Web Statistics

Don’t Fall For These 3 PEO Myths

Partnering with a PEO can seem intimidating, especially for entrepreneurs. You’ve poured your lifeblood into your business, and now someone wants you to hand over the reins? Not likely

But what if I told you that working with a PEO will actually give you more time and resources to invest in your business, your staff, and your vision? What if partnering with a PEO represented freedom instead of lost control? And what if it could save you money in the process?

I bet you could get on board with that.

Good news—it’s all true. But first you have to stop believing the PEO myths.

3 Myths You Might Believe About PEOs

If you’re drowning in paperwork but still shying away from a PEO, it could be because you believe one of these myths:

  1. I’ll lose decision-making power. Perhaps more than anything else, entrepreneurs fear losing control of the business they’ve built with their blood, sweat, and tears. But a PEO partnership isn’t a hostile takeover. The PEO’s goal is to help you with administrative tasks that suck away hours of your life each week—tasks like compliance research, tax preparation and filing, employee handbook preparation, benefits administration, payroll, and risk management. And the core activities of your business? Still completely in your ball court.

  2. All HR outsourcing is basically the same. You’ve seen the acronyms: HRO, ASO, PEO. They’re all the same right? Well, no. The primary difference between a PEO and other outsourcing models is that a PEO becomes your co-employer. That means you’ll file taxes under the PEO’s tax identification number, and the PEO will share both the risk and the burden of employment. The co-employment model benefits your employees by giving them increased job security, access to better benefits and retirement plans, and increased safety oversight. If you decide to end your relationship with the PEO, however, your workers remain on your payroll.

  3. It won’t really save me money. Once you pay the PEO’s fee, will you really see any cost savings? Absolutely. Here are three ways PEOs save you money:

    • Economy of scale—PEOs can get better insurance rates based on the volume of people they employ. That translates into cost savings for you.
    • Efficiency—If you spend 10 hours per week on HR tasks like compliance and vendor management (or you pay someone else to do it for you), that’s 10 hours of productivity lost. If you turn those tasks over to a PEO, you can focus your attention (and that of your employees) on getting critical business activities off your to-do list.
    • Growth—As the business owner, is your time best spent pushing paper or investing in new ideas for growth? No-brainer, right? Let the PEO take over the paper-pushing so you can build the business you’ve always dreamed of.

One More Myth: Is a PEO Your Magic Wand?

Remember that scene in The Sorcerer’s Apprentice where the mops and buckets are merrily swishing away while the apprentice kicks back and relaxes? And then it all spirals out of control while the apprentice watches his labor saving devices destroy the room.

Don’t be the apprentice.

Yes, a PEO can save you hours of work each week. Yes, it can cut costs and give you time to grow your business. But don’t assume that it will eliminate all busy work from your life forever. If you do, you’ll be sorely disappointed—and you could see your carefully constructed plans spiral out of control.

A PEO can give you the freedom you need to focus on the most important activities of running your business, but it’s not a magic wand. It’s a partnership.

And it could be the solution you’ve been waiting for to help you cut costs and increase productivity so you can take the next step.

FAQ: What Is a Co-Employment Relationship?

What Is A Co-Employment Relationship?When you partner with a PEO, you enter a co-employment relationship. That relationship offers a lot of benefits to small businesses, including vendor management, benefits administration, recruiting assistance, and more. 

But it can also feel intimidating. Will you lose decision-making power? Will you be subject to the whims of a larger entity? Will your business become impersonal?

To answer these questions, let’s take a look at what co-employment actually means. Then, we’ll address some common concerns small business owners have when partnering with a PEO.

Co-Employment: A Mutually Beneficial Partnership

Co-employment means that two employers share responsibility for the same employees. Each one has specific legal obligations to meet and each shares the risk associated with employment. The business owner manages daily duties and job functions, maintains full control of all business decisions, and oversees hiring, terminations, growth activities, and operations. The PEO, as co-employer, manages functions related to HR and personnel, including payroll, taxes, benefits, recruiting, compliance, and workers’ compensation.

Answers To Your Co-Employment Questions

This definition still leaves a lot of questions unanswered for the small business owner. Here are some that we frequently encounter:

Why does HR outsourcing use a co-employment model?

Not every outsourcing model uses co-employment. The PEO is unique in that the PEO provider becomes the employer of record and will file taxes under their Tax ID number. This benefits you as the business owner in several ways:

  • Shared Risk – The PEO shares risk associated with compliance, benefits, and workers’ compensation.
  • Economy of Scale – Because the PEO acts as the employer of record for many clients, they have access to better benefits and insurance rates that are usually only available to large employers.
  • Better SUTA Rates – The PEO may be able to reduce your SUTA rate by paying employees under their experience rate. They also calculate SUTA for you so you don’t have to worry about the different rates and requirements in different states.
  • Shared Responsibility – The co-employment model shifts the burden of responsibility for compliance, reporting, tax filing, and dispute management onto the PEO. This frees business owners to focus on growth rather than getting bogged down with legal questions.

Will I lose control of my business?

