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Powered by: SmartPros ADP LUNCH & LEARN CPE PROGRAM “Human Resource Management Strategies for Small to Mid-Size CPA Firms” Authored by Kay Francis, Steps.

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Presentation on theme: "Powered by: SmartPros ADP LUNCH & LEARN CPE PROGRAM “Human Resource Management Strategies for Small to Mid-Size CPA Firms” Authored by Kay Francis, Steps."— Presentation transcript:

1 Powered by: SmartPros ADP LUNCH & LEARN CPE PROGRAM “Human Resource Management Strategies for Small to Mid-Size CPA Firms” Authored by Kay Francis, Steps Beyond Enterprises, ( and adapted for CPE accreditation by SmartPros, Ltd. ( The ADP Logo is a registered trademark of ADP of North America, Inc. Powered by: v.1099a

2 Powered by: SmartPros Course Introduction Why is HR Management such an important issue?  Small businesses face the same HR challenges as large businesses as well  Time, cash and resources sometimes prevent a formalized program from being implemented This leaves smaller companies at greater risk  CPA firms are a business with employees and compliance issues  CPAs are trusted advisors to their small business clients Your clients may come to you for HR advice. 2

3 Powered by: SmartPros Objectives Upon successful completion of this segment, you should be able to: Have a general understanding of basic compliance and reporting issues Understand ways to implement a formalized program through basic tools like an employee handbook and keeping adequate personnel files Increase awareness and reduce risk through training programs Consider cost/resource approaches and solutions to HR Management 3

4 Powered by: SmartPros Course Overview Topics for discussion: Four Major HR Categories: I.Compliance & Federal Reporting II.Employee Handbooks III.Training and Development IV.Personnel Files HR Management Solutions 4

5 Powered by: SmartPros I. Compliance & Reporting  Compliance & Reporting is complicated This information can be overwhelming for a labor attorney, not to mention the CPA or the small business owner.  Today’s goal is to increase your awareness 5

6 Powered by: SmartPros Laws by Employee Size - Quick Glance Lets take a quick look at this list of key regulations based on employee size: 1 or more Employees:  Consumer Credit Protection Act of 1968  Employee Polygraph Protection Act (1988)  Employee Retirement Income Security Act (ERISA) 1974 (if company offers benefits)  Equal Pay Act of 1963.  Fair Credit Reporting Act (1970)  Fair Labor Standards Act (FLSA) (1938)  Federal Insurance Contributions Act of 1935 (FICA) (Social Security)  Health Insurance Portability and Accountability Act (HIPAA of 1996 (if company offers benefits)  Immigration Reform & Control Act (IRCA) (1986  Labor-Management Relations Act (Taft-Hartley) 1947  National Labor Relations Act (NLRA) 1935 6

7 Powered by: SmartPros Laws by Employee Size- Quick Glance, continued 11 or more employees, add: Occupational Safety & Health Act (OSHA) (1970) 15 or more employees, add: Civil Rights Act of 1964 Title VII, Civil Rights Act of 1991 Did you know if you have 15 or more employees, it’s federally mandated that you have sexual harassment training in place for all managers? You also need a sexual harassment policy statement> Title I, Americans with Disabilities Act of 1990, (ADA) 20 or more employees, add: Age Discrimination in Employment Act (1967) (ADEA) Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) 50 or more employees, add: Family and Medical Leave Act of 1993 (FMLA) EEO-1 Report filed annually w/EEOC if organization is a federal contractor 100 or more employees, add: Worker Adjustment & Retraining Notification Act of 1988 (WARN) EEO-1 Report filed annually w/EEOC if organization is not a federal contractor In Addition: - All Size Companies: Income taxes, Federal Unemployment Taxes and Social Security Taxes must be reported. Forms 940, 941, 942, 943, 1099, W-2, W-4 7

