PEO Services and Employee Leasing Companies provide business owners with Human Resource Outsourcing, Payroll Service, Employment Administration and much more. It relies upon a Co-Employment relationship between your company and a Professional Employer Organization (PEO). The relationship enables outsourcing of Payroll, Human Resources, Employee Administration and the purchase of insurance such as Workers Compensation at group rates. A PEO/Employee Leasing Service does not forfeit control of your company over to another. It allows your company and the PEO to legally outsource these parts of your business and become eligible for group purchases of insurance coverage. The benefits of PEO/Employee Leasing for a small business are attractive because it saves time and money. Without a PEO, a small business can become buried in paperwork and fall short in providing employees with benefits.
What is Co-Employment?
In order to work with a PEO a Co-Employment business relationship is formed. A business owner maintains control over Human Resources, Payroll and Administration while also allowing the PEO to share responsibility in meeting employment wage, hour, labor, Workers’ Compensation and tax laws.
What are the benefits of a PEO?
- Business owners save time and are able to deliver employee administration at a lower cost.
- Business owners have a larger resource of top personnel management experts and solutions that they could not afford to employ otherwise.
- A PEO can provide your business with comprehensive Workers Compensation services to manage claim injuries, identify risks and reduce your liabilities.
- Employees will have access to better benefits and employers will be able to attract new talent because of these benefit packages.
- Business owners have access to Pay-as-you-go Workers Compensation Insurance Solutions and can get certification of insurance quickly.
- Businesses that have a high Experience Rating may be able to reduce what they pay for insurance by becoming eligible for group rates.
In addition a PEO Company can provide
- Safety Training On-Site
- Cheap Background Checks
- Employee Drug Screening
- Individual Health Care Insurance Plans
- Health Savings Plans
- Employee Withholding
Over 3 million businesses throughout the United States use a PEO/Employee Leasing Service. With the service small business owners can offer better benefits and administration to their employees. They can attract new talent and retain staff. They are able to save time, money and have access to a larger team of experts to provide Human Resources and Employment Administration. Overall a PEO Company can help you to make the best value of your dollar.
* The above terms and opinions are to be used for descriptive and reference purposes only. Please review your individual policy for full definitions, exclusions and endorsements. Should you have any questions, please contact your Broker or Agent.