Grace Ferguson

Grace Ferguson is a freelance writer with many years of experience in payroll and benefits administration. Her work has been published by Axios HR, SurePayroll, Inova Payroll, Payentry, Chattanooga Chamber of Commerce, and others. Learn more at gracenferguson.com.

Articles by Grace Ferguson

• Emergency savings accounts: A growing workplace benefit

  Tuesday, December 15, 2020

  In a 2020 survey, 34.2% of U.S. workers said it would be very difficult to meet their current financial obligations if their paycheck were delayed for one week, while 34.5% said it would be somewhat difficult. Further, 40% of U.S. households "say they would struggle to cover a $400 emergency expense like a medical bill or car repair," according to the American Association of Retired Persons (AARP). To pay for emergency expenses, some employees end up tapping into their 401(k) or their long-term savings accounts — which defeats the purpose of these accounts. Consequently, a growing number of employers are offering payroll-deduction emergency savings accounts (ESAs).

• ABLE accounts for the disabled: FAQs

  Thursday, December 03, 2020

  One in 4 U.S. adults have some form of disability, according to the Centers for Disease Control and Prevention. Further, 1 in 3 disabled people aged 18-44 had an unmet healthcare need due to cost in the past year, and 1 in 4 aged 45-64 did not have a routine check-up. These are just a few of the many needs people with disabilities are unable to meet. To help disabled people save and pay for disability-related expenses, the U.S. Congress created the Achieving a Better Life Experience (ABLE) Act — which was signed into law on Dec. 19, 2014.

• Payroll continuity plan: What employers need to know

  Tuesday, November 17, 2020

  Disasters come in many forms. There’s fire, storm, tornado, flood, earthquake, pandemic, terrorist attack, cybercrime — just to name a few. When they strike, it’s important for employers to have a payroll continuity plan in place. A payroll continuity (or contingency) plan is a documented strategy for achieving your payroll objectives when natural or man-made disasters occur. The plan outlines feasible measures for managing payroll through the disruption.

• HSA, FSA or HRA: What employees need to know before choosing one

  Wednesday, November 04, 2020

  Not to be confused with health insurance, HSAs, FSAs, and HRAs are tax-favored accounts that reimburse employees for eligible healthcare expenses, as defined by the Internal Revenue Service. All three share the common goal of helping employees save on healthcare costs, but in the end, they are separate accounts. Here’s what you need to know before enrolling in an employer’s HSA, FSA, or HRA.

• Can employees take time off from work to vote?

  Thursday, October 15, 2020

  Voters have until Nov. 3, 2020, to cast their ballots in the 2020 U.S. presidential election. With the deadline imminent, employees who haven’t voted already may be wondering whether they can take time off from work to vote. As with many things employment-related, the answer boils down to state or local law and company policy. Federal law does not mandate that employers give employees time off to vote; however, many states do. Depending on the state, the time off may be paid or unpaid.

• Drug use rises among US workers amidst the pandemic

  Friday, October 02, 2020

  Lockdowns, social distancing, layoffs, and uncertainty about the future are well-documented effects of the COVID-19 pandemic. Research also shows higher rates of substance use and misuse. A May 2020 report by Well Being Trust and The Robert Graham Center says, "The growing epidemic of ‘deaths of despair’ is increasing due to the pandemic — as many as 75,000 more people will die from drug or alcohol misuse and suicide."

• Absenteeism costs employers billions of dollars every year

  Wednesday, September 16, 2020

  Absenteeism is a pervasive phenomenon impacting workplaces globally. In the United States, employers — aggregately — rack up billions of dollars in absenteeism costs per year. Before we nail down the numbers, let's review the concept of absenteeism. According to USLegal.com, "Absenteeism is the term generally used to refer to unscheduled employee absence from the workplace." In other words, absenteeism is when an employee fails to report to work as scheduled.

• The rise of employee assistance programs during COVID-19

  Tuesday, September 01, 2020

  Originally designed to address the negative effects of alcohol abuse on productivity and organizational performance, employee assistance programs (EAPs) have evolved immensely since their inception. Today, EAPs are structured to manage a wide range of complex issues surrounding employee mental health. Though employers have been ramping up their EAP initiatives for some time now, it’s the COVID-19 pandemic that’s catapulting this workplace benefit to greater heights.

• How far can employers go with COVID-19 testing?

  Tuesday, August 18, 2020

  The Equal Employment Opportunity Commission (EEOC) has issued guidelines on COVID-19 testing in the workplace. Regarding the COVID-19 pandemic, the EEOC says that employers can administer viral tests to employees before they enter the workplace, so as to determine whether they have COVID-19 — as an employee with the virus "will pose a direct threat to the health of others."

