What is a Professional Employer Organization (PEO)?
A PEO is today's best employee administration solution for small and medium sized businesses. A PEO will handle all employee administration needs. The PEO transfers a client's employees to their payroll and, as a result, becomes the employer of record. The client still manages the daily supervision and control of those employees, including pay rates and hiring/firing.
What are the Benefits of Using a PEO?
This service helps businesses improve productivity and profitability by providing human resources administration. The PEO assumes all administrative and regulatory burdens associated with personnel management in addition to comprehensive benefits packages, payroll administration, safety programs, government regulation compliance, workers compensation insurance and claims management. This allows the business owner/manager to devote more time to building the business .
Who will Retain Control of My Employees?
Each client will continue to manage their employees' job responsibilities and evaluate their employees' job performance.
What does a PEO Service Cost?
The rates are based on many factors. Among the items considered are gross payroll, state unemployment rate, workers compensation classification, and workers compensation experience modification. Using a PEO may actually reduce the total cost of these services. The time saved in personnel management, payroll processing, workers compensation administration and government compliance will ultimately save money. The large employee base creates an economy of scale that allows for better benefit and workers compensation rates that a typical small business pays on their own. |
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