Frequently Asked Questions (FAQs)
What is a PEO?
A Professional Employer Organization, frequently referred to as Employee Leasing, offers a variety of services to help run a business. By using collective buying power, a PEO may help their clients save money and enable them get better quality services as well. In addition to saving money, PEOs can save time by taking over responsibilities of managing certain business functions on behalf of the business.
Who uses a PEO?
Most any business can benefit from the services offered by PEOs, but Small to Mid-size Businesses tend to benefit the most. According to NAPEO, the average client of a PEO is a business with 19 worksite employees. However, recent trends have shown that larger businesses are using PEOs because of the technology solutions and expertise in HR management that is offered. PEOs can partner with companies that have over 500 employees and partner with their internal HR teams. PEOs are used across a wide variety of industries and there are many industry specific PEOs available.
How does a PEO work?
A PEO in Florida co-employs their clients' worksite employees through a contractual allocation and sharing of employer responsiblities. This allows the PEO to remit wages and withholdings of the worksite employees while reporting, collecting and depositing employment taxes with local, state and federal authorities. In addition, a PEO can also help their clients obtain collective buying power for other services such as employee benefits, workers compensation and much more.
Why use a PEO?
PEOs save businesses time by managing some of the responsibilities of the business. In addition to saving time, PEOs can save money by using the collective buying power of all of the members of a particular PEO. This allows businesses to obtain better quality benefits and services than they could otherwise obtain independently.
Does a business owner give up control of their business?
No. The client of the PEO retains ownership and control over their operations. As co-employers, a PEO and their client will have shared responsibilities and liabilities as set forth in their Client Service Agreement(CSA). Each PEO is unique and we'll be sure to answer all your questions about the specific PEO that is best suited for your unique needs.
Can a PEO help with Workers Compensation?
Yes, a PEO can help their clients obtain Workers Compensation coverage. This can be especially helpful for companies that have experienced workers comp claims and may be having difficulty getting coverage or feel that they may be paying too much for the required coverage. Because of collective buying power, a PEO can many times save their clients money on this type of coverage.