Business.com |
- A Small Business Guide to Unemployment Insurance
- Accepting Credit Cards? PCI Compliance a Concern for Small Businesses
- 5 Ways To Prepare for a Gen Z Workplace
- Navigating Social Media After a Disaster
- Bring Your Own Device to Work: Establishing a BYOD Policy for Your Small Business
| A Small Business Guide to Unemployment Insurance Posted: 26 Jul 2019 10:30 AM PDT  No one plans to lose their job. However, when a small business owner closes their doors because of retirement, relocation or poor sales, employees quickly become former employees. Unemployment insurance gives your employees some financial security while they look for a new job. There is a lot of confusion surrounding unemployment insurance, such as who pays for it, who is eligible, and if you can opt out of providing this benefit. Our guide answers questions about unemployment insurance, the tax implications for small businesses and how the process works. A brief historyUnemployment insurance came into effect nationwide as part of the Social Security Act of 1935 as a way to assist the unemployed during the Great Depression and its recovery. It is a federally mandated and regulated program, but eligibility and payment amounts are determined at a state level. In most states, unemployment insurance is funded through taxes employers pay on behalf of their employees. (In some states, employees pay this tax directly). These taxes are directed to a state-controlled reserve fund. "The employer reserve fund, which is made up of 3-7% of an employee's gross wages, depending on the individual state, is backed by a reserve fund controlled by the state," said Jim Bell Sr., founder and CEO of Abel HR. "If that fails, the federal government lends money to ensure unemployed workers are paid. All businesses must pay into unemployment insurance, except for certain nonprofits." The concept of the original unemployment insurance benefit continues to operate in a similar manner as its 1935 inception; however, over the years, more rules, regulations and reports have been added. Also, the unemployment division now covers payments for disability, Family and Medical Leave Act claims, workforce development, re-employment, and enforcement. Who pays into unemployment insurance"One of the biggest misconceptions held by many business owners and managers is that unemployment insurance is a fixed, uncontrollable tax," said Bell. "This concept could not be further from the truth. Unemployment insurance costs can be controlled from the moment a business starts." Many small business owners think they are exempt, but if you have employees, you are required to pay State Unemployment Insurance (SUI) and Federal Unemployment Insurance Act (FUTA). All business sizes and types follow the same steps in paying SUI and FUTA, and handling unemployment claims. There are no exemptions for small businesses. Tax implicationsFor businesses, SUI is a quarterly tax that is part of the business's payroll tax. The amount is determined by the state based on the type of business you operate and a wage base. Also taken into consideration is the number of ex-employees who have filed for unemployment claims. (A company with a high number of former employees requesting unemployment pays a higher rate than a company with low turnover.) In most states, this is an employer-only paid tax, but some states require employees to contribute. FUTA taxes are also paid quarterly and are in addition to SUI. FUTA taxes are paid completely by the employer; it is not taken from employee wages. These taxes are filed through the IRS on Form 940. The company is taxed at 6% on the first $7,000 the employee earns, with a maximum annual pay-in of $420 per employee. SUI and FUTA are paid only for payroll W-2 employees. Independent contractors and freelance workers – W-9 workers – are not covered by unemployment insurance, and organizations do not need to pay SUI or FUTA taxes. When the contract ends with independent workers, they cannot file for unemployment. If they do, it can be contested. However, it is also up to the organization to ensure that all employees are labeled properly. If an independent worker can prove he was or should have been a payroll employee, the employer must pay back taxes and other penalties. Unemployment begins with employmentGenerally, whenever a company hires an employee, part of the new-hire process includes enrollment in either the state, federal or both unemployment compensation programs. Depending on the state's requirements, new hires are periodically reported and placed on tax rolls, but each new hire must be reported to the state. "Subsequently, each time an employee has payroll taxes deducted from each paycheck, some of that money is used for the unemployment compensation insurance pool," said Charles A. Krugel, a human resources attorney and counselor. "Depending on the state where the employer or employee is located, benefits-eligible people will receive biweekly or monthly payments based on a formula based mainly on the employee's rate of pay, cost of living and other statutory factors." Most states have "at-will" employment laws, meaning both the employee and the employer can either leave or be terminated at any time for any reason that is not illegal. At-will employees are eligible for unemployment. The exception is if the departure is due to a disciplinary problem, such as insubordination, theft and other serious charges. If you terminate an employee, keep detailed documentation that protects the company if a claim is filed, denied and challenged. "Documentation is key," Krugel said. "When documenting [an employee's conduct], businesses should write up incidents as soon as they occur. That is, document who was involved, who witnessed what, where events occurred, when events occurred, what happened, why do you think it happened and so on." When the former employee files for unemploymentAn employee can file for unemployment if they lose their job through no fault of their own (i.e., they were laid off). After they file, the now-former employer will receive a "Notice of Unemployment Insurance Claim Filed" letter from the state. If the