WHAT IS A PEO?
Formerly known as "employee leasing," a PEO is one of today's best management solutions for small and medium size business to cost effectively outsource the management of Payroll, Workers' Compensation Insurance, Human Resources, Employee Administration, Employee Benefits and Risk Management.
PEOs help businesses to focus on their core products/services to grow their bottom line. In general terms, the PEO will focus on employment related issues and the Client will be responsible for the actual business operations.
As an independent Broker of PEO services, we have access to multiple PEO providers/companies across the USA. This helps to assure that you receive the most competitive quotations not only for pricing purposes, but for coverage/service purposes as well.
We Do the ‘Shopping’ For You
Our services are available to all size businesses, but are generally most cost effective with five (5) or more employees, all the way to 100s of employees.
We search the PEO markets to find the PEO providers/companies wanting to provide their services to your business, and then obtain their competitive quotations for your review and decision.
PEO = Professional Employer Organization
PEO = Professional Employer Outsourcing
How Does a PEO Work?
Simply, the PEO transfers your employees to their payroll via their Service Agreement. As a result, the PEO becomes the employer of record of your employees for payroll purposes. However, you always maintain the supervision and control of your employees, including wage and scheduling decisions. This is also known as co-employment.
As co-employers, the PEO and Client will contractually share or allocate employer responsibilities and liabilities. The Client will continue to have responsibility for worksite safety and compliance.
WHAT ARE THE BENEFITS TO ME OF A PEO
PEOs will afford you freedom from the responsibility for employee administration. Specifically they will:
- Prepare your payroll and pay your employees.
- Pay all payroll and statutory taxes.
- Provide assistance with regulatory compliance.
- Comply with all governmental agency requirements.
- Pay State and Federal Unemployment Insurance; complete, respond to, and monitor each unemployment claim.
- Provide Workers' Compensation Insurance and claims management with NO deposits paid by you, and NO audits to be concerned with. The PEO will also participate in, and monitor Workers' Compensation Insurance hearings and reviews.
- Provide workplace safety and drug free programs.
- Offer and administer comprehensive medical and employee benefits to you and to your employees.
- Provide Human Resource services ~ the professional HR staff at the PEO will give you as little or as much support as you need or want.
- Prepare and provide customized employee handbooks.
WHAT IS THE COST TO MY COMPANY?
The PEO's services can actually REDUCE your total cost of payroll and employee administration costs. By harnessing "The Rule of Large Numbers," PEOs are able to purchase Workers' Compensation Insurance and Benefits programs at much lower rates than you can purchase these same products. Even with the administrative fee of the PEO, you will still save money from pay period to pay period.
And, this does not even take into account the time you will be saving in payroll preparation, tax filings, personnel administration, shopping for Workers' Compensation Insurance and Benefits programs, etc. Time you need to focus on your core business/service.
WHAT OTHERS SAY ABOUT PROFESSIONAL EMPLOYERS…
- US Small Business Administration ~ "We see PEOs as providing benefits to employers at lower costs."
- USA Today ~"...appeals to the small-to-medium sized firms who want to be free from bookkeeping chores and labor problems."
- IRS ~ "The Internal Revenue Service clearly recognizes that the employee leasing industry can offer legitimate and distinct advantages to businesses, employees, and to the IRS. We view the employee leasing industry very positively." "We also recognize that employees of a legitimate PEO have access to better benefits packages, delivered economically."
WE WILL PROVIDE YOU WITH A FREE, DETAILED COMPARATIVE, NO OBLIGATION ANALYSIS OF YOUR CURRENT TOTAL PAYROLL COSTS. THIS WILL DEMONSTRATE THE ACTUAL DOLLAR SAVINGS TO YOU, PAY PERIOD TO PAY PERIOD.
AND ALL OF THIS IS ON A 'PAY AS YOU GO' BASIS, WITH NO ADVANCE INSURANCE DEPOSITS, AUDITS OR FINANCING CHARGES AT ANYTIME. PLUS, YOU PAY BOB CLARK, LLC NOTHING, AT ANY TIME!
SOME BENEFICIAL REASONS TO ENGAGE A PEO
- Workers' Compensation Insurance and administration.
- Payroll preparation, processing and administration.
- Benefits and benefits administration.
- Human Resources, forms and administration.
- Compliance with all governmental requirements that affect employers and their employees.
- Risk Management and workplace safety.
- Drug free workplace.
- Employment tax compliance and reporting.
- Online employee and payroll information and reports.
- Employee related policies and procedures.
THE PEO INDUSTRY IS REGULATED BY EACH STATE. THE SERVICES THE PEO OFFERS ARE PART OF THE HEALTHCARE AND TAX CREDIT SOLUTION BY OFFERING THE ABILITY TO HELP SMALL-TO-MEDIUM SIZE BUSINESSES PROVIDE BENEFITS, OBTAIN ELIGIBLE TAX CREDITS AND COMPETE FOR THE BEST WORKERS.
MAKES ALL THE SENSE IN THE WORLD! Basically, you pick and choose most of the services you need and want. All on a “PAY AS YOU GO” basis.
The Small Business Administration, (SBA) reports: “The average cost of government paperwork and tax compliance for small business with less than 500 workers is $5,000 per employee per year. Businesses with < 20 employees pay $6,975 per employee per year!”
As a PEO Brokerage firm we help businesses save hard-earned dollars on their total Payroll, Human Resource, Workers’ Compensation Insurance, Employee Administration, Employee Benefits and Risk Management costs.
We work closely with employers who suspect they are overpaying for each or all of the above. There is NO cost to the employer for our services.
BOTTOM LINE? OUR JOB IS TO PLACE OUR CLIENT’S UNIQUE
RISKS WITH THE BEST PEO AT THE BEST PRICES AND TERMS!
If your company is focused on achieving higher profits, you may think it makes economic sense to do as much as possible in-house. But consider these reasons to outsource your payroll:
- Save Time – Getting payroll calculated, processed, and distributed takes countless hours. Computer issues, power problems, time off the job, and other unforeseen problems make it take even longer. Your time and resources will be better used doing what you do best. Payroll professionals are able to deal with emergencies and are able to get checks out when you and your employees need them.
- Reduce Liability – Not only is calculating state, federal, and local payroll taxes time consuming. But if a mistake is made, you may be looking at penalties and interest on top of your regular tax obligations’. The state, federal, and all tax authorities take payroll taxes very seriously.
- Worry Less – Mistakes can & do happen, regardless of the size of your payroll. This is really true when payroll is just one of several tasks you are trying to juggle. But, if you prepare payroll in-house, you must stay on top of changes in tax laws, withholding, overtime and reporting rules.
- Save Dollars – If you believe that you can’t afford to outsource payroll, then you may not be counting all of the costs of doing it in-house. How many hours do you spend keeping up with regulation changes, preparing payroll, making periodic deposits, and filing reports including W-2s & 1099s? How much is an hour of your time worth? Additionally, there are computer, printer and check expenses.
Calculate how much it actually costs to prepare payroll in-house.