Managing personnel issues directly with your people requires several people and skill sets, such as providing Health Insurance, administering Payroll, handling compliance, risk management, safety, recruiting and retention, all of which can be complex, time consuming and demanding skills…Is this what your business is about? Is it your expertise?
Is this right for you?
Whether you are a startup or more mature business, deciding how and who will handle your HR Administration can be a challenge. The days of “doing it all internally” in simpler times is no longer a simple decision. How much time and energy do you spend on these areas, and more importantly, how much expertise do you have in the fast changing landscape?
Without taking any decided action, Newhouse can independently help you identify and prioritize your needs and also determine whether they are best met with a PEO, also known as co-employment, or some other arrangement.
Ideal candidates for a PEO solution are businesses that want to focus on their business, or feel anxiety or overwhelmed with HR, employee benefit and related regulatory issues. A PEO provider allows you to co-share the responsibility and gain access to a wide range of support tools and services to better manage the areas of greatest concern to you.
SO WHAT’S A PEO?
A Professional Employer Organization (PEO) is a firm that provides an integrated co-employment solution for HR, Payroll, Risk Management and Benefits, where employers outsource these related management tasks, while maintaining full operational autonomy with their staff’s business functions.
By streamlining administrative functions and their knowledge, this relationship enables the PEO to provide important advantages for companies partnering with them. The majority of PEO clients cover all expenses with the savings generated, plus significant time recaptured to focus on what you do best: managing your business.
BENEFIT OF PEO BENEFITS
Your benefits can vary depending on the range of services and your line of business, but primarily your business might see:
REDUCE HR OVERHEAD
Support offered by PEOs allow for reduced need for a robust HR staff.
INSURANCE AND TAXES
PEO’s pay their own State Unemployment Insurance (which can be lower than the company rate). Additionally, many PEOs have and offer Employment Practices Liability Insurance (EPLI) coverage at no additional cost. Often times PEO’s workers’ compensation umbrella policies can offer lower premium rates and annual audits may not be required.
Pooled group health rates which are often times significantly lower than small group rates. Benefits and networks may be significantly better than your present plans providing identifiable value for employee satisfaction, recruitment and retention.
Partnering with a PEO creates a co-employment relationship, which means they now have a shared responsibility to mitigate many types of threats.
LEGAL AND REGULATORY COMPLIANCE
You could reduce the impact of regulation changes and ever changing compliance requirements, such as, but not limited to the Affordable Care Act. While PEOs do not remove risks entirely, by partnering with an PEO, it may help reduce risks.
PEOs compliance staff stay abreast and implement evolving labor laws, regulations and health care changes, which reduce your exposures to penalties or company costs to resolve. Companies focus their time on their business instead of spending countless hours chasing these issues.
SEXUAL HARASSEMENT SUITS
PEOs provide ongoing training in these areas. Client Employee Handbooks are also provided and kept current as labor laws evolve.
SELECTING A PEO PROVIDER
The task of choosing a PEO partner has gotten somewhat complex. Newhouse Financial and Insurance has partnered directly and maintains relationships with PEO’s and PEO professionals who will help you explore, evaluate, select, implement and monitor your HR partner relationship.
If helping you free up time, lower costs, minimize liabilities, and maximize your bottom line are among your business goals, we look forward to helping you accomplish this.