Who Can Benefit from a PEO?

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One of the great elements of PEOs is that they are valuable to businesses across a myriad of industries. Utilizing a PEO can yield incredible benefits like cost savings, reduced overhead, optimized human resources functions and increased productivity in other areas of the business.

PEOs can handle everything from basic HR functions like payroll processing and benefits to complex items like OSHA compliance and workers compensation insurance. They are also able to support your business in the creation of employee conduct protocols and other HR policies.

There are quite a few businesses and industries that can benefit from PEOs. Small to medium sized businesses are ideal candidates for engaging with a PEO. Generally the HR functions are managed by a single individual or the business owner which can take away significant amounts of time from hiring, employee development and running the business.

Particular industries also benefit greatly from utilizing a PEO to support their human resources functions. The first of which are industries like trucking, construction and moving businesses that tend to pose a higher risk as it relates to work related injuries, employee turnover and scheduling challenges. Given the high risk of the business and the significant regulatory compliance that is required, outsourcing these functions to a PEO not only frees up time but also reduces risk.

Other high risk businesses that would benefit from PEO services include medical practices and dental practices as they also deal with high levels of ever changing regulatory compliance. Obtaining a PEO who specializes in medical and dental services will help ensure that you maintain HIPPA, ACA and other regulatory compliance.

Contact us today to find out how PEO services can support your business operations!

3 Tips for Preventing Workplace Lawsuits

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We are all familiar with the stories that have come out of the last decade – people making millions of dollars in frivolous lawsuits for things like being burned by hot coffee or slipping and falling while wearing 4-inch heels and holding a martini glass. Unfortunately as an employer you are at risk on a daily basis for being sued. It seems that should anything go awry, the first advice many receive is to “lawyer up” and go after the employer.

Did you have to fire an individual for poor performance? Hopefully they don’t turn around and say it’s because they are a female. Perhaps you are being sued because it took Joe or Sally 60 hours to do 40 hours of work due to their lackluster time management skills yet they still want overtime.

Whatever the reason there are 3 key things you can do to prevent workplace lawsuits. We are fortunate to have an arsenal of experts in this field that we reached out to for advice.

  1. Employ a PEO. PEOs are gurus when it comes to risk mitigation and compliance. Their job is to take the burden off of you and leverage their expertise to ensure that your business is not at risk for violations of regulatory compliance – for instance OSHA. Employer Solutions Plus has an extensive network of PEOs that we can partner you with. This takes the guess work and headache out for you and passes on some of that risk and burden to a third party. Employer Solutions Plus can work with you to find a PEO that can support your needs.
  2. Have an Employee Handbook. Employee handbooks include everything from dress codes to behavioral expectations to information about employee issues like harassment. By clearly outlining what you require of your employees and having the employees acknowledge this, you will have leverage should any instances of “well I didn’t know” come up.
  3. Document Everything. While it may seem obvious that things like performance reviews or disciplinary items should be documented, the little things – such as incidents of misconduct or underperformance should be documented as well. This doesn’t need to be burdensome – just a short paragraph that is factual and descriptive. The employee should be made aware of these infractions in writing as well.

Contact us today so we can help you start taking these three steps – we are here and ready to support you!

Can You Switch to a PEO After the New Year?

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The New Year is quickly approaching and if you’re a business owner you may not have gotten all of your ducks lined up in time for January 1. Were there things you wanted to do or change in 2014 that have fallen through the cracks and won’t be ready in time?

There are lots of vendor switches or new services contracts that begin on January 1 out of the convenience of having annual contracts, but in this article we’re addressing one particular type of services company: the PEO.

Whether you’re a company looking to engage in a PEO contract for the first time, or a company that already works with a PEO but is looking to make a switch, you are probably a little bit nervous about the transition. Is it going to be an administration nightmare? Do I have to wait until next year to engage in a new contract because there’s no time left in 2013?

In short, no. It’s not going to be an administrative nightmare, and contrary to common misconception, a new PEO contract can begin at any time of the year. If you’re unhappy with your current PEO or in immediate need of cost reduction, you really shouldn’t wait an entire year to correct your situation.

