All posts by stu

What Is an ICHRA and Why Small Businesses Are Turning to It

As health insurance costs continue to climb, many small business owners are searching for alternatives to traditional small group health plans. One option growing in popularity is the Individual Coverage Health Reimbursement Arrangement (ICHRA). An ICHRA is an employer-funded benefit that allows businesses to reimburse employees tax‑free for individual health insurance premiums and qualified medical expenses. Unlike traditional group plans, where the employer must choose and administer a single plan for all eligible employees, ICHRAs give employees the freedom to select the individual coverage that best meets their needs while giving employers more predictable cost control.

With an ICHRA, the employer sets a fixed monthly allowance, and eligible employees purchase their own individual health insurance—either through the federal or state marketplace, a private broker, or directly from insurers. Employees then submit their premium or expense documentation and get reimbursed up to the amount the employer provides. This model eliminates the need for the business to manage group policy renewals, deal with wildly fluctuating premiums, or meet participation requirements that often burden smaller companies. At the same time, it gives employees more choice and flexibility in selecting a plan that works for their family, rather than being limited to a single group option.

For small businesses that struggle with rising costs or volatile group plan renewals, ICHRAs can offer significant advantages. There are many advantages to this approach but here are 4 big ones:

  • Cost control—employers decide exactly how much they want to contribute, with no surprises at renewal time.
  • ICHRAs also scale easily as a business grows.
  • Flexibility – Employers can vary allowances across employee classes (such as full‑time vs. part‑time), salary and hourly, different zip codes, departments etc… while still offering a compliant, inclusive benefit.
  • More options and smoother transitions – because employees choose individual plans, turnover is less disruptive—coverage stays with the employee, not the employer. And since ICHRAs are compatible with many types of individual insurance, employees can shop for plans that better match their preferred providers or coverage levels.

Ultimately, ICHRAs give small businesses a way to offer valuable health benefits without taking on the cost and administrative burden of a traditional group plan. For employers trying to stay competitive in hiring while controlling expenses, an ICHRA can provide the structure, flexibility, and predictability needed to continue offering meaningful coverage in a changing healthcare landscape. If rising group health premiums have become unsustainable, exploring an ICHRA may be a practical and cost‑effective solution. There are many companies that offer a turn key approach to this benefit to take care of the compliance headaches for employers, and provide tech tools to make enrollment and premium documentation easy for employees. Have questions? Give Consultstu a call.

Smart Recruiting Tips for Small Businesses

Recruiting can be a significant challenge for small businesses, especially when resources, time, and brand visibility may be more limited than those of larger competitors. However, with a thoughtful approach and a few strategic adjustments, small businesses can attract strong candidates who align well with their culture and long‑term goals. The following tips offer practical ways to strengthen your hiring process and connect with the right talent.

1. Write Clear, Compelling Job Descriptions – Small businesses benefit enormously from job postings that are direct, thoughtfully crafted, and easy for candidates to understand. A strong job description should outline:

  • Key responsibilities: Give candidates a realistic picture of the day‑to‑day work, including primary duties and how the role supports the business.
  • Essential skills and experience: Identify what is truly required versus what is simply preferred so you don’t unintentionally limit your applicant pool.
  • What makes your workplace unique: Highlight the personality of your business—whether it’s a close‑knit team, flexible scheduling, growth opportunities, customer‑focused values, or hands‑on learning.

Candidates appreciate transparency, and clear expectations often result in applicants who are a better match for the role and the company culture.  Check out more tips from Indeed and Zip Recruiter, the 2 most popular job boards.

2. Strengthen Your Local Presence and Community Connections – For many small businesses, the local community is one of the most effective recruiting channels. Building visibility where potential candidates already spend their time can expand your reach without major costs. This can include:

  • Posting on local job boards, community websites, and neighborhood platforms where job seekers may look for opportunities close to home.
  • Participating in local social media groups, such as neighborhood Facebook groups or community LinkedIn networks that highlight area job openings.
  • Partnering with nearby schools, trade programs, and community colleges to connect with students and recent graduates seeking internships, part‑time roles, or full‑time positions.
  • Engaging with local workforce development organizations and career centers, which often offer free or low‑cost avenues to promote open positions.

