What Is a PEO?
A PEO (also called employee leasing company) takes care of necessary back-office tasks so you don’t have to.
Think about how much more you could focus on your business if you didn’t have to worry about:
• Human Resources Administration
• Payroll Processing & Deductions
• Workers’ Comp Deposits & Audits
• Risk Management
• Regulatory Compliance
• Medical, Dental, & Other Benefits
• Employee Tax Preparation & Filing
• Quarterly & Annual Reports
• Unemployment Filing & Benefits
Handling all of this on your own is like taking on another full-time job. Even worse, it takes you away from your customers, your employees, and the needs of your company.
By entrusting these tasks to an employee leasing agency, you’re free to focus on growing your business.
What Does a PEO Do?
What happens when you partner with a PEO? You’ll receive personalized, long-term, and consistent administration services. Essentially, an employee leasing company employs your workers and then “leases” them back to you.
This professional relationship allows you to focus on your business instead of the back-office work that comes with having employees. A PEO streamlines essential administrative tasks while minimizing risk and threats to your business.
A PEO allows you to offer “Big Company” benefits to your employees, no matter how large (or small) your company may be.
These include:
• Health Insurance (HMO, QPOS, PPO)
• COBRA Administration
• Dental Plans (DHMO, PPO)
• Vision Discount Plans
• Voluntary Life Insurance
• 401(k) Retirement Plans
• Supplemental Insurance Plans
(Accident Insurance, Cancer Protection, Heart & Stroke Care)
• Flexible Spending Accounts
(Medical Reimbursement &
Dependent Care)
• Voluntary Short-Term Disability
A huge advantage of a PEO is it includes workers’ comp coverage. Because PEOs partner with large companies, the “law of averages” allows you access to better coverage than you’d have on your own.
Think of it this way: Adding on to a policy that provides coverage for 20,000 employees will give you much better rates and options than a standalone policy for your 20 employees.
Best of all, a PEO does all this research for you. They’ll find the most competitive health and other benefits available in your area. They’ll also ensure that your company is in full compliance with local, state, and federal laws.
How Does Employee Leasing Work?
When you partner with a PEO, here’s what they’ll do for you:
• Manage workers’ comp and unemployment claims
• Handle HR admin and back-office tasks
• Oversee all aspects of payroll administration
(payments, taxes, claims, benefit procurement, and quarterly reports)
• Research and provide access to competitive, cost-effective benefits plans
(health, dental, vision, long and short-term disability, life insurance, 401(k), and COBRA)
• Assist with the Family Medical Leave Act (FMLA), discrimination policies, and termination procedures
To help the PEO accomplish all of this, your role is to:
• Direct the normal daily activities of your business
• Continue to ensure a safe work environment
• Track hours worked and report them to the PEO for processing
• Provide payroll funds to the PEO to keep your employees paid
What will you do with all the time you’ll save
delegating these tasks to a PEO?
How Will Employee Leasing Benefit My Company?
You didn’t go into business to spend all day pushing papers.
If you partner with a PEO, they’ll do all the “boring” stuff—so you don’t have to.
Here are just a few of the many benefits you’ll receive:
• Complete payroll service
• Improved ability to attract and retain employees
• Savings on workers’ comp premiums
• Lowered HR-related expenditures
• Access to “Big Company” health insurance
• No large worker’s comp deposit required
• Assurance of full government compliance
• HR and legal assistance
• No year-end worker’s comp audits
• Lower state unemployment tax rate
• Safety program assistance to avoid OSHA fines
PEOs and employee leasing agencies provide services to 175,000 small and mid-sized businesses across the US. Will yours be next?