Employer Solutions Plus is skilled at analyzing and delineating current PEO contracts to ensure the easiest “exit strategy” possible. We review all payroll taxes to ensure that no amount of money has been put toward SUTA, Social Security, Medicare, etc. in advance, and that the amount of health insurance deductibles that have already been paid in 2014 don’t end up being forfeited.

We also work with a handful of PEOs that are willing to offer credits for taxes or benefits already paid if there is no way to ensure a smooth transition without overlapping or duplicated costs. So, while the most convenient time of the year would have been January 1, know that you are not out of luck!

Employer Solutions Plus can identify the most convenient (but also the most cost-effective) time frame for making the switch! Call us at 727-698-6207 if you’d like some more information.

The Most Important Question to Ask When Shopping for a PEO

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Shopping for a PEO? If so, you’ve got a lot of things to compare and the situation may feel as if you’re comparing apples to oranges. Different pricing structures, different services, different benefits … So much to look at and consider!

One of the biggest mistakes that business owners make when shopping for a PEO is selecting the one with the best overall price tag. The most important question to ask before signing a contract is “Will you ‘unbundle’ your billing?” Breaking down the “all-encompassing plan” will permit you to know exactly what you’re paying for, and how much – making the comparison from one PEO to another a lot easier.

We know that analyzing proposals takes time away from your busy day and profitable business activities, but forgetting to ask this simple question and simply selecting the best-priced can cost you in the long run!

At Employer Solutions Plus, our dedicated staff of PEO experts can prepare a custom analysis of proposals for you upon request and we’ll break down each and every component of the PEOs’ proposed contracts. Benefits to benefits, payroll to payroll, admin to admin – what you’re paying for should be clear!

Clients of Employer Solutions Plus save themselves time, money, and stress. Call today to take the guesswork out of PEO cost analysis: 727-698-6207.

Can I Keep My Workplace Benefits Plan if I Engage a PEO?

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As you probably know, PEOs offer the following benefits: relief from the growing burden of employment administration, improved employment practices, improved workplace compliance, HR assistance, payroll services, risk management, comprehensive employee benefits packages, and so much more!

When it comes to benefits particularly, many companies “win” through the co-employment relationship. By pooling together employees from multiple client companies, PEOs bring forth tremendous purchasing power – often passing along low rates, great options, and additional benefits you may not have previously been able to offer your employees.

But, what if you’re a young and healthy office that already celebrates low health insurance rates? Whatever the PEO is offering you may actually cost more than what you have in place for your employees.

Or, what if your current plan has extremely robust benefits such as vision, dental, and coverage for various specialists? Can you carve out the cost of benefits from a PEO contract and leave your existing plan in place?

All PEOs are different, but in most cases the PEO will consider it and it’s absolutely worth asking. If they are not willing to take employee benefits out of the proposed contract, and you are beyond happy with your existing plans and prices, we recommend that you keep shopping for a PEO.

You don’t need to settle for a PEO contract that isn’t the perfect fit for your unique situation. If you proceed with the PEO’s proposed benefits plan, you may be paying for plans you won’t necessarily utilize or dropping a plan that your employees are really happy with – resulting in employee dissatisfaction.

Please contact Employer Solutions Plus if you’re having trouble finding the perfect PEO. We represent countless PEOs across the country, many of which don’t require signing on to their insurance plan if you’d like to keep your own.

Why Are PEOs in High Demand

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Did you know that the PEO industry is rapidly growing?
According to NAPEO, in just one year (2010) the industry grew by $10 billion – shaping an industry that has $80+ billion in gross revenues each year and still has room to grow!

If you’re unfamiliar with the PEO business model you may be wondering why they are in such high demand among businesses of all sizes.

While PEOs are seen as business “life savers” for a number of reasons including but not limited to payroll support, improved benefits packages, and providing various forms of insurance, we believe the primary reason for this industry’s recent boom is based on shared liability and compliance.

As employment law and compliance experts, PEOs help protect businesses from:

  • Wage and hour violations
  • Workplace safety violations
  • Workers’ compensation and insurance violations
  • Employee benefits security violations
  • Equal Employment Opportunity Commission (EEOC) violations
  • And more!