claim is approved, the unemployment funding comes from the employer's tax account. (If that happens, your unemployment taxes will increase.) You can accept or contest the unemployment request. If it is accepted by the employer, no further action is necessary on your part. It is then up to the state to determine if the claim meets certain criteria (such as length of service, reason for unemployment, etc.). However, if the employer contests the claim – say the employee was fired for malicious behavior or quit for a new job that fell through – the state must be informed of the reasons why the claim is being contested with details about the employee, including dates of service, job title, reason for termination, and any notes or reports from the employee's personnel record. Good record-keeping, including detailed performance reviews, is essential throughout the duration of an employee's time with your business. The employer has 10 days to contest the claim or risk an increase in unemployment tax. When unemployment insurance is granted, the average compensation period nationally is 26 weeks, but each state determines the length of compensation time. In-depth adviceThe steps involved with handling unemployment insurance can usually be found on each state's website, according to Chris Orletski, co-president of Blankit Insurance. "This is becoming an online process whereby the employer uploads the required information to the state, but, again, an employment attorney would be able to advise appropriately." Orletski also advised any employer with unemployment insurance and tax questions to turn to an employment attorney in the state which you intend to employ individuals. The Department of Labor also provides links to the various state departments charged with handling the unemployment insurance for that state."The overall takeaway is that unemployment insurance is not handled by insurance agencies but by a state governmental agency." |
| Accepting Credit Cards? PCI Compliance a Concern for Small Businesses Posted: 26 Jul 2019 09:30 AM PDT  Recent breaches against major retailers have put payment card industry (PCI) regulations in the spotlight. However, it isn't only big companies that need to adhere to these regulations. The rules apply to every business that relies on credit and debit cards for transactions. Even if your business employs four people and conducts one credit card transaction a month, it must be PCI compliant. This is easier said than done. The Verizon 2018 Payment Security Report found that most companies struggle to meet the Payment Card Industry Data Security Standard (PCI DSS), the set of regulations created to keep credit and debit card data secure, with just 52% in compliance, down from 55% in 2017. "It's not a good trend," said Ciske Van Oosten, senior manager of global intelligence at Verizon, in an interview with eWeek. "We know that organizations that do not maintain PCI-DSS compliance, those are the ones that get breached." What is the payment card industry?"Payment card industry" is the catch-all term for industries that deploy or use credit and debit cards. This includes point-of-sale systems used by commerce and retail industries, ATMs, and institutions that issue any type of credit, debit or prepaid card for monetary transactions. In 2006, the major credit card companies – Visa, Mastercard, American Express and Discover, as well as the Japan Credit Bureau – came together to create the Payment Card Industry Security Standards Council (PCI SSC) as a way to address and manage the need for improved security throughout the industry. This led to the Payment Card Industry Data Security Standard. Editor's note: Considering a credit card processing service for your business? If you're looking for information to help you choose the one that's right for you, use the questionnaire below to get information from a variety of vendors for free. Every company that accepts credit and debit cards is required to follow PCI DSS, no matter the volume of transactions or size of the business (although the PCI SSC does provide help for small businesses here). However, there are four levels of compliance based on Visa transaction volumes over a 12-month period. These levels determine the actions the organization must take to be compliant; the more transactions, the more actions necessary. According to PCIComplianceGuide.org, these are the four levels and their requirements:
12 requirements for PCI DSSThe PCI SCC provides a list of 12 requirements to meet PCI DSS:
Why compliance mattersMore than ever before, consumers care about security. With high-profile data breaches, many of them coming through stolen credit and debit cards throughout the retail and service industries, consumers want to know that they are doing business safely and won't be hearing from their credit card companies about questionable charges. Consumers will walk away from businesses that have suffered data breaches, and a single breach could be so costly that it could end up putting small companies out of business for good. PCI compliance doesn't guarantee a data breach won't happen, but it adds safeguards to improve security. If a business is found to be out of compliance, it can cost anywhere from $5,000 to $100,000 per month in fines. If noncompliance is ongoing, the merchant could be stripped of payment processing services. [Looking for a credit card processing service? Check out our reviews and best picks.] How to stay compliantPCI compliance is non-negotiable if you accept credit and debit cards, but preparing for a PCI audit and ensuring that your company meets compliance standards can be daunting. Jeff Vansickel, senior consultant at IT compliance consulting firm SystemExperts, provided a few tips to prepare for a PCI assessment and keep your standards at secure levels at all times:
The moment your customer hands over a credit or debit card, you become responsible for keeping the data associated with that card secure. While the above steps are primarily meant to prepare you for a PCI audit, they will also provide a safety net in between assessments. For more information, visit PCIComplianceGuide.org.
