by admin | Jul 2, 2019 | Benefit Management, Human Resources
By now you’ve heard of the term “gig economy” but you may not know what it means. Is it describing the economy of musicians as they work gigs? Does it mean something about computers and the measurement of space allotted for their programs? Does it have something to do with fishing? Well, not exactly. But, have no fear! We will break this term down into easy bites and you’ll be an expert on the gig economy in no time.
What IS the Gig Economy?
The term “gig economy” refers to the new landscape of employment in the world where workers are hired for temporary, flexible jobs instead of full-time permanent positions. Think of it this way: workers in a gig economy are paid for completing a job in a predetermined timeframe—like musicians are paid for a night of music (a gig) at a venue. In a gig economy, you see that independent contractors and freelancers tend to be hired over the more traditional, full-time job seekers. Examples of jobs that thrive in this economy are technology-based positions, creative jobs, and the new tide of service-based positions in companies like Uber, Airbnb, and Instacart.
Gig Economy Numbers
Forbes magazine reports that according to the 2018 numbers from the Bureau of Labor Statistics, there are 55 million people in the US classified as gig workers. This is a huge number! In fact, that translates to more than 35% of the current US workforce. Projected to rise to 42% in 2020, over 40% of these workers are estimated to be millennials. As those numbers increase, the proportion of male to female workers shifts. Once right at 50/50, the new ratio is 60/40. This is attributed to larger numbers of women returning to school for postsecondary education. In fact, many leave the workforce completely to return to school versus taking courses and working at the same time.
Pros of Gig Economy Jobs
There are many pros to a job in this category. Job seekers who are looking for gig economy positions name flexible workplaces and flexible hours as their top priorities. The shift to remote offices as well as the freedom to work at whatever hours are most convenient definitely supports this new economy. Employees who have the discipline to manage their workflow and complete tasks on time are ones that will thrive in a gig job. The positives are not limited to just the employees, though. Employers like being able to choose new hires from a much larger pool of candidates because they are not tied down to job seekers in their immediate vicinity. Employers are also able to save money as they do not have to invest in work equipment, health benefits, or on-going training for these independent workers.
Cons of Gig Economy Jobs
The cons of gig work are some of the flip sides to the pros of gig work. These drawbacks include the absence of health benefits and 401k benefits. Freelancers have to buy their own healthcare and figure out their own savings schedule for retirement—both of which aren’t impossible, but they do take up time and tend to be at a greater expense than the benefits offered in a traditional work environment. Gig workers also face the reality of no paid sick days or vacation days. If a freelancer has the flu, he isn’t paid for the time he misses from work and his deadline isn’t adjusted in this task-based economy. On the employer side of the equation, companies report that the pool of qualified candidates for higher level management positions continues to get smaller as the trend for gig workers who freelance from job-to-job increases
The workplace continues to evolve from a traditional 9-5 workday in a traditional office environment to one that is a flexible work cycle in an ever-changing location. Employees place high priority on setting their own rhythm for work flow and prize independence. Employers are encouraged to stay in-tune with the gig economy and to seek ways to marry their company’s needs with the needs of this new workforce population. Both employer and employee can benefit from this new work landscape.
by admin | Jun 27, 2019 | Health & Wellness
Ever notice how you can get an overall feeling of well-being after taking a long walk, shoveling snow, dancing, or playing Frisbee with the kids? It’s not just because you can check “get some physical activity” off your to-do list. Turns out, there are physiological reasons why you get that feeling. And for people who suffer from a mental health condition like depression, anxiety or ADHD, exercise can relieve symptoms almost as well as medications, and can sometimes help certain symptoms from coming back.
How does it work? Researchers aren’t completely sure. But we do know that physical activity causes certain substances that affect brain function to kick in. These include:
- Endorphins– brain chemicals that reduce stress or pain and increase feelings of well-being
- Serotonin– a brain chemical that affects mood
- Glutamate and GABA– chemicals that influence parts of the brain that affect emotions and mental clarity
- BDNF(brain-derived neurotropic factor) – a protein that protects nerve cells in the brain that help control depression-like symptoms
Many people have found that exercise helps keep anger, stress, and muscle tension at bay and can help you sleep, which helps lessen stress, boost concentration, and improve self-esteem. In addition, it can help you cope with challenges in a healthier way, instead of turning to behaviors like drinking alcohol, which can actually make symptoms worse.
