This year has been very trying for all of us. It seems a long time ago that we as an industry were enjoying the economic prosperity of a booming economy with no thunderclouds on the horizon. Then the pandemic set in.
It’s hard not to allow the events related to COVID-19 to change the course of this article, just as this pandemic has changed the course of the world. We’ve been forced to adapt and pivot in ways we had only hypothesized before. “What if we all went totally remote?” is a question we asked in strategic planning, but not something we envisioned we would have a week to execute.
I started writing this article on my first day home due to the COVID-19 crisis in late March. Little did I realize at the time that our client model would become useful in ways beyond measuring client profitability. The focus quickly changed 180 degrees from enhancing client profitability to focusing on protecting the PEO and working with clients to maintain their businesses.
Coronavirus was still a new word when many of us were gathered in March in Nashville, Tennesse, for NAPEO’s Risk Management Workshop. Those who attended will remember that the tornado on the Monday night preceding the conference was the big news of the week. It wasn’t until days later when the NCAA announced the cancellation of “March Madness” that I started to grasp how serious this could become. That NCAA announcement was made on March 12. Our world has permanently changed in a span of 270 days. COVID-19 will stick in the collective memory for generations.
A lot of advice about PEO profitability and growth focuses on sales tactics, marketing campaigns, or other ideas. While these things may bring short-term success, they don’t necessarily lead to long-term growth. Instant gratification is nice, but over time, does the PEO really build on its success?
December is my favorite month of the year. Although the holidays can be stressful at times, overall, there is a festive spirit filled with lights, parties, and gift giving. One of my favorite traditions is writing my family’s Christmas letter. Each December, I sit down at my computer and reflect on the year—the blessings as well as the challenges.
NEW IRS GUIDANCE
TAX TREATMENT OF PPP LOAN EXPENSES
On November 18, the U.S. Treasury Department and Internal Revenue Service (IRS) released guidance clarifying the tax treatment of expenses when Paycheck Protection Program (PPP) loans have not been forgiven by the end of the year the loans were received...
Teresa Carroll recently joined the PEO industry as Paychex’s vice president of PEO and serves as president of Oasis, a Paychex company. She recently spoke with PEO Insider about her new role, how she views the industry, and the value PEOs bring to small business.
The role of PEOs has taken on more urgency in today’s business environment when it comes to diversity, equity, and inclusion (DEI). Recent social unrest in our communities underscores the importance of continuous focus and ongoing action at every level to improve DEI in the workplace.
As employees continue to return to work in the wake of COVID-19, it’s important to keep their safety in mind. It can be confusing, though, knowing where an employer’s responsibility begins and ends.
COVID-19 has left and will continue to leave an indelible mark on workers’ compensation coverage for years to come. The litany of legislation focused on presumptions of coverage is a testament to the impact it has had. Moreover, the fundamental shift in carrier underwriting appetite has been breathtaking.
Recovery efforts are underway for companies both small and large, and across every industry PEOs are establishing the new normal for them. Is it going back to a traditional way of business? Is it scaling back in one way or another? Is it investing in new technologies?
Revenue growth was a mixed bag for PEOs during the third quarter of 2020. While 40 percent of survey participants achieved some revenue growth (versus the same quarter of 2019), 40 percent saw their revenue fall.
As I write this, another election is behind us. I have been in Washington now more than three decades. I like to joke that I’ve been here so long that I’m part of the problem. In my time here—especially in the earlier years—there was a dirty little secret in this city that was well-known but never spoken: Every staunch Republican had a gaggle of good friends who were staunch Democrats and every staunch Democrat had a gaggle of friends who were staunch Republicans. It was just the way the city worked.