Tag what is a peo

Why would a business owner use a PEO to provide solutions to employer headaches with traditional payroll and insurance methods?

“PEO” stands for Professional Employer Organization. In almost all states this is a licensed and regulated corporation which practices in the field of employee leasing or co-employment.

In an employee leasing scenario, the PEO becomes the Employer of Record of all the client’s employees for purposes of payroll, taxes, insurance and HR compliance. Other services are available if necessary. This is also true in a co-employment situation, but some o the responsibilities are shared. The major share of the liability of having employees is shifted to the PEO, thus enabling the client to concentrate on building their business, instead of being bogged down in the day to day “busy work.”

Our typical client is an employer who is:

• Worried that their current payroll situation may be making mistakes
• Sick of the hassles of workers’ comp insurance
• Nervous about possible unemployment claims
• Does not want to be burdened by payroll issues, such as payroll taxes
• Concerned about keeping their best employees
• Worried about maintaining compliance with HR standards and regulations
• Alarmed at the prospect of complying with new health care laws

Potential clients are employers who suspect they are overpaying for insurance and HR services and still not assured of proper or complete coverage.

Our broker division, EmployerNomics, may be able to assist those employers with employee retention and peace of mind by helping them to supply proper benefits.

Call EmployerNomics at 800-788-8343 or use the form below if you have questions.

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People ask us when they need a PEO, or even why?

Hard question to answer with anything other than “Maybe you don’t!”

Our staff can spend a lot of time telling you why you should have a PEO, and you can probably find some of that on other parts of this site. For fun though, and maybe for educational purposes, we asked them, “When DON’T you need a PEO?” Well they tossed it around the bullpen and surprise surprise, they came up with at least 7 scenarios when a PEO is not called for.

Here’s some situations they gave us when you DON’T need a PEO:

1: You don’t have any employees
2: You have employees but they cause no problems and create no risks
3: You are a government entity who cannot be sued
4: You are a very large company with an internal legal and HR department
5: You are a very large company with annual workers’ comp premiums in excess of $250,000. (In this case you should have your own, custom comp solution, such as a captive or a self funded plan. Ask us about that)
6: You are a short term company, not likely to be around for a while
7: You will never want to sell your company, or facilitate an easy ownership transfer

Can you think of some others? Please let us know!

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