A Professional Employer Organization (PEO), also known as an employee leasing company, is an organization that provides an integrated and cost-effective approach to the coordination of the human resources, and employer risk of its clients, by contractually assuming certain employer rights, responsibilities, and risks and by establishing and maintaining an employer relationship with the workers assigned to its clients.
Businesses today need help managing increasingly complex employee-related matters such as personnel management, health benefits, workers' compensation claims, payroll, payroll tax compliance, and unemployment insurance claims. Businesses contract with a PEO to manage these responsibilities, which then allows the client to concentrate on the revenue-producing side of its operations.
Back to topBusinesses that use the services of a PEO are interested in the aspects of their company that generate revenue. Some business examples are: restaurants, roofers, mechanics, retailers, plumbers, and many more.
Back to topA PEO saves you money by assuming the non-revenue generating tasks that are associated with the production of payroll and the administration of workers' compensation. This allows you to focus on the "business of business" not the "business of employment."
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For the Employer:
As a potential client investigating a leasing company (P.E.O.) you want the comfort of knowing that the relationship between the P.E.O. and the carrier is strong. In addition, the financial strength of the workers compensation carrier is an indicator as to the ability of the carrier to handle the claim. This PEO and its’ clients are not held hostage by a third party carrier. The owners of this PEO own Lion Insurance Company. Lion is an A- rated carrier by A.M. Best writing this PEOs’ workers compensation policy. In short, the relationship between a P.E.O., its workers compensation carrier, and its rating can be critical.
Back to topA temporary staffing service recruits and hires employees and assigns them to clients to support or supplement the client’s workforce in special work situations, such as employee absences, temporary skill shortages or seasonal workloads. These workers are traditionally only a small portion of the client’s workforce. A P.E.O. hires the clients existing employees and assigns them back. These employees can be full time, part time or seasonal workers. These workers make up the bulk of the clients workforce.
Back to topClick here for a free quote or call 704-371-1611. Our representative will contact you to discuss the PEO program and the information needed to provide a free quote.
Back to topThe issue of an employer’s relationship with a PEO under healthcare reform was addressed in a colloquy that occurred on the floor of the U.S. Senate. A “colloquy” is a verbal exchange that is made part of the federal register in order to clarify legislative intent. The colloquy indicated the requirements of healthcare reform will apply at the client organization level separately and not the PEO level. For instance, whether a client organization is a "large employer" subject to the employer health mandate will be determined client by client, and not at the PEO level. Whether a client organization offers "affordable" coverage or "minimum value" coverage will be determined at the client organization level - client by client. Eligibility of full-time employees for premium tax credits or subsidies will be determined client by client, and penalties will be assessed client by client. Non-discrimination rules will be applied client by client.
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