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Employer of Record: what it is and who needs it most

CMMA Blog

Employer of record (noun):

a) a company or organization that is legally responsible for paying employees, including dealing with employee taxes, benefits, insurance, etc.

b) your secret weapon for eliminating red tape for hiring and keeping you out of court

While you’re not going to find that second definition in the dictionary, it’s certainly one of the top benefits of partnering with an Employer of Record (EOR). Let’s take a look at the reasons some companies outsource this important part of their business.

What are some of the top benefits of having an EOR?

An EOR serves as the employer and takes on all related responsibilities and liabilities while employees work for another company. An EOR does some or all of the following:

  • Makes hiring new workers enormously easier and faster
  • Covers payroll management for freelancers
  • Maintains current headcount
  • Guarantees on-time payment
  • Handles all compliance issues
  • Provides workers’ comp and all necessary insurance for contractors
  • Conducts background checks and drug screenings
  • Turns a mountain of hiring paperwork (certificates of insurance, I-9s, E-verify forms, and so on) into a mole hill
  • Terminates employees, administers benefits, and handles some worker issues

Who needs an EOR?

We find that clients with a lot of freelance hiring needs on tight deadlines benefit greatly from partnering with an EOR because it makes onboarding–often one of the most painful parts of the process–a nonissue. They also love that outsourcing many of these services helps eliminate or at least reduce the need for an internal HR department. Since we specialize in these services, we have systems in place to make everything as efficient and smooth as possible. Sometimes, it’s the difference between staffing and finishing projects on time and tanking a project before it really even gets off the ground.

Bottom line

Not every company needs an EOR, but for those who do, it’s a game changer. If you think your might be in the latter category, reach out to us and we’ll talk through solutions for your unique situation. Your life is about to get a whole lot easier.

The post Employer of Record: what it is and who needs it most appeared first on PayReel .

To view our Partner blog, click here

How to Maintain Company Culture with a Remote Workforce

CMMA Blog

Pixar’s cereal bar  is the stuff of legend. The famous first stop for anyone who tours the studio isn’t what the company culture is built on, but it is a noteworthy expression of a company culture that cultivates creative expression, communication, and a feeling of purpose among workers.

You don’t need a cereal bar, but that feeling? That’s worth emulating. After all, the experience your workers have working with and for your company affects not just their quality of lives but your business overall, too.

Don’t misunderstand: A positive company culture is more than ping pong in the break room, nap pods, or free bagels day. In fact, you don’t need a break room, or even a workplace at all, to have a company culture.

You already work hard to foster the culture within your physical space. Here’s how you can maintain that company culture with a remote workforce.

Integrate culture into interviews and on-boarding

One way to maintain and strengthen your company’s culture when working with a variable, contract, or remote workforce is to start from day one. Provide a culture orientation that introduces new team members to the culture. Whatever form the message takes it should do the following:

Explain what your culture is
Define your mission statement and core values
Give examples of the culture in action

Share this information with new team members as part of the on-boarding process. Make it available for all employees to reference. Train your hiring managers and staffing or crewing agency to make sure potential workers are a good fit for both the role and the culture. You could also create a peer mentoring program where teammates on-board each other and train new members on the brand.

By integrating your culture from the very first touchpoint, you can set it up for success — no matter how many miles separate teammates.

Foster communication

In co-located offices, important information often gets exchanged in break rooms, hallways, impromptu meetings, and at after-work drinks. With a remote team, you have to go out of your way to overcome the “watercooler gap.” Create digital opportunities for teammates to connect and collaborate.

Tools such as video conferencing, instant messaging, and online collaboration methods like Zoom, Slack, and Google Hangouts can help shrink the miles. Detailed meeting notes and recorded discussions can help make sure the right people are in the loop, even if they’re in different time zones.

Use tools that reflect and support your culture

Just like connections, the personality and culture of co-located offices develop through the interactions they’re home to. It evolves through the proverbial watercooler talks, whiteboard sessions, inside jokes, and shared experiences. Your remote team (or team of short-term contractors) can develop something similar through the tools you use every day.

As Nick Francis said, “A culture’s effectiveness revolves around how information flows.” That means you need to adopt tools and processes that will foster communication and that will also serve as an extension and vehicle of the culture.

Engage workers

Another way you can help maintain company culture across your remote workforce is by creating opportunities for social interaction and employee engagement. While a weekly happy hour wouldn’t be realistic, something like a virtual book club could be. Or if you’re aiming to build camaraderie or foster teamwork, you could host a monthly game night where workers team up for an online video game tournament.

