HR Knowledge Hub

The Essentials of Payroll Tax Recordkeeping

PRO Resources — Fri, 27 Mar 2026 20:36:54 GMT

Accurate payroll record keeping is more than good bookkeeping — it’s a legal requirement. Federal agencies like the IRS and the Department of Labor (DOL) require detailed records of wages, hours and taxes, and most states add their own rules. Keeping complete, accessible records helps you stay compliant, avoid fines, and be ready if regulators or auditors request documentation.

Why payroll records matter

Compliance: Agencies can inspect records and impose penalties for missing or inaccurate documentation.
Financial control: Well-kept records give a clear view of labor costs, payroll liabilities and benefit usage.
Employee trust: Transparent records support accurate paychecks and timely resolution of disputes.

What the FLSA requires

The Fair Labor Standards Act (FLSA) doesn’t force a specific format, but it does require employers to retain a core set of employee and payroll details for inspection by the DOL’s Wage and Hour Division. Required items include:

Employee identifiers: full name, Social Security number, home address; date of birth if under 19.
Employment details: sex, occupation, time and day the workweek begins.
Hours and pay: hours worked each day, total weekly hours, basis of pay (hourly, salary, piecework), regular hourly rate, overtime earnings, additions/deductions, and total wages for each pay period.
Payment dates.

Retention timelines under the FLSA:

Payroll records, collective bargaining agreements, and sales/purchase records — at least 3 years.
Supporting records (timecards, piecework tickets, wage-rate tables, schedules) — at least 2 years.

Records may be stored at the business location or a central office. The chosen timekeeping method is up to the employer, provided it’s complete and accurate.

What the IRS requires

IRS employment-tax record keeping is more prescriptive and often longer in scope:

Identification and compensation: Employer Identification Number (EIN), amounts and dates of all wages, annuities and pension payments, reported tips and allocated tips, and fair market value of in-kind wages.
Employee data: names, addresses, Social Security numbers, occupations, dates of employment, and copies of undeliverable W-2s.
Leave and absence: records of absences for illness or injury and related payments.
Tax documentation: copies of withholding certificates (Form W-4 and related forms), records of tax deposits with acknowledgment numbers, and filed returns with confirmation numbers.
Fringe benefits and credits: documentation for fringe benefits, expense reimbursements, credits claimed, qualified sick and family leave wages (retain for at least 6 years), and deferred Social Security tax records.

General IRS guidance: keep employment tax records for at least 4 years unless a specific provision requires a longer period. Records must be accurate, accessible and available for inspection.

What the Your State requires

States often impose stricter rules than federal law:

Longer retention periods
Specific wage-statement requirements
Additional labor standards and reporting obligations

Always verify your state’s requirements through the state labor department or your payroll provider, which should track both federal and state obligations for you.

Best practices for payroll record keeping

Keep more, not less: Retain records that meet or exceed the longest applicable retention period (federal, IRS, or state).
Centralize storage: Use a consistent, secure location for both payroll files and supporting documentation (digital or physical).
Ensure accessibility: Records should be readily available for inspection or audit.

Use reliable systems: Choose payroll software or a provider that automatically captures required fields and stores records with audit trails.
Document policies: Maintain written procedures for timekeeping, payroll calculations, record retention and access controls.
Back up records: Maintain encrypted backups and test restoration procedures.
Review regularly: Schedule periodic audits to verify completeness and accuracy.

Quick retention summary

FLSA payroll records — minimum 3 years
FLSA supporting records (timecards, schedules) — minimum 2 years
IRS employment tax records — generally 4 years; some items (e.g., qualified sick/family leave wages) — 6 years
State requirements — vary; often longer than federal

Maintaining thorough, accurate and accessible payroll records protects your business from penalties, supports sound financial reporting, and builds credibility with employees and regulators. Adopt systems and policies that consistently capture required details and retain them for the appropriate periods — when in doubt, keep records longer.

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The Direct Link Between Employee Experience and Bottom-Line Success

PRO Resources — Mon, 02 Mar 2026 22:30:15 GMT

In the competitive landscape of today's business environment, organizations are increasingly recognizing that employee experience (EX) is not just a buzzword; it's a crucial element that affects their bottom line. Companies that prioritize and invest in creating a great workplace are seeing remarkable returns on investment (ROI), demonstrating a clear link between employee satisfaction and business success.

Understanding Employee Experience

Employee experience encompasses everything an employee goes through while working for an organization, from recruitment to onboarding, daily interactions, work culture, and even exit processes. It shapes how employees feel about their roles and their overall engagement levels.

Key components of employee experience include:

Work environment: The physical and virtual atmosphere in which employees work.
Company culture: The shared values, goals, and practices within an organization.
Technology: The tools and resources that enable employees to perform their tasks efficiently.
Career development: Opportunities for continuous learning and advancement within the company.
The Business Case for Investing in Employee Experience

Organizations that prioritize EX can expect substantial returns. A study by Gallup found that companies with highly engaged workforces outperform their competitors by 147% in earnings per share. Here are several ways that great workplaces contribute to better business results:

1. Increased Employee Engagement
When employees feel valued and have a positive experience, they are more likely to be engaged in their work. Engagement leads to higher productivity, increased creativity, and greater commitment to the organization's goals. This, in turn, results in better performance and profitability.

2. Lower Turnover Rates
High turnover rates are costly—replacing an employee can cost an organization up to 1.5-2 times that employee's annual salary. Companies that invest in employee well-being and create positive experiences can reduce turnover rates significantly. According to a report by the Work Institute, one in four employees leaves their job for reasons tied to their experience at work.

3. Improved Customer Satisfaction
A happy workforce leads to satisfied customers. Employees who are engaged and motivated are more likely to deliver outstanding service, fostering customer loyalty and driving sales. Research by the Temkin Group shows that companies with excellent customer experience also have employees who are more engaged.

4. Enhanced Brand Reputation
Creating a great workplace enhances the company’s reputation both internally and externally. When employees feel proud of their work environment, they become advocates for the brand, improving its standing in the eyes of potential hires and customers alike. This positive perception can attract top talent and new business opportunities.

5. Greater Innovation
A supportive and positive work environment encourages employees to share ideas and take risks without fear of negative repercussions. Companies that promote a culture of innovation often lead their industries, fostering an agile workforce capable of adapting to market changes.

