A Professional Employer Organization is a service whose only purpose is to ‘Co-Employ’ with your company. Co-Employment is an IRS-recognized relationship that makes the PEO share liability for employment responsibilities including, tax reporting, maintaining proper insurances, HR compliance, benefits, etc. A PEO has become a preferred and efficient way to manage and improve these tasks when a full-scale in-house HR department is not feasible.
Who should evaluate a PEO?
Isaac has identified 3 top reasons businesses evaluate PEOs:
- Employees are requesting better benefits than what is available on the open market for the group.
Depending on the location, size, and census of the company a PEO may be able to provide a well-rounded and affordable Benefits offering usually only found at ‘Industry 500’ companies. PEO clients are also assigned a dedicated benefits coordinator to help administer and maintain the selected policies.
- Managing the cost and documentation requirements of Workers Compensation Insurance.
PEOs that focus on industries such as construction, manufacturing, and transportation have been able to leverage their size and claims management team to secure policies from A+ rated carriers that are unattainable to private employers. A client can also expect to have full access to the claims management team and only pay for coverage as needed – no down payments and no yearly audits.
- To outsource HR and compliance-related tasks.
There are several reasons why a business will request this including: having employees across multiple states, high turnover industry, relieve limited office staff from non-revenue generating activities.
For additional information or to schedule a free meeting with The Penguin Group’s PEO consultant, email firstname.lastname@example.org.