Recommendations for physical activity are the same for mental health benefits as they are for physical benefits: try for at least 150 minutes per week. But even one hour a week has been shown to help with mood disorders like depression and anxiety and even substance use disorder. But people suffering from mental health conditions may find it hard to do even that small amount. No matter how much you try to convince yourself to get up and move, you just can’t get motivated.
If this happens, remind yourself that just a walk around the block is a great start. Don’t set yourself up for failure by telling yourself you “should” be doing more. Just start somewhere, and hopefully the benefits you start to notice will keep you motivated to build up from there. Finding an activity you actually enjoy can really help you stay motivated.
There’s no doubt that physical activity is beneficial for mind and body. And even just short spurts are helpful. But if you are having symptoms of depression, anxiety or another mental health condition, physical activity may not be enough. Always talk to your doctor or a therapist if your symptoms are troublesome — you may benefit from medication and/or talk therapy.
Whatever you do to boost your activity level – even taking the smallest of steps – give yourself lots of props. Getting started isn’t easy and staying motivated can be challenging. But try. It just might leave you feeling great.
By Bill Olson
Originally posted on ubabenefits.com
by admin | Jun 25, 2019 | Benefit Management, Benefit Plan Tips, Tricks and Traps
Question: Our company offers group medical and dental plans for all employees. We also have an executive-only medical plan that covers out-of-pocket expenses that the regular group plan does not pay. Does COBRA apply to the executive-only plan? Do we have to include it in our summary plan description (SPD)?
Answer: The coverage continuation requirements of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) pertain to group health plans sponsored by employers with 20 or more workers (except certain church plans). This is referred to as federal COBRA, which is enforced and regulated by the Internal Revenue Service (IRS) and the Department of Labor (DOL).
Any employer-sponsored plan or program providing health benefits (medical, dental, vision, etc.) is a group health plan under COBRA. Briefly, if the employee’s access to the program or benefits is based on the person’s current or past relationship with an employer, it is a group plan. An executive-only medical plan is a group health plan – and subject to COBRA – since eligibility for the plan is connected to employment. (Reference: 26 CFR § 54.4980B-2 )
Next, the Employee Retirement Income Security Act (ERISA) imposes numerous reporting and disclosure requirements on employee benefits plans, including rules for plan documents and summary plan descriptions (SPDs). Plans sponsored by governmental employers and certain church plans are exempt from ERISA, but plans sponsored by private-sector employers must comply with ERISA’s plan document and SPD rules. There is an exception, however, for an executive plan that meets the following conditions:
- The plan primarily provides welfare (e.g., health) benefits for a select group of management or highly-compensated employees; and
- No part of the plan is funded through employee contributions or a trust.
The most common example is an executive-only medical insurance plan for which the employer pays 100 percent of premiums. In that case, an SPD is not required and Form 5500 reporting does not apply. A plan document is required but it does not have to be made available to employees. The plan document does have to be provided to the Department of Labor (DOL) if requested. (Reference: 29 CFR § 2520.104-24)
By Kathleen A. Berger
Originally posted on thinkhr.com
by admin | Jun 20, 2019 | Human Resources
Every company wants to lead their industry, and doing so means remaining competitive. With the rate of speed the world experiences change in this age that is a very difficult proposition. For an HR professional, it is increasingly more difficult to stay ahead of the curve.
So, what are the critical pieces to the strategy?
- Agility
- Change Management
- Culture
Knowing that, how do the three concepts tie to one another?
We start with agility.
When it comes to this part of the strategy, what HR professionals really want is to be able to adjust at a moment’s notice. But it’s not enough to just be able to make the change. The HR professional wants to effectively implement the change in the organization.
Of course, that change doesn’t just happen at the drop of the hat. It requires leadership and even some maintenance.
That’s where change management comes into the mix. HR Exchange Network contributor John Whitaker says:
“Change can and will come quickly. Change management is a helpful (and sometimes hopeful) way to plan the actions and responses needed during a change process. But you must take advantage of those times where you are thrown into a chaotic situation without the benefit of planning.”
