BBQ Friday at Eagle!

September 15, 2017/0 Comments/in Uncategorized /by Linwood Smith

We are enjoying another successful week of HR and Payroll outsourcing for our customers today.

We had a brisket for a number of friends and businesses that dropped in throughout the day. We even had some good friends drive up from McKinney and Shreveport, LA. Thank you to our valued customers!!!

Does The Overtime Exemption Apply To Inside Sales?

January 27, 2015/0 Comments/in Does The Overtime Exemption Apply To Inside Sales? /by Mike Smith

Does The Overtime Exemption Apply To Inside Sales?

Most companies are aware of the “outside sales” exemption to the requirement to pay overtime, but they may not be aware that the Fair Labor Standards Act also provides an exemption to overtime for some “inside sales” employees. When an employee sells a big ticket item, the inside employee exemption is used, providing it meets the following three conditions.

The retail business or service employing the individual must be recognized as an establishment in which 75% or more of the annual dollar amount of sales are retail sales in the retail or service industry represented, and are not for resale.
The regular rate of employee pay must be greater than one and one-half times minimum wage for each hour the employee worked during a week when overtime hours are worked.
The total earnings of the employee must consist of more than 50% in commissions earned.

All three conditions must be met for the exemption to apply, and if the employee worked over 40 hours, he or she must be paid overtime wages.

Regular Rate Calculations

Meeting the rate of one and one-half times the minimum wage is less restrictive for the employer than the normal overtime requirement. To determine if the criterion is met, divide the number of hours worked into the employee’s total earnings, which include commission, a draw on future commissions, and any supplemental payments to increase employee earnings to the required level.

Hotels, motels, and restaurants imposing mandatory charges on customers, which are paid to employees in part or in full, may
count the payment as a commission. This allowance is made due to the direct relationship to the goods and services sold by the establishment and applies to a precise percentage of the consumer’s bill. The tips customers give employees are not to be considered commissions.

There is no requirement to calculate the regular rate every week when an employee’s earnings are consistently one and one-half times the minimum wage in a week when the employee worked over 40 hours. When there is uncertainty about an employee’s earnings in some weeks, it is necessary to calculate the regular rate. When there is a question pertaining to the hourly rate, the Wage and Hour Division will evaluate the facts and determine if the regular rate requirement is being met.

Representative Period

When measuring a representative period for commissions, the time used can be as short as a month and no longer than a year. The representative period of time must be defined in your records, and failure to designate the time period is a direct violation of the record-keeping requirement and can be grounds for the exemption being denied.

If there is reasonable expectation that there will be no difference in compensation when compared to other members of the sales group, a newly hired employee may be treated as meeting the exemption from the beginning of employment.

Commission Payments

If the employee is paid entirely by commission or the commission payments are always greater than salary or hourly wages, it is determined that more than half of the employee’s earnings come from commissions. When this is not the case, the commissions and other compensations during the representative period must be totaled separately. Commission totals must exceed other compensation totals in order to qualify for the exemption. If a department or store manager is paid commissions based on sales, the payments can count as commissions. Although other employees made the actual sales, manager functions contributed to the sales.

Conclusion

Although there are conditions allowing inside sales employees to be exempt from overtime, an employee is not automatically exempt simply because he or she is paid a commission.

Things to look out for when buying workers comp

7 Deceptions to look out for when buying workers comp

January 7, 2015/0 Comments/in 7 Deceptions to look out for when buying workers comp /by Mike Smith

7 Deceptions to look out for when buying Workers Comp:

If you are a new business, or you have decided it’s time for a new Workers Comp policy, there are a few tricks you really need to be aware of so you don’t get stuck with a very unpleasant surprise! But first, let’s look at what Workers Comp (WC) policies do for you:

A WC policy protects YOU from future claims. It’s the only way to protect your business, your family, and your good name in case of claims today and in the future. In many states, an employee who is injured can pierce your corporate veil, and the business owner becomes personally liable – unless you have Workers Comp!
It provides for your employees when they are injured on the job, and helps them heal and recover, so they can get back on the job as quickly as possible.
It shows that you are a real company, and allows you to bid on larger jobs, it allows you to work in more profitable businesses, and often at a better margin!

Have you seen these red flags?