8 Powered by: SmartPros II. Employee Handbook Overview:  All companies, regardless of size, need a handbook  Policies should be reviewed annually While handbook contents differ by company, let’s discuss the primary areas you’ll want to consider. 8

9 Powered by: SmartPros Employee Handbook, continued Handbook Contents : Introduction: About the Company - A brief company history Company Vision and or Mission Explanation of your “Open Door Policy” - how communication should flow if issues arise Explanation “Employment-At-Will” (if applicable) - a law associated with employee dismissal Employment Practices: Equal Employment Opportunity New Employee Orientation Your Employment File 9

10 Powered by: SmartPros Employee Handbook, continued Compensation Practices: Compensation Program(s) Base Pay Working Hours and Flextime Recording Working Hours Regular Pay Procedures Overtime Pay Procedures Job Descriptions Performance Reviews Salary Increases Time-Off Benefits: Vacation Paid Holidays Sick Days/Personal Days Military Leave Bereavement Leave Jury Duty Family Medical Leave of Absence Personal Leave 10

11 Powered by: SmartPros Employee Handbook, continued Employee Conduct: (as applicable) Dress Code and Personal Appearance Absenteeism & Tardiness Safety & Health Smoking Policy Substance Abuse Harassment Policy Use of Company owned Assets & Company Owned- Paid Services Copyright & Software Guidelines Separation of Employment Group Health & Related Benefits: (as applicable) Medical Coverage Dental Coverage Vision Care Savings and Incentive Plan Retirement Program Short/long-Term Disability Other Insurances 11

12 Powered by: SmartPros Employee Handbook, continued Workplace Security: (as applicable) Protecting the Company Identification Badges Access Cards Visitor Security Computer Security Endangerment to Others Other Considerations: Statement of Right to Amend Signed Receipt Page Should be Placed in Personnel File Purchase and Adapt a Generic Template 12

13 Powered by: SmartPros III. Training & Development Examples of Mandated Training:  OSHA training for 11+ employees  Sexual Harassment Training for 15+ Employees 13

14 Powered by: SmartPros III. Training & Development New Employee Orientation Training Diversity Training and Discrimination Ongoing Developmental Training –Benefits Include Increased Productivity and Morale 14

15 Powered by: SmartPros Training Process, continued The Training Process:  Even in Small Companies, Consistency is Key All employees should be trained on the same message  Video and Internet Tools for Specialized Training  Consultants and Outsource Partners  Outside Training Can Help Lower Risk 15

16 Powered by: SmartPros IV. Personnel Files  Need to have a policy in place to manage personnel files  What should you keep in those files? Employment-related decisions including: Hiring Firing Promotion Demotion Layoff Training 16

17 Powered by: SmartPros Personnel Files, continued Documentation NOT Appropriate for a Personnel File: Note: Any personnel decisions based on equal opportunity is considered illegal. Sex Race National origin Color Religion Sexual Orientation Veteran’s Status Disability Garnishment Issues I9 Forms 17

18 Powered by: SmartPros Personnel Files, continued Keeping Records:  Hiring Documents: 1 Year Job applications Resumes Records relating to refusal to hire Advertisements pertaining to openings or promotions or training opportunities Note: Federal Contractor Hiring Documents: 2 Years  Employee Personnel Records: 1 Year Post Termination, or 3 Years Minimum  Payroll Records: 4 years  Tax Records: 5 years  Medical Safety Records: Up to 30 Years! 18

19 Powered by: SmartPros Solutions Approaches to implement a HR Management Solution:  Do-it-yourself  Outsourcing Solutions  Shared Resource Employee  Dedicated Employee You or your clients decide the best option. 19

20 Powered by: SmartPros Do-It-Yourself Doing-It-Yourself:  Can be most cost effective but also most time intensive  Added risk  Sources for information Books and CD programs provide “How to” information and generic HR handbooks Internet is a source for information on Compliance Laws and Required Reporting Forms ex. - Society for Human Resource 20