Because employment law is full of time consuming and confusing fine print (that changes all of the time), and because many business owners do not have a law degree, it’s simply not worth the risk of operating out of compliance standards. The penalties could debilitate your organization’s cash flow.

In the past few months, we’ve seen even more businesses jump on board with PEOs because of healthcare reform in itself. Whether it’s a business owner with 5 employees, or 50, nearly every one of them is feeling perplexed. So, if you read this and think “this is me,” you are certainly not alone!

For organizations that do engage a PEO and “offload” compliance responsibilities, every other aspect of the PEO business model is simply icing on the cake. To learn more about the PEO business model, contact our team at Employer Solutions Plus.

What Happens If My PEO Is Sold?

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Just like every industry and all types of businesses, sometimes PEOs experience buy-outs or mergers. If your PEO was just sold or is under new management, you’re probably wondering “where does this leave me?”

In most instances, the transition (if properly planned for and managed) from one PEO to another will be painless. However, this doesn’t mean you should sit back, relax, and fail to consider your options. It’s important to review all details regarding the new PEO in advance, as this timeframe is the PERFECT time to shop around.

Here are just a few things to consider…

  • Will the new relationship result in price changes or additional fees in the upcoming months?
  • Will the transitional period require all new documents for W4s, employment applications, I-9s, benefits and enrollment? If so, this can be very time consuming and inconvenient – if you can’t avoid this, you may as well shop around and see what your options are!
  • Will relationships change or will you continue to work with the same personnel you’ve grown to trust and appreciate?

The reality is that your new PEO set-up may not be the best fit or may not have the best pricing structure for your organization’s needs. If you’d like to explore your options, contact Employer Solutions Plus. Our team provides expert strategies in PEO selection as well as PEO transition.

The Differences Between a PEO and an ASO

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If you’re on the hunt for a service provider to manage the administration of payroll, human resources, benefits and workers compensation you’ve likely stumbled upon two options: a PEO and an ASO.

At first glance, they appear to have the same business model – so what’s the difference?

PEO:

A relationship with a Professional Employer Organization (PEO) is a co-employment relationship, meaning that your PEO will become the employer on record for tax-related purposes. Because many companies may be utilizing the same PEO that you are, the PEO on paper probably has many more employees than you do, which provides you with stronger purchasing power when shopping for health benefits, retirement options, and other employee-related benefits.

Liability is shared through the co-employment relationship as well – which is a very attractive benefit for business owners continually concerned with payroll, workers compensation, risk management and EPLI. PEOs work harder to keep your organization within compliance standards, because at the end of the day any issue is their issue too!

ASO:

An Administrative Services Organization (ASO) is a very similar organization in that many of them offer the administration of payroll, HR, benefits, workers comp and more. However, there’s one major difference: a relationship with an ASO is NOT a co-employment relationship. Employees remain your employees.

Because employees are not employees of the ASO, employers have the ability to retain their own employee benefits, or have their ASO shop out and manage options for them. Without the purchasing power of a large organization with lots of employees on your side, you may have higher rates on services such as payroll, benefits, and workers compensation.

While ASOs lack some of the attractive benefits associated with PEOs, they tend to have administrative fees (per employee, per year) that are significantly less than PEOs – because the employer is only paying for the outsourced support of various employee management functions and the ASO is not assuming much liability.

Ultimately, selecting the right organization comes down to what your particular organizational needs are. Not every company is a good fit for a PEO, and not every company is a good fit for an ASO. At Employer Solutions Plus we represent vendors within both categories. After an evaluation of your company’s wants and needs, we then present the options that will work best for you.

To learn more, contact our team.

Can a PEO Assist with Deferred Compensation Plans?

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So, you’ve decided that you’d like to provide your employees with a deferred compensation plan. Now you’re just wondering if your PEO can handle that. After all, there’s no sense in bringing in another vendor if all employee management tasks can be managed under one great umbrella of cost-effective and efficient services.

