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#TuesdayTips – Understanding Employee Training Compensation: When Is It Paid Time?

Southern PB — Tue, 09 Jul 2024 17:40:28 +0000

#TuesdayTips – Understanding Employee Training Compensation: When Is It Paid Time?

In general, time spent in job-related training is considered work time and must be compensated. However, not all training sessions, classes, or programs qualify for paid time. Here are the four criteria that must be met for training to be unpaid:

Outside Normal Work Hours: The training must take place outside of the employee’s regular work hours.
Voluntary Attendance: The training should be entirely voluntary, with no company-initiated consequences for non-attendance.
Not Job-Specific: The training should not be directly related to the employee’s job. While it may be tangentially related, like most continuing education, it shouldn’t be specific to their day-to-day tasks or aimed at training them for new job duties.
No Work Performed: The employee must not perform any work for the employer during the training, such as reading or replying to emails.

Examples:

If a software developer enrolls in an evening college class to learn a new coding language that isn’t used at their workplace, this training does not need to be paid.
Conversely, if a graphic designer attends a workshop to learn a new software tool that will be used in upcoming projects, this training time should be compensated.

Key Takeaway: Understanding these criteria can help employers and employees navigate the complexities of training time compensation. By meeting all four criteria, employers can determine when training time does not need to be paid, ensuring compliance with labor laws and fair treatment of employees.

For more information on employee training compensation and compliance, contact Southern Payroll & Bookkeeping today!

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Keeping Compliant with the Updated W-4 Form

Southern PB — Thu, 27 Jun 2024 13:16:50 +0000

Today we want to discuss something that isn’t exactly “new” but still has relevance since there is still a good amount of turnover in the workplace with the incumbent need to fill out new forms for the IRS. Whenever someone starts a job at a new employer, the employer is required to have the employee fill out a W-4 form for the Internal Revenue Service. As of January 1, 2020, there is a redesigned form that must be used for any new employees…OR any employees that wish to make changes to their current withholding status.

Origins

The updated W-4 form was created out of the 2017 Tax Cuts and Jobs Act, which brought some significant changes to the tax code, with personal exemptions being eliminated, standard deductions increased, and tax brackets as a whole being modified.

Updating the W-4 was meant to improve the accuracy of the amount withheld from paychecks by asking clear and specific questions about the person’s income, dependents, and deductions. The goal was to reduce the chances that anyone would get either a large refund or a large bill on tax day the following year.

The new version of the W-4 was designed in a simpler and more user-friendly way, eliminating complex calculations and replacing them with more straightforward steps to account for those times someone works multiple jobs or has several sources of income. They also provided clearer guidance and instructions to make it easier to understand how withholding is calculated, so adjustments can be more easily made when changes in personal or financial situation occur.

Employers’ Responsibility

As an employer, it will be your responsibility to stay in compliance with the latest requirements for the W-4. The primary task in compliance is to stay up-to-date with the latest in guidelines and updates that the IRS issues in regard to the W-4 form. When they make changes, they generally have reasons for them and they will usually communicate those reasons.

Make sure the employees have the latest version of the W-4, and make sure your employees know how to complete it. You might offer informational sessions that provide access to IRS resources, or have someone from the HR department talk to everyone.

If someone new is hired, they must use the updated W-4. If someone wants to make changes, they also must use the updated form. In either case, make sure the forms are processed quickly and accurately, with the payroll system updated to reflect the changed withholding amounts if necessary. You should keep the original records for four years and you should ensure those records are kept private and secure.

Offer employees the chance to review and change their withholding annually. Of course, they are allowed to change it whenever they choose to, especially when there are major life changes like a birth, death, marriage, or divorce. Giving employees an annual notice that they can make changes may give them a reasons to think about it before they need to make any changes.

Use the resources the IRS has provided, communicate changes in tax laws and requirements to your employees as soon as you can, and assign someone to monitor compliance with IRS requirements so small adjustments can be made as needed.

The new W-4 should make life easier for both employee and employer, but you must stay in compliance with the rules and regulations in order for it to all work smoothly. If you have questions about this or any other HR matter, please reach out to Southern Payroll & Bookkeeping today: 423-207-2497.

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#TuesdayTips – Essential Pay Statement Compliance Tips for Employers in 2024

Southern PB — Tue, 18 Jun 2024 14:27:58 +0000

The Importance of Pay Statement Compliance for Employers in 2024

In today’s complex payroll landscape, simply withholding federal and state taxes, health insurance premiums, and retirement fund contributions from employees’ gross pay is not enough. Employers must “show their work” by clearly displaying every dollar paid and withheld. Failing to do so could result in costly penalties and potential class action lawsuits.

Understanding Pay Statement Compliance

Maintaining compliance with pay statement disclosure requirements is crucial for employers. Compliance risks include government audits, litigation, penalties, and reputational damage. If employees perceive discrepancies between their expected compensation and reported wage statements, conflicts can arise.

For instance, in California, non-compliant pay statements can lead to penalties of $50 per employee for the first violation, up to $4,000 per employee plus costs and attorney’s fees. For large companies, these penalties can be substantial.

