Wonder whether your company is in compliance with all applicable laws and regulations concerning Human Resources?
Want to free up your time to work on your business, and have someone address these concerns for you, while saving you money?
Wish you could attract and retain the best local labor talent by offering your employees “large company benefits” at large company discount prices?
In a PEO arrangement, the client employer enters into a “co-employment” relationship with the PEO. In this arrangement, the PEO becomes the employer of record, allowing the employer to fully outsource their Human Resources function, share employment liability, and focus on their core business. Core PEO services include the following:
- Complete HR Compliance, ongoing compliance support
- HR policy development
- Payroll and Timekeeping Services
- Payroll tax calculation, timely payment and document submission
- Health and welfare plan design, vendor negotiations, employee education, administration, and compliance (COBRA, HIPAA, etc.)
- Retirement plan design administration and compliance
- Employee handbook customized to your business
- Worker’s compensation, disability, and unemployment claims management
- Employee relations support
- WOTC and HIRE program administration
Small businesses often have to submit to community rating for health and welfare benefits. Through co-employment, since the PEO is the employer of record, the PEO can go to market as a “large company” and take advantage of large company discounts which are then passed to their client companies.
Co-employment means that the PEO and the client share responsibility for compliance. The PEO will guide the development of policy and related training, but the client also shares responsibility for daily implementation. If the client has any questions, the PEO is there to help before a problem arises, functioning as your full service HR department.
The term “employee leasing” is often used interchangeably with the term “PEO.” This is because of the shift in employment of record. The client company still hires whom they want, manages daily operations and directs the work of the employees, initiates discipline, performance management, scheduling, terminations, etc. Employees show up to work every day at the client employer, not the PEO. The PEO does not assign workers like a temporary services firm. From an employee’s perspective, they will probably consider themselves employees of the client, not the PEO.
The PEO model has many advantages for small firms. Please feel free to ask us any questions you may have on how a PEO can save you time, money, and help you become an employer of choice.