21 Powered by: SmartPros Outsource Partner / Consultant Outsourcing:  More cost effective than you might think  Reduce risk exposure  Use of less internal resource  Monthly retainer for services or pay by hour or project  Employee Leasing as an outsource option 21

22 Powered by: SmartPros Shared Resource Employee Shared Resource Employee:  Slightly reduced cost compared to 100% outsourcing  Reduced risk  A little more use of internal resource Office manager types should be qualified/trained Retaining an outsource partner or consultant is still advised to establish a qualified support mechanism for your office manager 22

23 Powered by: SmartPros Dedicated Employee Dedicated Employee:  Someone dedicated to eliminating risk Requires a professional level salary determined by experience, skill set and geographical location of the organization  Simply a requirement for larger companies Companies with 100+ employees usually employ an HR Generalist Larger companies typically have access to legal and training resources as well 23

24 Powered by: SmartPros Course Summary Course Summary:  Even small CPA firms need a formal HR management strategy  The CPA firm has its own employee and compliance issues  CPAs are trusted advisors to their small business clients 24

25 Powered by: SmartPros Summary, continued Compliance Issues & Federal Reporting. Being out of compliance, means being at risk Employee Handbooks. A handbook is a must for ALL size companies Purchase a template a modify it to fit your needs Or, work with an outsource partner/consultant who can provide this for you 25

26 Powered by: SmartPros Summary, continued Training and Development. Training should be consistent Companies with as little as 11 employees should consider outsource solutions for OSHA training Sexual harassment training required with as few as 15 employees…even less in some states Several cost-effective training tools available to smaller businesses Developmental training increases productivity and morale Personnel Files. Correctly maintaining personnel files is a REQUIREMENT Be aware of what SHOULD and SHOULD NOT be kept in a personnel file Be aware of the timeframes required by law 26

27 Powered by: SmartPros Summary, continued SOLUTIONS: Doing it yourself can save money, but eats billable hours and increases risk Outsource partners and retained consultants are a cost-effective way to reduce risk Outsource partners and consultants give you a solid place to turn when your clients turn to you Companies with 100+ employees will most likely need a full time HR Generalist on staff. 27

28 Powered by: SmartPros Discussion Questions 1. The author says that small businesses face the same HR challenges as large ones. What are some of these challenges, and which seem to hit closest to home with your own situation? The author says time, cash, resources, and urgency are deterrents to formalized program, leaving smaller companies at risk 2. Why should CPA firms be aware of these issues? CPA firms should be aware of these issues for two reasons. One, the CPA firm itself is a business with its own employees and compliance issues. Second, as the most trusted and influential advisor to your small-to-medium sized clients, you are very likely to be asked for your opinions and advice in recommending solutions on critical business issues. 3. What does the author say about the need for an employee handbook? Do you have a handbook? If so, how has it helped? If not, why not? The author says that ALL companies need a handbook regardless of size, to establish consistency and to reduce risk. 28

29 Powered by: SmartPros Discussion Questions 4. The author discusses several different kinds of training. Mandated training, new hire training, diversity and discrimination training, and ongoing developmental training. What are the key benefits to developmental training? Do you support developmental training in your organization…why or why not? The author states the importance of developmental training for ALL employees regardless of the function they serve. There is always an opportunity to better develop appropriate job skills, and employee productivity and morale are often directly motivated by company sponsored skills and development training programs. 5. The author outlines four different solution approaches to establishing a formal HR management environment. The solutions ranged from do-it-yourself to a full-time employee. The terms outsource partner or consultant were used repeatedly. What does the author list as the advantages/benefits of outsourced solutions? Which one of these solutions do you currently employ? Major benefits of working with an outsource provider or consultant include, ensuring guidance and compliance in a highly technical environment, reducing risk, and saving your time for billable projects. 29

30 Powered by: SmartPros What Now? Reference Handout Material for Additional Content Information Review CPE Card Complete Course by Taking Online Components Thank you 30

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