Measuring the ROI of Employee Experience

Quantifying the ROI of employee experience involves looking at various metrics. Here are some ways to measure impact:

Metric	Description	Impact on ROI
Employee Engagement Scores	Surveys measuring engagement levels	Higher engagement correlates with better productivity and lower turnover.
Turnover Rates	Percentage of employees leaving	Reduced turnover leads to lower hiring and training costs.
Customer Satisfaction Ratings	Feedback from customers	Higher satisfaction leads to increased sales and customer loyalty.
Productivity Metrics	Performance data	Improved productivity contributes directly to profits.
Innovation Metrics	Number of new ideas or products launched	Innovation can lead to new revenue streams and market leadership.

By regularly tracking these metrics, businesses can see the financial benefits of a strong employee experience strategy.

Conclusion

The relationship between employee experience and business results is clear: investing in great workplaces drives success. Companies that prioritize EX not only foster a happier and healthier workforce but also achieve better financial performance. It’s not merely a cost but a critical business strategy that yields measurable returns. As organizations continue to navigate the complexities of the modern workplace, the investment in employee experience will undeniably pay dividends in the long run.

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FAQ: Minnesota's New Paid Family & Medical Leave Program

PRO Resources — Wed, 05 Nov 2025 16:15:01 GMT

What Employers Need to Know for 2026

Starting January 1, 2026, Minnesota will implement a Paid Family and Medical Leave (PFML) program — providing employees with job-protected leave and partial wage replacement for qualifying life events such as medical conditions, caring for family members, or bonding with a new child.

At PRO Resources, we’re proactively preparing so our clients are fully compliant and ready before the new program takes effect.

Q: What is Minnesota’s Paid Family and Medical Leave (PFML)?

A: Beginning January 1, 2026, Minnesota will implement a new statewide Paid Family and Medical Leave program, which will provide job-protected leave and wage replacement benefits for qualifying life events like medical conditions, family care, and bonding with a new child.

Q: How is PRO Resources handling this for clients?

A: PRO Resources will be fully managing PFML compliance on your behalf, including:

Registering with the MN Department of Employment and Economic Development (DEED) under a private plan.
Administering payroll deductions and remitting contributions (both employee and employer portions) starting January 1, 2026.
Providing ongoing updates, including rate changes, deadlines, and state-issued resources.

Q: What do employers need to do right now, if you are a PRO Resources Customer?

A: No immediate action is required if you are a PRO Resources customer. PRO Resources is working behind the scenes to align all systems and ensure your compliance. We’re committed to making this as easy and seamless as possible for your business.

Q: What support will PRO Resources provide?

We’re finalizing a comprehensive Employer Toolkit, which will include:

Step-by-step action items to prepare
Employee communication templates
Important dates and deadlines
FAQs and compliance guidance
Required workplace poster
A Paid Leave Comparison Guide

Q: What is the “Private Plan” through Guardian, and how is it different?

A: PRO Resources has selected a private PFML plan through Guardian that offers several key advantages over the state plan, including:

Cost Savings and Rate Stability
- Lower contribution rates than the state’s plan for 2026 (.83%)
- Rates locked in through 2027
Better Service Experience
- Personalized, high-touch support for employees and families
- Faster, smoother claims handling

Q: Why is PRO Resources using only the Guardian private plan?

To provide the most consistent and cost-effective service, PRO Resources will exclusively administer PFML through Guardian. This ensures:

Streamlined administration across all clients
Consistent service and claims support
Access to stable, lower rates (.83%)

Please note: We will not be able to support standalone private PFML plans purchased outside of our offering, and we do not provide administrative or compliance support for employers who choose to participate in the state-run program.

Q: What if our company has fewer than 30 employees?

A: If your business has fewer than 30 employees:

Participation in PRO’s private PFML plan is still required (at the rate of .83%).
While the state-run plan may offer a lower rate for small employers, choosing that path means you would be fully responsible for all administration and compliance.

Q: What happens next?

A: We’ll continue to provide timely updates as more guidance becomes available from the state. Our mission is to keep you compliant, minimize disruptions, and make this transition as beneficial as possible for your business and your team.

Have Questions?

Reach out to your PRO Resources Human Resources or Benefits Representative, we’re here to help guide you in every step of the way

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The Complete Guide To Employee Wellness Programs: Why They're Essential For Your Bottom Line

PRO Resources — Wed, 03 Sep 2025 20:05:01 GMT

Employee wellness programs aren't just a nice-to-have perk—they're a strategic investment that directly impacts your bottom line. With Harvard research showing that companies see $6 in returns for every $1 invested in wellness programs, forward-thinking organizations are recognizing that healthy employees truly cost less.

In today's competitive labor market, where 83% of American workers deal with work-related stress and mental health challenges, wellness programs have become essential for attracting top talent and retaining your best employees.

Learn the complete framework for measurable ROI in this comprehensive strategy session with wellness expert Barb Kloeckner.

The true cost of not having wellness programs

When organizations skip wellness initiatives, the financial impact extends far beyond what appears on healthcare premium statements. The real costs emerge through decreased productivity, increased absenteeism, and higher turnover rates that can significantly damage your bottom line.

Healthcare expenses are skyrocketing

Job stress is estimated to cost the US industry $300 billion in losses annually
Healthcare costs are nearly 50% higher for employees reporting high stress levels
90% of the nation's $4.5 trillion in annual healthcare expenditures go toward people with chronic and mental health conditions — many preventable through wellness initiatives

Productivity losses add up quickly

Presenteeism (working while unwell) can reduce individual productivity by 30% or more
Unscheduled absenteeism costs approximately $3,600 annually per hourly worker and $2,650 per salaried employee
On-the-job injuries cost employers $171 billion in 2019, with unhealthy employees at higher risk for accidents

Turnover becomes expensive

40% of job turnover is directly attributed to workplace stress
Replacing the average employee costs 120-200% of their annual salary
51% of employees without wellness support are likely to leave within the year, compared to just 25% of those with wellness programs

The business case for wellness programs

The data is clear: wellness programs aren't just employee perks — they're strategic business investments that deliver measurable returns. From quantifiable ROI to competitive advantages in talent acquisition, the business benefits of wellness programs are both immediate and long-term.

