PEO Frequently Asked Questions

User Rating: 0 (0 votes)


Do you need to streamline your business? Outsourcing through PEOs, or professional employer organizations, can help you cut costs, reduce workload and improve the efficiency of your organization.  Grow your bottom line by outsourcing non-essential tasks to skilled, competent workers. Focus the creative energies of your organization on creating massive value for your clients and building relationships with new and existing customers.

Unlike using a staffing service a PEO creates a co-employment relationship between the client company, worksite employee and PEO. The client company and PEO allocate both liabilities and responsibilities to create a synergistic relationship between the 2 entities. PEOs are categorized as employers at both federal and state levels.

What Is a PEO?

Your first question is obviously ‘’what is a PEO?A PEO is an outsourced service providing your business with risk management services, payroll administration, employee benefits and human resources services. PEOs are designed on the idea of a co-employment relationship model.

What Are PEO Benefits?

Remain compliant, improve risk management as well as claims processing services, training and safety support. Protect your business to develop peace of mind. Make your business irresistible to model employees by providing top shelf employee benefits programs. Increase business profits and lower expenses through outsourcing payroll administrative tasks, benefits and human resources responsibilities. Tap into the expertise of a PEO to streamline your organization. Grow your core business by delegating repetitive or non-revenue producing tasks to a skilled third party. Focus on providing a better service, retaining clients and growing your business.

Which Companies Use PEOs?

Companies from multiple niches use the services provided by PEOs. Enter into this type of partnership to remain competitive and improve your overall business performance.

What Is Meant by the Term “Co-Employment”?

A co-employment relationship stipulates that the client acts as the worksite employer and the PEO serves the role of an administrative employer. The employer makes staff decisions, supervises employees and remains in charge of day to day business decision-making. The PEO assumes responsibility of relationship-building tasks consistent with time-consuming and repetitive administrative actions.

Do PEOs Handle the Payroll?

PEO companies do process the payroll if you have any concerns regarding this sensitive process. Since paying wages is a critical portion of the co-employment relationships PEOs are trusted to handle this process. PEOs can take responsibility for providing health benefits and worker’s compensation by handling the payroll. After employers share hours and salary for each worker the PEO calculates payroll and files all reports related to payroll-related taxes.

How Do PEOs Differ from Temporary Staffing Services?

PEOs, unlike temporary staffing services, do not provide labor to companies. These entities co-employ existing staff and provide benefits and services to the employees and worksite employer. A temporary staffing service hires and recruits employees to assign these individuals to clients.

Why Should Your PEO Have Audited Financial Statements?

Improve the accuracy of financial information and enhance internal controls by ensuring that your SEO has their financial statements audited. You might not be able to prevent financial failure or fraud but reviews can help you gain confidence in your PEO to form a strong working relationship.

Photo Credit