Will I lose any control of my staff once I start using VMS?
No. VMS simply performs the back office, administrative human resources functions for the client. The client will still make the decisions on who is interviewed, hired, terminated, disciplined, and the rates of pay for each employee. VMS is not responsible for staffing or decisions regarding staffing or who is interviewed, hired, terminated, disciplined, or rates of pay. Decisions concerning uniforms, hours worked, scheduling, number of employees per shift, job titles, management, and venue operations also remain the responsibility of the client. The staff of VMS performs its services off-site and rarely makes an appearance at the clients' venues. To employees, the change to VMS is virtually transparent, but to the client, significant changes are evident in cost savings, administration, and streamlined operations.
Can I cancel my current Workers Compensation policy and still be in compliance?
When you enter into an agreement with VMS, and transfer all of the employees, you essentially have no employees on record. The acquired employees are now paid under the Federal Employer Identification Number of VMS and recognized by the IRS and state agencies as employees of VMS. VMS then becomes the employer of record and is required by all federal and state guidelines to perform as the employer. This includes processing payroll and payroll taxes, statutory reporting, providing Workers Compensation insurance, EPLI insurance, medical benefits and more. Should the client retain just one employee and pay that employee directly, the client would be considered an employer and would be required to carry their own Workers Compensation insurance and adhere to all federal and state laws for that employee.
How will the employees be paid and what about the payroll taxes?
In regards to the payroll for the employees, nothing changes. The employees will continue to be paid on the same day and at the same rate that they were being paid by the client, with the only difference being the check now comes from VMS instead of the client. The payroll checks will be delivered to the clients' work site, either by messenger or overnight delivery on the required date, and to the attention of a designated person for distribution. Many employees have structured their finances in accordance with when they are paid, and it is not the intention of VMS to make any changes.
What if I need to terminate an employee either immediately or in the near future?
Should the need arise where an employee has to be terminated immediately, the client can simply send that employee home and then promptly notify VMS of the circumstances. VMS will arrange to contact the employee as soon as possible to advise him/her of the separation. At the same time, VMS will have a final check issued and sent to the employee directly within 24 hours. If a client is considering the separation of an employee on a specific date, VMS will arrange to have a final check at the clients' work site prior to the separation.
What if an employee gets injured on the job?
Upon entering into a contract with VMS, we will immediately establish a working relationship with a local 24 hour urgent care facility that is near the clients' work site. Signs will be posted around the work site with instructions on what to do and where to go should an injury occur. Neither the employee nor the client will be responsible for any payment to the care facility, as VMS will have established Workers Compensation insurance information on file with the facility. VMS will advise the Workers Compensation insurance carrier of the injury and will closely follow the injured employee's progress to ensure the employee is receiving the best care possible.
What will happen after an employee quits or is terminated?
In most cases, when an employee quits, neither the client nor VMS will hear anything else from the employee. But in cases when an employee is terminated, it is not uncommon for that employee to file for unemployment insurance benefits against the employer and, in some instances, either a Workers Compensation claim for injuries or an EPLI (sexual harassment, wrongful termination, or discrimination) claim/lawsuit after the termination. As the employer of record, VMS, and not the client, will receive all documentation relating to the unemployment insurance claim and will process it accordingly. In regards to Workers Compensation claims (which is actually a lawsuit within itself against the employer) or an EPLI claim/lawsuit, VMS will be served the action and will forward the claim to the appropriate insurance carrier for defense. The client should not be named in any action, as they are not considered the legal employer of record, but if the client is named as a defendant, VMS's insurance carrier will pay any judgment or settlement in favor of the employee. The client will be required to cooperate with VMS and VMS's insurance carrier or defense team to ensure adequate information is received.
What about liability? Am I still liable for the employee's actions?
Once you have become a client of VMS and have relinquished all of the employees, you now have no liability simply because you are not considered the employer of record any longer, and the employees are now employees of VMS. VMS becomes 100% responsible for their actions. The liability insurance coverage that VMS has covers the actions of the VMS employees only and will not cover any claims that arise due to the negligence of anyone other than a VMS employee. Coverage will not be valid if the client instructs the VMS employee to do something that is illegal or liable. In that case, the client would or may be held liable. As with any insurance claim, the insurance carrier will conduct a thorough investigation before accepting responsibility, and if it is determined that the client was negligent, the claim will be declined.