Measurable ROI that speaks to leadership

Smart wellness programs deliver impressive financial returns:

$5.82 saved in reduced absenteeism for every dollar invested
$3.27 in healthcare cost savings plus $2.73 in reduced absenteeism per dollar spent
Companies with effective wellness programs are 40% more likely to report better financial performance

Competitive advantage in talent acquisition

In today's job market, wellness programs aren't optional — they're expected:

74% of businesses consider employee well-being critical for recruiting and retention
89% of employees with wellness programs recommend their company as an excellent workplace
60% of employees say they're more likely to stay with employers offering wellness benefits

Enhanced productivity and engagement

Healthy employees perform better:

Engaged employees are 21% more productive
Companies with high employee engagement outperform others by 147% in earnings per share
70% of employees enrolled in wellness programs report
higher job satisfaction

What makes wellness programs effective

Not all wellness programs deliver the same results. The most successful initiatives go beyond surface-level perks to create comprehensive support systems that address the full spectrum of employee health and well-being. The most successful wellness programs address multiple dimensions of employee health:

Physical wellness

Fitness challenges and step tracking
Injury prevention through mobility and strengthening programs
Preventive care reminders for annual physicals, dental visits, and vaccinations

Mental health support

Stress reduction resources and meditation programs
Employee Assistance Program (EAP) access
Mental health education and awareness initiatives

Nutritional support

Healthy eating challenges and education
Convenient healthy snack guides
Meal prep resources and healthier restaurant options

Environmental and cultural wellness

Work-life balance initiatives
Workplace safety programs
Team building and relationship wellness activities

Industry-specific considerations

Effective wellness programs are tailored to your workforce:

Demographics and preferences of your employee base
Industry-specific risks (physical demands, stress factors, common health challenges)
Geographic location and available resources
Company size and budget constraints

Implementation strategies that work

Successfully launching wellness programs requires thoughtful planning and strategic implementation. The organizations seeing the best results follow proven approaches that build momentum while demonstrating value from day one.

Start simple, build over time

Companies achieving the best results typically follow a phased approach:

Foundation phase: Basic physical wellness and preventive care programs
Expansion phase: Add mental health support and nutrition education
Comprehensive phase: Integrate environmental and cultural wellness initiatives

Key success factors

Leadership buy-in: Wellness programs succeed when leadership actively participates and promotes them
Employee input: Survey employees to understand their health priorities and preferred program types
Communication strategy: Regular updates, success stories, and educational content keep programs visible
Measurement and adjustment: Track participation rates, health outcomes, and ROI to continuously improve programs

Taking action: Your next steps

Employee wellness programs represent one of the smartest investments your organization can make. With proven ROI, improved employee satisfaction, and competitive advantages in talent acquisition, the question isn't whether you can afford to implement wellness programs—it's whether you can afford not to.
At PRO Resources, we've helped organizations of all sizes design and implement wellness programs that deliver measurable results. Our comprehensive approach addresses the unique needs of your workforce while fitting your budget and operational requirements.

To help you take the next step, download our guide to fostering a culture of wellness. In it, we offer expert insights on implementation, measuring ROI, and overcoming common challenges.

Get Our Guide To a Culture of Wellness

5-Step Employee Benefits Analysis for Business Leaders

PRO Resources — Fri, 15 Aug 2025 15:00:00 GMT

Employee benefits are a big topic when it comes to attracting and retaining good talent. But the challenge isn't just offering good benefits — it's managing them well.

If you don't have a full HR team, that task often falls on other business leaders. The language of benefits administration can be tough to understand. So here are my five steps to analyze your benefits — without having to get a Master's in HR Management.

Step 1: Identify the red flags

Inconsistent policies

When benefits are handled differently across departments, shifts, or employee levels, you're creating a compliance minefield. Common warning signs include:

Different waiting periods for similar positions
Varying contribution matching for employees at the same level
Inconsistent enrollment procedures between locations
Manual processes that rely on individual interpretation

👉 Waiting periods = time new employees must wait before becoming eligible for benefits
👉 Contribution matching = when employers match a percentage of employee retirement contributions

Nondiscrimination issues

An employer-sponsored plan may fail nondiscrimination tests if it includes any of these provisions that favor executives, management or other high-paid employees.

Office workers receiving better benefits than shop floor employees
Management having access to benefits that hourly workers don't
Different co-pays or deductibles based on job classification
Inadequate family coverage options for lower-wage workers

👉 Nondiscrimination tests = annual reviews to ensure benefits don't unfairly favor highly-paid employees
👉 Co-pays = fixed amounts employees pay for medical services

Documentation requirements

The Employee Retirement Income Security Act (ERISA) requires strict documentation and reporting. Noncompliance with newly issued Department of Labor (DOL) regulations could result in penalties exceeding $2,000 per day for late filings. Common documentation failures include:

Missing or outdated Summary Plan Descriptions
Failure to provide required participant notices
Incomplete Form 5500 filings for plans with 100+ participants
Lack of proper plan documents for cafeteria plans

👉 ERISA = federal law that protects employee retirement and health benefits
👉 Summary Plan Descriptions = documents explaining employee benefits in plain language
👉 Form 5500 = annual report required for large benefit plans
👉 Cafeteria plans = benefit plans that let employees choose between cash and pre-tax benefits

Step 2: Make everything consistent

Create written procedures that ensure every employee receives consistent treatment regardless of their work location, shift, or supervisor. This includes:

Uniform eligibility criteria and waiting periods
Standardized enrollment processes and deadlines
Consistent communication and education materials
Equal access to all available benefit options

Designate specific individuals responsible for benefits administration and ensure they understand their fiduciary responsibilities under ERISA.

👉 Plan administrator = person or company responsible for managing day-to-day benefit plan operations
👉 Fiduciary responsibilities = legal responsibility to manage employee benefit plans in the best interests of employees, not the company
👉 Participants and beneficiaries = employees covered by benefit plans and their family members who may receive benefits

Step 3: Plan for ongoing monitoring

Schedule quarterly reviews of benefits administration to catch issues before they become violations. Focus on:

Contribution timing and accuracy
Participant communication compliance
Plan document adherence
Non-discrimination testing preparation

Remember: Adding new benefits without proper oversight is like building on a shaky foundation. Each new program introduces additional compliance requirements, reporting obligations, and potential audit triggers. Your monitoring system must evolve alongside your benefits offerings.