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| 5 Ways To Prepare for a Gen Z Workplace Posted: 26 Jul 2019 05:00 AM PDT  So how do you prepare your workplace for the entry of Generation Z workers? As a fast-growing startup that's not only hiring young graduates, but also trying to help them purchase their first homes, we have a lot invested in understanding Generation Z. So here at Clever Real Estate, we surveyed 1,000 recent college graduates about salary expectations and preferred management styles. We learned that just as Millennials demanded perks like flex time, free snacks and a casual work environment, Generation Zers have their own list of demands. Let's look at some of the main takeaways from our survey. They want you to show them the money.Millennials were stressed and anxious, so they asked for softer, quality-of-life perks like a relaxed dress code and more personal time. Generation Z workers aren't "in their feelings" quite as much and they strongly prefer money-based incentives like top-shelf health insurance and competitive salaries. Does that make them selfish? Of course not. If anything, the "money first" attitude of Generation Z might represent a return to the norm, after the "soft and fuzzy" Millennial interlude. As choppy as the economy was, at times, for Millennials, Generation Z is entering a much less stable job market, with an economy that's looking more uncertain than at any time in the last several decades. It's not that they're necessarily any less feelings-based than their Millennial predecessors, but they care primarily about money because they're entering an economy that's shadowed by the prospect of serious scarcity. In fact, when asked about the reason they went to college, the most popular answer by far was to earn more throughout their career. Generation Zers are not starry-eyed idealists: quite the opposite. And while pumping up starting salaries is neither desirable nor feasible for most companies, they can take heart from the fact that cuts to soft perks like snacks, PTO and beanbag chairs will go unprotested as long as those savings are put into increased salaries. They are plagued by disappointment.One of our most troubling findings involved the salaries that Generation Z anticipated earning once they entered the workforce. The typical Generation Z undergraduate reported that they expect to make $57,964 one year after graduating college, but the national median salary for recent graduates with bachelor degrees and between zero and five years of on-the-job experience is only $47,000. This means that Generation Z enters the workforce feeling disappointment. Understanding this emotional state is going to be key in effectively managing Generation Z employees. Whether this disappointment translates into a drive to achieve and earn more, or into disillusionment and malaise remains to be seen. Unfortunately, this trend of disappointment continues into mid-career. According to our survey's findings, the average undergraduate continues to overestimate how much they'll be earning by mid-career (defined by being 10 years out of college) by approximately $15,000. This gap, you'll note, is even larger than the gap between their expected and actual starting salaries, meaning that their disappointment at mid-career could be even more intense than it was at the beginning of their careers. Interestingly, students with different majors exhibited different degrees of realism regarding their post-college earnings. Students studying engineering or the humanities had the most accurate ideas of how much they'd earn; their expected salaries were more or less in line with their actual salaries. Students majoring in nursing and computer science actually had an excess of modesty, as they ended up earning more than they expected. So which major was associated with the least realistic salary expectations? Interestingly enough, business majors expected a salary that was a whopping 31% more than the national median. If you're an HR professional tendering offers to Generation Z business school graduates, you might want to tread especially lightly. Since disappointment is a function of expectations versus reality, the best way to negotiate this situation might be a gentle but objective education on national median salaries, rather than a personal appeal. They want face time with managers.Although Generation Zers are full-blown digital natives, having spent their entire lives with online access and social media, their preferences regarding how they'd like to be managed in the workplace are surprisingly quaint. Generation Z employees want face-to-face interaction with their managers. This is somewhat counterintuitive considering 30% of tech-dependent Generation Zers report feeling discomfort after only 30 minutes away from their smartphones, but the data was clear. Generation Z needs constant, personal communication from their superiors to feel appreciated and fulfilled at their jobs. In fact, 60% of Generation Z employees reported wanting multiple check-ins from their bosses during the workweek. Of those employees, 40% said they wanted to interact with their boss between