Q: What are the advantages I will enjoy by contracting with a PEO?

A:

• The buying power of a larger group for both Worker’s Compensation and Health Benefits.

• No Year End Audits.

• No Down Payments.

• Pay your premiums with each pay period.. .a true “pay as you go” program.

• Stability in premiums from year to year.

• Access to a Fortune 500 Level H.R. Department, designed to support you on a day to day basis.

• A 401k Plan your employees can now join at minimal admin costs

• Optional Health, Dental, and Vision Plans

• Long and Short Term Disability

• A Complete Payroll Service

 

Q: Will I lose Control Over My Employees?

A: Absolutely not! A PEO is designed to SUPPORT you, assist you, and keep you in compliance with the hundreds of Federal & State Regulations. You maintain direction and control, decisions regarding hiring and firing, vacation, wages, etc.

 

Q: Do I have to get approval from the PEO before hiring or firing an employee?

A: Absolutely not! You control all of those decisions regarding your employees. Is it a difficult hire or fire situation? Then call your PEO H.R. Manager and speak with them. They will walk you through the proper way to handle any employee related situation. PEO’s want to be pro-active in all employee related matters, and help you handle them the best possible way.

 

Q: What is my relationship with the PEO?

A: The PEO and its client are Co-Employers. What does this mean? The PEO is the employer of record with the IRS and Worker’s Compensation carrier, and therefore becomes responsible for all associated regulatory issues. The PEO is recognized by the IRS as the employer for Federal and State taxes, filings, deposits, W-2 administration, compliance, and all associated activities of payroll. The PEO is also the employer for Worker’s Compensation. A PEO has a master Worker’s Compensation Policy that covers all of its client’s employees.

 

Q: What Happens if an employee gets hurt?

A: You report claims just as you do now. Complete the First Report of Injury, and contact your PEO’s Claims Department. They will take it from there. Remember, your employee’s are now covered under the PEO’s Worker’s Comp Policy. The PEO has a vested interest in managing the claim and getting that employee back to work! As a result, you will have superior claims handling, and the employee will get the support and attention they deserve.

 

Q: How will my employees be affected by the PEO relationship?

A: Very little. Other than some paperwork up front, the process is transparent to the employee. Your company name still appears on the check, and you maintain all direction and control. The PEO is simply a way to outsource non-revenue generating activities. They may like the arrangement better! If you do not have a 401k in place, now they have that option. Your health rates and coverages may improve if you choose to look at the PEO’s plan. Direct deposit is available with all PEO’s, and Employee Assistance Programs allow them to access experts on a confidential basis.

 

Q: If I have multiple locations in different states, is that a problem?

A: No. One of the advantages of a PEO is the ability to cover all your employees and locations under one policy. This consolidates policies, premiums, payroll reporting, and human resource support.

 

Q: Are there any deposits or audits with the Worker’s Compensation coverage?

A: None. Since the PEO bills your Worker’s Compensation premium based on the exact payroll, in the exact codes, with each pay period, you have a true “pay for what you use” program. At the end of the year, you have paid exactly what you owe, and therefore have no audits.

 

Q: What questions should I ask of a prospective PEO, or PEO broker?

A: That is a great question. Every PEO is different, but they all have some core features that are the same. Here are a few questions to ask to find out if the PEO is worth considering:

• How long have they been in business?

• Who is their Worker’s Compensation carrier? What is it’s rating? What is the renewal date on the policy?

• How large are they? How many employees do they provide their services to?

• How many states are they licensed to do business in?

• Is their payroll system web based?

• Is the PEO’s billing rate all inclusive? Are there add on fees?

• What level Human Resource support does the PEO offer?

• **Do you cap payroll taxes at the appropriate Federal and State levels? Some PEO’s do not. Be sure to investigate this closely.

• Does the PEO provide Employment Practices Liability coverage?

• If it’s a PEO Broker you are working with, how long has that broker been in business and what are his/her qualifications? Be sure to investigate this very closely.