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Tag Archives: Payroll Services

The Payroll Future For California Means Accepting State-Sponsored Employee Retirement Plans

On August 31, California lawmakers in Sacramento passed a bill that will require certain private-sector employers to make automatic payroll deposits into employee retirement savings accounts. Although the California Secure Choice Retirement Program (S.B. 1234) has been taken step by step, upon full implementation, the program will apply to any employer with five or more employees that lacks an alternative retirement plan. Certain to be signed into law by Governor Jerry Brown, Total HR Management realizes the new requirements will present both HR and payroll challenges. As a professional employer organization (PEO) offering a variety of payroll services, Total HR plans to help our client companies effectively handle these new challenges, integrating them into their payroll model.

Employee Retirement Plans

employee retirement plans

California & Employee Retirement Plans

If a company does not offer a pension plan, 401(k) account or other retirement savings option, the new bill is designed to create savings accounts for that company’s workers. Although overseen by the Secure Choice Retirement Savings Investment Board, the board is planning to select an outside vendor to administer the accounts. In a statement prior to the bill passing, Senate President pro Tempore Kevin de León clearly pointed out that the new state program, “will offer a hand – not a handout – to 6.8 million working Californians whose employers do not offer a retirement plan.”

Once Governor Brown signs the bill, implementation of the new regulations is expected to begin as early as January 1, 2017. It is important to note that implementation will take some time given the nature of state bureaucracy. Given the extended time frame, Total HR Management will focus our fall efforts into helping client companies make the transition as smoothly as possible. It’s also important to add that the enrollment period depends on the size of the company. Many smaller companies will have two to three years to make the transition, opening the door to calm waters before the actual wave of the new regulations hits.

California Legislates Retirement Savings

Within the first year of the program opening for enrollment, employers with more than 100 employees and no retirement savings plan must automatically enroll any employees that do not opt out. Employers with 50-99 employees will have two years to enroll workers, and employers with 5-49 employees will have 3 years. Total HR believes this extended time frame will make for a much smoother transition.

The benefit of such retirement plans is that employees are 15 times more likely to save for retirement if they have a workplace savings program. Despite being able to open a retirement account on their own, the vast majority of employees choose to ignore this option. Low wage workers, theoretically the employees most in need of such accounts, are least likely to have them. “Right now there are about 39 million employees nationwide who don’t have access to retirement savings through their employers,” explained Brian Benko, an attorney with the McDermott Will & Emery law firm in Washington, D.C.

State-Sponsored Retirement Plans

In California, about 7.5 million workers do not have access to a company-sponsored retirement plan. The goal of instituting a state-sponsored plan is to allow these employees to begin saving for their futures. Two-thirds of those 7.5 million employees work for employers with 100 employees or less. The new state-run plan will invest in Treasury securities and other conservative investment options during its first three years. Other investment alternatives will be added at a later time.

Employees who fail to choose a specific contribution rate will automatically have 3% of their pay deferred into the plan, similar to the default contribution rate for automatic enrollment in a 401(k) plan. The contribution limits for the Secure Choice Plan are set at the same level as for traditional and Roth IRAs, which is $5,500 for savers under age 50 and $6,500 for those age 50 and above.

Total HR Management Can Help

Although time will tell how well the plan works once implemented, Total HR Management will continue to support our clients companies regardless with the goal of avoiding unnecessary bureaucracy. We will help your company access the best savings available while staying in line with the new government regulations. As a professional employer organization with a payroll services option, Total HR Management will support your company. To learn more about how we can help, please call (800) 975-5128 today to set-up an HR audit.

 

No Legal Advice Intended: This blog includes information about legal issues and legal questions. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. You must not rely on the information on this website as an alternative to legal advice from your attorney or other professional legal services provider.

5 Points Your Company Needs To Know About California Wage And Hour Compliance

California wage and hour compliance laws and regulations are among the strictest in the nation. If you are a California-based company, you need to know about and comply with California wage and hour compliance laws if you want to avoid potential trouble with the state. For example, does your company have easily accessible postings for your employees about these laws and are the details included on itemized pay statements?

