A recent ruling from the DOL has moved to raise the FLSA overtime salary threshold to $58,656 by 2025, and is poised to affect around 4 million employees. Here to help you prepare for the upcoming change is VP HR Compliance and Learning and Development at Asure Software, Mary Simmons!

Mary joins Host Mike Vannoy to discuss the nuances of the new threshold, and how employers can best prepare for the change. Mary shares ways you can communicate the change with employees, the challenges of transitioning employees to hourly, and the importance of a strong overtime policy.

Takeaways:

• The Department Of Labor recently moved to raise the FLSA salary threshold for exempt workers. The previous threshold was $35,568 a year, on July 1st 2024 it will increase to $43,888, and on January 1st 2025 it increases again to $58,656 per year.
• This higher threshold is estimated to result in a total $1.5B increase for salaries for employees, and employers need to be ready. While there are still a few months before the change, employers need to prepare for the transition now.
• This new increase will cause situations where existing employees are now paid the same as new employees. To help the disparity, increase existing employees salaries if possible, or offer them additional benefits like increased vacation time.
• While some employees will be getting a salary increase, some will be made hourly employees instead. While this can help your business, communication is key. Make your employees feel like a part of the decision and don’t make false promises.
• When you transfer employees from exempt to non-exempt, it’s crucial to clearly communicate the new rules. Write down the new rules and overtime guidelines for hourly employees, and ensure employees read and sign the new rules.
• As you transition employees to hourly, it’s important to consider what guidelines you need to follow. While extra hours outside of a regular schedule counts, something as simple as asking an employee to respond to an email after hours also counts.

Quote of the Show:

• “The way you communicate things to your employees is going to significantly change how they accept what you do.” - Mary Simmons

Links:

• LinkedIn: https://www.linkedin.com/in/marysimmonshrconsultant/
• Company Website: https://www.asuresoftware.com/

Ways to Tune In:

• Spotify: https://open.spotify.com/show/2XThTdn7YC1lkAm0PgZUkj
• Apple Podcasts: https://podcasts.apple.com/us/podcast/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent/id1725890976
• Amazon Music: https://music.amazon.com/podcasts/328dddd0-3c4f-4b07-a0d3-13bdcb418486/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent?refMarker=null
• Audible: https://www.audible.com/pd/Mission-to-Grow-A-Small-Business-Guide-to-Cash-Compliance-and-the-War-for-Talent-Podcast/B0CS71KQFM?qid=1706208857&sr=1-1&ref_pageloadid=not_applicable&ref=a_search_c3_lProduct_1_1&pf_rd_p=83218cca-c308-412f-bfcf-90198b687a2f&pf_rd_r=A1ME8MBECSVZ6K4D7CNT&pageLoadId=QBtg12mqKsuZPLGY&creativeId=0d6f6720-f41c-457e-a42b-8c8dceb62f2c
• Podchaser: https://www.podchaser.com/podcasts/mission-to-grow-a-small-busine-5591006

While most business owners know they need workers comp, few know how to make it work efficiently for them. Here to explain the benefits of pay as you go workers comp is Vice President of Partner Strategy at E-COMP, Robert Campbell.

Robert joins Mike Vannoy to share why pay as you go workers comp is a crucial tool for managing your cash flow. Robert also shares the risks of mis classification, the need to automate payments, and why you should always require contractors to carry their own workers comp.

Takeaways:

• Business owners need to understand that pay as you go workers comp is ultimately a cash management tool. Any small business needs to be focused on cash management, and pay as you go workers comp lets you hold onto your cash for longer.
• Paying your taxes a year in advance would cause undue financial strain, and paying your workers comp in advance has the same disadvantages. By paying as you go, you pay more accurately, and keep your assets liquid.
• Managing different workers comp class codes requires careful documentation. If during an audit, you can’t document the split to an insurance company's satisfaction, you will pay the highest rated code for everyone.
• While your state may not require 1099 workers to carry their own workers comp insurance, you should still require it as a policy. Otherwise you open yourself to issues and possible misclassification fees.
• Due to some rounding in the pay as you go process, there can still be a need to perform an audit. As you may estimate expected payroll wages, your actual number for wages may differ, resulting in the need to audit.
• While you can report pay as you go workers comp manually, having an automatic integration saves both time and effort. Automation sends data directly to your insurance provider, and significantly reduces the risk of error.
• When you are making manual payments and notifications are getting mailed, it can be easy to miss a bill or audit notification. By keeping things digital, you protect yourself from missing important notifications and having your policy canceled.