Step 4: Use HR technology

Manual processes are the enemy of compliance. Modern benefits administration platforms can:

Automate contribution calculations and deductions
Ensure consistent participant communications
Maintain comprehensive audit trails
Generate required reports and filings automatically

Investing in the right technology eliminates human error and creates the documentation trail you need to demonstrate compliance during audits.

Step 5: Develop a compliance-first culture

Train your management team to recognize potential compliance issues and establish clear escalation procedures. Create documentation requirements that make compliance violations visible before they become costly problems.

This means teaching supervisors to spot red flags like inconsistent benefit applications or employees asking why their benefits differ from coworkers in similar roles. When everyone understands the stakes, compliance becomes everyone's responsibility.

Bonus step: Consider partnering with a PEO

For many small to mid-sized businesses, partnering with a Professional Employer Organization (PEO) can be a game-changer. A PEO can:

Handle all compliance requirements and documentation
Provide access to enterprise-level benefit plans at lower costs
Maintain expertise in changing regulations
Reduce your administrative burden and liability exposure
Offer employees better benefits than you could secure independently

👉 PEO = Professional Employer Organization that provides HR services and shares employment responsibilities

If benefits administration is consuming too much of your time or you're concerned about compliance risks, it’s definitely worth exploring this option.

Request a benefits analysis

Don't wait for a DOL audit to discover compliance gaps. Take control of your benefits administration and protect your company's future.

Contact PRO Resources today for a comprehensive benefits analysis. We'll review your current plans, identify potential compliance issues, and provide a clear roadmap for protecting your business while enhancing your employee value proposition.

Remember: Good benefits attract talent, but compliant benefits protect your business. Make sure you're doing both.

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About the Author

Stacy Gray is a seasoned Benefits Administrator known for her comprehensive expertise in employee benefits administration, HR policy development, employee relations, and people management. Throughout her career, she has successfully led initiatives that enhance employee engagement, streamline benefit programs, and ensure compliance with federal and state regulations.

C-Suite's Guide to Building a Culture of Safety

PRO Resources — Tue, 27 May 2025 05:00:00 GMT

You make decisions every week that impact your company's bottom line. When workplace safety becomes just another compliance checkbox, you're putting your people and your profitability at risk. This guide will cover what a culture of safety looks like, why it's essential, and how you can help create one.

What does a culture of safety look like?

A positive safety culture isn't just a set of rules—it's when safety becomes part of your organization's DNA. It's the shared beliefs, practices, and attitudes throughout your company that prioritize wellbeing alongside productivity.

Unlike traditional safety programs that focus on compliance and rules, a true safety culture is characterized by:

Proactive identification of risks before incidents occur
Employees at all levels feel empowered to raise concerns
Learning and improvement following incidents rather than blame
Leadership decisions that consistently prioritize human well-being

The business case for safety culture

The financial impact of workplace injuries is staggering—over $171 billion annually for U.S. businesses, according to the National Safety Council. Most executives understand the direct costs of neglecting safety—hiked insurance premiums, workers' comp claims, and regulatory fines. But the indirect costs often go unrecognized:

Productivity losses from absent workers and investigations
Administrative burden on management and HR
Training and onboarding replacement workers
Damaged equipment and materials
Schedule delays and missed deliverables
Diminished employee morale and engagement

How you can help develop a culture of safety

Building a positive safety culture requires more than simply establishing rules and procedures. Research shows that successful safety cultures share four critical elements:

1. Commitment from leadership (that's you)

Visible leadership commitment is the cornerstone of safety culture. When executives consistently prioritize safety through their actions, decisions, and resource allocation, it signals to the entire organization that safety is truly a core value, not just a checkbox. As a C-Suite leader, your personal engagement sets the tone for the entire organization.

Action steps you can take today:

Add safety as a standing agenda item in executive and board meetings
Allocate 15 minutes weekly to observe safety practices
Personally review safety metrics alongside financial KPIs in quarterly business reviews
Include safety outcomes in your executive team's performance evaluations

2. Empower middle management

Frontline supervisors and middle managers are the critical link between safety strategy and daily operations. They translate leadership vision into practical application and reinforce safety standards moment by moment. These key personnel need both the authority to enforce safety standards and the skills to influence safe behaviors effectively.

Action steps you can take today:

Provide managers with a dedicated safety budget they control
Include specific safety leadership competencies in management development programs
Train managers on effective safety conversations
Create a peer forum where managers can share safety challenges and solutions quarterly

3. Structure

Strong safety cultures don't rely on individual vigilance alone. They're built on thoughtfully designed systems that guide behavior—things like communication channels, reporting mechanisms, and accountability frameworks.

Action steps you can take today:

Conduct quarterly safety perception surveys to identify emerging concerns
Implement a "stop work" authority policy that empowers any employee to halt unsafe operations
Design standardized job safety analyses for high-risk tasks across the organization
Develop a recognition program that rewards proactive hazard identification rather than just incident-free periods

4. Support from a PEO

As an executive, you already have a lot on your plate. And while there is a lot you could do to improve safety culture—what do you actually have time for?

Professional Employer Organizations (PEOs) help improve all aspects of managing your workforce, including safety and risk management. They are a great option to improve safety without having to hire an in-house safety consultant.

Taking the next step

The signs of a poor safety culture are easy to spot:

Low employee engagement
Inconsistent training and PPE use
Poor incident communication
Cultural resistance

But, by implementing the four critical areas of improvement, I've helped many businesses improve their safety practices, culture, and outcomes. If you're interested in working with a PEO, check out PRO Resources. With us, you get access to experts in all aspects of HR, including safety and risk management. Our ROI calculator can help you determine up front if working with PRO will save you money. No strings (or marketing emails) attached.

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About the Author:

David Martinson is a Safety Consultant at PRO Resources with over 25 years of experience in leadership and safety. By combining emotional engagement with intellectual stimulation, he aims to create a culture of safety that is both heartfelt and well-reasoned to empower people to become advocates for safety.

