Smart · PEO · Outsourcing
"What you do today, can improve all your tomorrows" - Ralph Marston
WHAT IS A PEO
A Professional Employer Organization, ‘PEO’, is a service provider for outsourcing the Human Resource elements of your business.
These functions typically include
• Employee Benefits
• Workers Compensation
• Taxation Compliance
• Government Compliance
Outsourcing your employees through a PEO offers many benefits for you, your business and your employees. Recently published figures from the NAPEO ‘The National Association of Professional Employer Organizations www.napeo.org have shown.
• Small Business using a Labor Leasing solution have grown their business 7-9% faster than those who have chosen not to;
• Staff retention is greater with a decrease in employee turnover by as much as 14% against the National United States average of 42%;
• Businesses who use a Professional Employer Organisation ‘PEO’ are 50% less likely to fail when compared to the United States average - which is 8% and 4% when working with a 'PEO';
USING A PEO – A SMART DECISION
When you outsource to a ‘PEO’, you and your business enter into a Co-employment where you have access to a team of Employment/HR specialists who can relieve many of the administrative burdens experienced when managing employees. Our role is one of support, we help:
• Run Payroll processing
• Negotiate and manage employee benefit programs
• Offer comprehensive 401(K) programs
• Assist with compliance issues under State and Federal law
• On-board new employees
• Support and advise on talent acquisition strategies
• Help business growth by operating Human Resource Outsource ‘HRO' support throughout the United States
When deciding to engage the support of a ‘PEO’, your business enters into contractual agreement to outsource elements of the employer responsibilities. The contract, generally called a ‘Client Services Agreement’ enables the ‘PEO’ to enter into a ‘Shared employment relationship’ called co-employment.
The defined roles which each party becomes responsible for are outlined in the schedules of the contractual agreement. It is important to understand, exactly what help you feel your business needs and the level of shared burden and risk you wish the PEO to assume responsibility for. When your business works with a PEO, both parties share obligations and responsibilities but neither is the employer for all purpose (unless the CSA agreement ceases in which case the employees become fully operated, maintained and controlled by the work-site Employer).
Under a Client Services Agreement, the ‘PEO’ acts as the Administrative Employer (employer of record), managing your businesses' Employment responsibilities which include, Payroll, Benefits administration, Workers' Compensation, employee Tax compliance, Affordable Care Act reporting and most other HR administrative related issues for your business.
The other part of this relationship, is the Work-site Employer (‘employer responsibilities’), the employer continues to control and direct work-site employees in the client's day-to-day operations, they must provide each employee with the correct tools to carry out their daily tasks to support the manufacture, production, and delivery of its products and/or service.
ITMC are a management consultancy, who have facilitated and delivered tailored outsource solutions across the United States for over two decades. We offer a number of support programs for businesses and agencies of all sizes who are looking for short or long term solutions with outsourced employment support.
We are people not software, it is our strong belief that personal relationships are key to understanding the exact requirements of our clients.
Delivering a tailored solution, strengthens our client’s market position in the areas of Talent Acquisition, Worker retention, helping to achieve maximum salary return, comprehensive benefits and most of all a compliant workforce.
Click Here to Email us or telephone us to see how our team can support the growth of your business on +1 (918) 665-3644