What is a PEO or Professional Employer Organization?
Formerly known as “Employee Leasing”, a PEO is one of today’s best management strategies for small- and medium-sized business to satisfy their employee administration needs. Staff Brokers program is available to you no matter what your business size – whether you are running a small business with just one employee, a division of a major corporation or anything in between. PEO’s enable business owners to cost-effectively outsource the management of payroll, workers’ compensation, human resources and employee benefits so they can focus on the revenue producing functions of their business.
Why would a business use a PEO?
Business owners get into business and come to find out they spend a tremendous amount of time and energy on the “business of employment”, rather than spending time on what they got into business for in the first place. As businesses grow most owners do not have the necessary skills and training in human resource policies, payroll and accounting, backgrounds in risk management, regulatory compliance and employee benefits to meet the demands of being an employer. A PEO gives business owners access to expertise in all of these areas saving them time, money, and decreasing liability versus managing all these functions internally.
If the people who work for me are on your payroll, won’t I lose control over my staff?
Absolutely not. You will manage your business as you did before. You will continue to set the job responsibilities, measure goals and maintain control over daily operations.
How do PEOs impact workers’ compensation?
As a bulk purchaser, PEOs can provide substantial savings up front and control your costs over the long term through effective claims management. Cash flow is improved as the deposit premium for workers’ compensation insurance is no longer required. Workers’ compensation premium is calculated and collected with each payroll cycle and thus eliminating annual workers’s compensation audits.
How will my employees feel about being on the payroll of a PEO?
They will love it. While they continue to perform the same jobs, report to the same people and receive the same compensation structure, they now will be getting a fringe benefit package that is more commonly found in Fortune 500 companies.
The benefits include access to:
- Multiple medical insurance plans
- Dental insurance plans
- National provider networks
- IRC Section 125 savings, including flexible spending accounts
- Group Life/AD&D insurance
- Disability insurance
- Vision plan
- Retirement plans (Pension and/or 401(k))
- Credit union eligibility
- Employee discount plans
These benefits are valuable to businesses as well, because in today’s competitive market, employees and prospective employees view company benefits to be as important as their salary. A PEO allows you to recruit and retain the highest-quality personnel.
What is the cost to my company?
Using Staff Brokers services will reduce your total cost. Through economies of scale PEOs are able to purchase fringe benefits at lower rates. The same applies to workers’ compensation insurance coverage, where PEO’s can usually reduce your costs, some times dramatically. When you take into account the time you’ll be saving in personnel administration, payroll preparation and tax filings, a PEO will save you money.
How can I be assured that I am dealing with a reputable PEO?
Staff Brokers has been very selective in choosing the PEO’s we have teamed up with, as assisting and protecting our clients is of paramount importance to us. At Staff Brokers we demand from our team partners the same excellence for our clients, as we want for ourselves. We would be delighted to have you talk to current clients to get their opinion on our services.
Is a PEO beneficial only to certain kinds of companies?
No. This is why Staff Brokers works with multiple PEO partners so we can help all kinds of businesses, from professional offices and child care centers to printers and manufacturing companies. No matter what type of business, Staff Brokers and our PEO partners help every client run their business in a leaner, more efficient manner by getting them out of the employment business.
What are the most obvious benefits a client receives from Staff Brokers?
The most obvious benefits a client receives are:
- More time to concentrate on core business due to time and cost savings on employee administration.
- Significant cost savings on workers’ compensation, state unemployment tax.
- Time savings on administration of compliance with local, state and federal laws and regulations.
What is the minimum number of employees required to qualify for Staff Brokers programs?
A business must have at least one employee.
How much time does an initial appointment take?
An initial appointment takes about 15 to 20 minutes of your time.