What is a PEO Company?
A Professional Employer Organization (PEO) furnishes employers with a wide range of HR services, while lowering workers' compensation insurance costs. With a PEO's help, employers have more time to focus on running their business. These companies also provide relief from employment-related laws, reports, and tax deposits.
PEO providers also provide complete payroll management- including all tax filings and compliance.
PEO Providers Also Handle:
- Workers’ compensation claims administration
- Unemployment assistance
- Family and Medical Leave Act administration
- Risk management
- Direct deposit/ Check printing
- Employee benefits
- 401(k) savings plans
- Drug testing
How Does a PEO Arrangement Work?
Marina operators who use a PEO know it's a great way to outsource work that doesn't produce revenue- and to save money at the same time. So how does that work?
In a co-employment relationship, the business owner maintains all day-to-day functions, and the PEO handles employee administrative tasks. The employer maintains control of the business and is in charge of all decision making including employee supervision, hiring, firing, etc.
The PEO outsources the time-consuming tasks associated with employee administration. Typical services include human resources services, payroll, benefits administration and risk management.
What Does A PEO Charge For Services?
Much less than in-house costs. The average administrative costs in using a PEO service are between 2% - 4% of your annual payroll. For example, if you have a $500k payroll - a 2% management fee would be $10k yearly. Considering complete payroll, work comp, employee benefits, risk management and HR services are included - the value of outsourcing with a PEO can't be beat. More importantly, you'll notice the time savings your business has gained to operate and work on growth instead of paperwork.
Why Choose ELQ?
Since 2001, ELQ has simplified the search for the right PEO service with our price plus guarantee. We know the industry and HR providers like no one else. Give us a call and we can talk about what you do and where a PEO may be able to help. There's no risk or obligation, only the opportunity to impact your business in a positive way.