Essential Components of Pay Statements

Pay statements play a critical role in wage payment compliance. They simplify payroll complexities, provide transparency, and help resolve disputes. While specific requirements vary by state, typical pay statements should include:

Contact and Date Information: Employer’s name, address, phone number, pay period dates, and employee details. Some states may require an employee identification number.
Pay Rates and Hours: Details on regular, overtime, and double-time rates, along with corresponding hours worked.
Gross Earnings: Total earnings before any deductions.
Employee Taxes: Deductions for federal income tax, FICA taxes (Medicare and Social Security), and state/local taxes if applicable.
Benefit Deductions: Employee contributions to employer-sponsored benefit programs.
Employer Taxes and Contributions: Employer responsibilities for taxes, including federal and state unemployment taxes, FICA taxes, and potential benefits contributions.
Garnishments: Withholdings for court-ordered reasons like child support, defaulted loans, or tax levies.
Paid Time Off (PTO): Accrued hours, taken hours, and balance for vacation, sick, or personal days.
Net Pay: The amount paid to an employee after all deductions.
State-Specific Requirements: Any additional fields required by specific state or jurisdiction regulations.

Key Takeaways for Employers

To ensure compliance and avoid potential risks, employers should consider the following:

Include All Required Information: Ensure wage statements contain all relevant details as per state regulations.
Evaluate Payroll Systems: Verify that payroll systems have the necessary fields to meet compliance requirements. Consult with payroll system providers to assess risk exposure.
Understand Penalties: Be aware that non-compliance can lead to significant fines and penalties.
Partner with Experts: Consider partnering with Gusto to ensure accurate and timely payment of employees and taxes.

Navigating pay statement compliance doesn’t have to be daunting. By staying informed and working with knowledgeable providers like Gusto, employers can ensure compliance, maintain positive employer-employee relationships, and avoid costly penalties.

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#TuesdayTips – Gusto’s 1099 Solutions for Compliance

Southern PB — Tue, 30 Apr 2024 14:04:05 +0000

With the rise of digital payment platforms like Cash App and Venmo, businesses are increasingly conducting transactions through these channels. While these platforms offer quick and convenient payments, they also require careful monitoring for 1099 reporting purposes.

The IRS now mandates businesses to report payments made through third-party networks, including digital payment platforms, on their 1099 forms. This broadens the reporting scope to include transactions processed via Cash App, Venmo, or similar platforms, provided they meet the reporting thresholds.

Digital payment platforms facilitate various transactions beyond traditional business payments, such as peer-to-peer transfers and personal expenses. It’s crucial for businesses to accurately track and differentiate between business-related and personal payments to ensure compliance with 1099 reporting requirements.

Failing to report payments conducted through Cash App, Venmo, or other digital platforms can expose businesses to compliance risks and penalties. Establishing robust systems for tracking these transactions is essential to ensure accurate reporting on 1099 forms and mitigate potential compliance issues.

Gusto offers comprehensive payroll solutions that include handling 1099 payments to contractors. By using Gusto for payroll, businesses can ensure accurate categorization and reporting of 1099 payments, helping them maintain compliance with IRS regulations and avoid potential penalties.

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Responding to a Tennessee Unemployment Claim: An Employer’s Guide

Southern PB — Thu, 11 Apr 2024 14:17:42 +0000

Quick answer: Tennessee employers respond to unemployment claims in Employer e-Services, the Department of Labor and Workforce Development’s online portal. Open the Fact-Finding Questionnaire from your Summary page or Action Center, answer it in detail and submit it before the deadline on the request. If you miss it, the state decides the claim on whatever evidence it has. Separately, Tennessee requires you to give every separated worker a Separation Notice (Form LB-0489) within 24 hours of separation, whatever the reason.

A notice arrives from the Tennessee Department of Labor and Workforce Development. A former employee has filed for unemployment, and the state wants your side of the story.

Most small employers do one of two things at this point. They forward it to someone and forget about it, or they answer it in two sentences and move on. Both are expensive, and the cost does not show up until later.

Here is what the notice actually is, what to do with it, and how to stop the next one being a scramble.

What you have received

When a former employee files a claim, TDLWD asks the employer what happened. In the Employer e-Services portal on jobs4TN, this arrives as a Fact-Finding Questionnaire. You will find it on your Summary page, and again under your Action Center.

It is not a formality. The state uses your answer, alongside the claimant’s, to decide whether benefits are payable and whose account gets charged. If your answer is thin, the decision gets made on what is available — which will mostly be the other side’s account of events.

The clock is shorter than you think

The response deadline is printed on the notice itself. Read it the day it arrives rather than the day you get round to it, because the window is measured from when the state issued the request, not when you opened it.

If your business responds through SIDES E-Response, there is a firm outer limit worth knowing: separation information requests stay on the E-Response site for 30 days, and after 30 days they are deleted. Once it is gone, it is gone.

What happens if you do not respond

TDLWD’s own guidance is unambiguous. If you miss the deadline to respond to a separation fact-finding request, the agency will issue a decision based on all available evidence.

Read that carefully. The claim does not pause while you catch up. It is decided without you.

That matters for two reasons. Benefits paid on a claim you could have contested may be charged against your account. And a determination made without your input is harder to unwind afterwards than it would have been to answer properly the first time.

What to actually put in the response

The single most common mistake is answering the question “why did this person leave?” with one word. Quit. Fired. Laid off. Those words carry very different consequences and almost no information.

What the state is trying to establish is the reason for separation in enough detail to apply the law to it. Give it dates, specifics and documents:

The final incident, with the date. Not “attendance problems” but what happened, and when.
What the employee was told, and when. Prior warnings, written or verbal, with dates.
The policy involved, if the separation was for a policy breach — and whether the employee had acknowledged it.
Who resigned, and how. If the employee quit, say how the resignation was communicated and whether a reason was given.
Whether work was still available. This is often the deciding fact and is frequently left out.

