PEO Consulting Services
PEO Consulting Services is a consulting and brokerage firm providing HR management solutions to small & medium size companies. We seek out potential clients desiring to utilize a Professional Employer Organization or PEO. Our services include educating clients on the value of using a PEO, gathering/analyzing underwriting information, obtain and analyze PEO quotes, presentation of quotes and comparison, read PEO agreements and advise clients, obtain executed PEO agreements and assist with new client set-up and on-going relationship management to ensure complete satisfaction for years to come. We become your PEO Broker.
A study by the PEO trade association, NAPEO found that businesses that utilize a PEO will grow 7 to 9 percent faster and have employee turnover that is 10 to 14 percent less than a business that does not use a PEO. They also determined the ROI from using a PEO is 27%, in cost saving alone.
A PEO provides integrated business services that cost effectively manage human resource responsibilities and employer liabilities for its clients. The PEO core services include payroll administration, human resources, workers’ compensation, safety & risk management, and employee benefits. The PEO serves as your “off-site” human resource department simplifying the management of the HR responsibilities. This provides the client company more time and energy to focus on the core aspects of their business such as servicing their customer needs, managing growth, and increasing the bottom line.
Businesses Use A PEO to:
- Provide turn-key payroll administration utilizing a robust HR software system.
- Offer human resource services including employee handbooks, forms, policies and procedures.
- Ensure professional compliance with state and federal employment laws and regulations.
- Simplify claims management for workers' compensation and unemployment insurance.
- Save time, energy and paperwork hassles to streamline the HR process.
- Provide and manage excellent employee benefit packages.
Services Offered by a PEO
As a co-employer with the client, a PEO provides comprehensive HR solutions for its clients. This allows the business owner and its key employees more time and energy to focus on more important aspects of running their business and managing growth.
A summary of these services include the following:
Payroll Administration
Manage payroll deductions providing a detailed report...
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Worker's Compensation (WC)
PEO covers the deposit increading client cash flow...
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Employee Benefits
401(k) plan for employees to save money on a pre-tax basis...
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Safety and Risk Management
Conduct accident investigation for certain work related injuries
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Why Use PEO Consulting Services?
PEO Consulting Services has access to several PEOs to place its client companies. You will find our service to be professional, confidential, effective and is at no cost to the client. This will save clients time and energy in selecting a PEO provider, add an experienced HR agency to their human resource team, and allow their company to capitalize on the relationship and pricing arrangements PEO Consulting Services has developed over numerous years with its PEO providers.
Our Services Include:
- Review of current HR costs
- Presentation of PEO proposals to the client
- Gather and package the underwriting materials to obtain PEO quotation
What is a PEO?
The PEO provides back-office human resource services for their clients paying wages & taxes and assistance providing compliance with federal and state employment rules and regulations. A PEO will provide “pay as you go” worker’s compensation coverage (no deposit or audit requirement) with statutory benefits and $1 million in employer’s liability. The PEO also offers 401(k) plans, health, dental and life insurance coverage not typically provided by small businesses. This enables clients to cost-effectivity outsource the management of human resource functions such as managing the accrual and balances of PTO benefits that a client may offer the employees. PEO clients save time and energy to re-direct on their core competencies to grow their business and increase the bottom line.
Who uses a PEO?
Any small to medium size business can find value in a PEO relationship. According to NAPEO, the average client has 20 employees. It has been experience that clients range from 5 to 100 employees. However, we know that larger size companies up to 250 employees, or perhaps more utilize the services of a National PEO.
PEO clients include a wide range of companies from accounting firms to high-tech companies and manufactures. A broad range of professionals, including doctors, dentists, retailers, mechanics, engineers, electricians, plumbers and other labor-intensive construction trades also benefit from the services provided by a PEO.
Why would a business use a PEO?
Business owners and management want to focus their time and energy on their core business responsibilities with a focus on controlled growth and increase their bottom line, and not be in the “business of employment”. As a business grows, many owners may not have the necessary human resource training, payroll, the knowledge of regulatory compliance, or backgrounds in risk management, insurance and employee benefit programs to meet the demands of being an efficient employer in today’s work environment. A PEO will give clients access to many benefits and employment amenities they may not otherwise have. According to a study managed by NAPEO, small businesses that work with a PEO grew 7 to 9 percent faster and have employee turnover that is 10 to 14 percent lower. They also determined the return on investment of using a PEO, in cost savings alone is 27%.
How does a PEO arrangement work?
The PEO arrangement works so well due to the co-employment agreement. The parties enter into a Client Services and Co-Employer Agreement which provides a contractual allocation and sharing of employer responsibilities between the parties. The first matter of business is for the PEO to hire the existing client employees. From there, the PEO hires and terminates employees at the request of the client. The PEO begins to remit wages and withholdings of the employees and reports, collects and deposits employment taxes with state and federal authorities. A PEO issues IRS Form W-2 for compensation paid under its EIN. Finally a PEO offers general human resource services and employee benefits to the employees such as medical, dental, vision, term life, and more.
The PEO provides general human resource functions such as on-boarding of new employees, background checks or management of a family medical leave request (FMLA). If a client provides medical and PTO benefits, the management of a FMLA claim can be quite a challenge to meet the interacting guidelines.
The client company will continue to maintain full control over the worksite, supervision and responsibility of the employees.