once and several times a day. In this area, Generation Z is actually somewhat more demanding than Millennials; two-thirds of Generation Z employees reported needing feedback from their manager at least every one to three weeks to feel appreciated at work, while less than half of surveyed Millennials said the same. When they receive feedback from their managers, Generation Z has a preferred tone and style. They want the feedback to come as soon as possible after the behavior being referenced, and they want the feedback to be concise; in some cases, a simple emoji could be adequate. They also want the feedback logged and tracked, so there's a record of it that they can refer back to come evaluation time. They'll work hard, up to a point.Generation Z has been paying close attention to the workforce, and one of the things they've noticed is that working too much leads to burnout. Seven out of ten of their Millennial predecessors reported experiencing burnout at work, and Generation Z has taken note. For Generation Z, work-life balance is a supremely important consideration, and it should be just as important to their employers. After all, burnt-out employees aren't dependable performers; they're 63% more likely to take sick days, and three times more likely to quit their job entirely. How can employers contribute towards a healthy work-life balance for Generation Z employees? One way is to allow employees to telecommute. With remote work on the rise in almost every industry, employers are discovering that it not only improves employee satisfaction, it can also increase their productivity. In many ways, allowing employees to work out of the office is a win-win. As an emerging start-up based in St. Louis, we've learned that sometimes we need to find talent in other parts of the country and remote work makes that possible. Another way to promote a healthy work-life balance is to limit work hours. Many major corporations have prohibited weekend work, and have found that forcing employees to take a couple of days off increases their effectiveness come Monday. A related suggestion is to put a greater emphasis on efficiency as opposed to raw time. Let your employees know that results matter far more than simply putting in a certain number of hours. They care about diversity and company values.Generation Z puts a high value on workplace diversity, so any company hoping to retain top Generation Z talent is going to have to prioritize diversity too. According to survey findings, 63% of Generation Z employees report that it's most important to work with people of diverse education and skill levels. An additional 20% report that the most important element of a team is having people of different ethnicities, cultures or origins. This isn't just lip service. Generation Z employees are much less likely to sign on or stay at a company that doesn't have a diverse workforce. A staggering 77% of Generation Z employees reported that a company's level of diversity would seriously affect their decision to work there. There are many ways to increase the diversity of your workforce. One way is to actively work to eliminate bias. This can be more difficult than it sounds. One well-known anecdote involves a major bank using analytics to study how their hiring managers selected candidates. They found that when the hiring managers were fatigued or stressed, they were more likely to hire candidates that resembled themselves. By tweaking their hiring process, they were able to eliminate a large amount of unconscious bias. Another way to increase your workplace diversity is to be open, aware and motivated. Mandate diversity training for the workforce to make employees aware of any unconscious or lingering biases they might harbor. Attracting diverse candidates to your company will be a lot easier if you create a welcoming atmosphere. Although the prospect of preparing your workplace for Generation Z can seem daunting at first, a closer examination of their desires and preferences reveals that they're more traditional than they might want you to know. Behind their facade of tech dependence, they're an essentially rational generation, with a healthy self-interest moderated by an innate sense of decency and a striking degree of community-mindedness. Preparing your company for Generation Z could very well mean making your company a more decent, just and vibrant workplace. |