SIDES E-Response lets you attach documentation and shows you the claimant’s stated reason for separation before you answer, so you can respond to what was actually claimed rather than to what you assume was claimed. It also gives you a date-stamped confirmation of receipt — keep it.

The two ways to respond

Employer e-Services on jobs4TN. Log in, open the Action Center, complete the Fact-Finding Questionnaire. Suitable for any employer, and the route most small businesses use.

SIDES E-Response. A standard electronic format for separation requests, designed for employers handling a modest number of claims. SIDES proper — the full integration — is aimed at large employers and third-party administrators dealing with high volume.

One practical note that catches people out: keep the contact details on your Employer e-Services account current. If the state needs more information, that is where it will write. A notice sent to a departed office manager’s mailbox is still a notice served.

Most of the work happens before the claim

By the time the questionnaire arrives, your answer is already determined by the records you kept. Three habits make the difference:

Issue separation notices properly. Tennessee requires employers to provide a separation notice to an employee who is being separated. Do it every time, including for resignations.

Write down the reason on the day. Not a week later from memory. A dated line in the personnel file, written while the detail is fresh, is worth more than a long recollection written under deadline three weeks on.

Keep warnings in writing. A verbal warning nobody recorded did not happen, as far as a fact-finder is concerned.

None of this is onerous. It is five minutes at the point of separation that saves an afternoon and a charge later.

If the determination goes against you

You are not out of options. Employer e-Services includes a self-service route to file a charge protest, and determinations carry appeal rights with their own deadline — which, again, is stated on the document you receive. Diary it the day it arrives.

Do not appeal reflexively. Appeal when you have something specific the original decision did not account for, and when you can evidence it. An appeal that repeats the original answer more loudly rarely changes anything.

Where this fits

Unemployment claims are one of the places where payroll administration stops being paperwork and starts costing real money. The employers who handle them well are not the ones with the best arguments — they are the ones whose records were already in order and who answered on time.

We handle payroll and the compliance that comes with it for businesses in Tennessee and in more than 30 states, which means multi-state employers dealing with more than one agency’s version of this process. If claims keep catching you flat-footed, that is usually a records problem rather than a claims problem, and it is fixable.

This article explains a process; it is not legal advice. For a specific claim, check the deadline printed on your notice and contact TDLWD directly.

Sources

Need help with unemployment claims or separations? Southern Payroll & Bookkeeping handles payroll, HR compliance and state filings for Tennessee employers. See our payroll and HR services, book a free consultation or call (423) 207-2497.

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#TuesdayTips – Bookkeeping for Small Businesses

Southern PB — Tue, 26 Mar 2024 14:59:43 +0000

In the realm of small business management, mastering bookkeeping is key to financial success. This comprehensive guide explores essential bookkeeping practices tailored for small businesses, offering actionable strategies to simplify and optimize this vital process.

Why Bookkeeping is Crucial for Small Businesses

Bookkeeping is the backbone of financial management for small businesses, providing insights into financial health, ensuring compliance, facilitating analysis, and inspiring confidence in stakeholders.

Essential Bookkeeping Practices for Small Businesses

Implement a Reliable System: Choose a suitable bookkeeping system, such as cloud-based accounting software, to streamline recording and tracking financial transactions.
Maintain Timely Records: Record transactions promptly to maintain accuracy and avoid backlog, ensuring up-to-date financial information.
Organize Financial Documents: Keep all financial documents organized and accessible for easy reference and compliance with auditing requirements.
Reconcile Bank Statements: Regularly reconcile bank statements with accounting records to identify discrepancies and ensure financial accuracy.
Categorize Expenses: Categorize expenses systematically for better expense management and analysis.
Track Invoices and Payments: Efficiently track invoices and payments to manage cash flow and follow up on outstanding payments.
Monitor Cash Flow: Keep a close eye on cash flow by tracking incoming and outgoing funds for financial stability.
Generate Regular Reports: Generate and review regular financial reports for performance analysis and decision-making.

Leveraging Technology for Efficient Bookkeeping

Embrace modern technology tools like cloud-based accounting software, receipt scanning apps, bank feeds integration, and automated invoicing to streamline bookkeeping processes.

In-House vs. Outsourced Bookkeeping: Factors to Consider

Evaluate the pros and cons of in-house bookkeeping versus outsourcing to professional accountants or bookkeepers, considering factors like cost, expertise, and focus on core business activities.

Empowering Small Businesses Through Efficient Bookkeeping

Mastering bookkeeping is crucial for small business success, offering financial insights, compliance assurance, and strategic guidance. By implementing the right practices, leveraging technology, and making informed decisions, small businesses can navigate financial challenges confidently and thrive in their industries.

The post #TuesdayTips – Bookkeeping for Small Businesses appeared first on Southern Payroll & Bookkeeping.

Navigating the ever-changing world of Payroll & HR: A comprehensive guide to the latest trends

Southern PB — Fri, 22 Mar 2024 17:01:57 +0000

Chattanooga Payroll & HR Services

Are you feeling overwhelmed by the constantly evolving landscape of payroll and HR? You’re not alone! With new technology, regulations, and best practices emerging all the time, it can be challenging to keep up. But fear not – our comprehensive guide is here to help you navigate this ever-changing world with confidence. From the latest trends in employee benefits to cutting-edge payroll software, we’ve got you covered. So sit back, relax, and let us guide you through the exciting world of Payroll & HR!

