Supporting Organizations Select and Onboard to Professional Employer Organizations for HR Services
What is a PEO?
A Professional Employer Organization (PEO) is a type of full-service human resources outsourcing known as co-employment. Co-employment is “a contractual allocation and sharing of certain employer responsibilities between the PEO and the client.” In this arrangement, the PEO performs various employee administrative tasks, such as employee benefits, compensation and payroll administration, workers' compensation, and employment taxes.
PEO’s serve as a “one stop shop” for HR needs. They generally provide the following services:
Administer Payroll
Administer Benefits
Provide Compliance support
Distributing and Filing tax requirements
Employee related insurances
Others may include employee trainings, and performance management, and talent acquisition efforts
Benefits to using a PEO:
Savings on Health Costs: By working with a PEO, the client’s employees are considered as the PEO’s co-employees to form one collective group. This means that the PEO provides the employees access to health coverage and rates on par with those of a large corporation, even though they work for a much smaller operation.
Compliance Support & Risk Management: PEOs can support and manage the compliance requirements for organizations that have employees in multiple states (business registrations, payroll and tax reporting, etc.). PEOs can also keep the organization informed of important federal and state labor laws for remote workforces. Further, PEOs have established HR policies and procedures, and provide trainings to employees where needed.
Saves on Personnel Time/Cost: Staff time can focus on other organizational and programmatic needs.
Outsource Fiduciary Responsibilities: Much of the fiduciary responsibility will shift from the organization to the PEO as the PEO takes on the burden of tax payments, unemployment claims, risk management, and workers’ compensation insurance.
The Ops Collective has helped several organizations select a PEO by:
Understanding the employment structure, size, and HR and benefit needs of the organization
Conducting research on PEOs that provide the level and types of services needed
Participate in demos and calls with the recommended PEOs to gather additional information on service delivery, user experience of the platform, and detailed information about the benefits structure
Support decision making with the organization to select their PEO
The Ops Collective has supported organizations onboard to the PEO by:
Helping to gather census information for benefit quotes
Supporting the evaluation and selection process of benefit plans offered
Supporting completion and review of paperwork
Supporting communications to staff about the PEO/HR transition
Project managing PEO onboarding tasks and timeline
Ensuring the organization has the necessary capacity in place to maintain the PEO relationship moving forward
Image sourced from Noun Project, artworkbean.
