Mission to Grow: A Small Business Guide to Cash, Compliance, and the War for Talent

Is classifying employees as exempt vs. non-exempt more complex than it seems, and what are the key compliance pitfalls and legal nuances every employer should know? At first glance, classifying an employee as exempt or nonexempt appears to only be about how you want to pay them, but at a further glance things are much more complicated. Here to help make things less confusing is this week’s guest! Joining the show this week is VP of HR Consulting at Asure, Mary Simmons!

Mary joins host Mike Vannoy to discuss the significance of properly classifying employees as exempt vs. non-exempt. Simmons highlights the importance of small business owners understanding labor laws for compliance. They discuss common misconceptions and mistakes businesses make when determining employee classification.

Takeaways:

• Understanding the Fair Labor Standards Act is crucial for growing companies when classifying employees as salary or hourly. Employers must follow specific regulations to ensure compliance with wage and hour laws.
• In considering the differences between hourly and salaried employees, it's crucial to understand the distinction between exempt and non-exempt status. Exempt employees are not entitled to overtime pay, while non-exempt employees are eligible for overtime.
• Employers should ensure that hourly workers are paid for every minute they work, including tasks like answering emails or calls. Adhering to wage and hour laws is crucial to avoid legal issues related to off-the-clock work.
• Rewarding exempt employees with extra pay for overtime is possible, but it must be done carefully to avoid breaking the exemption. Consulting with a professional before implementing such rewards is crucial to ensure compliance and fairness.
• Responsibilities, not title, are a determining factor in an employee’s exempt status. While a retail employee may be a manager, if most of their duties involve working with customers and stocking shelves, they may actually be non exempt.
• Employers need to ensure they meet the minimum salary requirements for exempt employees, as failure to do so can lead to costly consequences. Exempt employees must be paid at least $684 a week.
• While there is a baseline of Federal labor regulations employers need to follow, it’s important to be mindful of state regulations as well. Certain states, and even municipalities, have more stringent requirements for wages.

Quote of the Show:

• “You cannot contract around the law.” - Mary Simmons

Links:

• LinkedIn: https://www.linkedin.com/in/marysimmonshrconsultant/
• Company Website: https://www.asuresoftware.com/

Ways to Tune In:

• Spotify: https://open.spotify.com/show/2XThTdn7YC1lkAm0PgZUkj
• Apple Podcasts: https://podcasts.apple.com/us/podcast/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent/id1725890976
• Amazon Music: https://music.amazon.com/podcasts/328dddd0-3c4f-4b07-a0d3-13bdcb418486/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent?refMarker=null
• Audible: https://www.audible.com/pd/Mission-to-Grow-A-Small-Business-Guide-to-Cash-Compliance-and-the-War-for-Talent-Podcast/B0CS71KQFM?qid=1706208857&sr=1-1&ref_pageloadid=not_applicable&ref=a_search_c3_lProduct_1_1&pf_rd_p=83218cca-c308-412f-bfcf-90198b687a2f&pf_rd_r=A1ME8MBECSVZ6K4D7CNT&pageLoadId=QBtg12mqKsuZPLGY&creativeId=0d6f6720-f41c-457e-a42b-8c8dceb62f2c
• Podchaser: https://www.podchaser.com/podcasts/mission-to-grow-a-small-busine-5591006

Want to boost labor efficiency and scalability while fueling sustainable growth and thriving in a competitive market? Learn essential strategies and insights here! Today’s guest is a speaker, entrepreneur, and financial expert! Welcome Greg Crabtree, Partner at Carr, Riggs & Ingram. Greg joins host Mike Vannoy to share labor efficiency, scalability, and the significance of profit in fueling sustainable growth. Greg also focuses on practical and strategic financial advice for small business owners aiming to succeed in a competitive and evolving economy. It’s an enlightening conversation you don’t want to miss!

Takeaways:

• Businesses seeking efficiency should analyze their models to eliminate unnecessary components, such as having accounts receivable without inventory or vice versa, as this tends to correlate with higher profitability potential.
• Prioritizing the establishment of a fully capitalized business is crucial for fostering positive cash flow growth, with subsequent returns on investment becoming feasible once this foundation is solidified.
• Employing a profitability strategy centered around the gross margin to labor cost ratio is imperative for businesses to uphold a robust balance sheet, serving as a fundamental aspect of financial health.
• In a fast-paced, competitive market, businesses need to stand out by prioritizing active selling techniques. Engaging customers proactively, meeting evolving needs, and demonstrating adaptability through proactive sales strategies are vital for sustaining relevance and competitiveness.
• Businesses aspiring for growth may find it essential to restructure their models, which could involve simplification, scalability improvements, and adjustments aligned with evolving market dynamics to achieve their expansion objectives.