Quote of the Show:

• “There are people that just ignore their audit. Which is always a terrible idea.” - Robert Campbell

Links:

• LinkedIn: https://www.linkedin.com/in/robertcampbellsdriven/
• Company Website: https://ecompnow.com/

Ways to Tune In:

• Spotify: https://open.spotify.com/show/2XThTdn7YC1lkAm0PgZUkj
• Apple Podcasts: https://podcasts.apple.com/us/podcast/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent/id1725890976
• Amazon Music: https://music.amazon.com/podcasts/328dddd0-3c4f-4b07-a0d3-13bdcb418486/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent?refMarker=null
• Audible: https://www.audible.com/pd/Mission-to-Grow-A-Small-Business-Guide-to-Cash-Compliance-and-the-War-for-Talent-Podcast/B0CS71KQFM?qid=1706208857&sr=1-1&ref_pageloadid=not_applicable&ref=a_search_c3_lProduct_1_1&pf_rd_p=83218cca-c308-412f-bfcf-90198b687a2f&pf_rd_r=A1ME8MBECSVZ6K4D7CNT&pageLoadId=QBtg12mqKsuZPLGY&creativeId=0d6f6720-f41c-457e-a42b-8c8dceb62f2c
• Podchaser: https://www.podchaser.com/podcasts/mission-to-grow-a-small-busine-5591006

The Affordable Care Act outlines which employers need to provide care, and what care they need to provide, yet is difficult to navigate. Here to help business owners better understand the ACA is Principal at Jackson Lewis P.C., Brian Shenker.

Brian re-joins Host Mike Vannoy to dive into all things ACA. Brian breaks down the classification requirements for applicable large employers, the nuances of forms 1094C and 1095C, and the different safe harbors employers can choose from when determining affordability.

Takeaways:

• The most important thing small business owners need to understand about the ACA is whether they are subject to the law. For businesses that are growing, they need to be planning for ACA compliance.
• The ACA does not require applicable large employers to provide healthcare, but will impose strict fines on companies that do not comply. While you can pay the fines to avoid providing healthcare, it is often more expensive to not comply.
• The ACA defines an applicable large employer as a company with more than 50 full time employees and equivalents. While the distinction seems fairly straightforward, ALEs are calculated by the hours each employee works, rather than just headcount.
• ALEs need to not only provide healthcare, but report on their providing as well. ALEs need to provide forms 1094C and 1095C to report on details including if coverage is offered and the value of the plan.
• It’s important to understand that forms 1094C and 1095C are different forms with their own filing requirements and date. These are not stapled to quarterly 941’s or your income tax return on April 15th.
• The ACA says that care offered to employees must be affordable, which is measured by 3 different safe harbors to choose from. Affordability is measured against either the federal poverty level, employee’s monthly pay, and employee W2 wages.

Quote of the Show:

• “ACA is not something that happens overnight. It’s something you need to plan for.” - Brian Shenker

Links:

• LinkedIn: https://www.linkedin.com/in/brian-shenker-53708712/
• Company Website: https://www.jacksonlewis.com/

Ways to Tune In:

• Spotify: https://open.spotify.com/show/2XThTdn7YC1lkAm0PgZUkj
• Apple Podcasts: https://podcasts.apple.com/us/podcast/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent/id1725890976
• Amazon Music: https://music.amazon.com/podcasts/328dddd0-3c4f-4b07-a0d3-13bdcb418486/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent?refMarker=null
• Audible: https://www.audible.com/pd/Mission-to-Grow-A-Small-Business-Guide-to-Cash-Compliance-and-the-War-for-Talent-Podcast/B0CS71KQFM?qid=1706208857&sr=1-1&ref_pageloadid=not_applicable&ref=a_search_c3_lProduct_1_1&pf_rd_p=83218cca-c308-412f-bfcf-90198b687a2f&pf_rd_r=A1ME8MBECSVZ6K4D7CNT&pageLoadId=QBtg12mqKsuZPLGY&creativeId=0d6f6720-f41c-457e-a42b-8c8dceb62f2c
• Podchaser: https://www.podchaser.com/podcasts/mission-to-grow-a-small-busine-5591006