The Inside Scoop on Minnesota's Paid Family and Medical Leave (PFML)

PRO Resources — Mon, 26 May 2025 22:57:48 GMT

On May 25, 2023, Minnesota passed the Paid Family and Medical Leave program to provide paid time off for employees to care for themselves or a family member. With the law set to take effect on January 1st, 2026, many businesses still don’t know how this will work.

We sat down with Megan Johnson, HR Director at PRO Resource s, to get her take on PFML and what it means for businesses across the state. Let’s dive into what we already know — and a few things we're still waiting to learn.

Q: What is Minnesota Paid Family and Medical Leave (PFML)?

Megan Johnson: "PFML represents a significant shift in how Minnesota approaches employee leave. In simplest terms, it's a state-administered program that will provide paid time off to employees who need to step away from their jobs due to serious health conditions or to care for family members.

Beginning in January 2026, most Minnesota employees will be eligible for this benefit. Structured as an insurance program, it provides partial wage replacement during qualified absences, making it easier for workers to prioritize their health or family without financial strain.

What sets this apart from current leave options is the paid component. Today, many workers face the difficult decision of choosing between income and caregiving. PFML seeks to eliminate that tough choice. For employers, this means preparing a new approach for managing leave and contributing to the program through a payroll tax system."

Q: What do we know about PFML in Minnesota?

Megan Johnson: "While some details are still being finalized, we have a solid understanding of the program’s core components.

Program Launch Date – The program officially begins on January 1, 2026. That’s when employees can start taking paid leave, and payroll contributions will commence. Although the launch will approach quickly, this gives businesses time to prepare.

Coverage Details – The program allows employees to take leave for several qualifying reasons, including:

Caring for a family member with a serious health condition
Bonding with a new child
Addressing safety needs related to domestic violence
Managing qualifying military exigencies
Dealing with their own serious health condition, including pregnancy and postpartum recovery

Duration of Leave – Employees may take up to 12 weeks of leave for their own medical needs and an additional 12 weeks for family-related reasons. However, the total leave cannot exceed 20 weeks per year.

Funding and Premiums – The program will be funded by a 0.88% wage premium for employers participating in both the family and medical leave components. This cost is generally shared equally between employers and employees, although employers may choose to cover a greater share. Small businesses (those with fewer than 30 employees) will benefit from reduced premium rates.

Program Administration – To oversee the program, the state is establishing a new body: The Family and Medical Benefit Insurance Division within the Department of Employment and Economic Development. This division will manage claims, payments, and regulatory oversight.”

Q: What don't we know about PFML in Minnesota?

Megan Johnson: "Despite the progress made, a number of critical details remain unresolved, creating uncertainty for businesses attempting to plan ahead.

Key administrative processes have yet to be defined. Questions such as how employers will report data to the state, how employees will file claims, and what documentation will be required are still awaiting clarification. These procedural elements are essential for day-to-day compliance but are still under development.

While the law outlines the program’s overall structure, comprehensive implementation guidelines have not yet been released. Detailed regulations are needed to provide clarity on what full compliance will look like in practice.

One of the more significant unknowns involves private plan options. Although the law permits employers to offer private plans in lieu of the state program (similar to models used in other states) the specific criteria and approval process for these plans have not been established. This leaves employers unsure of what alternatives may be viable.

Many employers are also wondering how the new program will interact with their existing benefit offerings, such as short-term disability insurance or paid time off (PTO) policies. Key questions remain unanswered, including whether current benefits can offset PFML contributions or reduce participation costs.

Although the initial premium rate is set at 0.88%, the state has commissioned an actuarial study to evaluate the program’s financial sustainability. Depending on the outcome, rate adjustments could occur before the program goes live.

The positive news is that the state plans to release additional guidance as 2026 approaches. We are closely monitoring all developments and will continue to support our clients as new information becomes available.”

Q: Are PFML and FMLA the same?

Megan Johnson: "No, the two programs are not the same, although it’s understandable why they might be confused. They share similar acronyms, and both relate to employee leave, but the differences are significant and meaningful.

The most notable difference lies in the name itself — the “P” in PFML stands for “Paid.” The Family and Medical Leave Act (FMLA) is a federal law that provides unpaid leave to eligible employees. In contrast, Minnesota’s new PFML program offers wage replacement, providing financial support during qualified leave periods.

Another major difference is in employer coverage. FMLA only applies to employers with 50 or more employees, which means many small businesses have never been subject to it. However, Minnesota’s PFML will apply to nearly all employers, regardless of size. That means many small businesses that never had to worry about FMLA will need to understand this new program.

If you qualify for both programs, employers can require the leaves to run concurrently — meaning you don't get to stack them and take 12 weeks of FMLA and then another 20 weeks of PFML."

Q: What other states have Paid Family and Medical Leave?

Megan Johnson: "Minnesota is joining a growing group of states that have adopted paid family and medical leave programs. Currently, thirteen states and the District of Columbia have comprehensive paid leave systems either in effect or in development. While each state’s approach varies, the underlying principles are largely consistent. Notably, Minnesota will be the first state in the Midwest to implement such a program, marking a significant regional milestone. Neighboring states are watching closely to see how the rollout unfolds."

Q: How can PRO Resources help businesses navigate PFML?

Megan Johnson: "This is precisely the kind of moment when having a dedicated HR partner becomes invaluable. While many business owners are just now learning about the new law and feeling uncertain about what it means for them, we’ve been monitoring its development since the earliest proposal.

Our role goes far beyond simply passing along updates. As new guidance is released, we thoroughly analyze the information, distill it into clear, practical language, and provide tailored recommendations based on each client’s unique circumstances.

As additional details emerge around private plan alternatives, we’ll be ready to assist businesses in evaluating all available options. For some companies, the state program might be the most cost-effective approach. For others, a private plan could offer more flexibility or better integration with existing benefits. We’ll conduct that analysis, walk you through the implications, and help you make informed, confident decisions.

The administrative aspects of compliance are often the most challenging for businesses — and that’s where we come in. We’ll manage the full implementation process, including:

Configuring payroll systems to ensure accurate deductions
Establishing streamlined procedures for processing and tracking leave requests
Ensuring timely and accurate reporting to the state

We’re also updating employee handbooks to reflect the new legal requirements, ensuring that our clients have compliant, up-to-date documentation well in advance of the rollout. Additionally, we provide manager training to ensure front-line supervisors — often the first point of contact for leave requests — are equipped to respond appropriately and consistently.”