What could possibly be the problem when buying workman’s compensation? For me, that’s an easy question to answer! Would you rather pay retail, or would you rather buy your supplies, your HR, your benefits, and your Workers Comp for the wholesale price? If you are buying your Workers Comp from your local agent, you are paying RETAIL! Let’s look at some tricks agents use to get you a new policy, and how it can hurt your business, your profits, and your growth.

Using lower payroll: Check carefully and make sure your quote includes ALL of the taxable wages you expect next year. If your agent uses a smaller number for wages, you are going to have to ‘true up’ the shortage at the end of the year. So just when you were thinking you were going to make a profit, your insurance agent tells you that YOU OWE MONEY! Not good!
Using cheaper class codes: Your insurance rate is based on your agent properly identifying the correct code for your business practices. If the proper code is a little more expensive, then your rate may be higher than his competition. You probably don’t know the correct codes, and it may not be a big deal. But if you get audited, it can be a BIG problem for you! YOU OWE MONEY!
Using more expensive class codes: If your proper code is a little less expensive, your good old buddy that’s been your agent for so many years may write you with a more expensive code, or more expensive codes! YOU PAY MORE MONEY – and he makes more commission!
Last minute rate increases: Did you get a last-minute rate increase? If you were considering not renewing your current provider, sometimes there just accidentally happens to be a problem getting you your new rates. Agents know that it may take a week or three to get you a new quote, and if you are getting a big increase, don’t be surprised if it arrives at the last-minute!
Withholding loss runs: Can’t get your loss runs? Agents know it takes loss runs (a list of the claims against your workers comp policy) to get a new policy. And most agents know that if you are asking for loss runs there’s a good chance it’s to move your insurance somewhere else. They also know they are required, by law (which varies by state) to give them to you. So if it’s near renewal time, don’t be surprised if they arrive at the same time your renewal notice arrives, right before your policy expires.
Overpayments being held hostage: Does your Workers Comp carrier owe you money? Don’t be surprised if you are owed money, and it takes 3-4 months to get your premium overpayment or credit back. You are required to get your overpayment back, but sometimes it’s held up for some reason. You know the drill – if you owe me money, I want it now. And if the insurance company owes you money, they don’t seem to be in any hurry. The carrot here is that you want your money back, and you are subconsciously concerned that you won’t get it unless you buy from the same folks. Under normal circumstances, premium reimbursements should take about 60 days.
Not getting the attention you feel you deserve? You are probably right, you aren’t. Most agents that write Workers Comp also write your Commercial Auto, your General Lines business insurance, Commercial Property, maybe your personal car insurance, Life Insurance, and other policies. Frankly, your agent really doesn’t make that much on Workers Comp, and most really don’t have the time (or the experience) that really needs to be invested in managing your claims, working to keep your losses down, and to get your people back to work.

Why you should consider buying Workers Comp from a Specialist:

Here is where a PEO like Eagle can help:

No big down payment! A PEO is usually a ‘pay as you go’ way to buy Workers Comp, so your payments are made each pay period, based on your actual taxable wages paid during that pay period. Your pay period can be weekly, bi weekly, twice a month, or monthly, or in between!
There’s no ‘True Up’ at the end of year! Because your Workers Comp is paid each pay period, there’s no year-end audit to establish whether you owe more money. It’s simple- you don’t.
Buy wholesale – not retail! One of the ways you save money is because you are not buying a new retail policy, you are part of the PEO’s master policy. You benefit from the buying power of the PEO! Don’t pay retail!
Get help keeping claims low! Claims are kept low because it is in both yours and the PEO’s best interests to manage those claims, and get your employees healthy and back to work. This saves you money and helps keep your employees healthy and working.
Safety Programs are professionally run and managed. The fact is that safety programs help keep workers safe and claims low. A PEO puts safety specialists on YOUR team!
Help ensure proper coding. Because the PEO shares the employees with you, the PEO wants to be sure that all employees are assigned the proper workman’s comp codes. So you are assured that your employees are coded correctly. Again, no year-end true up.
State Unemployment Taxes are kept low, because the PEO works to make sure that your former employees find a new job as quickly as possible!

The bottom line really is the bottom line, and Eagle can help you increase your bottom line by providing you, the business owner, the economies of scale that a big company may have developed. You’ll get professionals doing the jobs that your people do, often on a part-time basis, when other duties allow. Our customers stay with us an average of 9 years, so we are definitely doing a lot of things right! And, your insurance agent may love us, because we can do a great job for you, he still gets paid, and we don’t compete with them on any of their other products! You WIN!

