What is a PEO?
So, what is a PEO anyway?
Professional · Employer · Organization
This is kind of a bizarre acronym.
What it really should stand for is People Enhancement Organization.
A PEO Definition:
Professional Employer Organization.
What a PEO does:
A PEO is the iPhone of human capital – payroll, hr compliance, HRIS systems, time and attendance, performance management, PTO, health insurance and workers comp and unemployment, benefits admin (one bill), easy onboarding – everything annoying, time-consuming and that you can waste money or be sued for – all in one easy integrated bundle that can often save you a ton on health insurance because they are giant buying groups, and a ton of time because it is all integrated, and with HR and legal back up – those are the good ones.
The bad ones can make you more miserable.
Let us help you choose the right one.
- Start the quoting process in seconds
- Set up a meeting with your personal PEO-OLOGIST.
- Fill out ONE universal form.
- Let us get you multiple quotes from multiple PEO companies.
What is a PEO Company?
Can it save me time and money?
When it comes to your benefits, payroll, and HR administration, you have to get it right.
Recruitment – retention – engagement – production – ‘human capital’ and technology combined with incredibly expensive health insurance costs that are continually rising.
Your HR and CFOs manage payroll, administration, hiring, recruiting, training, retention, culture, and your two largest line items – salary and benefits.
What is a professional employer organization and can it really reduce your workload from some of these and save you money at the same time?
A PEO seems to offer a way for businesses to navigate all this growth without it costing them so much time and personnel. It looks like a way to get all your HR done in one place rather than buying each service separately and save direct insurance costs and indirect costs and liabilities and time.
A co-employment relationship can sound VERY scary – but what is it actually? Define PEO – under the federal act this give the PEO the ability to get you large group benefits rates and do you payroll, but NOT be the employer of your employees.
Co-employment is a legal term that allows the PEO to share certain administrative responsibilities and allow you to be part of a better insurance buying group. It simply means the PEO is liable for the payroll and a few other functions outlined in the Federal Act called The Small Business Efficiency Act #479.
It is very different from Joint Employment – but it sounds the same. You don’t give up your right to hire, fire, set policies, market, sell, expand, contract, or anything else related to your business. But you do give the PEO responsibility to fulfill some of the hr, payroll, and admin tasks you don’t want to do – like taxes or state compliance, or carrier bill payments and reconciliation etc… and this ironically reduces your risk, because the PEO is now liable for all these functions. But yes, it does sound scary. and especially before the federal act.
What Is a PEO and What Industries do PEOs Serve?
Our PEO clients include all industries ranging from white, blue to grey collar – from technology, to manufacturing, to medical, staffing, hospitality, venture capital companies etc. Our underwriters have quality providers in every vertical and industry – in every state, and every size from 25 to 5,000 employees.