| Contrary to what most people believe, a Professional
Employer Organization (PEO) is not a staffing agency, a
temporary firm, a payroll service or a placement agency. A
PEO serves as an off-site company that shares employer
responsibilities and liabilities. Your company’s employees
are actually employed by two employers in a contractual
relationship.
Each party in this arrangement is responsible for
certain employment obligations and shares responsibility
for other employment obligations. The PEO is established,
as the employer of record, for pooling all employees to
provide group-buying power for workers’ compensation
insurance and employee benefits.
The PEO shares the human resource and personnel
responsibilities for the work site employees. The PEO also
shares responsibility for employer regulatory compliance
issues including employee wage reporting, employment tax
reporting, workers’ compensation administration,
unemployment insurance administration and employee
benefits administration. Your company retains supervision
for production or delivery of service and the day-to-day
operations.
By relieving your staff of time-consuming tasks and
focusing them on your core business you will increase
productivity and profit margins. Your company will have
access to experienced professionals without shouldering
the costs of additional in-house staff. You will have the
use of an outsource service while remaining in full
control of your employees.
A PEO is a perfect solution for all small to medium sized
businesses. |
