WHAT IS A PEO?
PEO is an acronym for Professional Employer Organization. As the name indicates, a PEO is a professional employer. All a PEO does is employee people so you don’t have to. Why is this such a valuable service? Because it costs money beyond wages and taxes to employee people and most business owners didn’t get into business to employee people. They got into business to create something or to provide a much needed service. A PEO helps manage the complex and challenging parts of being an employer. Things such as employee benefits, workers’ compensation insurance, compliance, payroll taxes, and most of all, human resources. A PEO works with you to perform these tasks and to provide expertise in all aspects of human resources.
OCI-HR has created a helpful digital booklet with a concise overview of Professional Employer Organizations. To view that document, Click Here.
IS A PEO RIGHT FOR ME?
THINGS TO CONSIDER BEFORE SELECTING A PEO.
• Not all PEOs are created equally. While size is not always an indicator, it’s something to consider.
• Is the PEO I’m considering offering a complete service? PEOs will generally provide services in 4 main areas. HR, Employee benefits, workers’ compensation/safety, and payroll. Make sure you are getting a complete package.
• Make sure the PEO is in good standing with NAPEO. While this not always an indicator, it’s something to consider. You may also benefit from the PEO being a part of ESAC. ESAC is similar to what FDIC insurance is for banks.
• Make sure the PEO is being transparent in how they are billing you. When you start combining fees, taxes, wc, and employee benefits, it can become confusing. Make sure they are willing to fully disclose the pricing for each item.
• In today’s world, technology is king and for that matter, the queen. Make sure the PEOs you are considering has the capability that you are looking for. I would strongly suggest an in-depth demo of the HR management system (HRIS). This should give you confidence in the payroll portal, the time and attendance software, and the HR reporting.
• Is having a local presence important to you? Most HR and payroll functions are done via the internet and over the phone. But you may be the type that desires a more personal touch. If so, you want to make sure the PEO either has a local service person or has willingness to be onsite on a regular bases.
• How long has the PEO been in business and can they provide both client and professional references? Doing business with a younger PEO is not a bad thing, just make sure they have the expertise you are looking for.
OCI-HR is an independent consulting firm specializing in PEOs and HR outsourcing.
We are located in Dallas/ Fort Worth Texas area, but we do business all over the United States. With over 20 years of experience, we are uniquely positioned to provide the most professional and comprehensive solutions for a business owner looking to outsource all or some of the HR and administrative functions of their business. OCI-HR always appreciates the opportunity to serve a new prospect and we never charge a fee to the client for the services we provide. Our motto is “problem solved” and our mission is provide the best options for our clients and to be there for the long haul.
For more information on OCI-HR, call Steve at 866-933-7361 or visit www.ocihr.com. You can also email firstname.lastname@example.org.