Finally, that brings us to culture.
In addressing this concept, CultureIQ worked with Bloomberg to survey 300 senior executives about the Future of Work. In that research, one of the first things they learned is work is becoming more complex. How? Consider first that companies are becoming more agile either by force or organically. Executives know they have to do this in order to remain competitive. Optimizing a talented workforce, predicting talent needs and keeping retention rates high are critical to sustaining your organization’s competitive advantage.
In fact, CEOs recognized that one of the most important factors in their organization’s performance for the next three years was ensuring their organization was agile.
CultureIQ says agility ranked higher than other attributes like collaboration, engagement, or innovation.
A company’s culture is imperative to its strategy especially when you consider this fact: culture influences whether talent is attracted or not attracted to the company. It’s also significant in the company’s ability to retain their best employees.
According to Gallup, 4 in 10 U.S. employees strongly agree their organization’s mission and purpose makes them feel their job is important. Furthermore:
“By doubling that ratio to eight in 10 employees, organizations could realize a 41% reduction in absenteeism, a 33% improvement in quality, or in the case of healthcare, even a 50% drop in patient safety incidents.”
Gallup has studied organizational culture and leadership for years. They find some organizations have difficulty in successfully establishing their “ideal” culture and attribute that to the fact that culture is constantly in flux and is not the same one moment to the next.
Earlier this year, researchers looked specifically at how HR leaders fit into the process of changing culture.
“Our analytics show that in the world’s highest performing organizations, HR leaders play a central role in creating and sustaining the culture their organization aspires to have. As the stewards and keepers of the culture, HR leaders are responsible for inspiring desired employee behaviors and beliefs — and in turn, realizing the performance gains of a thriving culture.
By owning their pivotal strategic and tactical roles in shaping work culture, HR leaders can cultivate exceptional performance and prove to senior leadership that they deserve a seat at the table.”
For HR, Gallup set forth three roles that explain how leaders influence culture.
- Champion – Executive leaders create the vision of the perfect culture, but HR leaders champion it. They are responsible for turning words into deeds.
- Coach – HR leaders, as coaches, make sure managers and employees are on the same page and help the two entities take ownership of the culture.
- Consultant – HR leaders here consistently check culture metrics such as employee engagement, customer outlines and performance indicators. In this way, HR leaders can make sure the culture strategy stays on track.
By Mason Stevenson
Originally posted on hrexchangenetwork.com
by admin | Jun 13, 2019 | Human Resources, IRS
Question: Are amounts an employer reimburses employees for mileage taxable?
Answer: They may be; the type of reimbursement plan will dictate whether reimbursement for business travel is or is not taxable. Both accountable plans and non-accountable plans allow an employer to reimburse employees for their business expenses.
With an accountable plan, the reimbursement is not taxable to your employee. Amounts paid under an accountable plan are not wages and are not subject to income tax withholding and payment of Social Security, Medicare, and Federal Unemployment Tax Act (FUTA) taxes. Your reimbursement or allowance arrangement must meet all of the following conditions in order to quality as an accountable plan:
- There must be a business connection to the expenditure. This means that the expense must be a deductible business expense incurred in connection with services performed as an employee of the employer. If not reimbursed by the employer, the expense may be deductible by the employee from their taxable income.
- There must be adequate accounting by the employee. This means that the employee must give their employer a statement of expense, an account book, a diary, or a similar record in which they entered each use at or near the time it occurred, along with date, mileage, and the business purpose of the use.
- Excess reimbursements or advances must be returned within a reasonable period of time.
A non-accountable plan does not meet the three requirements for accountable plans and is subject to all employment taxes and withholding. Payments under a non-accountable plan occur if: (1) the employee is not required to substantiate expenses with receipts or other documentation in a timely manner; and (2) the employer advances an amount to the employee for business expenses and the employee is not required to, and does not, return any amount he or she does not use for business expenses in a timely manner.
Employers should also check with their state department of taxation to understand any state tax rules applicable to them.
For more detailed information on federal mileage reimbursement, see the IRS page containing Publication 463, Travel, Entertainment, Gift, and Car Expenses, and updates to this publication since its publication date.
Originally posted on ThinkHR.com