Stay in the know about MN compliance changes

The best way to stay up-to-date about HR changes in MN (and surrounding states) is to follow us on LinkedIn. We post about key HR dates, resources, and upcoming webinars (be on the lookout for one on PFML). Or, to learn more about PRO Resources, visit our website.

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The information in this blog is for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

Webinar Recap: Maximize Your Capacity, Minimize Your Risk

PRO Resources — Fri, 16 May 2025 12:19:54 GMT

Running a small business today isn't easy, especially if you're in a blue-collar industry. Between keeping up with daily operations and worrying about potential risks, it can feel like you're constantly putting out fires instead of growing your business.

That's why PRO Resources teamed up with our friends at PREMIER Business Services to host a webinar packed with real-world advice on how to do more with less while keeping your business protected.

We brought together experts from the financial and HR worlds to share practical tips you can actually use (no fancy theory, just straight talk about what works).

Missed the webinar? No problem! We've included the full recording below so you can watch whenever it fits your schedule.

What you missed

During our chat, the folks from PREMIER Business Services and our team at PRO Resources discussed how smart financial and HR strategies work together to help your business run smoother and safer. We focused on real solutions that small, blue-collar businesses can start using right away — things that help you do more with what you have while avoiding unnecessary headaches down the road.

The money side: PREMIER talks financial capacity and risk

The team from PREMIER Business Services shared some eye-opening insights about managing your money better while avoiding costly mistakes.

Getting more from your money

Good financial data isn't just for tax time. It's how you improve your cash flow every day. The PREMIER team shared some straightforward advice:

Get your numbers right: Make sure transactions are properly coded and classified so you know where your money's really going
No financial secrets: Keep everything transparent so you can spot problems and opportunities quickly
Look ahead, not behind: Use forecasting to plan your growth instead of just reacting to whatever happens

Avoiding headaches

The PREMIER team didn't hold back when talking about common money mistakes that put businesses at risk:

The training gap: Not making sure your team knows proper financial procedures
The cruise control problem: Setting up financial systems and then forgetting about them
The "set it and forget it" trap: Not regularly reviewing your financial strategies and partnerships

Want to get a pulse check on your business's financial health? Download PREMIER's 10-Point Financial Health Checklist .

The people side: PRO Resources on making HR work better

Our team at PRO Resources followed up with insights about managing your workforce more efficiently while staying out of hot water with regulations.

Do more with the team you have

We broke down how working with a PEO (that's us!) can free up valuable time and resources:

Let someone else handle the HR paperwork so you can focus on what you do best
Get better benefits for your team without the massive price tag
Tap into HR expertise without hiring a full-time HR director

It's like adding a whole HR department without actually adding to your payroll. Pretty neat, right?

Keeping your business protected

We also talked about how a PEO helps keep your business safer from employment-related problems:

Staying on top of wage laws (which seem to change every time you blink)
Making sure your benefits and workplace safety measures are up to code
Getting expert help with tricky employee situations before they become legal nightmares

Want to see how much you could save on administrative overhead? Download PRO Resources' Administrative Cost Calculator .

Real stories from real businesses

During the webinar, we shared some examples of businesses just like yours that:

Got their finances in better shape using PREMIER's approaches
Reduced their risk of compliance issues by working with PRO Resources
Found that when you combine good financial AND HR practices, the whole business runs better

Who is PREMIER Business Services?

PREMIER Business Services works with small businesses like yours to get your finances in order and keep them that way. They handle everything from planning your financial future to managing your day-to-day books, preparing taxes, and giving solid business advice that helps you grow without unnecessary risks.

Who is PRO Resources?

That's us! We're a Professional Employer Organization (PEO) that takes HR hassles off your plate. We work alongside you as a co-employer, which means we can help with everything from payroll to benefits to compliance issues, freeing up your time to focus on growing your business.

The bottom line

Our webinar with PREMIER Business Services was all about practical ways to help your small business do more with less while staying protected from unnecessary risks. The strategies we discussed are especially relevant for blue-collar businesses looking to improve efficiency, stay compliant, and build financial stability.

Want to see how these approaches might work specifically for your business? Let's talk! We're offering free consultations to help you understand your options.

Get Your Free Consultation

How To Prepare Your Managers For Mid-Year Reviews

Heather Berg — Mon, 28 Apr 2025 16:39:49 GMT

Who dreads mid-year reviews more — employees or managers?

Sure, getting feedback is tough, but giving feedback can be equally challenging, especially when you’ve never been trained to do it properly.

Performance reviews may never be something that your team looks forward to, but they can help your employees (and your business) grow. Here’s how to make sure that happens.

1. Show your managers how to give feedback

Many managers rise through the ranks because they're good at their jobs — not necessarily because they're natural coaches. In fact, I often find that managers avoid feedback conversations simply because they've never been taught how to have them effectively. In preparation for performance reviews, arm them with these resources:

Send the feedback sandwich back to the kitchen

There are dozens of feedback frameworks out there. There’s a good chance that the last one your managers were taught is the feedback sandwich: Praise followed by criticism and then more praise. Some feedback is better than no feedback, but there are a few fatal flaws with this approach.

It dilutes important feedback. Constructive feedback often gets lost between praise, making the message unclear.
It creates anticipatory anxiety. Regular recipients of this method learn to expect negative feedback whenever praise is given ("Here comes the 'but'...").
It can feel insincere. When employees recognize the pattern, they may view the praise as merely strategic, undermining trust.

Instead, try the radical candor framework

Radical Candor is a feedback framework developed by Kim Scott, a former executive at Google and Apple. At its core, Radical Candor is built around two key philosophies:

Care Personally. Build genuine relationships with people on your team. You don't need to be everyone’s best friend (nor should you), but you do need to go beyond basic professional courtesy.
Challenge Directly. Be willing to provide direct, clear feedback about performance issues, even when it's uncomfortable. This means not sugar-coating problems or avoiding difficult conversations.