• What the Paycheck Protection Program Flexibility Act means for small employers

  Wednesday, August 05, 2020

  The Paycheck Protection Program (PPP) has been criticized for being too stringent and not sufficiently addressing the longer-term effects of the COVID-19 crisis. As a result, the PPP has been modified to give small businesses more flexibility when utilizing PPP loans and to make it easier for them to obtain loan forgiveness. These changes are reflected in the Paycheck Protection Program Flexibility Act (PPPFA). Here's a non-exhaustive look at what the PPPFA means for small employers.

• New York employees traveling to COVID-19 hotspots won’t get paid sick leave

  Thursday, July 16, 2020

  To help reduce the spread of the virus, some states have enacted a mandatory 14-day quarantine on people traveling from out of town. Along with imposing mandatory quarantine on certain out-of-towners, New York Gov. Andrew Cuomo recently issued an executive order, which says that New York employees who voluntarily travel to COVID-19 hotspots after June 25, 2020, are ineligible for the state's COVID-19 paid sick leave benefits.

• How employers are helping employees reduce student loan debt

  Thursday, July 02, 2020

  U.S. student loan debt reached a record $1.6 trillion in 2020, according to an article in Forbes. This accounts for 45 million borrowers, making student loan debt the second highest consumer debt in the U.S. — topped only by mortgage debt. Employers are taking notice. To attract and retain talented workers, a small but growing number of employers are offering student loan repayment plans (SLRPs).

• What benefits do employees want the most?

  Wednesday, June 17, 2020

  Prior to COVID-19, healthcare coverage, paid time off, and retirement plans often ranked as the most desired benefits among employees. During the pandemic, these benefits — while still highly valued — have experienced distinct changes. For example, what employees want in healthcare benefits has taken on new meaning.

• What everyone should know about payroll fraud

  Tuesday, June 02, 2020

  Payroll is often an employer's biggest expense, making it a prime target for fraud on many levels. Employers, employees, third parties, and others all contribute to payroll rackets. For example, one type of fraud happens when companies misclassify employees as independent contractors. This type of misclassification strips the employee of their labor rights, as independent contractors are not protected by most employment regulations, including minimum wage and overtime pay laws.

• AI-powered payroll is advancing — but where do we draw the line?

  Wednesday, May 20, 2020

  According to Zion Market Research, the global cloud-based payroll market "is expected to generate around USD 13,374 million by 2026, at a CAGR of around 6.8% between 2019 and 2026." Though cloud-based payroll software is the industry's biggest disrupter thus far, artificial intelligence (AI) isn’t too far behind. Most notably, in a 2019 survey by Robert Half Finance & Accounting, 47% of CFOs predicted that payroll will benefit the most from AI integrations.

• The impact of the coronavirus pandemic on payroll

  Tuesday, May 05, 2020

  Payroll is a core organizational function that any business with employees must perform. Often, though, it remains in the background, overshadowed by more visible operations, such as human resources and finance. But every now and then, an event comes along to remind us of payroll’s critical existence. Currently, that event is the COVID-19 pandemic. As some states move towards reopening their economies, employers are still reeling from the sudden emergence of COVID-19 and its adverse effects on payroll.

• Does workers’ compensation cover coronavirus?

  Monday, April 20, 2020

  Though we still have much to learn about the novel coronavirus, symptoms range from mild to severe and can lead to death. In response, lawmakers and industry leaders have been implementing relief for impacted individuals — such as paid leave, additional unemployment benefits, and free COVID-19 testing. A common question among employees is whether relief extends to workers' compensation, also known as workers' comp. Long story short, if you're exposed to COVID-19 on the job, you might have a hard time getting workers' compensation — unless you’re a healthcare provider or first responder.

• COVID-19: Paid leave mandates for businesses and workers

  Thursday, April 02, 2020

  With COVID-19 continuing its assault on the U.S. economy, the federal government has enacted legislation mandating paid leave for some American workers. Employers should understand their responsibilities under the new regulation plus any others required by law.

• Studies: Older workers’ wages are declining

  Tuesday, March 17, 2020

  Since age brings experience, it’s easy to believe that older workers command more pay than their younger counterparts. But studies show a grimmer reality. According to The Wall Street Journal, "Americans under 35 report being happier with their paychecks than people over 55 for the first time since 2011." This conclusion is based on 2018-19 research by The Conference Board. The increased satisfaction among younger workers may be due to millennial and Gen Z workers experiencing faster wage growth than the general population.