Payroll and Human Resources (HR) are two essential functions in any organization, big or small. They play a crucial role in managing the workforce and ensuring its smooth functioning. While payroll deals with employee compensation, benefits, and taxes, HR is responsible for recruitment, training, performance management, and employee relations.

In recent years, the landscape of Payroll & HR has been constantly evolving due to various factors such as technological advancements, changing regulations and compliance requirements, and shifting workforce demographics. This ever-changing nature of payroll & HR can be overwhelming for businesses trying to keep up with the latest trends. Hence, it is crucial to have a comprehensive understanding of these functions to navigate through these changes successfully.

Chattanooga Payroll & HR Services

Effective payroll & HR management is vital for any organization as it impacts both employees and employers alike. A well-managed payroll ensures that employees receive their salaries accurately and on time while also complying with tax laws. On the other hand, efficient HR practices help attract top talent, boost employee morale and productivity while reducing turnover rates.

Furthermore, proper payroll & HR management plays a significant role in minimizing legal risks associated with labor laws compliance. Non-compliance can result in hefty fines or even legal action against an organization. Therefore, staying updated with current regulations is paramount for businesses to avoid any legal consequences.

Current Trends in Payroll & HR in Chattanooga

With technology advancing at an unprecedented pace, organizations are adopting digital solutions to streamline their processes and improve efficiency. Automation tools like cloud-based software systems are gaining popularity as they provide real-time access to data from anywhere at any time while simplifying complex tasks such as calculating taxes or generating reports.

Another significant trend is the rise of remote work arrangements due to the ongoing pandemic situation globally. This has led organizations to shift towards virtual onboarding processes and implement flexible working policies while ensuring data security measures are in place. Additionally, there has been a growing focus on employee well-being and work-life balance, leading to the emergence of innovative benefits packages such as mental health support, flexible working hours, and remote work options. These initiatives not only attract top talent but also improve employee retention rates.

The Rise of Technology in Payroll & HR: Automation and AI

The world of Payroll and HR has seen a significant transformation in recent years due to the rise of technology. Automation and artificial intelligence (AI) have become key players in streamlining processes, increasing efficiency, and enhancing overall operations in the Payroll and HR departments. In this section, we will delve deeper into how automation and AI are revolutionizing traditional payroll and HR practices.

Automation has been around for decades, but its impact on payroll and HR has only started to gain momentum in recent years. With the help of advanced software systems, tasks such as data entry, calculating taxes, generating pay stubs, and processing benefits can now be completed with minimal human intervention. This not only saves time but also minimizes errors that may occur due to manual data entry. As a result, employees can focus on more important strategic tasks rather than being bogged down by administrative duties.

Another area where automation is making waves is employee self-service portals. These portals allow employees to access their personal information such as pay stubs, leave balances, tax documents, etc., without having to go through the HR team. This not only increases transparency but also empowers employees to take ownership of their own data.

Artificial intelligence is another game-changer in the world of payroll and HR. AI-powered tools can analyze vast amounts of data from various sources to identify patterns or trends that would be challenging for humans to spot. For instance, these tools can detect anomalies in attendance records or predict potential turnover based on past behaviors. This enables companies to make informed decisions based on data-driven insights rather than just relying on intuition.

One area where both automation and AI are significantly impacting is compliance management. With constantly changing regulations regarding labor laws or tax policies, it can be a daunting task for HR professionals to keep up. However, with the help of automated systems and AI technology, companies can ensure that all their payroll and HR practices are in compliance with the latest regulations. This not only reduces the risk of penalties but also improves overall accuracy and efficiency.

The Impact of Remote Work on Payroll & HR Processes

The growing trend of remote work has had a significant impact on payroll and HR processes. With more companies adopting flexible work arrangements, it has become necessary to adapt traditional methods of managing payroll and HR tasks to meet the changing demands of the workforce.

One key area that has been affected by remote work is time tracking and attendance. With employees working from different locations and possibly in different time zones, accurately recording their hours worked can be challenging. Manual methods such as paper timesheets are no longer practical, as they can easily be manipulated or lost in transit. This has led to a rise in the use of digital solutions such as online timesheets or clock-in systems that can track employee hours in real-time, regardless of their location.

In addition to time tracking, remote work also affects how employee benefits and compensation are managed. In a traditional office setting, these processes were often handled face-to-face with employees. However, with remote workers scattered across various locations, it becomes essential to have an efficient system in place for communication and management of benefits packages. This could include using digital platforms for open enrollment and providing online access to benefit information.

Remote work also brings about challenges when it comes to compliance with labor laws and regulations. Companies must ensure that they comply with the applicable laws for each location where their remote employees are based. This includes things like minimum wage requirements, tax regulations, and employment standards laws. Failure to comply can lead to costly legal consequences for employers.

Diversity, Equity, and Inclusion in the Workplace: Considerations for Payroll & HR

Diversity, equity, and inclusion (DEI) have become increasingly important issues in the workplace. Companies are recognizing the value of having a diverse workforce and creating an inclusive environment for their employees. In this section, we will discuss the role of payroll and HR in promoting DEI in the workplace and provide considerations for implementing DEI initiatives.

It is very important for payroll and HR departments to understand the definitions of diversity, equity, and inclusion. Diversity refers to differences among individuals such as race, gender, age, religion, sexual orientation, etc. Equity refers to fairness in opportunities and treatment regardless of these differences. Inclusion is about creating a sense of belonging for all employees by valuing their unique perspectives and experiences.

