We still run into a number of people that are not familiar with a Professional Employer Organization or a PEO, so we decided to post an overview of what a PEO is, and how it can help you run your business more efficiently. If you can answer “YES” to the following question, then a PEO could be worth your time to look into a PEO and experience everything it has to offer.
As a business owner or manager do you feel as though the government has made you a non-compensated highly penalized tax collector?
Does it also seem as though you’ve been mandated to provide your company and employees with insurance for work-related accidents (Workers’ Comp), unemployment insurance (state and federal), along with contributing to each employee’s retirement fund (Social Security)? You may even feel you’ve been required to provide group health insurance and other benefits for your employees. Of course none of these employer responsibilities has anything to do with your core business and generating a profit for your company.
Professional Employer Organizations (“PEO”) can provide cost-effective services that help small to mid-sized companies better manage their employer responsibilities and risks. PEOs are in the “business of employment” and provide real relief to employers through services and resources that include workers’ compensation coverage, payroll and employment tax administration, safety/risk management support, human resources support, labor law compliance, as well as employee benefit programs. By “hiring” a PEO to assume these non-core business functions for your company you are free to manage your company’s product development and production, marketing, sales and service.
A relationship with a PEO involves a sharing of employer responsibilities between the PEO and the Client Company. This employment relationship is known as “co-employment” and is an integral aspect of the PEO business model. In a co-employment arrangement, the PEO becomes the employer of record for tax and insurance purposes, filing paperwork under its own identification numbers.
As worksite employers, the Client Company continues to direct employees in their day-to-day work-related duties and activities. As a co-employer responsible for many human resource administrative functions, the PEO manages many of the time-consuming and costly aspects of employee administration as the “employer of record” for the employees. The co-employment relationship is recognized by the Internal Revenue Service, as well as by most states, through some form of specific licensing, registration, or regulation for PEOs.
Quite simply, a PEO is a “one stop shop” that allows companies to outsource most of the time consuming and costly functions associated with employee administration. Better still, you get your workers’ comp coverage with no deposits and no year-end audits!
The LL Roberts Group can assist you by providing your company with a “no-cost” and “no obligation” PEO proposal. So contact the LL Roberts Group today and find out if PEO is the right solution for you and your company.