Challenge of California Wage and Hour Compliance

The payroll specialists at Total HR Management can help with these challenges. By entering into a professional employer organization (PEO) services contract with Total HR, California wage and hour compliance is just one of the many services your company will receive. Our ongoing goal is to safeguard your company’s future, allowing you to do more with less.

California’s wage and hour laws are protectionist and slanted towards the employee, making California wage and hour compliance challenging. If your company is complying with all the federal standards, that is not enough. You cannot ignore California laws that provide greater protections for employees than the federal requirements. If your company fails to heed California wage and hour compliance laws and regulations, you could be opening the door to a wage and hour class-action lawsuit.

5 Points About California Wage and Hour Compliance

california wage and hour compliance

California Wage And Hour Compliance

1) California’s daily and weekly overtime rates for various hours worked must be understood and tracked. These laws require the payment of one and a half times a nonexempt employee’s regular rate of pay for work performed in excess of 8 and up to 12 hours per day, for any work in excess of 40 hours in one week, and for work performed during the first 8 hours of the seventh consecutive workday in a workweek. California nonexempt employees are also entitled to two times their regular rate of pay for any work performed beyond 12 hours per day and for any hours worked after 8 hours on the seventh consecutive workday of a workweek. Given the complexity of the law, working with a PEO makes a lot of sense.

2) Do you know that overtime requirements apply to almost all types of wages? You cannot only offer overtime for hourly wages or salaries. Nonexempt employees are also entitled to receive overtime pay on commissions, piece-rate work, and nondiscretionary bonuses in California.

3) California wage and hour compliance becomes quite complicated when it comes to compensating employees for all hours you “suffer or permit” them to work. If you know or “should know” that employees are working, regardless of whether the work itself is authorized, then payment is mandatory. For example, such work even includes the powering up or powering down of office computers before an employee clocks in or after clocking out.

4) Do you know the specific “wage order” that applies to your workforce? This is where California wage and hour compliance becomes almost Byzantine in nature. As outlined by the Industrial Welfare Commission (IWC), California has seventeen separate wage orders. Employees working in an industry for which there is an industry order are covered by the industry order regardless of their occupations. If your business does not fall under a specific wage order, your employees become subject to “miscellaneous” Wage Order 17. Despite similarities among the various orders, there are also important differences that must be recognized. The payroll specialists at Total HR Management can help.

5) Does your company provide sufficient rest and meal periods while accurately recording these employee meal periods as well? California law requires an unpaid 30-minute meal break after 5 hours unless the workday is no more than 6 hours and the meal period has been waived by mutual consent. The wage orders also require you to allow employees who work at least 3.5 hours in a day to take paid 10-minute rest breaks. The number of breaks is based on the hours worked in a day, with one 10-minute break earned every 4 hours worked. Breaks must be in the middle of each 4-hour work period to the extent practicable. Did you know that you have to pay employees an additional hour at the regular rate for each day no meal break or paid rest period is provided?

Total HR Management Can Help

Although these points are a great start, they are far from comprehensive. They are only a few of the ways that Sacramento imposes greater restrictions when it comes to California wage and hour compliance. To understand all the nuances in each of the wage orders, regulations, and administrative guidance, you need the help of a payroll specialist and HR professional. Luckily, the HR managers at Total HR cover both of those bases.

As a professional employer organization, Total HR Management provides payroll support as part of our PEO package of services. To learn more in order to protect your company, please call (800) 975-5128 today to set-up an HR audit.

 

No Legal Advice Intended: This blog includes information about legal issues and legal questions.  Such materials are for informational purposes only and may not reflect the most current legal developments.  These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. You must not rely on the information on this website as an alternative to legal advice from your

 

 

Five Steps To California Fair Pay Act Compliance In 2016

california fair pay act compliance

(Part 2 – How You Can Protect Your Company)

If you are wondering what California Fair Pay Act compliance means for your workplace, Total HR Management has a five-step strategy that can help. Mistakes in California Fair Pay Act compliance could lead to costly lawsuits with the new law heavily slanted towards employees. With the burden of proof on employers, California Fair Pay Act compliance is a business necessity in 2016 and beyond.

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An Introduction To California Fair Pay Act Compliance

fair pay act compliance

Ready for Fair Pay Act Compliance?