It doesn’t have to be all fun and games. You could host monthly lunch-and-learns over Zoom or Google Hangouts, or you could create a Slack channel where workers can recognize and give each other kudos. You might also consider implementing weekly video updates where you share company-wide news, birthday announcements, or whatever’s culturally relevant to your organization. There are countless ways you can engage remote workers. Find what works for your team and make it a habit.

The bottom line

It’s worth investing your remote workforce’s culture. Companies with strong cultures tend to see higher rates of productivity, be more profitable, and retain top talent. Thankfully, you don’t need a headquarters to reap the benefits of positive company culture.

Learn how partnering with PayReel to manage your contingent workforce can free up your resources to focus on strengthening your culture and bottom line.

ABOUT PAYREEL:

At PayReel , we minimize the time and effort it takes to get you ready for your project. Rely on PayReel to assume all of the risk associated with worker classification and get back to the business at hand. We make sure everyone gets paid quickly and easily and have Client Relationship Managers on call around the clock to answer your questions. All you have to do is call 303-526-4900 or email us. The PayReel team makes video production, live events, media, and entertainment payroll easier, faster, and seamless.

The post How to Maintain Company Culture with a Remote Workforce appeared first on PayReel .

To view our Partner blog, click here

A Dynamex Decision newsflash: It’s about to get real with Assembly Bill 5

CMMA Blog

If you’re paying attention to the world of independent contractors (ICs), you’re already familiar with the Dynamex Decision (which we covered here ). So what makes the recent Assembly Bill 5 news flashy? It’s that this bill approves codifying the ruling. That means the decision is one step closer to being iron-clad law (along with all the usual associated legalese and fines, of course).  

What are the arguments?

Reclassifying many ICs as employees protects workers

Supporters of the bill, such as San Diego Assembly member Lorena González said , “Big businesses shouldn’t be able to pass their costs on to taxpayers while depriving workers of the labor law protections they are rightfully entitled to.”

While it certainly affects many more industries than the ride-hailing apps Lyft and Uber, those companies do often end up at the center of the debate. Multiple class action lawsuits prove that plenty of drivers are fighting for the labor protections that come with being employees.

It’s not really about the workers

California frequently passes laws claiming to support the workers, but company representatives for the ride-hailing apps are quick to say workers like the freedom to create their own schedules. You’ll find many independent contractors (drivers as well as those in other industries) who agree. They like being able to choose compatible clients and projects and build a business for themselves instead of feeling like a cog in a corporate wheel.

Some workers could end up making less as employees. Employers don’t pay ICs the same taxes and benefits as they do employees and may start negotiating lower hourly rates for workers in order to keep their profits strong. That means newly-minted employees may make less even as they get access to benefits such as unemployment insurance, health care subsidies, paid parental leave, overtime pay, workers’ compensation, and a guaranteed $12 minimum hourly wage.

What is it most certainly about?

Money, cash, and dollar dollar bills

This goes for all parties. This New York Times article says companies like Uber and Lyft would have to raise their labor costs by 20 to 30 percent if they reclassify drivers as employees.

Big-time tax dollars (as in billions with a B)

According to the court’s ruling on the Dynamex decision, “the misclassification of workers as independent contractors rather than employees is a very serious problem, depriving federal and state governments of billions of dollars in tax revenue.”

Small businesses can avoid certain taxes with fewer employees and independent contractors can write off business expenses and may also underreport their income. Hence the resulting “deprivation.”

What about exemptions?  

Not all ICs want to be employees

Many hairstylists, for example, benefit from the “booth rental” model. As part of the salon, they get the benefit of the establishment’s marketing as well as possible walk-in clients. Still, they set their own schedule, manage their own business, and keep any earnings beyond their rent.

The bill seeks to accommodate such industries, hairstylists included, by exempting them from the ruling. There are plenty of other exemptions (such as doctors, dentists, lawyers, architects, insurance agents, accountants, engineers, financial advisers, and real estate agents) in the bill for professionals deemed true independent contractors who negotiate their own contracts.

The bottom line

It’s hard to overstate the potential impact of this subject. These headlines (from this week) demonstrate that this isn’t the last we’ve heard on the subject:

California bill advances, could shape battle in other states

This bill could make Uber drivers employees in California

Just can’t get enough of Dynamex?! We promise to cover everything you’d ever want to know about it and maybe a few things you wish you didn’t need to know.  

About PayReel:

At PayReel , we minimize the time and effort it takes to get you ready for your project. Rely on PayReel to assume all of the risk associated with contingent workforce management and get back to the business at hand. We make sure everyone gets paid quickly and easily and have Client Relationship Managers on call around the clock to answer your questions. All you have to do is call 303-526-4900 or email us. The PayReel team makes live event, corporate media, and brand management payroll easier, faster, and seamless.

 

The post A Dynamex Decision newsflash: It’s about to get real with Assembly Bill 5 appeared first on PayReel .