These community‑focused efforts help small businesses tap into a talent pool that may not be actively searching large job boards but is highly motivated to work locally.

3. Streamline the Application Process – A complicated or time‑consuming application process is one of the fastest ways to lose good candidates. Small businesses can boost application completion rates by keeping the process simple, intuitive, and respectful of the applicant’s time.  But, don’t forget to take steps that can also protect your business from the wrong hire (for instance, don’t drop criminal checks and reference checks).  This might involve:

  • Shortening the application to only the most essential questions or steps.
  • Ensuring mobile‑friendly forms, since many applicants apply on their phones.
  • Providing clear instructions and expectations, including any documents needed or next steps in the workflow.
  • Communicating timelines up front, so candidates know when they can expect updates or decisions.

A smooth process reflects positively on your business and encourages talented individuals to stay engaged throughout the hiring journey.

4. Use the Strength of Employee Referrals – Your current employees can be an invaluable recruiting resource. They often know people whose skills and personality fit well with the company culture. To encourage referrals:

  • Let employees know when positions are open and what you’re looking for.
  • Make the process easy by offering a simple referral form or email contact.
  • Consider offering small incentives or recognition to employees whose referrals are hired.

Referrals tend to produce candidates who are more familiar with the business, quicker to onboard, and more likely to stay long‑term.

5. Promote a Positive Candidate Experience – First impressions matter. Even for applicants who are not selected, a respectful and positive experience helps protect your reputation and encourages future applicants.  This includes:

  • Timely communication, even if brief, so candidates feel informed.
  • Professional and friendly interactions during interviews or screenings.
  • Clear next steps after each stage of the process.

Small businesses with strong reputations often benefit from word‑of‑mouth recommendations from past applicants—even those who were not ultimately hired. Your small business can build a strong team through simple, intentional recruiting.  By focusing on clarity, local engagement, and a streamlined candidate experience, small businesses can significantly improve their recruiting outcomes.  These steps not only help attract qualified candidates but also strengthen your employer brand and support long‑term team growth. By following this approach, your small business can compete effectively for top talent and build a team that grows with the business.

Identifying and Preventing Workers’ Comp Fraud at your Company

A properly working workers’ compensation program protects both employees and employers. It ensures that individuals who are genuinely injured on the job receive the care and support they need, while also safeguarding the organization from misuse. To maintain this balance, it’s important for employers to stay aware of patterns that experts say may indicate potential fraud. These signs are not intended to cast doubt on legitimate injuries but to help ensure claims are evaluated carefully and consistently.

Industry experts highlight several early indicators that may signal the need for closer review.  Unclear or unwitnessed incidents, delayed reporting without reasonable explanation, and details that change over time are among the most common signs.  Also, insurance providers and state agencies also note that injuries reported immediately after a weekend or holiday, claims filed following a job change or disciplinary action, or difficulty reaching an employee during the claims process may warrant additional attention and focus.  These patterns do not confirm fraudulent activity, but they should help employers take a thoughtful and thorough approach to claim management, and to bring these factors to the attention of their assigned claims adjuster.

At the heart of a company’s effective workers’ compensation program is a supportive and transparent work environment.  Clear communication, access to prompt medical care, good doctors and straightforward reporting procedures help employees feel comfortable coming forward when injuries occur.  When employees trust the system, they are more likely to report legitimate injuries quickly and accurately—reducing confusion, delays, and the potential for misinterpretation.

In addition to building a positive company culture, employers can take proactive steps to reduce work comp fraud risk.  Here are 6 steps employers can take to fight fraud:

  1.  Strengthening incident reporting is a critical first move. Encouraging immediate written reports, using standardized forms, and documenting key details—such as photos, witness accounts, and time and location of the incident—creates a strong foundation for fair reviews.  Handbook policies and employee training can reinforce incident reporting.  These practices ensure that all claims are evaluated based on accurate and timely information. Quick carrier reporting is also important.
  2. Clear workplace safety policies also play a valuable role. Regular safety training, visible reminders of reporting expectations, and consistent equipment inspections create a culture where safety is seen as a shared responsibility. When employees understand what to expect and how to report injuries, the likelihood of confusion or misuse decreases.
  3. Supervisors are essential partners in this process. Properly trained supervisors can respond effectively to injuries, document claims correctly, and recognize when details may not align.  HR can also regularly check‑in with employees on modified duty or medical leave to maintain open communication and keep return‑to‑work plans appropriate and transparent.
  4. Adopt fair, consistent claims‑review practices. Conducting immediate internal reviews, comparing new incidents with past injury trends, and using independent medical evaluations when appropriate allows organizations to maintain a balanced and objective approach. Clear return‑to‑work procedures further reinforce stability and help injured employees reintegrate safely.
  5. Improving workplace culture can also reduce the temptation or perceived need for fraudulent behavior.  Anonymous ethics lines and reporting tools, stay‑at‑work programs, and open conversations about the impact of fraud on coworkers and the organization all contribute to a healthier environment. When employees feel valued and supported, they are less likely to misuse the system and more likely to participate honestly.
  6. Finally, strong partnerships with insurers and experts or legal advisors help ensure consistent, compliant, and fair claim management. Regular meetings with insurance carriers can reveal claim patterns, provide access to best‑practice tools, and strengthen the overall review process. Staying informed about state and federal guidelines also helps employers maintain transparency and trust.

By combining awareness, structure, and supportive practices, organizations can create a workers’ compensation program that serves everyone fairly. A thoughtful approach not only protects against fraudulent claims but also ensures that injured employees receive the timely care and respect they deserve.

IRS Opens 2026 Tax Filing Season on January 26

According to the IRS, the 2026 tax filing season will open Jan. 26 – the date that the IRS will start accepting and processing tax returns. This year, the provisions of the One Big Beautiful Bill Act will likely affect the federal taxes, credits, and deductions for many American workers. Read the IRS News Release. The deadline to file individual returns and pay taxes due is April 15, 2026.

What’s new?

  • New Schedule 1-A: Taxpayers will use the new Schedule 1-A to claim recently enacted tax deductions, such as no tax on tips, no tax on overtime, no tax on car loan interest and/or the enhanced deduction for seniors.
  • Trump Accounts for Children: Parents, guardians and other authorized individuals can establish a new type of individual retirement account for their children. To learn more, visit trumpaccounts.gov.
  • Forms 1099-K and 1099-DA. Taxpayers may receive these forms. Form 1099-K, Payment Card and Third Party Network Transactions, is used to report payments received from credit cards, payments apps and online marketplaces.
  • IRS Free File and Fillable Forms: The IRS Free File program will begin accepting individual tax returns starting Friday, Jan. 9 for qualified taxpayers. Taxpayers comfortable preparing their own taxes can use IRS Free File Fillable Forms starting Jan. 26, regardless of income.

Important HR and Payroll deadlines for this tax year.

  • Jan. 31, 2026: Deadline for employers to send W-2 forms: Employers must send W-2 tax forms no later than this date (you still might receive yours in early February). And certain 1099 tax documents.
  • March 2, 2026: Provide eligible employees with copies of Form 1095-C. If you’re electronically filing Forms 1094-C and 1095-C with the IRS, do it by March 31, 2026.

HR and Payroll Updates for January 2026

It’s almost 2026, so now is the time to review and update your company’s HR and payroll practices and documents for the new year. With 2025 ending, here is our 10 point list of Human Resources and payroll actions and updates for January 2026. Happy New Year!