(Part 1 – Basic Information About The Fair Pay Act)

Is your California-based company ready for the challenges of Fair Pay Act compliance? On January 1, 2016, employers in California will be subject to one of the strictest and most aggressive equal pay laws in the country. As a professional employer organization (PEO), Total HR Management wants to ensure that our clients are in compliance with these new legal requirements before they go into effect. Fair Act Pay compliance involves a number of complex steps, and Total HR can help you navigate each one successfully.

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Is It Time To Replace Your Old-Fashioned Payroll Company With A Modern PEO Option?

Is a multi-faceted PEO option the better choice for a company in the modern age than an old-fashioned payroll company? As the end of the year approaches, many small to mid-sized companies begin to reevaluate their business relationship with their payroll services provider. Since most payroll companies offer one limited service, could it be time to save money and improve your company’s overall productivity by replacing them with a professional employer organization option? As a PEO and a human resources outsourcing company, Total HR Management offers the very best in payroll services along with a variety of other options that can help save your company money and improve productivity.

Old-Fashioned Payroll Service Providers Are Limited

The simple truth is that the vast majority of primary payroll service providers are limited. Even when they try to expand and provide other service options, they tend to be wading into unknown waters. As HR experts and certified professionals in human resources, the diverse staff at Total HR Management are able to provide our client companies with so much more than excellent payroll services. As opposed to the payroll companies wading in those unknown waters, we have years of experience in every HR service area; an expertise that helps tailors our services to the specific needs of your company.

First And Foremost – Quality Payroll Services

Since you are considering replacing your payroll service provider, first and foremost you want to know about the payroll services offered by Total HR Management. Our integrated payroll solutions provide your company with the security of multi-dimensional modern service. As a direct result, you can rest assured that all your payroll administration needs will be handled with diligence and focus.

peo option

PEO Option = Modern Payroll

Employing the latest payroll strategies and tools, Total HR Management prepares and delivers payroll checks along with all related internal reports. Our payroll staff administers all required payroll deductions to ensure that the demands of the IRS and State Taxing Agencies are handled with up-to-date care and precision. We offer direct deposit of checks for your employees and provide year-end employee tax forms while covering any required filings.

Modern Payroll Service + A PEO Option

So much more than your typical computerized voice over the phone or another web interface, the payroll services of Total HR Management are tailored to the needs of your company. We provide you with customized time management and attendance solutions. In addition, you will be able to access a qualified HR account manager to answer any questions that might arise.

If needed, we can offer you a comprehensive suite of services to manage all of your HR administrative needs. Our goal at the highest service level is to cover both payroll and human resources for your company. We want to give you the freedom to make the day-to-day operational decisions that will ensure the future success of your business. We want to help you work on growing your business by giving you the freedom to avoid the pitfalls of HR management.

Some of the money-saving resources available with Total HR Management’s payroll service PEO packages include the following:

  1. Annual Employee Handbook Reviews
  2. Customized Personnel Administration Forms
  3. Unemployment Claims Management
  4. Annual Safety / OSHA Audit
  5. Benefits / COBRA Administration
  6. Risk Management & EPLI Coverage
  7. Annual Insurance Premium Audits
  8. Management and Supervisory Trainings
  9. Recruitment and Selection services

Tailored Payroll + The PEO Option For Your Company

peo option

PEO Option Reduces Your Costs

The PEO option of Total HR Management can be tailored to meet the needs of your company. Our objective is to help you work on the goal of growing your business as opposed to being lost in the bureaucratic intricacies of your company. Whatever your specific needs, including and beyond basic payroll, Total HR Management can find a tailored solution, including a potential PEO option that works for you. In the 21st century, isn’t it time to move beyond the limitations of an old-fashioned payroll services provider?

The competitive environment of today’s economy demands access to the multi-dimensional options offered by a professional employer organization and human resources outsourcing company like Total HR Management. Combining your payroll company with the PEO option of HR outsourcing just makes sense. At the very least, you should give us the opportunity to show you how we can help save your company money and improve your productivity while still offering the quality payroll services you have come to expect. To learn more, please contact our payroll services and human resources professionals by calling (800) 975-5128 today.

 

 


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