HRBenefix
HR outsourcing PEO HR Services Co-employment Payroll services, Health Care Benefits Employee Risk Management Health Care
Employee Handbooks, Benefits, Benefits Administration, Affordable Care Act, Co-employment Employee Leasing, Risk Management
Why would a business use a PEO?
Employers in today’s economy must focus on their efforts on reducing costs and minimizing employment risks, while motivating their staff to be more productive. At the same time, employment administration is as complex as ever: labor law compliance, employee benefits, worker’s compensation, risk management, unemployment claims, payroll and tax compliance, employee training and recruiting are just a few of the areas that bog down employers.
PEOs offer a comprehensive HR solution, providing valuable advice regarding the entire employee life-cycle, from hire to termination.
Human Resource experts help employers reduce HR risks and employment costs, while increasing efficiencies and employee productivity.
Additionally, PEOs assist in making available an array of robust employee benefits, from health, dental and life insurance, to 401 (k) and pre-tax Cafeteria plans.
Does a business owner “lose control” over their employees in PEO relationship?
No! The PEO and the client create a contractual arrangement where in the business owner retains complete control over the day-to-day operations of the business, including hiring, firing, setting wages, and directing the daily activities of the employees. The PEO assists with the administrative aspects of employment, such as payroll, taxes, workers’ compensation and employee benefits, while providing HR support to help clients comply with applicable employment laws and regulations.
What is the difference between a PEO and a Staffing Agency?
A Staffing Agency provides employees to their clients. This can include screening, interviewing and placing the workers at the client’s work site on either a long-term or temporary basis. A PEO provides employment support services and administrative assistance to the business’s current workforce.
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What types of businesses use a PEO?
There is really no “typical” PEO client. On average, most employers with fewer than 500 employees can benefit from the PEO’s economies-of-scale and HR expertise. Industries include manufacturers, medical, hospitality, retailers, warehousing, non-profits, business services and high-tech.
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5 Questions Every Employer Wants to Ask About PEOs
What does a PEO cost?
PEOs typically charge either a fixed percentage of gross payroll, or a per-paycheck fee. This fee can vary greatly based on numerous factors, such as employee size, gross payroll and industry. Many employers find that once they engage a PEO, the fees they pay are often offset by the savings they experience in the areas of reduced administrative overhead and discounted insurance premiums.