When you partner with a PEO, you may receive assistance with:. The specific functions of your partner are determined when you sign a co-employment agreement with the PEO. When looking for a PEO partner, you should understand what you need out of the partnership.
Not all PEOs offer the same services or operate in every location, so you may need to devote substantial time finding the right PEO. Our brokers use these needs to find you the right PEO partner for your business.
We rely on a trusted network of partner organizations to help ensure that you only receive the highest quality recommendations. For your free initial needs analysis, connect with our PEO brokers by filling in your contact information on this website or by call NetPEO at Call Us Today! Employee Leasing Employee leasing is one form of temporarily hiring staff. Employment responsibilities are typically shared between the leasing company and the business owner you, in this case.
You retain essential management control over the work performed by the employees. The leasing company, meanwhile, assumes responsibility for work such as reporting wages and employment taxes. Your main responsibility is writing a check to the leasing company to cover the payroll, taxes, benefits and administrative fees. The PEO does the rest. Employee leasing lets you add workers without adding administrative complexity.
PEOs supply services and benefits to a business client and its existing workforce. PEOs enter into a co-employment arrangement typically involving all of the client's existing worksite employees and sponsor benefit plans for the workers and provide human resources services to the client.
In most cases, the PEO provides access to health insurance, retirement savings plans, and other critical employee benefits for the worksite employees of the business client. By comparison, a leasing or staffing service supplies new workers, usually on a temporary or project-specific basis.
These leased employees return to the staffing service for reassignment after completion of their work with the client company. Some define employee leasing as a temporary employment arrangement where one or more workers selected by the leasing or staffing entity is assigned to a customer frequently for a fixed period of time or for a specific project.
Upon termination of the staffing or leasing company arrangement, the worker has no continuing employment relationship with the client. Historically, leasing terminology was used to describe what has evolved into PEO relationships. Like a leasing situation, a temporary staffing service recruits and hires employees and assigns them to clients to support or supplement the client's workforce in special work situations, such as employee absences, temporary skill shortages or seasonal workloads.
These workers are traditionally only a small portion of the client's workforce. A number of state PEO licensing and registration laws require audited financial statements. In addition, the PEO industry best professional performance practices recommend audited financial statements in order to enhance internal controls and accuracy of financial information. While independent audits cannot prevent fraud or financial failure, they provide management with an independent review of and opinion that the financial statements of the entity are accurate, complete and fairly presented according to generally accepted accounting principles GAAP.
Selecting A PEO. Why Use a PEO? Click below for answers to some of the most commonly asked questions about the PEO industry. Who uses a PEO? How does a PEO arrangement work? Are PEOS recognized as employers at the state and federal levels? PEOs operate in all 50 states. Many states provide some form of specific licensing, registration, or regulation for PEOs.
These states statutorily recognize PEOs as the employer or co-employer of worksite employees for many purposes, including workers' compensation and state unemployment insurance taxes. Why would a business use a PEO? Business owners want to focus their time and energy on the "business of their business" and not on the "business of employment. PEOs give small-group markets access to many benefits and employment amenities they would not have otherwise.
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