What is a PEO?
A PEO stands for Professional Employer Organization — a partner company that provides a variety of Human Resources, Payroll, Benefits, Workers Compensation and Compliance services.
By partnering with a PEO, your company can reduce the administrative burden and costs within specified areas of service, maintain regulatory compliance, attract and retain top employees, and increase overall productivity and revenue.
According to the National Association of PEOs (NAPEO):
- Small and midsize businesses (SMBs) that use PEOs are up to 50% less likely to fail
- Employment at SMBs using PEOs grows up to 7% faster
- 70% SMBs who use PEOs report an increase in revenue
- 66% SMBs who use PEOs report an increase in profitability
- 98% SMB owners who use PEOs would recommend a PEO to a colleague
Sources PEOs: Good for Businesses and their Employees, NAPEO 3 Ways your Small Business Benefits from Using a PEO, NAPEO
What Do PEOs Do, Exactly?
PEOs allow you to focus on your core business and generating more revenue while reducing costs and time spent within the areas of Human Resources, Payroll, Benefits and Risk & Safety.
They also grant you access to a broader variety of benefit plans and significantly reduce your liability on all fronts — taxes, paperwork requirements, claims.
- HR Administration
- Compliance Assistance
- Performance Management
- Talent Acquisition
- Job Descriptions
- Employee Handbooks
- New Hire Reporting
- FMLA Administration
- Unemployment Claims
- Management Consultations
- Employment Practices Liability Insurance
- ACA Compliance
- Group Health Plans
- Ancillary Plans
- 401(k) & other Financial Plans
- Administration and Support
- Employee Advocacy Programs
- Safety Training
- OSHA Assistance
- Workers Comp. Insurance
- Claims Mgt. and Support
- Payroll Processing
- Tax Compliance
- W-2 Administration
- Customized Deposit Options
- PTO Accrual and Tracking
- Web based Payroll System
- General Ledger Interface
- Electronic OnBoarding
- Employee Services Website
- Applicant Tracking
- Time and Attendance System
- Expense Management
WHICH PEO IS RIGHT FOR ME?
A PEO can provide you the support you need to manage workforce processes — usually at a better price point than you’d get by building your own in-house team. You have lots of options when it comes to selecting a PEO. You can bundle services as part of a comprehensive solution that matches your needs.
It’s also important to note that PEOs often specialize in specific industries and provide different service offerings by state or region. A fundamental part of what we do is to help you narrow down your options.
SHOULD I CHOOSE A PEO THAT “GETS” MY LINE OF WORK?
Yes, success is usually predicated upon finding a provider that understands your industry. This allows them to act proactively by anticipating challenges commonly associated with your specific line of work.
HOW CAN I MAKE SURE THAT A PEO IS TRUSTWORTHY?
When you’re getting ready to hire a PEO, it’s really important to check their accreditation. You can rest assured that we only work with organizations that have been certified by the National Association of Professional Employer Organization (NAPEO) and/or Employer Services Assurance Corporation (ESAC).
WILL I LOSE CONTROL OVER MY BUSINESS IF I PARTNER WITH A PEO?
Not at all. When you partner with a PEO, you retain control over your business decisions, including the hiring and firing of employees — you just share some responsibilities. For example, you are responsible for allocating the funds for payroll, and the PEO is responsible for executing the payment of wages.
WHY SHOULD I WORK WITH EMPOWER CONSULTING GROUP?
That’s a great question — there are too many reasons to list. Let’s start with the breadth of experience that our team brings to the table and our commitment to providing the best solutions based on your specific needs and plans. Why spend your time spinning in circles when we can do all the leg work for you?
HOW MUCH DOES EMPOWER CONSULTING GROUP CHARGE?
We are paid by the PEOs we work with — you pay zero fees to us now or after choosing a solution.
WHAT IS THE DIFFERENCE BETWEEN A PAYROLL SERVICE PROVIDER AND A PEO?
When you work with a PEO, there is a shared responsibility and a layer of insulation to protect you, from a liability standpoint. Because PEOs report payroll and taxes under their federal and state IDs, there are additional checks and balances put into place. PEOs are responsible for preventing any errors in reporting and for issuing corrections, if needed. When you work with a Payroll Service Provider, you assume all liability and will be held responsible for any fines resulting from errors made during reporting.