before they get out of hand.
4. Give managers the resources they need to handle sexual harassment incidents.
Effective sexual harassment training for executives and managers is a basic starting point. We suggest supplementing harassment training with a managers HR help line—one staffed with a knowledgeable, HR expert that managers can call for practical step-by-step guidance and suggestions as situations arise.
You may want to check out the EEOC’s new training on harassment prevention and creating respectful workplaces. An “outgrowth” of the EEOC’s Task Force Study on Harassment in the Workplace, the training program reportedly addresses “compliance, workplace civility and bystander intervention training.”

ALERT: ACA Reporting Deadline Extended

The Internal Revenue Service (IRS) announced they are extending the due date that 1095-B and 1095-C forms have to be provided to employees. The deadline to furnish 1095 forms to employees has been extended from January 31, 2018 to March 2, 2018. However, employers are still required to file forms 1094-B, 1095-B, 1094-C and 1095-C forms with the IRS by February 28, 2017, if not filing electronically, or April 2, 2018, if filing electronically.

For more information on the extension, please see IRS Notice 2018-06.

If you have questions or need assistance with your reporting needs, please contact Keri Stegman at 214-497-4156.

Visit our website for an overview of Sovereign HR services.

SOVEREIGN HR You didn't start your business to be an HR expert. Allow HR experts at Sovereign HR save you time and money, while allowing you to focus on improving profits.