What is a Professional Employer Organization, PEO

What is a PEO? | The Role of a PEO | Advantages | Industry Statistics | Q & A

What is a PEO?

A Professional Employer Organization, or PEO, is a business solution for companies spending too much time with the business of employment, rather than the business itself. A PEO and a Client Company enter into a co-employment relationship, whereby they share the responsibilities of employment. The PEO manages payroll, tax and benefit programs for the Client Company and its work-site employees, as well as providing human resource and personnel services.

The Role of a PEO

Today's business world is full of complexities, as new employment laws and more stringent compliance regulations demand greater attention from company officers and administrators. This is especially true of the health care industry. As one of the industry's only PEO's specializing in the health care arena, Professional Employee Leasing is uniquely equipped to effectively manage these demands. As a co-employer, PEL assumes responsibility for compliance with state and federal employment laws, as well as payroll and tax regulations. Professional Employee Leasing is committed to helping our clients attract and retain quality employees by offering competitive benefit programs, including health, dental and life insurance, retirement savings plans, and responsive human resource services.

Advantages

Our clients are able to once again focus on their healthcare initiatives. The face of the health care industry has changed significantly in the last 10 years, and continues to do so. PEL understands those changes, and helps its clients function more effectively amidst an ever changing industry.
Attract quality employees with industry-competitive benefits, such as health, dental and life insurance, and 401(k) plans. Retain those employees with responsive human resource services, accurate and timely payroll processing, and workplace safety compliance.
We assume liability on wage and tax laws, retirement plan regulations and state and federal compliance issues.

Industry Statistics

The average annual cost of regulation, paperwork and tax compliance for companies with fewer than 500 employees is about $5000 per employee per year. -US Small Business Administration

The average small business owner spends between 7-25% of his/her time handling employee related paperwork.

Q & A

1. Does the client retain control over who is hired and terminated, and over how his/her business is operated?

Yes - Clients share the responsibility for the hiring and firing of employees, as well as how the business is operated. A relationship with PEL allows the client more time to attend to profit activities, while PEL handles the administrative tasks associated with operating that business. Some of the services PEL provides include administration of retirement savings plans, negotiating and managing health insurance policies, handling workers' compensation insurance and claims, and staying current on wage and hour laws, OSHA compliance, and tax regulations.

2. Is the co-employment relationship legal?

Absolutely. The Internal Revenue Service recognizes the PEO as the employer for federal income and federal unemployment taxes. PEL is licensed by the state of Florida and adheres to all federal, state and local laws.

3. Does Professional Employee Leasing only service the health care industry?

While PEL is uniquely poised to service the health care industry, we also maintain co-employment relationships with clients in myriad industries. Although in different industries, many small businesses share similar management challenges. Because of the experience and expertise of PEL's officers and staff, all of our clients can expect helpful advice and excellent service.