| Navigating Social Media After a Disaster Posted: 26 Jul 2019 04:20 AM PDT  In 2017, in the wake of the attacks on London bridge that left seven dead and 21 critically injured, Londoners rallied together on Twitter using the hashtag #SofaForLondon, offering their sofas, floors and spare rooms to stranded residents. And during Hurricane Harvey, when 911 calls were backlogged, hashtags like #sosHarvey were used to call for civilian helpers, and accounts like @HarveyRescue compiled the addresses and names of those who were stranded. Following a catastrophic earthquake in Nepal in 2015, Facebook activated its Safety Check feature to allow users to mark themselves safe and notify loved ones. In the wake of countless other tragedies in the last decade, the world has turned to social media to grieve, show support and provide what help they can. As a business owner, it can be difficult to know if, what or how to post following a calamity. On one hand, you want to express genuine sympathy for those affected by the tragedy. On the other hand, you don't want to be viewed as yet another company joining the chorus for the sake of improving one's corporate image. We spoke with public relations and communications experts, as well as a psychologist, about the do's and don'ts of responding on social media to a disaster. Below are some guidelines that can help. What should you say?Some experts believe that if you can't find the right words to say after tragedy strikes, or if your company or community is not involved, it's best not to say anything at all. "If the company isn't directly involved, and the disaster is being covered by every media outlet, the best thing to do [may be] not to post anything," said Brian McDonough, associate at Evergreen Partners PR & Crisis Communication. The No.1 reason not to post on your social media platforms is if it is in any way disingenuous or a ploy to market your business – for example, Cinnabon's tweet after the death of Carrie Fisher in 2016. While you may want to acknowledge the gravity of the situation to your followers, the truth is that silence – like turning off your social media for 24 hours – can say more than a half-hearted response. "Don't feel compelled to respond," said McDonough. "To be received well, the company's message must be genuinely empathetic and free of any political or promotional statements." Use your best judgment.Staying silent may not be an option for you or for your business, in which case you should carefully plan how you will approach your social media use the day of and the days following the event. "If [your] company is directly involved or has the resources to help, then you absolutely need to post something," McDonough said. "It provides the public with some sense of comfort to know the company is aware of [the situation] and [is] responding to [it]." Consider the nature of the disaster or tragedy and your business's relationship to it. Next, evaluate what services or resources your company can provide to help. If you're not in a position to provide resources, keep your posts simple, empathetic and to the point. Because there is often a proliferation of rumor and fake news surrounding disasters or tragic events, fact-check anything you share or retweet on social media to ensure it is accurate and confirmed by emergency personnel or officials. Be prepared.To react swiftly in the wake of major events, it's helpful to have a basic strategy outlined. "Every situation is different, and addressing the nuances of the tragedy is key to a successful communication strategy," said McDonough. Your strategy should include whether or not your company posts about tragic events (or outlines cases where it is or isn't appropriate) and if or how long you will suspend posting. Further, your strategy should provide specific guidelines for what you do post after a traumatic event. "There should be an internal process in place [on how] to interact with social media on highly sensitive issues as they're breaking," said Chris Dessi, vice president of sales at PerformLine Inc. Have a plan for what you will say and how you will say it while avoiding corporate language or promotional tones. "Step out of the marketing voice," Dessi said. "Be a megaphone from the core of the brand." Make sure that whatever you post aligns with your company's values and image, and that it is simple and empathetic. Speak from the heart.One thing that all the experts we spoke to agreed upon is the need for businesses to choose their words carefully when posting to social media after a major news event. "Take time to really think about the message you want to put out," said Massiel Bradberry, owner of Living Better Lives Counseling. "Don't rush to post something just to be the first one. This is an opportunity to connect with your clientele at a time of vulnerability." You should also be prepared – and willing – to support your words with action. "If you're going to talk the talk, walk the walk," said Maria Vorovich, co-founder of GoodQues. "Showing support is great if your consumers or brand are directly impacted. If your company is moved by the event and wants to raise awareness, [it] should expect to do more than just post on social media." This doesn't mean you need to do anything that is costly or dramatic. You can create a small fundraiser or offer products for free or at a discount to those affected. Another option is volunteering time or services. "Consumers notice [brands that post] within the week of a hurricane," said Vorovich. Check your calendar.If you use sites like Hootsuite to schedule your social media posts, turn them off at least the day the calamity occurred. Carefully review your scheduled posts for the next few days to ensure there is nothing that could be perceived as offensive or callous. Further, keeping your automated post schedule can make your company appear ignorant or out of touch, said