To view our Partner blog, click here

The biggest myth about the gig economy just got busted

CMMA Blog

The internet and all its digital descendents (apps, mobile workspaces, etc.) have made it logistically easier than ever to both be and to hire a creative, freelancer, and side hustler. That much is true. Beyond that, there are a whole bunch of splashy headlines and semi-educated guesses about the gig economy’s reach and impact.

Due in part to two Ivy league economists’ predictions , 2015’s descriptions of the gig economy conjured images of companies dismantling their corporate offices while employees flee to the beaches with their sunscreen and laptops. Now, the question is up for debate again. Is the gig economy the wave of the future ? Did it ever happen at all ?

Either way, it’s time to revisit one of the biggest misconceptions about the gig economy.

The biggest myth about the gig economy just got busted by the same economists who predicted it

Myth: The gig economy is taking over the world!!!  

The 2015 study that launched a thousand predictions said that from 2005 to 2015 , the proportion of American workers engaged in “alternative work” jumped from 10.7% to 15.8%accounting for nearly all of the job growth during that period. This led many to believe the gig economy would supplant the traditional workforce in grand, irreversible ways. As always though, the truth tends to be a little more complicated than surface numbers can tell us.

Estimates indicate that the contingent workforce makes up somewhere between 10.1% and 35% of the economy. It’s none other than the Bureau of Labor Statistics that reported the higher number in 2017saying 55 million people were gig workers. They went so far as to project the number would increase to around 43% by 2020. That seems like a whole lot, but one important note is that its estimates include everyone from the freelance writer with steady retainer contracts to the weekend Uber driver supplementing her income with an occasional shift. As is always the case with estimates, every differencefrom definitions to the source of informationinfluences the results and leads to large gaps in the findings. 

One common cause for confusion is the fact that contingent workforce and gig economy are often used interchangeably. In reality, the contingent workforce pie consists of many different types of work arrangements (only one of which truly constitutes the gig economy). The first two slices of pie include staffing arrangements and independent contractor projects that are defined by an SOW and milestone based contracts. True gig workers make up the third piece and include those in micro-burst jobs and hourly gigs. They typically find work and get paid through a platform (such as Uber).

Additionally, the same economists who wrote that influential 2015 study now say it was flawedbased on inaccurate data inflated by the recession . This article indicates that, with the benefit of hindsight, the labor economists who wrote the study have revised their findings. Rather than accounting for nearly all of the job growth between 2005 and 2015, they say the gig economy grew modestlymore like one or 2 points.

Rather than an “explosion,” the gig economy seems to be in the decidedly less sexy category of a steady progression.

What we know

Things are changing just like they always do. For workers looking to freelance as a career or thinking of it as a stepping stone to a dream job , it’s never been easier to take the leap. We’ll be keeping an eye on how things continue to shift, including how legislation such as the Dynamex Ruling changes the way we do business .

Whether the predictions that led to a hyped narrative around the gig economy were entirely accurate or not, the government is still paying extra close attention to accurate worker classification. No matter where this evolution leads, it behooves employers to stay on top of accurate worker classification . The consequences of misclassification don’t change with the headlines.

About PayReel:

At PayReel , we minimize the time and effort it takes to get you ready for your project. Rely on PayReel to assume all of the risk associated with worker classification and get back to the business at hand. We make sure everyone gets paid quickly and easily and have Client Relationship Managers on call around the clock to answer your questions. All you have to do is call 303-526-4900 or email us. The PayReel team makes live event, corporate media, and brand management payroll easier, faster, and seamless.

The post The biggest myth about the gig economy just got busted appeared first on PayReel .

To view our Partner blog, click here

Our most popular posts of 2019 — to help you make the most of your new year

CMMA Blog

As we find ourselves squarely into first week of the new year, let’s not forget about some of 2018’s most popular posts. We covered everything from how to eat like an adult human (even when you’re working like a dog) to the ever-present discussions around worker classification . Dynamex Decision, anyone?

Here are 5 of 2018’s most popular posts

When an independent contractor becomes an employee: A chain of events

Pumpkin spiced lattes! Babies! Generation Z (move over, Millennials)! What do they all have in common? They’re a constant reminder that there’s nothing so constant as change. With its ever-narrowing definition of an independent contractor, California is embarking on the real-time evolution of the gig economy. Here’s the chain of events a company and its workers might go through in response to such changes. Read more .

3 common freelancing myths, plus the truth (can you handle it?)

To overworked, underappreciated 9-5ers, freelancing may seem like the holy grail. But going out on your own isn’t just a world of free-flowing creative juices, coffee breaks, and wads of money. Freelancing can make you feel just as burnt out and unstimulated as whatever made you take a hike from your previous gig in the first place.