Here’s the good news: PEOs not only minimize the time spent on administration and operating cost, but also provide solutions related to deferred compensation! The bad news is that options may be somewhat limited. Before dismissing the idea though, know that options for individual retirement accounts (IRAs) through your PEO will be plentiful. The reason we say “limited” when referring to deferred compensation plan options is because the general term of “deferred compensation” includes pensions and employee stock options – things PEOs don’t tend to specialize in or offer.

When it comes to retirement plans though, such as 401ks, PEOs offer:

  • Expertise: Trusted advisors to help you proactively manage your employees, and do what’s in your best interest from a tax liability perspective.
  • Risk Management: Help with avoiding compliance violations or tax violations.
  • Purchasing Power: PEOs help optimize your employee benefits by pooling together employees from other companies. This results in much stronger purchasing power than you’d have as a small standalone business and you’ll likely gain attractive retirement plan options!

In conclusion, PEOs provide a team of professional HR and retirement benefits experts to keep up with the ever changing laws and reduce your liability as an employer. If you’re looking for a deferred compensation plan outside of retirement, such as company stock options, you may need to recruit the help of additional professionals. Be sure to ask us for referrals!

Also, note that when shopping for a PEO or alternative service provider you’ll likely receive deferred compensation plan options that vary from one PEO to the next. Our dedicated staff of PEO experts at Employer Solutions Plus can prepare a custom analysis of proposals for you upon request, saving you time, money, and stress!

Call today to take the guesswork out of retirement options and find the perfect service provider for your organization and its employees, whether that perfect fit is a PEO or a standalone service provider! Employer Solutions Plus: 727-698-6207.

Temporary Staffing Vs. PEO: Know the Difference

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You’re a business owner in need of help, and you know where and when you need help, but aren’t exactly sure who to call. In the PEO industry we get calls all of the time from business owners requesting temporary staffing solutions. And it’s vice versa in the temporary staffing industry; people call them looking for the support services of a PEO.

While there are similarities among the two industries, they are actually very different solutions. Let’s take a look:

If you’re in need of HR-related services such as employment administration, recruiting, hiring and firing, workers’ compensation, employee benefits, payroll, compliance, best practices, employee training, and performance management…..

A PEO (Professional Employer Organization) is an organization that offers a cost-effective and comprehensive approach to helping you manage your company’s human resources. Unlike a standalone payroll company, or benefits company, that assists with one single component of HR, a PEO offers a full suite of HR-related services.

PEOs permit business owners to focus on their core competencies, while leaving HR and employee management to the experts! Through this “co-employment” relationship, there is a separation of human resources, employee management and liabilities that occur; your employees work for both you and the PEO. Business and day to day activities go about as usual, but the PEO assumes all administrative functions, and more importantly, shares many of the liabilities associated with your business and employees.

If you are in need of temporary personnel…

Temporary staffing on the other hand involves the placement of human resources for non-permanent employment needs. The duration of the placement may have specific parameters or be undefined. Options include full-time staffing, part-time staffing and even temp-to-hire staffing which is the placement of a candidate within a company for an evaluation period. During the evaluation, it is determined whether the candidate is suited for the position.

Temporary personnel are available in a variety of industries and positions and many temporary staffing firms actually offer access to professionals within multiple fields. Examples include labor and light industrial, food services, hospitality, admin and clerical, and yes, you guessed it: human resources.

Temporary staffing helps reduce labor costs by adding staff when necessary to hit key deadlines, assist with busy seasons, or cover vacations and other absences. Bringing on these professionals also saves business owners a lot of administrative hours, as they are almost always insured by the staffing company and on that particular company’s payroll. No need for adding individuals on to your own payroll, adding them to your insurance plan, or setting them up as an actual employee of yours.

While temporary staffing agencies can provide HR personnel capable of helping with employee administration, hiring, firing and training, they do not provide the technology or complimentary services associated with HR including workers’ compensation insurance, employee benefits, payroll, and compliance. If you’re still in need of all of these complimentary components, a PEO is likely the better option, as it is a full suite solution.

To learn more about PEOs and other forms of outsourced HR solutions, follow our blog each week, or contact us directly at Employer Solutions Plus!