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A Professional Employer Organization (PEO) offers services that allow you to focus in on your business without experiencing the administrative burden of managing your employees and their benefits. They also provide key legal services to keep your business compliant with regulations and avoid potential lawsuits.
PEO services are best for any businesses with at least 15 employees and little in-house HR presence. This cuts your expenses and reduces your administrative burden.
While both PEO and Human Resources Outsourcing (HRO) relieve your staff of various administrative and financial responsibilities, PEO are more than consultants to your business – they are the co-employers of your staff.
While HRO is service that you pay for to manage elements of your HR administration, a PEO service actually “purchases” the rights to your employees and leases them back to you. This makes them the legal employer of record, which allows them to offer you the best discounts on benefits and assume legal responsibilities for your business.
PEO firms will use their tax IDs to file taxes and to assume liability for your company’s practices. They are also responsible for creating the employee conduct code and keeping your business compliant with all state and federal laws.
Here are five quick and easy reasons to consider PEO services for your business:
If one or more of these traits appeal to what your business does, we can help get your company working with a PEO right away. Simply complete our request for quotes form and you’ll be connected with multiple PEO services vendors that can find the right solutions for your business.
PEO services helps both your company and the lifeblood of your business – your employees. Not only will you be able to offer more comprehensive benefits to your entire staff at a lower cost, you’ll spend far less time working on HR functions so you can concentrate on growing your business.
PEO services promote the four core competencies that they bring to your business:
Here’s the first thing you should know: Even though the PEO service technically leases your employees back to you, they hold no other power over your employees. They’re only option is to lease them back to you. So you shouldn’t worry about them sneakily sending your employees over to another company.
Next, confidentiality is the highest priority. Yes, they will be privy to many of your corporate practices and various confidential sources of data, but they are obligated to keep it all private even when the co-employer agreement with your company ends.
For your employees, the HR process doesn’t change much and they might not even recognize the changes. The only thing they may notice is a new company name atop their paychecks. In addition, they are told who to go to from the PEO service if they need to make changes or address issues requiring HR input.
Despite the services a PEO introduces to your business, you still maintain total control of your work environment. The PEO administrators are simply there to run the HR side of the business. If it doesn’t work out for whatever reason, you can terminate the contract and walk away with 30 days notice.
Likewise, the PEO vendor can choose to walk away. Say they give you advice that’s critical to your company’s long-term well being (such as illegal activity or taking uncalculated risks) and you decide not to listen. They can elect to end the agreement immediately because they don’t want to face inevitable lawsuits