Using a Professional Employer Organization

As Human Resources departments face challenges of increased employee needs with decreased HR staff and budgets, many are turning to a Professional Employer Organization (PEO). A PEO can become a co-employer and assist in managing the day-to-day tasks that can cause HR staff to not have enough time to meet all the needs that they are faced with.  A PEO can handle issues, such as:

• Payroll Processing
• Employee Benefits Administration
• HRIS Management
• Workers Compensation Management
• Insurance and Risk Management

Each of these areas can be very draining to HR staff and to a company’s budget, and with the help of a PEO can allow HR staff to focus on other priorities and tasks.

• Payroll Processing – is a difficult and time-consuming task that involves not only the processing of timecards and cutting of paychecks, but also reporting and staying up to date on current tax regulations and rulings.  Additional tasks in this area can include tasks, such as new hire reporting, dealing with child support and other garnishments and the issuing of W-2s at the end of each calendar year.  All of these tasks are very time consuming and also costly to a company as typically payroll areas will have only a few employees who are spending all of their time on these issues.  A PEO will often have a much larger staffing pool and can quickly get these tasks done.

• Employee Benefits Administration – this is an area that a company can see great results in when using a PEO.   Benefits administration requires the employer to be familiar with a great deal of laws and regulations, which can be time-consuming for an employer to deal with, as well as often being very confusing to interpret.  Some of the laws in this area include COBRA, ERISA, FMLA, flexible spending accounts, etc. 

Communicating with employees about their benefits is also a time consuming task, whether it is assisting new hires in getting enrolled on the various plans, answering questions about useage for current employees, or handling COBRA transitions when an employee has left the organization.  These questions often come as interruptions to an already busy day for the HR staff, whereas a PEO often has a call-center environment where people are focused solely on dealing with the benefit issues and can more quickly resolve these questions as they become extremely familiar with the plans over time.  The call-center can also provide service to numerous employees, and at multiple locations at one time, whereas HR staff members are often limited to only helping one person at a time.

There are also confidentiality issues in benefits administration with the passing of the new HIPAA laws, which can provide a large drain on staff time and resources to manage.  The PEO will be able to assist with these issues, reduce employer liability and also provide service to employees who may be uncomfortable dealing directly with their employer over sensitive medical health information.

• Human Resources Information System (HRIS) Management – HR staff members deal with all kinds of data and that data typically is entered in an HRIS program in order to be readily accessible when needed.  This entry and maintenance can take a great deal of time and energy away from other more critical issues that staff should be dealing with instead.  Having a PEO assist in managing the HRIS can provide great benefits to the HR staff and the company as a whole.

• Workers Compensation – involves the processing of a great deal of information and in very specific steps and ways mandated by the state in which the employer is located.  For example, the state sets the time period in which a First Report of Injury form must be filled out or when the employer or employee may ask for additional medical opinions, and which party pays for those opinions.  This area can be very time-consuming for HR staff members to have to deal with and again, employees can be uncomfortable working directly with HR when medical information is involved.  The PEO can help facilitate the issues and provide communication between the parties in a way that is successful for all involved.

• Insurance and Risk Management – many HR departments are also choosing to have a PEO handle insurance issues, such as property and liability insurance, auto (fleet) insurance, and risk management services.  These areas again require a great deal of paper to be processed and have strict procedures that must be followed in order to reduce the liability and penalties that a company can receive for failure to follow regulations.  The PEO can have staff devoted solely to these issues and that can become experts in this area, instead of generalists as many HR staff members are asked to be.

There are many advantages and ways that a company can use a PEO to make sure that HR matters are being handled competently and in the most cost-effective ways.  Companies will need to evaluate which of these strategies make the most sense for their budget and employees, but will likely find many advantages to not having all of their HR functions done in-house.

Thinking about Using a Professional Employer Organizaton? What is a PEO? PEO stands for Professional Employer Organization. Using a professional employer organization can help reduce your liabilities, increase retention, create affordable employee benefits packages, reduce stress from dealing with HR issues, and reduce workers compensation claims and audits.

PEO stands for Professional Employer Organization. PEO Services have a lot to do with human resource outsourcing services. If you don't want to worry about the hassle of online payroll processing, employee benefits, workers compensation fund, employee self service systems, or other human resource issues then a PEO is what you need. As a PEO we have years of experience in dealing with strictly human resources issues. You can let us worry about your HR problems and you can focus on what you do best; running your business. If you wish to find out more about Workforce Solution's PEO Services call us at 1.866.637.3900 or contact us regarding our PEO Services.

Some PEO services may include online payroll procesing, employee self service, manager self service, workers compensation fund, risk management solutions, hr administration, employee benefits, and more.

This is a win-win situation, we can do what we do best and you can focus on your business more thus saving your company time and money. If you wish to find out more about using a professional employer organization call us at 1.866.637.3900 for more information on our PEO services.

Common PEO Services

Due to the growing complexity of Human Resources Management and the ever-increasing regulatory burden on employers, many businesses are recognizing the value of contracting with a Professional Employer Organization, or PEO. Read on to learn about common services PEOs offer and how they can benefit your business.

What is a PEO?

Simply stated, a PEO is an external Human Resources department. It provides the services you would expect a Human Resources department to provide, but it is a separate entity from the organization to which it provides these services. PEOs deliver expert and efficient employee-related administration, sharing the responsibility and risk of managing workers.

What Services Does a PEO Provide?

A PEO is much more than a personnel agency or a payroll processing contractor. A PEO actually becomes a co-employer, creating a three-way relationship between employee, employer, and PEO so that employees are served effectively while employers decrease costs and distribute risk. The exact services a PEO provides may vary depending on contractual terms and the specific needs of your industry, but in general, you can expect a high-quality PEO to deliver the following:

Payroll processing
Risk management services
Employee benefits administration
Workers Compensation insurance administration
Business tax services
Hiring services (such as applicant screening)
Workplace safety assessments
Personnel record keeping
Regulatory compliance audits
Programs to increase morale and reduce turnover

This is just an introductory list—PEOs provide additional services under the following broad categories.

Benefits Administration
Your PEO has the time, expertise, and resources to research the seemingly limitless options when it comes to benefits you offer your employees. The PEO can find the most effective insurance plans, solicit bids, and even manage retirement plans.

Payroll Processing
A PEO can manage all aspects of payroll, including making sure your withheld taxes are deposited on time. When a PEO handles your payroll, you can rest assure that your employees will be paid correctly and on time and that you’re in compliance with myriad regulations.

Employment Administration
This category includes all tasks associated with screening, hiring, and firing employees. A PEO can conduct background checks, design job ads and applications to maximize your applicant pool, screen applicants, and so on. And when you find the right people, a PEO can help you track their time and attendance, keep their records up to date, and ensure their morale so you save costs by decreasing turnover. And when it becomes necessary, a PEO can issue reprimands and warnings, and can terminate employees properly to keep you within legal limits.

Government Liaison
A PEO can address all issues having to do with government regulations, making sure you stay on the right side of OSHA, FLSA, ADA, HIPAA, and EEOC laws and more.

What Are The Benefits Of Using a PEO?

The benefits of partnering with a PEO are probably obvious from the list of services they provide. Your organization can save money by turning your Human Resources functions over to an organization whose sole business is managing those functions. With a PEO as your partner, you can distribute much of the liability associated with Human Resources Management. They contractually assume the legal risks associated with employing people so you can focus on the important business of doing business.