Quote of the Show:

• “We have a flat economy that’s really hard to measure.” - Greg Crabtree

Links:

• Asure: https://www.asuresoftware.com/
• LinkedIn: https://www.linkedin.com/in/greg-crabtree-simple-numbers/
• Company Website: http://www.CRIcpa.com
• Publications: https://www.simplenumberscri.com/books

Ways to Tune In:

• Spotify: https://open.spotify.com/show/2XThTdn7YC1lkAm0PgZUkj
• Apple Podcasts: https://podcasts.apple.com/us/podcast/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent/id1725890976
• Amazon Music: https://music.amazon.com/podcasts/328dddd0-3c4f-4b07-a0d3-13bdcb418486/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent?refMarker=null
• Audible: https://www.audible.com/pd/Mission-to-Grow-A-Small-Business-Guide-to-Cash-Compliance-and-the-War-for-Talent-Podcast/B0CS71KQFM?qid=1706208857&sr=1-1&ref_pageloadid=not_applicable&ref=a_search_c3_lProduct_1_1&pf_rd_p=83218cca-c308-412f-bfcf-90198b687a2f&pf_rd_r=A1ME8MBECSVZ6K4D7CNT&pageLoadId=QBtg12mqKsuZPLGY&creativeId=0d6f6720-f41c-457e-a42b-8c8dceb62f2c
• Podchaser: https://www.podchaser.com/podcasts/mission-to-grow-a-small-busine-5591006
• Transistor: https://missiontogrow.asuresoftware.com/
• YouTube: https://www.youtube.com/@AsureSoftware

How can training, wellness initiatives, and mission alignment enhance employee engagement and boost productivity to drive business growth? This week on Mission to Grow, Mike Vannoy sits down with Mary Simmons, VP of HR Compliance, Learning and Development at Asure! Mike and Mary discuss various strategies to engage employees and improve productivity, which in turn accelerates business growth. They focus on training as a vital aspect of employee engagement, emphasizing its importance for skill enhancement. Learn from Mary as she shares the importance of employee wellness initiatives, mission alignment, and how they affect employee engagement. It’s an insightful episode you don’t want to miss!

Takeaways:

• Offering training engages employees because it demonstrates employer investment in their professional development. Both soft skills, like better communication, team building, and hard skills, like technical abilities, are important areas of training.
• Career pathing encourages employee engagement by providing a trajectory for their professional development. It’s advised to create a structure or roadmap showing potential advancements or career opportunities within the organization. This path could comprise promotions, additional training, or even cross-departmental experiences.
• Wellness programs or initiatives significantly impact the engagement of employees. Providing resources addressing physical, mental, and financial wellness is crucial. An engaged workforce is undeniably more productive, leading these wellness initiatives to indirectly contribute to the overall business' success.
• Ensuring employees understand and align with the company's mission can drive employee engagement. Employees who feel connected with the mission typically demonstrate higher productivity. It is crucial for leaders and communicators to consistently communicate the organization's mission and how individual roles contribute to achieving it.
• With the changing work environment, offering flexible or remote work options can boost employee engagement. However, it does bring about the need for proactive communication and employee collaboration efforts, such as regular video meet-ups and virtual team activities.

Quote of the Show:

• “When your staff are connected, they work better and productivity goes up.” - Mary Simmons

Links:

• Asure: https://www.asuresoftware.com/
• LinkedIn: https://www.linkedin.com/in/marysimmonshrconsultant/

Ways to Tune In:

• Spotify: https://open.spotify.com/show/2XThTdn7YC1lkAm0PgZUkj
• Apple Podcasts: https://podcasts.apple.com/us/podcast/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent/id1725890976
• Amazon Music: https://music.amazon.com/podcasts/328dddd0-3c4f-4b07-a0d3-13bdcb418486/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent?refMarker=null
• Audible: https://www.audible.com/pd/Mission-to-Grow-A-Small-Business-Guide-to-Cash-Compliance-and-the-War-for-Talent-Podcast/B0CS71KQFM?qid=1706208857&sr=1-1&ref_pageloadid=not_applicable&ref=a_search_c3_lProduct_1_1&pf_rd_p=83218cca-c308-412f-bfcf-90198b687a2f&pf_rd_r=A1ME8MBECSVZ6K4D7CNT&pageLoadId=QBtg12mqKsuZPLGY&creativeId=0d6f6720-f41c-457e-a42b-8c8dceb62f2c
• Podchaser: https://www.podchaser.com/podcasts/mission-to-grow-a-small-busine-5591006
• Transistor: https://missiontogrow.asuresoftware.com/
• YouTube: https://www.youtube.com/@AsureSoftware

How will the Corporate Transparency Act impact your small business, and what are the essential steps for compliance and potential exemptions? On this week’s episode of Mission to Grow, host Mike Vannoy sits down with Chris Bell, Regulatory Counsel for Asure. Mike and Chris then delve into the details of the CTA (Corporate Transparency Act), why it was enacted, its potential impact on small businesses, and the necessary steps to comply with the law. They also share information on exemptions to the Act and how businesses can register with the Financial Crimes Enforcement Network (FinCEN). It’s an insightful episode you don’t want to miss!

