How doPEOs Work? Employee related costs are expensive and time consuming to manage. A PEO can provide expert services in those challenging areas while reducing risk, cost and streamlining your entire HR process.
Health Insurance
Get large group plan features for less cost and lower annual increases.
Workers Compensation
Joining a PEO can give you access to a group plan with better rates and no deposits.
Human Resources
PEOs have highly trained and certified HR professionals and best of breed software.
Payroll
PEOs provide efficient payroll processing to meet your specific workforce needs.
PEO = Professional Employer Organization
A PEO is a CO-Employer that shares employee related risk with the employer.
Essentially, your employee related taxes are filed on your behalf under the PEO's FEIN. This is NOT leasing, your employees are still your employees. You still hire, fire and manage.
Placing yourself under the umbrella of a PEO gives you access to their large group benefits, eliminate fiduciary responsibility for your 401k, guaranteed cost Workers Compensation and many other positives. Many of the PEOs we work with have hundreds of thousands of employees under their umbrella.
Each PEO agreement may have differences but in general terms there are common elements:
- PEOs take over the payroll function including taxes
- Employees of the client become employees of the PEO, essentially pooling all clients into a larger organization that can leverage the entire pool to reduce costs and administration overhead.
- PEOs provide certain HR services like benefits administration, employee handbooks, recruiting and onboarding
- Provides federal, state, and local compliance
- PEOs provide health insurance and other benefits on a massive scale.
- Worker's compensation insurance with no deposits, no true-ups and true pay as you go.
- Some even offer guaranteed cost for the life of the relationship.
- Many PEOs provide a world class HRIS platform to manage employees from hire to retire. This includes, payroll, benefits, Applicant tracking, expense management and much more.
Focus on your business by offloading employer responsibilities*
Joining a PEO doesn't prevent you from managing your business the way you want to. PEO client organizations still manage their employees and business.
PEOs Administer Many Employee Functions
- Payroll and State Tax variations
- Health insurance
- State and Federal labor compliance
- Workmans compensation
- Employee administration
You're Still in Charge
- Make hiring and termination decisions
- Direct employee day to day tasks
- Decide on compensation, raises, bonuses, etc
- Make financial and other business decisions
Reduce Challenges of Distributed Workforce
- Ensure multi-state operations are compliant
- Remote / Work at home employee payroll and labor issues
- Streamline communications
- Benefits that address diverse employee needs
- Reduced cost and time dedicated to employee services