McDonough. "If every TV channel is covering a disaster, and your company is posting sale advertisements, or if a company tweets out condolences and 10 minutes later posts information about a weekend sale, that's a problem," he said. "In the eyes of the public, the company is trying to act like it's business as usual when it's not." This perceived callousness can lead to damage for your company, both financial and to your reputation, so tread carefully, and err on the side of caution when resuming scheduled posts. How can you help?The only thing businesses should offer in the wake of a tragedy is a helping hand, said Marsha Friedman, president and founder of News & Experts. Review what help your company can provide, and then provide it to the best of your ability. "After a trauma, people need to feel safe and supported, so any social media posts should keep that in mind," said Aimee Daramus, Psy.D, a licensed clinical psychologist at Urban Balance. "[Businesses] can post messages of support and solidarity or useful tips, such as hotlines, shelters, blocked roads or flooded areas. In other words, be an active, helpful part of the community." Daramus said social media managers should always ask themselves if what they are about to post helps people feel safe and supported, and to use that as a guide for your social media posts. Additional reporting by Elizabeth Palermo. Some source interviews were conducted for a previous version of this article. |
| Bring Your Own Device to Work: Establishing a BYOD Policy for Your Small Business Posted: 25 Jul 2019 09:26 AM PDT  Allowing employees to use their own device in the workplace could be hugely beneficial to a small business. It can save money, encourage a mobile workforce, boost overall productivity and create a more relaxed environment for your team. On the flip side, it brings up a lot of issues for you as the business owner – not to mention your employees, too. If you are considering BYOD for your small business, then you need a clear BYOD policy. This article will help you establish necessary guidelines so you can protect your interests as a small business owner while maintaining a competitive edge as an employer. The first thing to do is to answer the following questions. Your responses will shape your BYOD policy. Should I compensate employees for using their personal devices?For companies with a clear BYOD policy in place, the answer to this question is typically no. Employees are not usually reimbursed for using devices they already own. The benefit for employees lies in their ability to use the type of technology they want to use. Remember, too, that you are not renting the equipment from your staff; you are simply permitting them to use their preferred device. On the other hand, if you are implementing BYOD instead of providing computers to employees, then, sure, you might offer some money to reimburse them. Can I require that employees' devices adhere to certain cybersecurity policies?Yes and no. For your policy to be effective, you should have a certain level of control over personal devices that are used on the job. While you can't mandate everything, you can set certain expectations. Make it clear that employees can use their own smartphone, computer, etc., on the condition that your expectations are met. Rules you might consider include the following:
Where should employees store company data?If you are considering BYOD, chances are you already use a cloud-based storage solution for your company data. If not, now might be the perfect time to start. Cloud-based solutions enable authorized users to access and share data anytime and from any location. It's really no surprise, then, that cloud-based solutions and BYOD go hand in hand. Still, not all cloud storage offers the same amount of security. To keep your company data protected on employee-owned devices, consider a mobile device management (MDM) solution. MDMs offer a range of security features, but the purpose of an MDM is to monitor, manage and secure the devices being used in your small business. Some can isolate an employee's personal apps from the business apps on their computer. If a device is lost or stolen, an MDM can wipe the data remotely. What happens when an employee leaves the company?The fact is, some data – like email contacts, company practices, or upcoming marketing initiatives – will inevitably leave with your employee. Knowing this, one of the most proactive things you can do is to select your business applications carefully. Make sure that your employees don't have to download data to their personal device. You might also consider having employees sign a nondisclosure or confidentiality agreement as part of your BYOD policy procedure. If you expect to wipe their personal computer when they leave, make that abundantly clear as well. And finally, plan for the worst but demand the best. Hire good, trustworthy employees from the outset. The less turnover you experience, the less you will need to worry about the exit strategy. Now it's time to write your BYOD policy. Guidelines for drafting your BYOD policy
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