A PEO is a partner company that can give your employees better benefits, save you money, and take HR and compliance off your plate. Itâ€™s how you offer Fortune 500 benefits no matter what size company you are.
PEO stands for professional employer organization. Your PEO acts as your workersâ€™ employer for certain legal purposes, letting you to tap into the PEOâ€™s benefits network, insurance, workers comp, and HR resources. Your company gets all the advantages of having a professional HR team and world class benefits.
Key advantages of having a PEO include:
- Offer your employees comprehensive, top quality benefits
- Reduce the cost of providing benefits
- Get complete HR services without hiring staff
- Reduce risk and ensure Affordable Care Act compliance
How does a PEO work?
PEOs leverage a legal arrangement known as co-employment. Under co-employment, the PEO acts as the â€śemployerâ€ť of your workers for special situations. You retain full control of your company, your employees, and your hiring and firing decisions. But when it comes to benefits and HR, the PEOâ€™s experts step in and do the work for you.
This arrangement is powerfulâ€”and substantially more useful than just outsourcing human resources. When you outsource, your HR team is a contractor working for your company. They cannot bring your employees under their own benefit network, and they have no legal power in disputes an claims. They are really just one more employee of your company.
A PEO is different. Because they act as an employer, they can offer employee benefits. With hundreds of clients, they count as a very large company with access to the most competitive benefits packages at the deeply discounted rates. You get access to the kind of benefits workers would expect at Google or General Motors, whether you have hundreds of employees or less than a dozen.
How does the co-employment relationship work?
Under co-employment, you call the shots and your PEO makes it happen. Both parties have a clearly defined role.
- Your role:
You are the primary employer and you have authority over the PEO. You keep full control over your employeesâ€™ day to day work and job descriptions, as well as management and organizational structure.
- Your PEOâ€™s role:
Your PEO will take on specific employer obligations, which you can choose. You give the PEO the power to handle crucial administrative tasks like payroll, tax withholding, and providing benefits to your workers. Your PEO can also act as your agent in employee disputes, unemployment claims, workers comp claims and more.
The result is a truly full-service HR arrangement where you enjoy less liability, discounts on benefits, and better overall benefit packages to attract new hires. A good PEO will even reduce your employee turnover rate.
What are the benefits of a PEO?
A PEO is your all-in-one HR and compliance provider. You no longer have to outsource to multiple vendors, insurers and specialists. Instead, your PEO can provide everything you need, including:
- Employee benefits. A PEO can typically give you access to a broader variety of benefit plans at better rates than you would get on your own. These plans include comprehensive benefits such as medical, vision, dental, retirement savings and more. Flex accounts, life insurance, disability benefits, even educational assistance are all available. And your PEO will provide your workers with live customer support.
- Obamacare compliance. Get the guidance on Affordable Care Act requirements or let your PEO handle compliance for you. You will never have to worry about expensive, unnecessary penalties.
- Payroll. Your PEO will handle all aspects of payroll from tracking and documentation to deductions, taxes, garnishment, and sick/vacation day accrual. Your employees get access to online pay stubs, direct deposit, and digital W-2â€™s while you get payroll management reports and flawless record keeping.
- HR administration. A PEO can provide employee manuals, employment verification, termination support, drug testing, liability management, even new hire onboarding. PEOs can work with your existing HR team or act as the HR department for you.
- Workers compensation & claim resolution. A PEO provides you with workers compensation insurance and start-to-finish management of any claim. Your PEO can carry out preventative safety reviews, design safety programs, resolve injury claims, and help injured workers return to work.
- Recruiting. A PEO can streamline your hiring process and work with you to develop stronger job descriptionsâ€”and train your hiring managersâ€™ to identify the best recruits. Backed by years of research, a PEO can even help you adjust your salary offers.
- Training and development. PEOs can help train staff and develop leaders, with online learning systems, custom seminars, and digital or on-site training.
- Performance management. Good performance should be rewarded, and the best performers should be treated as valuable assets. Your PEO can help you with employee evaluations, supervisor coaching, salary resources and tools that help employees develop themselves.
- Strategic HR planning. Does your HR plan support the path you want your company to take? Are you attracting and retaining the right people? A PEO can conduct high-level strategic planning to align your human resources policies with the future of your company.
Most importantly, your PEO can reduce your liability on all frontsâ€”taxes, paperwork requirements, insurance, and equal opportunity employer (EEO) claims. You can be compliant with all state and federal laws.
Who uses a PEO?
Any company that wants top quality benefits may use a PEO. At Einstein HR, our clients include:
- Small companies with 5-10 employees
- Growing companies with 100-200 employees or more
- Large companies
We have worked with businesses in industries including technology, finance, real estate and property management, health services, law firms, accounting and auditing, manufacturing, construction, plumbing, HVAC and moreâ€”as well as non-profit organizations. If you want better HR services and impressive employee benefits, Einstein can help.
What makes Einstein HR PEO services different?
There are many PEOs, but not all of them provide the level of service you deserve. At Einstein HR, we outdo the competition in three ways:
- Experience. We have decades of PEO experience, across all industries. Our founders have a combined 50 years in the PEO business.
- Value. We save you money by reducing your liability and tailoring our services to your needs.
- Service. We create solutions, so you can focus on your business.
Start Saving Money Today
Our goal is to make your business run better. We make it cost-effective for you to get the HR services you need, minimize your liability, and offer your employees the most competitive benefits possible. Find out what we can do for you.
Fill out the form to your right or contact us and get your free quote today.