  1. Update your new hire packet with 2026 documents. Replace your W4 with the 2026 version. Optional – send the new W4 to existing employees in January to see if they would like to make changes for 2026.
  2. Check to ensure you are using the latest Form I-9 (expiration date for 5/31/2027).  Florida employers with 25 or more employees are required to use E-verify.
  3. Go through terminated employee I9s and purge old I9 forms. The I9 retention rule is a minimum of 3 years or 1 year after termination, whichever is longer.
  4. If group insurance plans renew on January 1, update the DOL Healthcare Exchange form (mandated by ACA) with current group health insurance renewal information (contribution cost and eligibility) and add to page 2.
  5. Check the Florida and federal workplace posters to ensure the latest versions are posted. See the Florida Department of Economic Opportunity webpage for free versions.  Florida updates its minimum wage poster annually in September.
  6. Review, update and post the updated observed holiday schedule for 2026 (here are the 2026 federal holidays) and add to the Employee Handbook. It’s also a Leap year!
  7. Review recruiting and retention strategies for 2026 to stay current with the labor market conditions. Check the trending labor rates for key positions and obtain current compensation data to validate existing salary bands.  Florida DEO publishes annual wage and salary data.
  8. For 2026, 401k plan contribution limits will increase in 2026 to $24,500 by the Internal Revenue Service. The catch-up contribution limit for employees aged 50 and over who participate in 401(k) is $8,000. Read more about it. Share this information with employees.
  9. Florida minimum wage rates change later in 2026 – Florida MW to increase to $15.00 per hour on September 30, 2026). 
  10. Update your travel policy to adjust to the new IRS mileage rate for 2026 (not released as of Dec 14). Experts expect the rate to increase to 72 cents per mile.

Here are two last recommendations. First, to prepare accurate W2s and 1099 forms at the end of January, obtain employee consent to electronic delivery of their W2 forms. Per IRS regulations, employers need affirmative consent from an employee in order to deliver Forms W2 electronically.

Second, don’t forget to send your 2026 Florida Reemployment Tax Rate Notice to your payroll company (or update your own payroll profile if you do it yourself) so your newly calculated 2026 payroll tax rate is applied to upcoming payrolls. The minimum rate is 0.0010 (0.1%) or $7 per employee.

If you want some help with managing HR at your small business, give Consultstu a call.

What Employer Should Do When It Becomes Aware of a Possible FMLA-Qualifying Situation

The Family and Medical Leave Act (FMLA) gives eligible employees up to 12 weeks of job-protected leave for certain family and medical reasons. While the rules seem straightforward, one of the most confusing moments for employers is the “initial trigger” and what to do when you first learn that an employee might need FMLA leave, even if they don’t specifically ask for it.

Under the law, employees don’t have to ask for “FMLA” by name. They only need to provide enough information for the employer to reasonably believe the situation may qualify. When that happens, the employer must take specific steps to evaluate eligibility, provide required notices, and document the process properly.  Here’s a step-by-step guide to what employers should do when a potential FMLA situation arises.

1. Recognize the Trigger: Notice Can Come from many Sources

FMLA obligations begin when an employer becomes aware of the possible need for leave, even indirectly. This may come from:

  • An employee calls out repeatedly for a medical issue
  • A supervisor hears about a serious health condition
  • A hospital note, doctor’s note, or medical restriction
  • An employee mentions a family member’s serious illness
  • An obvious situation, like a hospitalization

Employers cannot wait for an employee to use legal terminology. If the employer “should reasonably know,” the FMLA process must begin.  Employers should train supervisors on FMLA triggers.

2. Notify the Employee of Their Potential Rights

The employer must provide the DOL Notice of Eligibility and Rights & Responsibilities form within five business days of knowing of the employee need.  This form explains: (1) whether the employee is eligible for FMLA; (2) their obligations (e.g., completing certification); (3) their rights (job protection, continuation of benefits); and (4) expected documentation timelines.  This step is required even if the employer is unsure whether the reason truly qualifies.

3. Request Medical Certification (If Appropriate)

Employers may request that the employee return a completed DOL Healthcare Certification within 15 days. This is essential for employers to determine whether the condition meets the DOL definition of a “serious health condition.”  Employers should use the DOL model forms to ensure that they are compliant.  With the completed forms, the employer can confirm eligibility for an FMLA absence. If the employee does not return the completed form, and there is not sufficient information to know if the situation qualifies, FMLA leave can be denied or delayed.

4. Communicate With the Employee and Track Deadlines

Good communication prevents delays and reduces risk. Employers should be a regular communication with the employee to: (1) clarify incomplete or insufficient medical certifications (must allow 7 days to correct); (2) track the 15-day certification deadline for the medical certification form; (3) follow up if leave schedules are unclear; (4) keep supervisors informed only of what they need to know (not medical details).