Scott charts each of these philosophes on an axis, creating four quadrants of feedback:

Radical Candor: The ideal approach where you care deeply about the person while being honest and direct about performance issues. This creates trust, clarity, and growth.
Ruinous Empathy: When you care about someone but avoid giving critical feedback for fear of hurting their feelings. This ultimately harms their growth and development.
Obnoxious Aggression: Providing direct criticism without establishing a foundation of personal care. This comes across as harsh, insensitive, and often demotivating.
Manipulative Insincerity: Avoiding both real personal connection and honest feedback. This approach prioritizes political maneuvering over authentic leadership.

Before sending your managers into review season, challenge them to identify where they currently fall on the spectrum and what steps they need to take to reach radical candor.

2. Give them performance review examples

Even if your managers excel at giving feedback, they may still encounter some tough conversations during midyear reviews. Prepare them by instructing them on how to navigate these common scenarios.

Example: Employee and manager assessments don’t align

Most reviews involve an employee self-assessment, followed by a manager assessment. They rarely line up perfectly, which can be awkward.
It’s important to note that self-perception gaps are normal and don't necessarily indicate arrogance or poor self-awareness. When facing this situation, walk through these steps:

Ask before you tell. Start by understanding their perspective. Ask open-ended questions like “What specific examples support your self-assessment in this area?" This helps you understand their reasoning.
Focus on observable behaviors and outcomes. Rather than making subjective judgments about attitude or effort, center the conversation on specific, measurable results and behaviors you've observed. For example, instead of saying, "Your communication skills need improvement," say something like, "In the March client meeting, when you interrupted the client several times, it created tension that affected our ability to close the deal." This shifts the discussion from personal opinion to evidence-based assessment.
Create a development plan together. Regardless of the gap in perception, work collaboratively on a plan to develop the skills in question.

The key is handling these conversations with respect while still maintaining honesty. Sometimes, the perception gap itself reveals important information about communication or expectation setting that needs to be addressed in your management approach.

Example: The employee has a strong emotional reaction to constructive feedback

Feedback can incite strong emotional reactions: anger, tears, or shutting down completely. Here's how to handle the situation effectively:

Pause and create space. If an employee becomes visibly upset, angry, or defensive, first allow a moment of silence. Don't rush to fill the space or immediately continue with more feedback.
Actively listen. Once they've had a moment to process, ask for their perspective: "I'd like to understand your thoughts on this." Their reaction might reveal important information about their experience, workload, or other factors affecting performance.
Maintain composure. Keep your own emotions in check, even if their reaction seems disproportionate. Responding with frustration or defensiveness will only escalate the situation.
Offer a short break if needed. Sometimes, the best approach is to suggest: "Would it be helpful to take a few minutes before we continue?" This allows both parties to reset emotionally and approach the conversation more productively.
Reframe the purpose. Remind them that feedback is meant to help them grow: "My goal isn't to criticize but to help you succeed in your role. I'm sharing this because I believe in your potential."
Document the interaction. Note the reaction and how it was addressed, particularly if it's part of a pattern or unusually intense. This documentation is important for tracking performance management.

Remember that emotional reactions, while sometimes uncomfortable, are natural human responses. How you handle these moments can either strengthen trust or damage the manager-employee relationship. The goal is to acknowledge emotions while still ensuring the necessary feedback is communicated effectively.

Example: The manager’s view is skewed by their own bias

When a manager's assessment appears to be influenced by their own biases, it creates a significant challenge for fair performance reviews. Here's how to move forward:
Implement structured review processes. Create standardized evaluation criteria that require specific examples for each rating. This helps minimize the impact of subjective impressions and forces managers to justify their assessments with concrete evidence.

Implement anonymous peer-to-peer feedback. Multiple viewpoints help balance potential biases from any single reviewer.
Look for patterns across demographics. Analyze performance ratings across different employee groups to identify potential systemic biases. Are certain teams, demographic groups, or personality types consistently rated differently?
Provide bias awareness training. Educate managers about common biases that affect evaluations, such as:
- Recency bias: Overemphasizing recent events
- Halo/horn effect: Letting one positive/negative trait influence the overall assessment
- Similarity bias: Favoring people similar to themselves
- Confirmation bias: Only noticing evidence that confirms existing impressions
- Contrast effect: Comparing employees to each other instead of to a standard
Implement appeal process. Provide a structured way for employees to appeal performance ratings if they believe bias has influenced their assessment.

Addressing managerial bias should follow the same guidelines as giving any other kind of feedback. Be caring, honest, prompt, and specific.

3. Give them a pre-review checklist

Maybe the best way to prepare for performance reviews? Don’t wait until the review to give feedback.
Instead of treating mid-year reviews as isolated events, successful companies use them as part of a continuous feedback loop.

Tell your managers to set up weekly or biweekly check-ins with their team members. That way, they can practice giving timely feedback. When the midyear review arrives, employees are prepared to discuss their progress. And “blindsided” leaves your company vocabulary.
To help your managers feel prepared, remind them of the resources they can review:

Notes from previous one-on-ones
Input from project managers or team members
Progress toward established goals
Specific examples of successes and areas for improvement

Need some help managing your managers?

The more your business grows, the more complicated it gets. In the gap between startup and enterprise organization, HR duties (like performance reviews) often fall on leadership. That leaves you doing less of the work you signed on for.

PRO Resources can help. We specialize in all aspects of running a successful team, including management, compliance, benefits, payroll, and more.

Want an honest performance review of your business? Request a free HR report card. We’ll review your current practices and offer tailored recommendations so you finally reach that “exceed expectations” mark.

Get Your HR Report Card

About the Author:

Heather Berg was raised in a military family. Traveling the world from a young age, she developed a strong sense of adaptability, which ultimately led her to a career in HR. Today, she holds an SHRM Certification and works at PRO Resources, helping businesses foster a culture of growth, open communication, and proactive coaching.

6 Must-Know Health & Safety Requirements for Businesses

PRO Resources — Fri, 22 Nov 2024 15:00:00 GMT

This blog breaks down what small business owners need to know about health and safety requirements. Whether you have a team of 20 or 200, these tips will help you protect your people and your business.

Table of Contents:

1. OSHA is the class president of workplace safety.

2. Small businesses are NOT exempt from OSHA.

3. There are some OSHA requirements every business owner should know.

4. Some OSHA requirements are industry-specific.

5. Compliance doesn't have to be complicated.

1. OSHA is the class president of workplace safety. 👩‍🎓

In the U.S., the Occupational Safety and Health Administration (OSHA) sets the foundation for most workplace health and safety regulations. The main requirements laid out by OSHA include:

Documenting safety standards
Operating by safety standards
Recording safety-related incidents

There are other regulatory agencies, such as the Food and Drug Administration (FDA) or the Department of Transportation (DOT) that set safety standards, but they're typically for very specific types of business operations. OSHA regulations are relevant to all businesses — everything from a hair salon to a landscaping business.