7 Deceptions to look out for when buying workers comp

How to Control and Reduce Workers Compensation Costs

September 17, 2014/0 Comments/in How to Control and Reduce Workers Compensation Costs /by Mike Smith

How to Control and Reduce Workers Compensation Costs

Review experience modification factor (mod) for accuracy

Calculated and assigned by NCCI
Include both paid and incurred losses. Reserves (Amount set aside to pay future claims) are included as well
The higher the losses, the higher the mod, which translates to higher premiums.
Agents and brokers should review to make sure that the former claims of their clients are closed. It is not uncommon for a closed claim to be left open on the insurance carrier’s records. If a closed claim has mistakenly been left open, then there will typically be additional reserves yet to be paid. If you can get the insurance carrier to show these claims as “closed”, that will remove those additional reserved loss funds from your mod calculation.

Review Rating Classifications

Agents and brokers should review the policies of their clients to ensure the proper WC code is being applied.
Reviewing the WC code classifications could possibly lead to re-classifying with a less expensive classification.
If the review leads to re-classifying with a more expensive class code, this will still save the company money in the long run. In the event of an injury, the class code will automatically be reviewed. If it turns out that the company was misclassified with a less expensive WC code, they will be charged additional premium for all the work that had been under the misclassified WC code, and potentially additional fines, penalties, and interest.
If a crew has multiple responsibilities, the higher risk is typically the default WC classification code for all work being done. For instance, a crew of workers that installs solar panels may install on the ground and on roofs. Since working on a roof has more risk than working on the ground, the WC code for roofs is more expensive. This will be the default WC class code for all work being done by this crew, both on the roof and ground. After reviewing the rating classification, the company might opt to divide this crew into two crews. By having one crew do only groundwork (With a cheaper WC code), and another crew only doing roof work (More expensive WC code), the company will save money.

Evaluate state fund options

Many times workers’ compensation insurance from the state fund costs less than insurance from the private carriers. This is because the expense loadings are not as great and the state funds usually pay no premium taxes.

Take bids every three to 4 years from agents and direct writers.

Compare bids premiums and coverage.

Pay small medical bills

It will benefit the company to pay any medical bills for minor injuries on their own, without using insurance. When this happens, the company should still fill out a claim report for their carrier, but mark it as “incident only”. This will protect the company in the event that the injury becomes more serious down the road. The cost benefit is that the insurance carrier will enter the claim as a “closed” claim, showing $0 as paid and reserved amount. Thus, it should not adversely affect the experience mod of the insured.

Request a private investigator if fraud is suspected

If a workers compensation claim is suspected as fraudulent, the client should alert the insurance broker or agent. A private investigator can help verify whether or not the injury matches the behavior of the injured worker.

Get certificates of insurance for subcontractors

Most states hold contractors liable for uninsured subcontractors. Be sure that any subs working on the site have adequate insurance.

Large contractors should consider self-insurance

If the company is paying more in insurance premiums than the cost of the claims, it is time to consider self-insurance.

Reducing workers compensation claims is a major factor in reducing workers compensation costs. For more specific instructions regarding how to reduce workers compensation claims, read https://eagleemployerservices.com/reduce-workers-compensation-claims/.

For other great articles regarding how to control and reduce workers compensation costs, visit:

How to Reduce Workers Compensation Claims

June 24, 2014/0 Comments/in How to Reduce Workers Compensation Claims /by Mike Smith

How to Reduce Workers Compensation Claims

The cost of workers compensation has a tremendous impact on a business, so it is critical for employers to know how to reduce workers compensation claims. The first thing to understand is that there are two aspects of claim reduction: loss prevention, and loss control. Of course the biggest cost savings comes from loss prevention. Review the list of tips and strategies below to audit the claim management of the business in question. Asses which policies need to be implemented, or improved. Be sure to incorporate employees in the company’s efforts to reduce workers compensation claims. Employees will be more productive and motivated towards the company’s efforts if they are involved.

Loss Prevention

Make Safety a priority.