Takeaways:

• Passed in 2021, the CTA is an act that mandates businesses to report their beneficial owner information to the federal banking regulators. Previously, this responsibility fell on the banks. However, Congress shifted this duty to businesses. This act is designed to limit money laundering practices by identifying true business owners.
• Contrary to what one might expect, smaller businesses bear this regulatory burden, not larger entities. The CTA exempts entities with more than 20 employees and $5 million in revenue from the reporting requirement.
• Comply with the reporting requirements of the CTA to avoid hefty fines up to $10,000, and potential legal trouble. Reporting involves registering with FinCEN and providing personal and company information.
• Businesses have to register with the Financial Crimes Enforcement Network (FinCEN) to fulfill the CTA requirements. The process involves submitting personal information, such as name, date of birth, address, Social Security Number, and identification details.
• There are 23 exemptions to this rule, most of which apply to regulated entities like financial institutions and accounting firms. It also includes companies that meet a "large operating exception" (more than 20 employees and $5 million in revenue).

Quote of the Show:

• “If you don't meet one of the twenty-three exemptions under this new law, then you will have a reporting requirement annually. If you don't meet that reporting requirement, then you're going to pay some fines.” - Chris Bell

Links:

• Asure: https://www.asuresoftware.com/
• Chris’ LinkedIn: https://www.linkedin.com/in/chris-w-bell-01648079/
• FinCEN: https://fincen.gov/
• CTA Exemptions: https://www.wolterskluwer.com/en/expert-insights/the-23-exemptions-from-the-corporate-transparency-act

Ways to Tune In:

• Spotify: https://open.spotify.com/show/2XThTdn7YC1lkAm0PgZUkj
• Apple Podcasts: https://podcasts.apple.com/us/podcast/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent/id1725890976
• Amazon Music: https://music.amazon.com/podcasts/328dddd0-3c4f-4b07-a0d3-13bdcb418486/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent?refMarker=null
• Audible: https://www.audible.com/pd/Mission-to-Grow-A-Small-Business-Guide-to-Cash-Compliance-and-the-War-for-Talent-Podcast/B0CS71KQFM?qid=1706208857&sr=1-1&ref_pageloadid=not_applicable&ref=a_search_c3_lProduct_1_1&pf_rd_p=83218cca-c308-412f-bfcf-90198b687a2f&pf_rd_r=A1ME8MBECSVZ6K4D7CNT&pageLoadId=QBtg12mqKsuZPLGY&creativeId=0d6f6720-f41c-457e-a42b-8c8dceb62f2c
• Podchaser: https://www.podchaser.com/podcasts/mission-to-grow-a-small-busine-5591006
• Transistor: https://missiontogrow.asuresoftware.com/
• YouTube: https://youtu.be/KwfgyXIauSc

How will 2024 employment law changes impact salaries, pay transparency, marijuana legislation, and state-mandated savings plans for your business? This week, we welcome back Mary Simmons, the VP of HR Compliance, Learning and Development at Asure. Mary partners with Mike to discuss 2024 employment law updates, covering topics such as the anticipated increase in White Collar and Highly Compensated salaries, pay transparency, impacts of marijuana legislation on employers, and state-mandated savings plans. They highlight the importance of staying compliant, adapting to changes, and keeping HR functions supportive of the business's growth. It’s an insightful episode you won’t want to miss!

Takeaways:

• The Department of Labor is expected to increase White Collar and Highly Compensated salaries, which might heavily impact businesses, especially the small ones. Mary urges employers to prepare and audit their Fair Labor Standards Act, considering how this change might impact their employees and operations.
• More states are moving towards pay transparency where salary ranges for job postings are made public. Employers need to embrace this change and utilize it as a strategy for attracting potential employees.
• States are continuing to legalize marijuana, and companies need to be prepared for the complexities that come with this in relation to workplace policies. Employers need to form a solid plan on what their stance will be on off-duty cannabis use and remain aware of the changing laws surrounding it.
• Many states are implementing mandatory savings plans for employees. This isn't just a mandatory compliance issue, employers should also leverage this as a perk when attracting new talent.
• Non-competes are seeing a pushback and being challenged more frequently. Employers need to review their non-competes with a professional and consider how competition impacts their employee engagement.
• There are more leave laws being enacted on state and local levels, including bereavement leave and parental leave. Employers need to stay updated with the new laws and understand their effects to avoid legal complications and manage employee expectations better.

Quote of the Show:

• “Keep focusing on HR because it is no longer a call center. It is your way to being successful.” - Mary Simmons

Links:

• Asure: https://www.asuresoftware.com/
• LinkedIn: https://www.linkedin.com/in/marysimmonshrconsultant/

Ways to Tune In:

• Spotify: https://open.spotify.com/show/2XThTdn7YC1lkAm0PgZUkj
• Apple Podcasts: https://podcasts.apple.com/us/podcast/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent/id1725890976
• Amazon Music: https://music.amazon.com/podcasts/328dddd0-3c4f-4b07-a0d3-13bdcb418486/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent?refMarker=null
• Podchaser: https://www.podchaser.com/podcasts/mission-to-grow-a-small-busine-5591006
• YouTube: https://youtu.be/0G2r5sn7qrM