One way that payroll and HR can promote DEI is by implementing fair pay practices. This involves conducting regular pay audits to identify any disparities based on demographic factors such as race or gender. If any discrepancies are found, steps must be taken to rectify them immediately. Additionally, companies should also ensure that their job descriptions are free from biased language that may attract only certain groups of people.

Another consideration for promoting DEI in the workplace is providing training for managers on unconscious bias awareness. Unconscious biases are ingrained stereotypes or attitudes that can influence decision-making processes without one’s conscious awareness. By educating managers about these biases, they can make more objective decisions when it comes to hiring, promotions, and performance evaluations.

Compliance and Regulatory Changes in Payroll & HR: What You Need To Know

Compliance and regulatory changes are an ever-present concern in the world of Payroll and HR. With laws and regulations constantly evolving, it can be challenging for businesses to stay on top of these changes and ensure they are compliant. Failure to do so can result in legal consequences, financial penalties, and damage to a company’s reputation.

One major compliance issue that Payroll and HR professionals need to be aware of is wage and hour laws. These laws govern how much employees must be paid, including minimum wage requirements, overtime pay, and payment for breaks or meal periods. In recent years, there have been numerous high-profile cases where companies have faced lawsuits for violating these laws. As a result, businesses must stay informed about any changes in wage and hour legislation at both the federal and state levels.

Another crucial aspect of compliance is tax regulations. Employers are responsible for accurately calculating employee taxes, withholding the correct amount from their paycheck, and remitting those taxes to the government. Any errors or discrepancies can lead to penalties from the Internal Revenue Service (IRS) or other tax authorities.

In addition to legal compliance issues, there have also been significant regulatory changes related to employee benefits. The Affordable Care Act (ACA), enacted in 2010, introduced new requirements for employers regarding healthcare coverage offered to employees. This includes reporting on health insurance offerings as well as providing affordable coverage options that meet certain criteria.

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New “Final Rule” Announced by Department of Labor

Southern PB — Fri, 01 Mar 2024 13:55:47 +0000

Department of Labor Final Rule

Update (October 2026): This post describes the Department of Labor’s 2024 independent contractor rule. In 2025 the DOL announced it would no longer apply that rule’s analysis in its own enforcement, and in early 2026 it proposed rescinding and replacing the rule. Contact us before relying on the guidance below for worker classification decisions.

If it feels like we’ve been here before, it’s not just déjà vu…we actually did talk about the differences between a “regular employee” and an “independent contractor” a few months ago. Most of the guidance we talked about back then is still relevant, but at the beginning of this year, the Department of Labor announced a new rule that is meant to be the final work on determination of whether a worker can be classified as an independent contractor versus a traditional employee.

What Happened?

On January 10, 2024, the DOL issued a press release and published a “final rule” that becomes effective on March 11, 2024. They have revised the Department’s guidance on analyzing the status of an employee under the Fair Labor Standards Act (FLSA). This new rule “rescinds the Independent Contractor Status Under the Fair Labor Standards Act rule…that was published on January 7, 2021, and replaces it with an analysis for determining employee or independent contractor status that is more consistent with the FLSA as interpreted by longstanding judicial precedent.”

Why?

According to the press release, the misclassification of traditional employees as independent contractors will deny the workers minimum wage and overtime pay, as well as other potential protections. They are trying to reduce the chances that employees are misclassified, while at the same time giving businesses a more consistent method of working with independent contractors.

What Has Changed?

The new “independent contractor” final rule brings back the multifactor analysis that has been used in courts for decades. Employers will need to consider all relevant factors in their determination before making a final classification of employment status.

The Six Factors of the Final Rule

The Department of Labor has published a guide of Six Factors to guide determination of employment status:

Opportunity for profit or loss depending on managerial skill. This refers to if the worker has the chance to make or lose money directly because of actions they take on the job.
Investments by the worker and the potential employer. Who is paying the bill for hardware, software, and other materials needed to complete the job?
Degree of permanence of the work relationship. Is the work indefinite or project-based? Exclusive or non-exclusive of work for other employers? Continuous or sporadic in nature?
Nature and degree of control. Who determines when and where the worker completes the tasks assigned to them? This includes reserving the right to supervise or discipline the worker for performance.
Extent to which the work performed is an integral part of the potential employer’s business. If the work performed is considered critical or central to the employer’s main business, it would indicate the worker is an employee; if not, it indicates the worker is an independent contractor.
Skill and initiative. Bringing specialized skills to a work relationship is not unusual, but when a worker uses those skills in connection with “business-like initiative” it is more likely the worker is an independent contractor.

As always, being in compliance is vital as non-compliance can cost your company in fines, penalties, and back-pay. If you have questions, please reach out to Southern Payroll & Bookkeeping.

Let’s talk soon. To the books!

Southern Payroll and Benefits
4159 Ringgold Rd. #207
Chattanooga, TN 37412
Monday-Friday 8 a.m.-5 p.m.
info@southernpb.com

southernpb.com

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#TuesdayTips – 50 Incredible Freebies, Grants, and Accelerators Every Small Business Owner Needs to Know!

Southern PB — Tue, 19 Dec 2023 19:07:46 +0000

In today’s fast-paced business world, small businesses and budding entrepreneurs often find themselves at a crossroads, seeking support to ignite their growth and navigate the challenges of the entrepreneurial journey. This is where the magic happens! We’ve found a list of 50 extraordinary grants, accelerators, and free resources, each curated to empower small businesses. From financial boosts to invaluable mentorship, these opportunities are golden tickets to elevating your venture.

