Redstone Government Consulting Blog | Human Resources (2)

Implementing the proper human resources information systems (HRIS) brings many benefits to HR teams and the businesses they support. These benefits may include automating processes, efficient talent acquisition, effective employee management, proper time tracking, increased employee engagement, and more. Poor execution of the implementation can create havoc, causing frustration, confusion and a lack of employee engagement. Improper security assignments will cause employees to see the information they shouldn't or managers to be unable to see what they should. In worst cases, employees may not get paid correctly or at all if a system is not setup properly and thoroughly tested. These are just some of the issues that could result from not choosing a partner who is dedicated to knowing your business needs and minimizing the challenges as much as possible. Some complications are expected, but the right partner will find a way to navigate or even avoid them effectively. We utilize the UKG Ready HRIS solution for HR, Payroll, and Timekeeping at Redstone Government Consulting, as we find it can fully meet our clients' needs, not only for our Federal Government Contractor clients but also for any clients looking for a full-suite solution.

On January 10, 2024, the U.S. Department of Labor (DOL) published its highly anticipated “final rule” on independent contractor classifications.[1] As expected, they adopted the “totality of the circumstances” test which means that many more workers will be found to be w-2 employees as opposed to 1099 independent contractors. This rule takes effect on March 11, 2024, and is anticipated to have a significant impact across many industries that rely on contract workers, including government contractors. Under the new rule, many independent contractors will likely be reclassified as employees, which will financially impact employers by way of potential entitlement to company benefits, additional tax implications, and possible exposure to employment-based lawsuits, etc. Furthermore, if a worker is misclassified as an independent contractor but is later determined to be your employee, there is an additional risk of back wages that could be assessed for unpaid overtime, particularly in light of the changes DOL has in store regarding the salary basis for exempt employees. Those proposed changes will be discussed at the end of this article.

The McNamara-O’Hara Service Contract Act (SCA), aka Service Contract Labor Standards (SCLS), requires contractors and subcontractors on covered contracts to provide specified wages and fringe benefits to covered employees (i.e., “service employees”). While that may sound fairly straightforward, there are many nuances and complexities that can cause great concern and angst when working toward compliance with the SCA. At the top of the list of these administrative burdens is the appropriate distribution of Health and Welfare (H&W).

On August 9, 2023, DCAA issued guidance to its auditors revising the real-time labor and material testing requirements. DCAA historically referred to these procedures as Mandatory Annual Audit Requirements (MAARs) 6 and 13. DCAA states in its guidance what its auditors need to know is that “[l]abor and material are two of the most significant cost elements billed under government contracts. As such, one of the primary reasons … [DCAA] audit[s] labor and material costs incurred is to determine the accuracy of the charges. The real-time verification of these costs as they are incurred provides valuable confirmation of the accuracy of the charges and can only be accomplished during the accounting period to which they apply.” I cannot really argue with this statement.

In August of 2023, the Defense Contract Audit Agency (DCAA) changed what is used to refer to as Mandatory Annual Audit Requirements (MAARS) 13 audits to Real-Time Audits of Purchase Existence and Consumption. This change was to eliminate the mandatory part of the requirement and introduce greater flexibility based on the auditor’s risk assessment of the contractor.

In August of 2023, the Defense Contract Audit Agency (DCAA) changed what it called Mandatory Annual Audit Requirements (MAARS) 6 audits to Real-Time Audits of Labor. This change was to eliminate the mandatory part of the requirement and introduce greater flexibility based on the auditor’s risk assessment of the contractor.

If this were only a simple question. The most straightforward answer is that it is a good idea for any company to have policies and procedures. If that company is going to do business with the US Government those policies and procedures are going to have to be expanded as each contract may present additional requirements. To help you understand the complex level of requirements we will address the major business systems and other key areas.

If chosen carefully and skillfully, a Human Resources Management (HRM) Technology Solution can significantly improve workplace productivity, enhance compliance, and encourage employee engagement. The various acronyms (i.e., HRM, HRIS, HCM) utilized to describe HR technology solutions often create confusion. Essentially, a robust Human Resource Management system, “HRM” as we will call it, brings together human resources (full life cycle of applicant tracking through onboarding-to-termination), timekeeping, workforce management, payroll, and data analytics all under one technology solution—a comprehensive, full-suite single solution.

This article helps define Organizational Change Management (OCM) and Organizational Intelligence (OI) and addresses their practical relevance to healthy business operations.

Over the last few years, with the uber-competitive labor market and evolving landscape of remote and hybrid work arrangements, I've had many conversations (some feeling more like counseling sessions!) with clients who had become very tired and frustrated with the rising compensation and work-related demands of candidates. These conversations included questions like: When will we see the labor market settle? How can we be profitable when paying rates such as this? What makes sense? Is there any way this would be considered reasonable? Will that be fair to my long-term employees? What we found is those with established and well-structured compensation plans were able to respond to these questions and the challenging scenarios they faced much more efficiently and effectively than those who did not.