2. Small businesses are NOT exempt from OSHA. 🌱

OSHA standards still apply to small businesses. There are a few types of businesses that are exempt from OHSA regulations, including family-operated farms and businesses without employees. However, most businesses still have to follow OSHA guidelines.

PRO Tip: If you have 10 or fewer employees, you are not subject to routine OSHA reporting, but you are still required to meet OSHA safety standards.

3. There are some OSHA requirements every business owner should know. 🤔

The OSHA banner is big and wide, but here are a few regulations that apply to most businesses.

Hazard Communication Standard

Regulation: Employers must identify and label hazardous chemicals, provide employees with access to Safety Data Sheets (SDS) for each chemical, and train workers on how to handle these substances safely. There are exceptions to this rule. For example, offices typically do not have to maintain an SDS for cleaning products if the quantity isn’t more than the typical consumer would have on hand.

Example: A small bakery may use food-grade chemicals like preservatives, flavor enhancers, or sanitizers. Even though these chemicals are safe for consumption in small quantities, the bakery owner needs to ensure proper labeling of bulk chemical containers. For example, a large jug of commercial sanitizer must be labeled clearly, and workers need to understand the risks of skin or eye irritation from direct contact.

Personal Protective Equipment (PPE)

Regulation: Employers must assess the workplace for potential hazards, select the proper PPE, ensure employees are trained on its correct use, and keep the equipment in good condition. PPE can include items like gloves, goggles, face shields, and respirators, depending on the hazard.

Example: In an auto repair shop, mechanics regularly work with chemicals like engine oil, brake fluid, and cleaning solvents, which can cause skin irritation or eye damage. To comply with the PPE standard, the shop owner must provide mechanics with appropriate gloves and safety goggles. Mechanics need to be trained on when and how to use these items, such as wearing gloves when handling fluids and goggles when working with high-pressure hoses. Additionally, the shop owner ensures that the PPE is properly maintained, replacing gloves when they show signs of wear or damage.

First Aid and Medical Services

Regulation: Employers must provide adequate first aid supplies and ensure that medical assistance is available in case of workplace injuries. If there is no nearby medical facility, at least one employee must be trained in first aid. Employers are also responsible for assessing potential workplace hazards and ensuring that first aid procedures align with the types of risks present in the workplace.

Example: In a woodworking shop, employees regularly use sharp tools like saws and drills, which pose the risk of cuts and other accidents. To comply with the First Aid and Medical Services standard, the shop owner stocks a first aid kit with bandages that are appropriate for cut wounds. The owner also provides an emergency eye wash station to handle potential wood dust or splinters that could cause eye injuries.

Record Keeping and Reporting

Regulation: Employers must maintain records of serious workplace injuries and illnesses. Employers must log injuries that result in days away from work or medical treatment beyond first aid. Businesses with 10 or fewer employees or in low-hazard industries are exempt from maintaining these records, but all employers must still report work-related fatalities and certain serious injuries to OSHA.

Example: A catering business employs fewer than 10 workers, so the owner is exempt from keeping extensive injury logs. However, if an employee suffers a severe burn from hot oil that requires hospitalization, the business owner must still report the incident to OSHA within 24 hours.

Walking-Working Surfaces

Regulation: Employers must ensure that floors, stairways, ladders, and elevated platforms are kept clean, dry, and free of hazards that could lead to slips, trips, or falls. Employers must regularly inspect surfaces, and provide proper safeguards like guardrails or fall protection systems where necessary.

Example: In a small café, employees move quickly between the kitchen and dining area, where spills are common due to food preparation and serving. To comply with the Walking-Working Surfaces standard, the café owner ensures that any spills are promptly cleaned up and places non-slip mats near areas where liquids are frequently used, such as around the coffee machine. Additionally, the owner provides proper signage to warn employees of wet floors and ensures that all ladders used for storage areas are in good working condition.

General Duty Clause

Regulation: Employers must take proactive steps to identify and address safety risks even if there isn’t a specific OSHA regulation covering that hazard. This clause applies when no specific OSHA standard exists for a particular hazard, but the hazard is well-known and could reasonably be prevented.

Example: A small retail store may not have a specific OSHA regulation for certain tasks, but if employees are stacking heavy boxes unsafely, creating a risk of boxes falling and injuring someone, the store owner could be cited under the General Duty Clause. The owner must ensure that proper shelving, safety procedures for stacking, and training are in place to prevent injuries from falling objects, even if there’s no specific regulation for how to stack boxes.

4. Some OSHA requirements are industry-specific. ⛴️

While some OSHA requirements apply to all businesses, others are tailored to your industry. Think about it — the risks a dentist faces are much different than the risks of a logging company. Below is a list of industries with customized OHSA safety standards. In addition to following the regulations above, be sure you know the regulations specific to your industry.

5. Compliance doesn't have to be complicated. 😵‍💫

Understand the Regulations

Take time to research (You're doing this right now. Yay!) and understand the OSHA standards that apply to your business. Visit OSHA’s website to make sure you’re aware of any federal, state, or industry-specific requirements.

Conduct a Workplace Hazard Assessment.

Regularly assess your workplace for potential hazards, such as unsafe machinery, chemical exposures, or fire risks. Use OSHA’s guidelines to determine whether any new equipment or processes introduce new risks.

Provide Training and PPE

Ensure that your employees are trained on workplace safety procedures and are provided with any necessary personal protective equipment. OSHA requires training in areas like chemical safety, machine operation, and emergency response.

Consult a Safety Expert

Understanding and complying with health and safety regulations is crucial for small business owners. While it's important for avoiding compliance fines, it's also key to you and your employee's safety, your business's reputation, and your overall success.

All the regulations can be overwhelming, but you don't have to navigate them alone. PRO Resources offers regular OSHA-compliant safety audits, training, and documentation. Not sure where to start? Talk to one of our safety experts.

Get Your Free Consultation