Tech, Finance, and Marketing Solutions for Small Businesses

American Express’ Shop Small

The Shop Small Resource Hub gives business owners access to complimentary marketing supplies and resources, while the Amex Business Savings Suite provides technology and shipping solutions for small businesses. U.S. consumers can also use the Shop Small Map to find independent retailers across the nation that accept American Express.

Apple’s App Store Small Business Program

Developers and small business owners who made less than $1 million in proceeds the prior year qualify for this program, which offers a reduced commission rate of 15% on paid apps and in-app purchases so small business owners can invest more resources elsewhere.

Dell for Startups

This program provides support and resources to small businesses that use Dell’s technology, including expertise from technology advisors and scalable solutions. The Dell Women’s Entrepreneur Network (DWEN) connects women entrepreneurs with the latest technology, access to funding resources, and best practices from a global network of members.

HubSpot for Startups

Startups can apply to receive 30% to 90% off HubSpot’s software to help them increase leads, accelerate sales, and streamline their customer service. From email marketing to sales to fundraising, startups receive master classes, templates, and toolkits to help them grow faster. They also receive discounts and perks from companies like AWS, Stripe, Segment, and more.

JPMorgan Chase’s Special Purpose Credit Program

As part of a $30 billion commitment to racial equity, this program was launched in 2022 to improve access to credit for small business owners in historically underserved areas across the U.S. Customers do not need to do anything special to qualify. If the business is located in an eligible area, then the application will be evaluated under the program.

LinkedIn for Small Business

This page connects small business owners with tips, news, and features to make their LinkedIn presence more impactful. They can become designated “service providers” so potential clients can find them. They can also find other LinkedIn resources like marketing, talent, and sales solutions.

Mastercard Small Business Resource

Mastercard has partnered with Adobe, McAfee, Stride, and Uber to bring U.S. small businesses benefits that assist with daily operations, transactions, and online security infrastructure. It also offers complimentary services like an analysis by Digital Doors Diagnostic of your company’s “digital health” in the context of industry standards.

Meta Small Business

Small business owners can use free Meta tools to find and connect with their customers on Facebook, Instagram, WhatsApp, and Messenger. They can also learn about data-proven tactics for improving their advertising results and get creative inspiration and tips about advertisements and digital presence that speak to customers.

Microsoft for Startups

This platform helps startups grow by providing them with free access to Microsoft tools and resources, as well as mentorship and fundraising guidance. The “Founders Hub” offers access to expert advice, AI services, and other technology, and businesses don’t need to have secured any funding to sign up.

Zendesk for Startups

Zendesk provides customer service, engagement, and sales CRM solutions, and qualifying early-stage startups get their services free for six months. To qualify, applicants need to have raised some outside funding and have fewer than 50 employees.

Courses and Learning Resources for Small Business Owners

Amazon

Launched in 2019, this free program gives early-stage entrepreneurs and small business owners a suite of tools, resources, and networking opportunities. The curriculum was designed in partnership with the Collegiate Entrepreneurs’ Organization and offers three educational tracks: “Start,” “Build,” and “Launch.”

AT&T

The small business resources page offers free expert webinars and educational series from business mentors like Barbara Corcoran. They also offer free “playbooks” for business concerns like going virtual or cybersecurity and protections, along with phone and Wi-Fi deals tailored to small business needs.

Bank of America

This part of Bank of America’s website offers small business owners insights and resources for managing money, applying for funding, improving credit, planning for retirement, and tracking industry trends, as well as operational assistance with HR and customer relations, and strategizing for small businesses.

Cisco

This site publishes news and technology advice to help small and medium business owners build their knowledge around security, networking, and collaboration.

FreshBooks

FreshBooks is a platform that provides accounting services tailored to the needs of many industries and company sizes. Its blog offers tips and insights for small business owners looking for guidance at different stages of growth.

Google

Google for Startups offers a range of resources to help small businesses grow. It provides guides and insights for startups at all stages of the journey, along with mentorship and funding opportunities including the Founders Academy, Accelerator, Cloud Program, Black Founders Fund, and Latino Founders Fund.

Mailchimp

Mailchimp provides an information resource for small businesses wanting to learn more about starting, running, and marketing their businesses. Browse straightforward articles like “Email Marketing 101: A Beginner’s Guide for Small Businesses.”

Shopify

The commerce company offers tools to help merchants start, scale, market, and run a retail business of any size. It has a robust blog with advice for aspiring entrepreneurs on everything from sourcing products to marketing, customer management, and more. Shopify also pledged $130 million to support the 1 Million Black Businesses initiative.

Verizon

This platform gives small business owners access to free courses and educational materials, as well as live events, mentorship, peer networking, and grant opportunities. The courses support small business owners across the entirety of their business, with a specific focus on helping diverse and under-resourced business owners. Resources are also available in Spanish.

Visa

This landing page on the Visa website gives small businesses opportunities to read about trending topics that are relevant to their industries, along with tools and resources to manage their finances, grow their audiences, take advantage of analytics, optimize their online presence, and more.

Wells Fargo

On its “Small Business Resources” page, the bank provides articles on optimizing day-to-day operations, securing financing, leveraging credit, and paying down debt, as well as networking, sales, and marketing.

Grant Programs Being Offered by Big Businesses

Barclays

The contest reviews submissions from small business owners about the challenges of building a business and making their dreams a reality. Winners share $255,000 in prize money, and the small business with the most compelling story receives the grand prize of $60,000.

