PEO’s function as Professional Trusted Advisors exactly like your Attorney, CPA, and Insurance Agent!

 

PEO’s like your other Trusted Advisors provide professional expertise, advice, and indemnify you against exposure to risk from legal violations, accident damages, and negligence damages.

 

The truth is that there is more exposure from having Employee’s than from any other business activity. Employers are more aware than ever that legal compliance to regulations relating to employees is growing faster than they have time to keep up with!

 

Not only is the risk mitigation critical, but the non-productive labor cost required is almost always critically undervalued relating to overall labor costs. The primary reason is the natural tendency to forget added costs associated with wages. Imagine having a fixed cost for the Human Resources and Administration of your employees contractually! PEO does that!
Courtesy of www.anchorhrpeo.com
This Diagram is intended to demonstrate how a Professional Employer Organization integrates and overlaps with all your other Trusted Advisors. Let us point out all of which are Outsourced. www.anchorhrpeo.com
Through a legal Co-employment agreement recognized by the IRS the PEO becomes employer of record for Payroll, Workers Compensation Insurance, Unemployment Insurance and all payroll related withholding tax compliance. Developments appear to be leaning in the direction that a PEO will be a powerful tool in compliance with the Healthcare Affordability Act, or Obamacare.

 

A qualified PEO brings so much more to the table like Group Benefits, Employee Policy Guidelines, Human Resources counseling and much, much more. You the client still decide who you hire, what you pay, when they work, Safety, and terminations. Peo’s stay out of the operating decisions about your employees while keeping you compliant and enhancing the attractiveness of your hiring package through greater access to affordable benefits.

 

In response to the rapid expansion of legal compliance demands, the intensity and frequency of reporting, Professional Employer Organizations have had to implement technology to strengthen and secure the integrity of information collection and privacy.

 

Many PEO’s have the technology to interact with the time keeping systems, electronically perform enrollments privately online, pro-vide employee access to records and benefit plan status and more.

 

The PEO Industry has evolved over the last two decades to a highly respected and specialized service with trained professional staff that efficiently and proficiently handle everything from production of payroll, unemployment management, workers compensation claims administration, employee policy guidelines, safety and risk management.

 

All this while keeping up with pending legislation and sorting out the most efficient ways to ensure our clients are informed and protected! PEO is an option well worth your time and consideration! If you are considering a PEO check out www.netpeo.com they represent hundreds of PEO’s as a brokerage and can get you multiple quotes with one phone call. You only deal with one person and don’t have to sit through multiple meetings with a half dozen sales reps.

 

As a former C.O.O. of a company that was paying about $50k for an Office Manager/Bookkeeper I found out that we could save a great deal of money by outsourcing accounting to a local CPA for $700 per month and the staff to a local PEO company. This freed up an office, computer, cash and better costs for staff. I have been on both sides of the table in this equation and it is smart money to focus more on the operations and not on the compliance headaches.

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