May Hot Topics:
- How to Write a Human Resources Policy
By Human Resources Professional Group - How Payroll Service Providers Can Help You to Benefit From Section 125
By Fred Patterson, lll, District Sales Manager, AmCheck - How Employers Should Handle Workers Compensation Claims
By Eric Sheetz, Commercial Insurance Broker, The Michael Ehrenfeld Co.
How To Write a Human Resources Policy
By Human Resources Professional Group
As a continuation to last month's article, Human Resources Policies and Procedures, this month's article will address how to develop, write and successfully implement such policies. A Human Resources policy should be implemented to enhance the objectives and goals of a company, not impede them. They are written to help management run an efficient and effective company. With solid policies and procedures, employees will know what is expected of them at all times.
Once the goal of a new policy is outlined, the policy itself should be written using simple to understand words and concepts. Be sure to cover the basics, all the while remembering that no policy is going to cover every possible situation. By the same token, employees and management should have the opportunity to make suggestions and give their input regarding a new Human Resources policy.
The next step in formulating your new policy is to select a small group of employees to review it. The feedback from the pilot group will give you valuable input as to whether or not your policy is easy to understand and follow. All managers should review the newly written policy as they will be the ones to lead the employees in following it. Their support is crucial to the success of the new procedure/policy.
Once the policy is written, you may want an attorney to survey it as well. This would be necessary if there are legal implications or if anything litigious is involved. You will want to be sure the wording of the policy is appropriate.
As you prepare to distribute the new policy, it's a good idea to give employees the opportunity to ask questions. When the policy becomes official, all employees should sign off that they have received it and understand it. Don't forget to incorporate the new policy into the employee handbook and to include it in your New Employee Orientation. If the new policy replaces an existing policy, be sure to archive the old policy in the event you need to refer to it at a later date.
Generally, a Human Resources policy will fall within one of the following categories.
- Employment Policies- these types of policies are typically related to hiring practices and should be updated periodically.
- Employment Status and Records- policies primarily dealing with employment classification, personnel files and performance appraisals.
- Employee Benefits- this would include all policies related to each and every benefit an employee is entitled to.
- Payroll- these policies cover hours worked, payroll deductions and general wage administration.
- Workplace Guidelines- the policies within this category will vary from company to company, but can include flex time, record retention and telecommuting.
- Employee Conduct- policies relating to attitude and behavior will fall under this category. Some examples include harassment (sexual and non-sexual) and substance abuse.
- E-Policies- these policies should explain what is acceptable as far as the use of emails and the internet.
Over time, it will be necessary to review your company policies and determine if they are still “consistent” and “fair”. If you find current practices are deviating from written policy, it may be time to reevaluate and rewrite the policy, thus starting the cycle of writing a Human Resources policy over again.
Please Note: If you missed last month's article, click the link Human Resources Policies and Procedures to read the article in full.
We invite you to contact HRPG if you would like to discuss ways that HRPG may assist your company in working through any of the HR challenges you see for 2012. Contact us at rdavies@hrpg.com or (619)421-0074.
How Payroll Service Providers Can Help You to Benefit From Section 125
By Fred Patterson III, District Sales Manager, AmCheck
Section 125 of the IRS code provides for employee salary withholding to cover the cost of certain qualifying types of insurance (Group Life, Medical, Accident, Disability Benefits, Group Legal Services and Dependent Care Assistance Insurance). This has the effect of reducing the taxable income of employees while also benefiting the employer through reducing FICA matches. The fact is, however, that many businesses do not make use of the benefits offered by Section 125 because they regard the administration associated with it as too complex.
This problem can be taken care of by making use of the services of a professional and competent payroll services provider. While it is true that IRS Section 125 compliance demands are stringent and complex, experienced payroll solutions providers will have been around the block a few times and can offer services tailored to your needs. Some of the services they provide include the following:
- Offering advice and documentation to assist in the setting up of qualifying 'premium only plans'
- Providing employee enrollment forms
- Administering employee enrollment and annual re-enrollment (if required)
- Providing guidance and assistance with applicable non-discrimination testing
- Administering payments to qualifying insurers
- Providing detailed reporting to individuals and companies
- The provision of information, guidance and a detailed electronic record means that payroll service providers can put companies in a position to benefit from the advantages associated with Section 125 while remaining on the good side of tax authorities.
Good payroll solutions providers are in a position to offer A-Z solutions when it comes to the administration of Section 125 payments. The ability to offer this kind of service should be a key consideration when you decide on a specific provider. This can be such a complex area that experience and a proven track record should be of critical importance. Making the choice to benefit from Section 125 should therefore be followed by the equally important choice of choosing the best possible service provider. AmCheck will expertly handle all of your payroll, HR and benefits administration, giving you the freedom to focus on your business.
For more information or questions regarding your payroll processes, please contact Fred Patterson III, District Sales Manager for AmCheck, a payroll solutions firm with offices throughout the United States. Fred may be reached at fred.patterson@amcheck.com. (619) 595-7900.
How Employers Should Handle Workers Compensation Claims
By Eric Sheetz, Commercial Insurance Broker, The Michael Ehrenfeld Co.
If your business has an experience rating, then each and every dollar paid on a claim will ultimately affect your Workers Compensation insurance cost. Some might think the workers compensation policy is simply a finance mechanism for paying claims and that employers would be better off without the work comp system in place. I wish it was that simple, but it's not. The workers compensation system is much more complex than a simple process of paying claims. Product delivery to an injured employee is complicated and governed by statute in all regions. Not many employers have the expertise or funds to provide the claims management services employees may need when injury occurs.
Poor claims management by an employer will ultimately result in increased cost of workers' compensation insurance. The most direct link to claims and increased cost is through a mechanism known as the experience modification factor. The experience mod in simple terms is a system that compares your individual workers compensation experience, comprised of payroll and claim dollars, to those of similar businesses. Those with better claims experience have lower factors thus reducing their total workers compensation cost. Conversely, those with poor experience have high factors thus increasing their work comp cost.
These are the steps an employer should take:
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Report claims to your insurance broker and insurance company ASAP
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Pay close attention to all open claims – a good broker will stay active here
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Work towards the goal of closing claims ASAP
- Work closely with your insurance adjuster to insure proper claims handling
- Do all that you, as an employer, can to get your insured employee back to work ASAP
It's a fact that workers compensation claims occur, but it's how you, as an employee, and your insurance broker handle the claims process. When an employee is injured on the job, they need your workers compensation program to be working at its best by providing necessary medical and rehabilitation services so they return to work as quickly as possible. When a worker's compensation claim goes out of control, you can be assured it will affect the total cost you pay for workers compensation. There are many steps you, as an employer, can take to help keep work comp claims under control, with the most important step possibly being to stay involved in the claim process.
For more information or questions regarding your companies risk exposure, please contact Eric Sheetz, Property and Casualty Insurance Broker for The Michael Ehrenfeld Co. at ESheetz@ehrenfeldinsurance.com, (760) 809-8510.
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