Citizens

Citizens grants 30 prizes of $10,000 each to small businesses from three groups — minority-owned, women-owned and other qualified companies — that are having a positive effect on their communities.

Comcast

Started in 2020, Comcast RISE helps small businesses and their communities thrive, with a focus on economic growth. The program has awarded 13,000 small businesses $110 million in monetary, marketing, and technology grants, and this year, Comcast will award 500 recipients in five cities with grant packages. Applicants can apply on its website.

eBay, Inc.

Each year, 50 small businesses are awarded more than $500,000. Recipients receive $10,000 in cash, technology, and training.

FedEx

In its 12 years, this contest has handed out almost $2 million in cash grants to small businesses, as well as additional prizes like FedEx Office print credit, package consultation, premier customer care, and participation in the contest’s Winner Forum.

Fiserv

Back2Business launched in 2020 with a $50 million commitment to support minority-owned businesses with financial grants, coaching, and access to technology and networking opportunities. The program has since disbursed more than 1,600 grants.

Intuit

For the past two years, Intuit QuickBooks has celebrated Small Business Hero Day by awarding three small businesses $20,000 each for their commitment to serving their communities. You can find articles and resources for growing your small business on the QuickBooks Small Business Success Month hub.

LegalZoom

LegalZoom has partnered with the NBA, WNBA, and NBA G League to offer $10,000 grants and up to $500 in LegalZoom services for small business owners in underserved and underrepresented communities. Applications are open during the NBA and WNBA seasons.

Lenovo

This initiative is designed to champion and promote small businesses across North America by offering grants and technology donations. This year, the Lenovo Evolve Small grant provided 30 small businesses with $10,000 in funding, a Lenovo laptop, and business support.

Progressive

This fund provides $25,000 towards a commercial vehicle for 10 entrepreneurs to accelerate their business. Eligible businesses must be owned by Black entrepreneurs, have a demonstrated need for a commercial vehicle, and have a commitment to their local community.

Uber

In 2023, Visa and Uber Eats will provide 100 restaurants in select cities in the U.S. and Europe with $10,000 (USD or local equivalent) in credit toward more sustainable packaging.

UPS

With a $1.25 million investment, UPS Ignite will fund access to education, resources, networks, and capital for over 250 underrepresented small and medium business founders over the next three years. UPS Ignite is partnering with the Accion Opportunity Fund, The Lonely Entrepreneur, the Kellogg School of Management at Northwestern University, and others to offer these services.

Venmo

This program awards 20 eligible small businesses $10,000 in free funding annually — plus public promotion on the Venmo and PayPal websites and social media accounts, as well as professional consulting services.

Accelerators Designed to Fast-Track Small Business Founder Success

Accenture

This program builds collaborative relationships with small, veteran-, and minority-owned companies to provide technology solutions to the federal government while helping small businesses establish new credentials for long-term growth.

Airbnb

Operating in 11 different countries, the Airbnb Entrepreneurship Academy partners with local nonprofits, academic institutions, development banks, small business centers, and more. It develops education programs that introduce people, including those from diverse and historically underrepresented communities, to hosting on the Airbnb platform.

Ernst & Young LLP

Founded in 2008, this program selects women founders in the U.S. and Canada who have built profitable small companies (with at least $2 million in sales) and are looking to scale sustainably. It connects participants with an evergreen community and provides advice, resources, and access they need to grow.

Expedia

This six-month, remote, nonequity accelerator program advances innovation in the travel industry by fast-tracking the growth of small and medium businesses through Expedia Group products and expertise.

GoDaddy

This four-week to 10-week accelerator program works with entrepreneurs in underserved communities to build their confidence and skills to strengthen their small business’s digital presence. Entrepreneurs work one-on-one with GoDaddy volunteer coaches and local mentors and gain access to wraparound services, in-kind products, and networks to boost their success.

Goldman Sachs

This program provides education and pathways to capital for small business owners. Participants develop actionable growth plans with the help of advisors and a network of like-minded entrepreneurs. The free program has served more than 10,000 businesses, deployed $879 million in capital, and claims that 66% of graduates increase revenue within six months of graduating.

Intel

Launched in 2019, this global acceleration program is for early-stage deep-tech startups. Companies that have gone through the 12-week program have raised $1.7 billion.

Macy’s

Macy’s Inc. offers a vendor accelerator program for women-owned and diverse-owned small businesses. Since its launch in 2011, over 220 companies have gone through the program, and applications for the 2024 class are being accepted through November 30.

Mondelēz International

This 12-week startup engagement program is part of Mondelēz International’s venture investment hub, SnackFutures. It provides early-stage brands with resources, mentorship, and networking opportunities to grow while building an investment pipeline for the snacking company. Additionally, CoLab Tech focuses on businesses with emerging tech capabilities.

Morgan Stanley

This 12-week, virtual, instructor-facilitated learning experience focuses on helping diverse small businesses leverage their competitive advantages, strengthen their business knowledge, and build their professional networks. The academy is followed by a yearlong mentorship program.

NVIDIA

This free program provides tech startups of all stages with access to the latest developer resources, along with preferred pricing on NVIDIA software and hardware and exposure to the venture capital community.

PepsiCo Foundation

This program aims to bolster small, Hispanic-owned food and beverage businesses that are beloved staples in their communities. All applicants will have access to business training from Accion Opportunity Fund and local nonprofit partners, and a select 100 will receive a $10,000 small business grant, as well as personalized one-on-one career and business coaching.