Here are 3 common freelancing myths–plus ways to make the road less traveled work for you. Read more .

Who’s FICA? Why’s he getting all my money?

Today, we’re going to dive into the light, easy, totally uncontroversial world of taxes. As in, “Who’s FICA? Why’s he getting all my money?”

About once a week, the PayReel office phone rings with someone on the other end of the line referring to the Federal Insurance Contributions Act (FICA) with exactly the same tone you’d expect with a four letter word. We understand. Read more .

5 skills that will make any freelancer ultra-hirable and profitable

Freelancing is a balls to the wall, pride-swallowing siege and these days, it seems everyone is fighting it out for business. How do you make that business yours? One way is to solve the problems clients have (the ones they called you about) and then go even further by solving the ones they haven’t even thought about yet. That’s when you become an advisor clients can’t live without rather than a freelancer they can replace tomorrow.

Every freelancer should seek to be as hirable and desirable as possible in today’s competitive marketplace. Here are 5 of the most coveted skills as well as where you can hone them for free/next to free. Read more .

How have “work relationships” changed as offices become obsolete?

Gone are the days when “work relationships” are made up of people we see on a regular basis. We can literally have an entire functioning relationship without ever seeing a person or even hearing their voice. Talk about an evolution from the days when sharing an office building was a prerequisite. Here are some of the biggest ways work relationships have changed with the evolving workplace. Read more .

Onward!

With rulings like the Dynamex decision changing the way businesses operate and the digital workspace becoming more common, we are in the middle of one of the biggest evolutions in the modern economy. We will be keeping an eye on the quickly-evolving business dynamics of the 21st century. The one thing we can always be sure of is that change is around every corner.

About PayReel:

At PayReel , we minimize the time and effort it takes to get you ready for your project. Rely on PayReel to assume all of the risk associated with worker classification and get back to the business at hand. We make sure everyone gets paid quickly and easily and have Client Relationship Managers on call around the clock to answer your questions. All you have to do is call 303-526-4900 or email us. The PayReel team makes live event, corporate media, and brand management payroll easier, faster, and seamless.

The post Our most popular posts of 2019 — to help you make the most of your new year appeared first on PayReel .

To view our Partner blog, click here

Worker safety resources for wild weather

CMMA Blog

What does it mean to do right by your workers with weather that’s getting wilder by the day? I’ll tell you what it doesn’t mean: waiting until someone has a heat stroke to think about worker safety. As we head into August — historically one of the hottest months of the year in much of the U.S. — it’s a good time to talk about workplace safety. Protecting workers, especially those who spend extended time outdoors, requires a little extra forethought and attention. By taking some precautions against heat-related issues, businesses can lower safety risks and prevent fines and lawsuits, too.

Worker Safety in Extreme Heat

Staying compliant with OSHA’s guidelines on Occupational Heat Exposure prevents workers from getting heat related illness. It also prevents them from missing work and you from getting fined. Keep everyone safe so neither you nor your employees end up paying the price.

  1. Provide water, rest, and shade: It’s easy to get into a project and forget about the time. Sometimes proactive measures like mandatory breaks with plenty of hydration will remind people to take care of themselves in the heat.
  2. Recognize the signs: Managers should be on high alert for symptoms of heat exhaustion. According to the Occupational Safety and Hazard Administration (OSHA), “Persons suffering from heat exhaustion might have cool, moist skin; sweat heavily; or complain of headache, nausea or lightheadedness.”
  3. Download the app: At different temperatures and conditions, different measures are appropriate. The U.S. Department of Labor makes it as easy as possible to monitor the heat index as well as its associated risks with its heat safety app . You can also schedule reminders for water breaks and more with a few taps.

General Emergency Preparedness

Heat isn’t the only hazard workers may face. OSHA’s website provides resources for winter weather and just about every situation here . Preventative measures for upcoming cold weather and other inclement weather issues is a worthwhile investment. OSHA offers free on-site consultations to help diligent employers eliminate any problems up front. Contact them at 1-800-321-OSHA for more information.

Bottom line

It’s not just about staying compliant with the letter of the law, but about understanding and staying true to the spirit behind it. Even if you can push temporary employees a little further to get the job done faster, it’s worth going above and beyond to provide a safe environment.

About PayReel

At PayReel , we minimize the time and effort it takes to get you ready for your project, make sure you get paid quick and easy, and have Client Relationship Managers on call around the clock to answer your questions. All you have to do is call 303-526-4900 or email us. The PayReel team makes event payroll easier, faster, and seamless.

The next time you work an event or a production, tell your supervisor you love working with the PayReel team .

The post Worker safety resources for wild weather appeared first on PayReel .

To view our Partner blog, click here