Professional
Employer Organization
A
professional employer organization (PEO) allows
clients to outsource the management of payroll,
human resources, employee
benefits and workers' compensation. This
lets the PEO client focus their energy on
expanding their business. Before you choose
a PEO it is important to find one that provides
the services you expect and the benefits your
employees need at a fair and reasonable price.
Following are lists of the responsibilities
for the Professional Employer Organization,
the client and the responsibilities of both.
This is by no means comprehensive, and you
will need to make sure you ask the Professional
Employer Organization exactly what each of
your responsibilities are.
PEO
RESPONSIBILITIES INCLUDE:
• Employment Law Reporting
• Workers’ Compensation
• Tax Reporting
• Payroll
• Benefits Administration
• Employee Files
CLIENT
RESPONSIBILITIES INCLUDE:
• Hiring of Employees
• Employment Issues
• Workplace Injuries
• Hiring of Employees
• Setting Policies
• Reporting Payroll Hours
• Workplace Safety
SHARED RESPONSIBILITIES INCLUDE:
• Policy Administration
• Workplace Safety
• Employment Law Compliance
The
Professional Employer Organization typically
handles the administrative side of employment,
supplying paperwork, managing employee files,
processing payroll, filing payroll taxes,
developing employee handbooks, benefits administration,
workers' compensation management, compliance
assistance and human
resource support. A PEO is NOT a temporary
firm, staffing agency, payroll service or
placement agency. A quality Professional Employer
Organization will become a valued partner
in your company who provides administrative
relief by handling and/or sharing many of
your responsibilities as an employer.
A
Professional Employer Organization serves
as an offsite HR department and more, providing
employment administration services, quality
benefit options and/or benefit administration,
employer liability management tools and services
and technology to improve employee administration
and productivity.
The
more successful a business becomes, the more
overwhelmed they are with the responsibilities
of having employees and the more they need
a professional employer organization.
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