Plaid

A fintech accelerator for early-stage founders of color, this five-month program helps innovative startups accomplish critical milestones, launch new products, accelerate growth, grow their teams, and raise funds. Since launching in 2021, 12 fintech companies have completed the program.

Sephora

This brand incubation program focuses on founders of color in the beauty space. Chosen applicants participate in a six-month educational journey with digital and in-person resources and a curriculum directly correlated to helping founders succeed at Sephora. Founders have the opportunity to launch with Sephora.

Target

Consumer packaged goods (CPG) startups are invited to apply annually to Target Accelerators programs, which offer coaching, a curated curriculum, and connections to retail leaders, partners, and industry experts. “Target Forward Founders” is for early-stage companies, and “Target Takeoff” is for mature CPG companies.

Tory Burch

Women founders with early-stage companies can apply to The Fellows Program, a yearlong growth accelerator program that accepts 50 women business owners each year. Anyone can also find free tools, educational resources, and funding options at the foundation website.

As your entrepreneurial journey evolves and your business flourishes, the complexities of managing finances can become a formidable challenge. That’s where our expertise comes into play. Southern Payroll & Bookkeeping offers comprehensive bookkeeping, payroll, and tax services tailored for small businesses like yours. Let us handle the numbers, so you can focus on what you do best – growing your business. Our team is dedicated to providing seamless financial solutions, ensuring you stay on track and compliant. Partner with us, and experience the peace of mind that comes from having a reliable financial ally by your side. Together, let’s turn your business aspirations into enduring successes!

The post #TuesdayTips – 50 Incredible Freebies, Grants, and Accelerators Every Small Business Owner Needs to Know! appeared first on Southern Payroll & Bookkeeping.

Is An “Introductory Period” of Employment Required?

Southern PB — Thu, 30 Nov 2023 15:00:00 +0000

Quick answer: No. Neither federal law nor Tennessee law requires an introductory or probationary period. Many employers use a 30-, 60- or 90-day introductory period to train and evaluate new hires, but in an at-will state it doesn’t change the employee’s at-will status. Avoid wording that suggests employment is guaranteed once the period ends. Employees in an introductory period are still owed minimum wage and overtime, and health plan waiting periods can’t exceed 90 days under the Affordable Care Act.

We saw an interesting question come across our desks recently in an email: “Are employers required to have an introductory period for new employees?” We will cut to the chase and tell you right up front that the HR professional answering the question said, “No, you don’t.” It’s been a long-standing practice of many companies to have a 30, 60, or 90 day period that they call an “introductory period,” but there is no legal requirement to do so…however, this is one of those times when it’s a good idea anyway.

Not On Probation

Before we go further we want to address the older practice of calling this period of time a “Probationary Period.” This term seems to go back to what labor unions would call the initial time frame of a new employees tenure when they were not covered under the union’s collective bargaining agreement with the employer. Once the period was complete, the employee got full rights under that agreement. The idea carried over to non-union jobs but without the conference of additional rights after the time frame was complete…and this eventually led to legal trouble.

More recent court decisions have made it more clear that if an employer has a “probationary period” (and calls it that), that the implication is that there are additional employment rights granted the employee after the time frame is over, even in at-will work states. So…probationary periods magically became introductory periods.

Still A Good Idea

As stated above, it’s not legally mandated that a company gives employees an introductory period, however, it still can be an excellent idea as it has advantages to both you and the person you are hiring. A 60 to 90-day introductory period can give you a chance to watch a new employee closer, scrutinize their performance, and assess whether their performance and skills are adequate for the job, as well as whether they fit in well with the company culture.

While you may be watching for evidence of their skill set, the employee can be using that time to become acclimated to their new role while adapting and honing their skills to the tasks at hand. You may have hired them because of what they were able to demonstrate at a previous job, but it may take some time to become as effective in a new environment.

During this adjustment period they need to learn new job functions, meet and learn the habits of new colleagues, and become familiar with your company’s policies. If they are under the auspices of an “introductory period,” this process can take place without as much stress and anxiety.

You, as the employer, may find this time especially helpful in being able to offer critical feedback and coaching to the new hire as you see the things they are not doing up to your standards. This can be a time when you can clarify your expectations for the job and help get the employee aligned with the company.

Some companies have taken to calling the time an “evaluation period” and it’s important to note that this evaluation goes both ways. The employee needs time to see the company “in action,” to learn the policies and standards…and decide if this is really a good workplace for them.

For the new employee, this introductory period may serve as a milestone…a time frame in which they can expect to get up to speed with the new place and decide whether or not they want to commit to staying there longer term.

For the employer, it gives them time to gradually get that employee to where they want them to be…because hiring someone new and training them is a costly prospect! You don’t want to have to keep going back to the well, looking for someone new, and beginning this process all over again.

How do you reward the employee for completing the introductory period? That’s up to you and your company policy, but some companies start vacation and sick time accrual or full medical benefits kicking in after that point.

Whatever you decide to do, I can’t stress enough…make it part of your company’s documentation…put it in the employee handbook! It’s always a great idea to keep a record of what the expectations are for new employees and when they are expected to meet them…and to make that information plain and easily findable for those employees.

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Need help with onboarding and HR policies? Southern Payroll & Bookkeeping handles payroll, HR compliance and bookkeeping for small and mid-sized businesses. See our payroll and HR services, book a free consultation or call (423) 207-2497.

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