A Professional Employer Organization is a one-stop service provider that allows business owners to concentrate on running their business without getting bogged down with administrative details. It also allows them to provide employees with the benefits normally provided by much larger companies.
A PEO business model operates under a co-employment model in which the PEO, as the co-employer, is the employer of record and based on the allocation of responsibilities under the contract assumes certain responsibilities for payroll and tax filing. The client maintains control over workforce decisions like hiring and firing, compensation, culture and more. The PEO model also allows co-employees access to a range of benefits and other services.
Employees on a PEO’s payroll are able to participate in the PEO’s health, retirement, supplemental benefits and are covered by the PEOs workers’ compensation policy, helping to simplify these complex arrangements.
Few small businesses can afford a full-time staff consisting of an accountant, human resource professional, attorney, risk manager, benefits manager, etc. A PEO delivers these services by establishing and maintaining an employer relationship with the employees at the clients’s worksite and by contractually assuming certain employer responsibilities, rights and risks.
Generally lower health insurance premiums
Alleviate many administrative responsibilities and reduce liabilities
Contain and reduce your overall employee-related administrative costs
Human resources support & payroll
Application/Administration of FMLA & Cobra
On-line Paperless Portal System for All Employees
Confirm compliance with state and federal law
Workers compensation insurance
Employment practices liability insurance (EPLI)
401(k) Plan administration
Develop employee handbooks & forms