Professional Employee Organization (PEO)

Employers Rx LLC announced a new guide designed to help business owners and executives gain a better understanding of the HR Outsourcing and Professional Employer industry. This informative guide is available on their website at http://www.peo-quote.com. The guide covers the brief history of the industry starting with employee leasing and the evolution leading up to the development of today's Human Resource Outsourcing and Professional Employer Organization's.

http://www.peo-quote.com

Small business owners and independent professionals face numerous challenges in the day-to-day course of doing business. However, none are as critical as the need for health, dental and life insurance.

Another serious crisis for small business owners is that of managing human resources functions. With the tedious administrative requirements of handling HR issues, it's no wonder that nine out of ten new businesses fail each year, simply from that alone. It's sad, but true, that most of these businesses are independently owned. Instead of being able to concentrate their efforts on growing their businesses and increasing profits, many small business owners end up chained to their desks, facing never-ending mounds of paperwork.

Thankfully, a Professional Employer Organization (PEO) is a practical solution for a small business owner with regard to these and other issues. PEO's, which are also known as employee leasing companies, are firms that manage the human resources functions of companies of various sizes, with their direct focus being that of servicing small and medium sized businesses.

Contracting the services of a PEO offers the small business owner significant advantages ... advantages that were once reserved exclusively for big corporations.

PEO Advantages

· Concentrate on core competencies like running your company and making sales
· Enjoy increased organizational efficiency and personal productivity
· Gain confidence in knowing that skilled benefits specialists are working for you
· Profit from lower rates for HR Services and Benefits Administration
· Experience relief from endless paperwork and other administrative tasks
· Obtain access to benefits packages that keep you competitive in the labor market
· Benefit from improved employee retention
· Spend more time with your clients

PEO's provide a diverse offering of human resources functions for Virtual Assistants, among other small business owners. In general, you can expect to find these HR functions available through a PEO:

· Payroll
· Direct Deposit
· Worker's Compensation Insurance
· Health Insurance
· Dental Insurance
· Life Insurance
· Retirement Plans
· Tax Deposits and Reporting
· Regulatory Compliance

By collectively grouping businesses of all sizes, PEO's are able to obtain the best possible rates for insurance benefits. With the astronomically rising costs of individual coverage, this alone, makes the PEO an optimal choice. At the same time, HR costs are reduced to a minimum. In essence, you are sharing a professional team with other businesses, which also means you're enjoying across-the-board savings. Translation - you have all the advantages of an in-house HR team, but at a cost that is affordable to a small business owner.

What kind of services does a typical Professional Employer Organization (PEO) offer?:

PEO Payroll Administration

* Prepare payroll and distribute checks
* Direct deposit
* W2's
* W3's
* Payroll Data
* Withholdings and Tax Deposits
* Payroll record keeping, audits
* I-9 inquiries
* Reports and job costing
* Time clock management
* Vacation
* Payroll software

PEO Workers Compensation

* Claims administration
* OSHA Compliance
* Policy cost
* Dividend plan reviews and audits
* Report and document accidents
* Safety plan creation, administration and training
* Work Comp billing reconciliation
* Safety audits
* NCCI rate reviews

PEO Employee Benefits

* Short term disability
* Long term disability
* Benefits handbook
* Dental insurance
* Health insurance
* Eligibility tracking
* COBRA compliance and administration
* Plan discrimination testing
* Carrier payments and account audits
* Annual plan cost reviews
* 401K administration
* Annual enrollments
* Flexible spending accounts administration
* Section 125 (pretax) premium audits
* Life Insurance plan administration
* Employee assistance plans (EAP) administration

PEO Human Resources

* Legal assistance establishment and retainers
* Employment policies
* Valid employee handbooks
* Manage insurance for Employment Practices Liability (EPLI)
* Unemployment claims administration
* Background checks
* Audit compliance with Wage and Hour (FLSA)
* Audit compliance with ADA - Disability Act
* Audit compliance with EEOC
* Audit compliance with OSHA
* Attendance audits
* Employment applications
* Applicant interviewer training practices
* I9 compliance

The exact set of services bundled for a PEO client are customized to the needs of the employer and his employees. The employer saves money, time and aggravation by partnering with a PEO.

Employee leasing is when an employer moves employees from his or her payroll onto the payroll of an employee leasing company. The employee leasing company becomes the employer of record for the employees and then "loans" the employees back to the original employer for a fee. This fee includes payroll costs and usually includes benefits. The employee leasing company handles all human resources functions for the employees including but not limited to payroll, legal compliance, record keeping and benefits. Employee leasing firms work with any size company and normally offers an employer a significant cost savings.

An EAP is a program that offers counseling and assistance with personal and professional issues impacting employees. In the 1940s some employers offered alcohol rehabilitation programs to employees and this has expanded over time to include assessment and assistance with workplace difficulties, marriage and family issues, financial and legal matters and health issues. These programs are typically focus on relieving employee stress and encouraging counseling as an option for many of life's difficulties. Effective EAPs reduce employee absences and increase employee productivity.

Most Professional Employer Organizations include an EAP plan that will work for businesses and non-profits of any size.

The obvious benefit of partnering with a Professional Employer Organization (PEO) is the ability to offer top-notch benefits to employees. A less well known benefit of working with a PEO is that the PEO takes over risk management. The PEO becomes responsible for local, state and federal compliance with various laws and regulations. The ever complicated process of compliance can be handled entirely by the PEO allowing business owners to focus on income producing strategies.