What is a PEO (Professional Employer Organization)?
A PEO, also known as an employee leasing company, handles all tasks related to payroll, workers' compensation insurance administration, and claims management. A business owner outsources these duties to the PEO's team of HR experts to be completed correctly and on time. This frees the employer to concentrate on tasks such as sales and client retention. The business owner remains responsible for day-to-day business operations, such as hiring and firing and supervision of employees.
PEOs also provide:
- Direct Deposit/ Check Printing
- Workers' Compensation Claims Administration
- Risk Management
- 401(k) Savings Plans
- Family and Medical Leave Act Administration
- Background Checks
- Complete HR Administration
- Drug Testing
- And More!
How Much Does Using a PEO Service Cost?
When you own a business, there are five cost factors that every employer faces. These costs are FICA (Federal Insurance Contributions Act), FUTA (Federal Unemployment Tax Act), SUTA (State Unemployment Tax), workers' compensation insurance, and Human Resources administration.
Employee leasing companies streamline all of these costs and combine them so you have one source for all administrative features. Plus, because of their economies of scale, PEOs provide much lower workers' compensation insurance rates than a small or medium-sized business would find on their own.
A PEO company has an average administrative rate between 2-4% of annual payroll for completing all administrative tasks. And chances are, you will save money over what you are paying now on employee overhead costs. These services are an incredible value for employers, because they offer:
- A team of HR professionals to manage all payroll-related administration throughout the year- with check stock, direct deposit, payroll programs, annual upgrades and other related expenses.
- Certified risk managers able to review your safety manual, help identify potential workplace hazards and provide training material.
- Licensed HR experts, able to minimize your employment liabilities, assist with hiring/firing procedures, wage and hour laws, employee training, performance reviews, new hire reporting and more.
Why Use ELQ?
Our team has been in the PEO industry since 2001, so we have years of expertise in our field. We'll be your best resource to provide a PEO company that will best fit your unique business. Professional Employer Organizations are different in their specialties, terms and pricing- and we save you the time and effort required to interview each one. Just one call to us covers all of the bases, because we can quickly match you with a provider that meets your needs. Plus, our negation and leverage in the industry ensure you get the BEST pricing.
To learn more about the benefits of a PEO service, give us a call. We are happy to answer any questions you might have.
Using Employee Leasing Quotes is the easiest way to find the right company for your Richardson operations. With over 700 services to choose from, there may be only one that can deliver the benefits you need. Give us a call, since 2001 we've saved thousands of employers millions of dollars in taxes and insurance - we're here to help.