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What is an employee leasing quote based on?
An employee leasing proposal is based on the five employee-related cost factors you currently have — nothing more, nothing less. They include:
FICA: Employee matching Social Security and Medicare
FUTA: Federal Unemployment Tax
SUTA: State Unemployment Tax
WORK COMP: Workers’ Compensation rates vary by job duties (ex: painting, sales, clerical) with each business.
ADMINISTRATION: All of the internal employee personnel work involved in running your business. These services include complete employee payroll administration, professional human resource services, workers’ compensation and benefit claims management.
Regardless of the method used, these are the five cost factors that every employer has.
How can I receive employee leasing quotes?
For a quick employee leasing proposal, simply fill out the form on our receive a PEO quote page. If we need more information based on your request, we’ll call or e-mail you with those questions. If we’re able to move forward immediately with a PEO proposal, you can expect to receive proposal(s) within a day or two.
How do we receive employee payroll checks and online payroll services?
You have options for receiving employee payroll checks. Most professional employer organizations offer free direct deposit for payroll processing. Many offer remote online payroll services and printing, so that you can print checks right at your office. A majority of owners choose to have their business’ payroll sent by courier, where each paycheck is secured in individual envelopes.
How do I get the payroll information to employee leasing companies?
Payroll outsourcing is easy and can be done in a variety of ways, depending on which is most convenient to you. Options include online payroll service and reporting (through a secured network), faxing or calling in your employee payroll.
How quickly can I expect to receive payroll from the PEO company?
If you choose remote printing, employee leasing companies can send payroll almost immediately. Otherwise, many PEO organizations offer a 24-hour turnaround courier service (FedEx) if payroll is reported by noon the day before payday. You can determine your payroll processing and delivery dates with the PEO company.
Whose bank account is the employee payroll drawn from in online payroll services?
Depending on the employee leasing organization, payroll checks can be drawn off their account or yours. In most cases, the employee payroll is drawn off the professional employer organization’s account. This benefit here is less administrative work by writing one check to cover everything (payroll checks, employer related taxes, workers’ comp insurance and administrative fees) and avoiding check reconciliation.
However, some employers prefer some extra “float,” by having the payroll taxes, workers’ compensation and administrative charges taken out. In this scenario, payroll processing is performed in the same manner, but the payroll checks “clear” as the employees make their deposits off your account.
How do employee leasing companies receive payment for the payroll?Depending on the PEO company and your preference, there are number of ways payment can be made. They include: cashier’s check or company check when payroll is delivered, automatic withdrawal (ACH) from your account, and wire transfer.
What do I receive with my payroll?Besides employee paychecks, you can expect a detailed payroll service invoice, a payroll register and an input sheet for your upcoming payroll services if needed from the PEO organization. Depending on your business, you may require special reports for departments or job costing, as well.
Are there advantages for my business in regards to workers’ compensation insurance?Yes, there are a number of ways to save on workers’ comp with an employee leasing company. Unlike traditional “stand-alone” policies, you don’t have the large down payments or annual state expense fees. Many times there are no deposits required at all. Most businesses also receive discounted rates that aren’t accessible with traditional policies from the PEO company. And because workers’ compensation is based on payroll, premiums are withdrawn with your pay cycle, saving you time and the frustration of audits.
What are the benefits of a pay-as-you go general liability policy? The benefits of our general liability include:
No audits
Pay-as-you-go
No money down
No financing fees
Reduced premium rate due to the employee leasing model
No more risk of overpaying on general liability and not getting your money back
Reduced premium paid because in most cases, it is based on a percentage rate of
payroll per hundred and not on gross sales
General liability and workers’ comp are on the same certificate of insurance
How does human resource outsourcing benefit me?From hiring to termination, professional human resources from professional employer organizations have become increasingly invaluable to employers in maximizing their return on investment. Communicating employee expectations, pay rates and reviews, even unemployment claims and immigration documentation, are just a few of the dozens of HR service benefits provided through an employee leasing company.
Why does the Professional Employer Organization concept work?Simple: Employee leasing services allow you to concentrate on work that affects your bottom line. The small business administration (SBA) estimates that employers spend up to 40% of their time dealing with non-income producing administrative tasks. Consider what you could accomplish if all of your time, energy and focus evolved around ways to create more profits instead of dealing with the headaches of payroll systems and HR management!
We have a unique payroll system, can the PEO company adapt?Employee leasing organizations work with business owners who employ from 1 to more than 1,000 employees in different industries, states and professions. Not every professional employer organization is equipped to handle unique payroll systems, but we can help you access those who do.
Who is responsible for the employees' wages and employment taxes? The employee leasing company assumes responsibility and liability for payment of wages and compliance with the rules and regulations governing the reporting and payment of federal and state taxes on wages paid to employees.
How are Employee Leasing companies and PEOs recognized at the state and Federal levels? PEO organizations operate in all 50 states, and many states provide some form of specific licensing, registration or regulation for PEOs. These states statutorily recognize employee leasing companies as the employer or co-employer of worksite employees for many purposes, including workers' compensation and state unemployment insurance taxes. The IRS has accepted the right of a PEO to withhold and remit federal income and unemployment taxes for worksite employees.
Who is responsible for state unemployment taxes? PEOs assume responsibility and liability for payment of state unemployment taxes, and most states recognize the PEO company as the responsible entity. In those states that require the professional employer organization to report unemployment tax liability under its clients' account numbers, the PEO still manages this responsibility.
What are the differences between Employee Leasing and Professional Employer Organizations?
Although many still view these two staffing arrangements as the same- they are, in fact, quite different. The term "employee leasing" means different things to different people and has been, and continues to be, used in many diverse contexts. The confusion surrounding this terminology is one reason NAPEO has been active in defining and distinguishing the PEO concept; however, many commentators, regulators and statutes use the terms interchangeably.
Through the use of a PEO relationship, client companies make a long-term investment in their workers because in most cases, the PEO company provides access to health insurance, retirement savings plans and other critical employee benefits for their worksite employees. In the event a PEO relationship is terminated, the co-employees will cease to work for the PEO but will continue as employees of the client. Once again many employee leasing companies claim to provide these same beneficial services. Employee Leasing Quotes will help you sort through the confusion by providing you with a professional employer organization or employee leasing solution that delivers the benefits your company needs.
How many Americans are employed in a co-employment PEO arrangement?
It is estimated that 2-3 million Americans are currently co-employed in a PEO arrangement. PEOs are operating in every state, and the industry grows about 20-30% each year. Today, there are approximately 2,000 PEO organizations, who are responsible for more $18 billion in employee wages and related human resource and employee benefits.
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