5. Designate the Leave (or Deny It) Within 5 Business Days of Receiving Certification

Once the completed certification is received, the employer must issue the DOL FMLA Designation Notice form stating whether the leave has been approved, not approved or additional information is needed.   The Designation must be timely and supported by proper documentation.  Once leave is designated FMLA, the employer must track the usage (continuous or intermittent), maintain health insurance benefits, restore the employee if they return within 12 weeks and monitor any needed recertifications.

6. Maintain Confidentiality and Proper Recordkeeping

All FMLA documentation must be kept separate from the personnel file (i.e. medical file) and only shared on a strict need-to-know basis. Employers should maintain an FMLA folder to track the following matters: (1) eligibility notice date; (2) certification request date and return date; (2) designation of leave date; (3) leave dates and (4) emails and letters with the employee.  Keeping accurate records about the situation will be important if you are audited or challenged.

Final Thoughts

Handling possible FMLA situations correctly is essential to maintain compliance. The key is recognizing that the employer’s obligations begin as soon as there is enough information to reasonably believe the employee may need FMLA protected leave.  When the trigger occurs, the employer must follow a structured process of notice, documentation, communication, and tracking.  Having a proactive, consistent approach protects the company legally and builds trust with employees during challenging life events.

Consultstu provides fractional HR services to SMBs, including policies and forms for FMLA compliance. Consultstu has created an FMLA Compliance Manual to help small businesses (policy, forms, documents, resources) for compliance. Click here for more information.

Florida Employers Have a New Independent Contractor Test in late 2025

The recent Eleventh Circuit decision in Galarza v. One Call Claims, LLC marks a significant shift in how employers in Alabama, Florida and Georgia should assess whether workers are properly classified as independent contractors under the Fair Labor Standards Act (FLSA). In that case, a group of insurance adjusters who had been deemed independent contractors challenged the classification and sought overtime pay. The court reversed summary judgment for the employer and remanded the case for trial, holding that a reasonable jury could find the workers were employees.

At the heart of the case is the reaffirmation of the so-called “economic reality” test. The court still uses a six-factor framework (control over work, opportunity for profit or loss, investment in equipment, skill required, permanence of the relationship, and integral part of the business) derived from an earlier case. None of the factors are dispositive. Instead, the key question is whether the worker is economically dependent on the company or instead in business for him or herself.

In the new Galarza case, the court found that five of the six factors favored finding employment, not independent contracting – so the employees should get their day in court, in front of a jury.

For employers—especially those in industries such as construction, staffing, field services or where gig-type labor is used—this ruling has immediate significance. Labels and titles matter far less than actual practice. Even if a contract calls someone a “contractor,” if scheduling, supervision, equipment provision, exclusivity and permanence mirror an employment relationship, the contractor label won’t hold up in court.

Employers should review arrangements where individuals work full-time or exclusively, perform work integral to the business, use company-provided equipment, have little opportunity for independent profit or loss, and are subject to company oversight and schedule control. That kind of relationship now triggers a high risk of employee status under the FLSA in the Eleventh Circuit.

In summary, the Galarza decision underlines that the key issue is economic dependence, is not just contractual language. For HR professionals in Florida, the new ruling underscores the need for proactive review of all contractor arrangements. This means creating clear documentation of independent contracting relationships and ensuring that written contracts and operational practices match. Misclassification can lead to significant liability for unpaid wages, overtime and statutory penalties (workers’ compensation and unemployment). The Florida Department of Revenue notes that an intentional misclassification of a worker as an independent contractor when they are in fact an employee may be a felony under Chapter 443 of the Florida Statutes (unemployment).

Big Change! DHS Ends Automatic Extensions of Employment Authorization Documents (EADs)

On Oct. 29, 2025, the U.S. Department of Homeland Security (DHS) announced an Interim Final Rule (IFR) to end the practice of automatically extending the validity of certain Form I-766, Employment Authorization Documents (EADs), when a renewal Form I-765, Application for Employment Authorization, was timely filed. According to the DHS, this will result in more frequent vetting of aliens who apply for employment authorization to work in the United States. Renewal EAD applicants who file Form I-765 on or after Oct. 30, 2025, will no longer receive an up to 540-day automatic extension of their EAD and/or employment authorization.

