A professional employer organization (PEO) is a firm that provides a service under which employers can outsource employee management tasks, such as employee benefits, payroll and workers’ compensation, recruiting, risk/safety management, and training and development. The PEO does this by hiring a client company’s employees, thus becoming their employer of record for tax purposes and insurance purposes. This practice is known as co-employment.
Professional Employer Organization
PAYROLL
Under a PEO model, your company would enter into a co-employment relationship, where the PEO would process payroll, report wages and taxes, as well as a full scope of services, including:
- Processing and distribution of payroll through live checks, direct deposit or pay cards
- Federal, state and local tax filing
- Child support, levy and garnishment processing
- Benefit deductions
- Maintaining paid time off programs and records (vacation, sick, PTO plans)
- Compliance with all state and federal wage and hour regulations
- Notification of changes, such as updates to tax laws, minimum wage, etc.
- W-2 forms prepared and sent to all employees
- Employment verifications
HUMAN RESOURCES (HR)
Within a PEO, comprehensive human resources programs and services are offered. HR experts take care of the business end of employer-employee relations so you can concentrate on your company. HR services are designed to keep your business in compliance with the latest state and federal employment laws. Additionally, our human resource services addressing areas including:
- Employee Handbook/Policies and Procedures
- Employee Relations and Counseling
- Unemployment Administration
EMPLOYEE BENEFITS
Partnering with a PEO means your company will have access to a broader package of benefits that may not otherwise be available to you. A PEO understands that in order for you to invite and maintain highly qualified and capable employees, you need to offer quality benefit plans such as group medical, dental, life and 401(k). Regardless of the size of your company, your employees can participate in plans with top-named vendors in each market. Other benefits, like the following can be offered if part of a PEO:
- Comprehensive Group Medical Plans
- Group Dental Plans
- Basic Life Insurance and AD&D
- Long Term Disability
- Flexible Spending Account Plans (FSAs)
- 401(k)
- Alternatives to Workman’s Compensation