Write a safety control program.
Incorporate safety rewards and discipline (Incentives should include safety accountability for supervisors).
Train supervisors how to respond to an injury, including first aid administration.
Regular safety meetings.
Educate employees on all equipment and job duties.
Incorporate a questionnaire of previous injuries to the new hire process. If the employee has a history of injuries, do not hire them.
Match people’s physical abilities with their job tasks.
Communicate the cost of workers compensation, and how claims can adversely hurt the company. Ask employees for ideas on how to improve work place safety (Hawthorne Studies).
Establish a drug free workplace policy (Include random drug tests, and test all new employees).
Properly maintain tools and equipment in properly working order.
Insist on a clean work environment. Clutter hinders productivity and increases risk.

Analyze Work Comp Claim History

Is there a pattern of losses from particular employees, departments, or work locations? Do more losses seem to occur during the care of a particular supervisor? Eliminate work place hazards that have contributed to a previous claim.

Loss Control

Claim Management

Provide quick medical attention. This can be the difference between a big and small claim.
Use a preferred medical provider, not a “Doc-in-the-box”.
Complete accident report. Include photographs, witnesses etc. Be quick, accurate and proactive.
Have the doctor test for drugs. A failed or refused drug test can be used to deny claim.
Return to work program. Incorporate light duty. If there is not anything for them to do, find something! This requires fewer benefits from insurance company, which would otherwise increase premiums. Light duty also saves money on additional labor that will be needed while the employee cannot work. Injured employees may not refuse light duty, if the request is reasonable. If they do, this can be a basis for the insurance company to drop any benefits being paid. Studies show that employees on light duty return to work faster than employees who are not offered light duty.
Stay in contact with injured employee.
Have management go with them to each doctor visit. Review prescriptions with the doctor, some prescriptions are expensive and not necessary.
Audit legal and medical bills for accuracy and appropriateness. Ensure that expenses are not being unreasonably inflated.

Investigate for Fraud

Hire an investigator.
Did the employee list previous injuries on new hire application? Does he/she have an extensive history of WC Claims? This can be an indication of fraud.

Consider partnering with a PEO

PEO’s have experts that can help with all of these processes. The co-employment relationship gives the PEO proper incentive to reduce claims, because employees are covered under their master WC policy. They want to maintain a good relationship with their WC carrier. Whereas a typical WC carrier can simply inflate the actual losses of the claim, and pass the expenses on to the client via increased WC rate. Reducing workers compensation claims are a great way to reduce workers compensation expenses. To learn how to get a workers compensation quote, read our article: http://eagleemployerservices.com/how-to-purchase-workers-compensation-insurance/. For any advice or assistance, email Mike@eagleemployerservices.com

How to Reduce Workers Compensation Claims | By Mike Smith

AMS Staff Leasing

June 17, 2014/0 Comments/in AMS Staff Leasing /by Mike Smith

AMS Staff Leasing

Looking for a quote from AMS Staff Leasing? Eagle Employer Services is proud to have been a broker for AMS Staff Leasing for almost 15 years. AMS Staff Leasing did officially dissolve at the beginning of this year (2014). Fortunately, we continue to offer the same great service with other great PEO providers. In particular, a brand new company that we represent has already transitioned many former AMS Staff Leasing clients. We have great PEO options that offer the same great services, specifically designed to help reduce workers compensation and payroll expenses for contractors. As a former broker for the AMS Staff Leasing, we are proud to continue offering these same great services at excellent rates. If you would like to know more about the current (Dissolved) status of AMS Staff Leasing, and/or would like to utilize the same great service from a similar PEO provider, give us a call at 214.952.8696 or email Mike@eagleemployerservices.com.

Work Comp & Payroll for Contractors

Services

Payroll administration, not just a check printing service
Tax payments and return filing using PEO employer identification number
Benefits plan enrollment and administration into PEO sponsored benefit plans
Workers Compensation policy administration and claims processing
Loss Control services including safety program design and implementation, drug testing policy, return-to-work and light duty program, employee incentive program and regular safety inspections.
Human Resources guidance, policy development, problem resolution, file maintenance, job descriptions, employee training, new-hire qualification and employee leave administration

Advantages to Employer

No annual WC premium, pay as you go.
Reduced administrative costs
Redirect focus towards core business
Access to Lower cost/higher quality employee benefits
Expert advice on compliance with employment-related laws
Competitive Workers Compensations rates via master policy of PEO
Retain the management of your workforce without administrative complexity

AMS Staff Leasing | Eagle Employer Services