Reasons to Consider a PEO
PEOs allow employers to focus on their core, revenue generating, activities, allowing experts to handle the back end Payroll, Human Resources and Taxes.
Companies spend, on the average, approximately 8 – 12 hours per payroll run. A PEO allows tremendous automation to this process. PEOs have perfected the process, allowing companies to upload payroll data, generate payroll, print reports, pay employees, and download payroll activities directly into their accounting software.
PEOs provide expert back end Human Resource administration. Eight out of ten employers go on record stating Employment Discrimination weigh heavily when faced with employee disciplinary issues. PEOs shift that burden with the co-employer agreement.
EPLI & Dept of Labor
Most employers feel there will never be a discrimination lawsuit or wage dispute claim. But, the majority of claims brought about in a discrimination or employment practices lawsuit do make it to court, and damages are awarded. Such court battles and damages are usually crippling for a company. This is where PEO experience in HR management comes into play.
Workers Compensation Insurance and the Experience Modifier
PEOs usually have a Master Workers Compensation policy. In almost every case, the Comp Rate, Experience Modifier & State Unemployment Rate for a PEO will be lower than what a company can qualify on its own. With an average of 15,000 employees under their umbrella, a PEO can negotiate aggressive rates with all their carriers, for Work Comp, Employee Benefit, and Life & Health Insurance. When enrolled in a PEO, the employer does not pay the large deposit for the Work Comp Policy and avoids year end audits, allowing efficient use of cash flow.
- PEOs have experienced professionals in HR Management, Benefits, Workers Compensation & Risk Management, Payroll Specialists & Employment Specialists, Dispute Resolution, Legal Counsel on their staff.
- PEOs assume Federal employee related liabilities, such as discrimination, harassment, EPLI, OSHA
- PEOs perform Claim Management (Workers Compensation, Health Claims) on behalf of their employees.
- PEOs provide customized Employee Handbooks & Safety Manuals specific to your industry.
- PEOs report and remit Local, State, & Federal taxes
- PEOs file Annual & Quarterly Tax Reports, including Forms 940 & 941, W2 & W3.
- PEOs can provide automatic time clock / attendance devices, job & department costing.
- Resume’ Searches, Job Postings, Interviewing qualified candidates, pre-employment screening, background testing, drug testing, dispute / conflict resolution.
- Workers Compensation & Unemployment claims do not go against your company’s record.
- PEOs perform client safety services, including site visits, safety training, and assist with ISNetWorld Compliance.
- More efficient use of cash with a Pay As You Go Workers Compensation premiums, meaning no large deposits and year end audits.
- PEOs provides access to comprehensive benefits with many options such as HMO, PPO, COBRA, 401K at no cost to the employer, Section 125 Plan at no cost to the employer, Flex Spending Accounts, MasterCard Pay Cards.
- Happier Employees. PEOs provide security, affordable health insurance, more opportunities for retirement, and a safer workplace. Job satisfaction and productivity increases when workers are provided quality human resource services.
- Most importantly, PEOs allow a business to focus on their core operations. Allow a PEO to tailor benefits that appeal to your employees, fostering employee satisfaction and allow for recruitment of talent from other companies.