This rule change does not impact EADs that were automatically extended due to a Form I-765 renewal application being timely filed prior to Oct. 30, 2025.  Those employees (in certain categories) may present their Form I-797C receipt notice for their renewal EAD application to their employer to show that the validity of the eligible EAD has been automatically extended as evidence of continued employment authorization. Read more.

USCIS recommends aliens seek a timely renewal of their EAD by properly filing a renewal application up to 180 days before their EAD expires.

Consultstu provides fractional HR services to small/mid businesses.

Handling Employee Mismatch, Non-Confirmation in the E-Verify System

E-Verify is a key tool for employers in the United States, allowing them to verify the eligibility of their employees to work legally. However, there are instances when the E-Verify system may return a mismatch or non-confirmation status for an employee’s information. Employers need to understand how to handle these situations to ensure they maintain compliance with immigration laws and ensuring a smooth employment process. In Florida, E-verify is mandatory for employers with 25 or more employees.
E-Verify is a free online system managed by the U.S. Citizenship and Immigration Services (USCIS) that allows employers to confirm the work authorization of their employees. After entering an employee’s information, the system compares the data against records from the Social Security Administration (SSA) and the Department of Homeland Security (DHS). If the information matches, the employee is confirmed as eligible to work “employment authorized”. However, if there is a discrepancy, the employer receives a mismatch or non-confirmation notice. Here are the steps to Handle Mismatches or Non-Confirmations in E-verify.

  1. Re-verify results: Carefully review the details to understand the nature of the mismatch. Common causes include typographical errors, name changes, or discrepancies in Social Security numbers. Use the employee’s full legal name from his/her documents.
  2. Notify the Employee: Give the employee an opportunity to resolve the discrepancy. They may need to contact the SSA or DHS to correct their records. Employers should notify the employee within 10 federal working days.
  3. Provide Notice of Action letter: Gve your employee a copy of the Further Action Notice from E-verify. Review the Further Action Notice with your employee in private and have them confirm whether the information listed at the top is correct. If information is correct, tell the employee they have 10 federal working days from the date of the mismatch letter to notify you whether they will take action to resolve the mismatch.
  4. Close the E-verify Case: If your employee does not give you their decision by the end of the 10th federal government working day after E-Verify issued the mismatch, then you close the case.  Please see E-Verify User Manual for more information on closing cases in E-Verify. If an employee is unable to resolve the conflict, termination of employment should occur.

Read more about these steps on E-verify, including common FAQs and related Resources for Employers. Remember, employers are not allowed to complete E-verify checks before the employee is hired. Consultstu provides fractional HR services to small/mid businesses.

FMCSA Supervisor Drug & Alcohol Training: What Employers Need to Know

If your company employs CDL drivers who operate commercial motor vehicles (CMVs) on public roads, the Federal Motor Carrier Safety Administration (FMCSA) requires supervisors to complete specific drug and alcohol training under 49 CFR §382.603. Without properly trained supervisors, companies risk: (1) failing to detect impairment before accidents happen; (2) FMCSA compliance violations and penalties; and (3) increased legal exposure.

Who Needs the Training?

All supervisors of CDL drivers must complete the training — this includes fleet managers, dispatchers, and anyone responsible for overseeing drivers.
Owner-operators with no other drivers are exempt.

Training Requirements

Supervisors must receive: 60 minutes of alcohol training, and 60 minutes of controlled substances training for a total of at least two hours. The training focuses on identifying behavioral, physical, speech, and performance indicators of alcohol misuse and drug use to help supervisors make reasonable-suspicion testing decisions. Video training course is available from the DOT – click here for the 2 hour course.

Frequency and Documentation

  • Training is required once, though refreshers are strongly recommended every 1–2 years.
  • Employers must keep records showing who completed the training, the date, and the content covered. Records should be retained while the person is a supervisor and for two years afterward.

Compliance Tips for Employers

  • Use an FMCSA-compliant program (2 hours minimum).
  • Train new supervisors before they begin overseeing CDL drivers.
  • Keep completion certificates on file.
  • Reinforce awareness with periodic refreshers.
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