• State-run retirement plans are becoming more popular

  Tuesday, March 03, 2020

  A huge retirement savings shortfall is underway — and many are calling it a crisis. Consequently, some states are launching their own retirement savings programs for private businesses and workers. Some states have passed legislation which require employers to offer a qualified retirement plan — such as a 401(k) or SIMPLE IRA — either through the state-run program or the private market. A few other states have developed voluntary programs for private-sector businesses and workers.

• What the SECURE Act means for everyone

  Tuesday, February 18, 2020

  Signed into law on Dec. 20, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act is designed to help thwart America’s growing retirement crisis. Here’s how the Act impacts employers, employees, and everyone else. For example, the SECURE Act changes several rules regarding multiple employer plans (MEPs).

• Is cryptocurrency payroll legal?

  Thursday, February 06, 2020

  Paying employees in cryptocurrencies could be an emerging trend. But it’s not without controversy or implications. U.S. employers should tread carefully. A key area of consideration is the Fair Labor Standards Act (FLSA), which says that employers must pay employees "prescribed wages, including overtime compensation, in cash or negotiable instrument payable at par." "Negotiable instrument payable at par" is interpreted to mean either cash or something that can be immediately converted into cash, such as direct deposit or paper check.

• New drug testing rule targets applicants for unemployment benefits

  Friday, January 03, 2020

  On Oct. 4, 2019, the U.S. Department of Labor published a final rule giving states more freedom to expand the number of people who must pass drug tests in order to qualify for unemployment benefits. Those who fail the test would be disqualified from receiving unemployment assistance. Note that unemployment benefits are paid for by employer — and, in some states, employee — payroll taxes and are generally granted to employees who lose their job through no fault of their own. Before we explore the new rule, let's take a trip down memory lane.

• Are you ready for these payroll changes in 2020?

  Wednesday, December 04, 2019

  As we embark upon 2020, numerous payroll changes await. Among them are FICA taxes, Form W-4, state taxes, employee benefits, minimum wage, overtime, paid sick leave, and the quadrennial leap year. For example, in 2020, employers and employees must each pay Social Security tax at 6.2%, up to the taxable wage base of $137,700 — increasing from $132,900 in 2019. Furthermore, at least 20 states are expected to undergo minimum wage hikes in 2020.

• On-demand pay: A budding phenomenon

  Thursday, November 07, 2019

  In an era of instant gratification, the concept of on-demand pay couldn’t be timelier. Payroll technology plays a huge role in this desire for instant satisfaction. The vast majority of American workers can immediately access their wages on payday via direct deposit or payroll cards. They can also retrieve pay stubs, update their payroll data, and make payroll requests at the touch of a button, thanks to employee self-service. So, getting paid on demand seems like a natural fit.

• IRS final rule delivers easier access to 401(k) hardship withdrawals

  Thursday, October 17, 2019

  On Sept. 23, the Internal Revenue Service (IRS) published a final rule that simplifies hardship withdrawals for 401(k) and 403(b) plan participants. The final rule substantially mirrors the IRS’ proposed regulations — reflecting changes made by the Tax Cuts and Jobs Act of 2017, the Bipartisan Budget Act of 2018, the Pension Protection Act of 2006, and the Heroes Earnings Assistance and Relief Tax Act of 2008. Some changes are optional; others are mandatory and must be implemented by Jan. 1, 2020.

• Cafeteria plan benefits: A primer for employers

  Wednesday, October 09, 2019

  According to a 2019 survey by the Society for Human Resource Management, "employers were more likely to increase offerings in all benefits categories than to decrease offerings." Further, employers believe that healthcare benefits are the most important to their workforce. However, healthcare benefits have a long-standing reputation for being expensive. To alleviate the cost burden for employees, in 1978, the U.S. Congress created Section 125 of the Internal Revenue Code. Benefit plans established under Code Section 125 are known as cafeteria — or Section 125 — plans. A cafeteria plan enables employees to pay for qualified benefits, such as group health insurance, on a pretax basis.

• Strategies for acing payroll at year-end

  Wednesday, September 25, 2019

  The intensity of payroll tends to increase at year-end, which is known as the most hectic time of year for payroll professionals. Without proper planning, things can go off the rails, leaving you with a slew of problems in the new year. To avoid this dilemma, follow these steps. For example, considering the huge amount of work that comes with year-end payroll processing, it’s best to start as early as possible — ideally, no later than the beginning of October.