No. The PEO will assume responsibility for administrative tasks and compliance obligations, but you as the business owner will retain control over daily activities and decisions for your employees and your business. This includes staffing decisions, operations, employee management, marketing, and core job functions. 

What functions will the PEO assume?

The PEO will handle wage and employment taxes, collecting and filing taxes, compliance management, reporting, workers’ compensation claims and coverage, payroll, and more. Their role relates to HR administration and personnel.

Do I get any say in hiring and firing decisions?

Yes. The PEO may offer assistance with recruiting and onboarding, but you make the final decision about which employees to hire and terminate.

How does a co-employment relationship affect my workers?

When you partner with a PEO, your workers enjoy increased job security, access to better benefits, insurance and retirement savings plans, professional human resources services, improved communications from the HR department, and increased safety oversight. If you end your relationship with the PEO, workers continue as your employees.

If you employ union workers, the PEO will abide by existing collective bargaining agreements.

Will my existing HR staff lose their jobs?

PEOs often work with your existing HR staff to strengthen the services offered to employees. Most small businesses do not have the personnel or expertise to run a fully functional HR department, and their existing staff benefit greatly from the PEO partnership.

Will my employees have access to someone who can answer their questions?

Yes. The PEO works closely with you as the business owner to ensure that your employees can access the information they need about benefits, insurance, workers’ compensation, payroll, and more. Many PEOs provide a dedicated individual or team who can assist with training and employee information.

What if I don’t want to change insurance providers?

PEOs can usually offer better insurance options than small businesses can. In many cases, they can deliver Fortune 500 level insurance and benefits to employees based on economy of scale. Although you might be required to switch insurance plans, that change is almost always to your benefit.

Will co-employment increase my risk of litigation? 

No. In many cases a PEO can decrease your risk of litigation by managing compliance and safety regulations more efficiently. In some cases, they also provide legal assistance to companies who are facing workers’ compensation claims or other legal questions.

These are some of the most common questions we hear about working with a PEO. If you have additional questions, you may want to check out this FAQ from The National Association of Professional Employer Organizations (NAPEO).

Are you ready to take the next step with your business? Our PEO Matching Tool helps you select a PEO based on your specific needs and requirements. 

Will PEO Certification Make a Difference for Small Businesses

Certified.jpgOn December 19, 2014, President Obama signed the Small Business Efficiency Act (SBEA), giving professional employer organizations (PEOs) statutory recognition. Essentially, PEOs will now have the opportunity to seek certification with the IRS in order to obtain certain benefits. 

The IRS must define the PEO certification progress and implement the program by July 1, 2016. With this deadline quickly approaching, many PEOs are prepared to seek certification; however, the SBEA does not require PEOs to be certified.

That leaves many businesses asking: What are the ramifications of PEO certification for small businesses? Will it make a difference in the services offered? Here’s what you need to know.

Requirements for Certification

In order to be certified by the IRS, a PEO must meet the following requirements:

  • Annual CPA Audit
  • Quarterly Confirmation of Employment Tax Payments
  • Minimum $50,000 Surety Bond
  • Employee Background Checks
  • IRS-Approved Client Service Agreement
  • Pay Annual Fee

Reputable PEOs already have many of these items in place to ensure the best service for their clients. The IRS requirements will simply need to be documented and submitted for review in order receive and maintain certification.

How Does the PEO Benefit?

Certification brings with it some associated costs. Since it isn’t required, PEOs will have to weigh the benefits of certification against those costs in order to determine which direction they will go. Benefits include:

  • Statutory Authority—Certified PEOs (CPEOs) will have the authority to collect and remit taxes on behalf of their clients. While PEOs do this already, certification will give this activity official IRS recognition.
  • Eliminate Wage Base Restarts—Currently, if a business joins a PEO mid-year, FICA and FUTA wage bases are reset, which results in higher costs for tax withholding. These wage base restarts will be eliminated for CPEOs, which will act as successor employers.
  • Tax Credits—Small businesses that partner with a CPEO will still qualify for small business tax credits. Without certification, the larger employee base of the PEO may affect the ability of some small businesses to benefit from these tax credits.

Will Small Businesses Be Affected?

The working relationship a business has with a PEO will remain virtually unchanged. The SBEA ruling does not change how a PEO will interact with clients or which services may be offered. It simply provides official recognition of the PEO and provides some tax benefits. 

The bottom line is that businesses will still receive significant benefits from a PEO partnership whether or not that PEO has official certification. Costs may fluctuate slightly among providers since there will be an annual fee associated with voluntary certification.

If you are ready to partner with a PEO, our comparison selector tool helps you compare individual providers based on your business requirements.


Employee Health Benefits: now and into the future

employee_benefits.jpgThe future of employer sponsored medical benefits lies in what’s happening now. Regardless of what happens in the upcoming elections, no leadership is in a position to unwind history or throw babies out with the bathwater. It’s just the way government works. You can expect - whoever is in place and sits on whatever side of the aisle – medical costs, Medicare operations, and the Affordable Care Act to undergo some scrutiny.

That’s a big ship to turnaround, and revolutions are not likely. But, you might get a better handle on things if you look at the numbers prepared by Benefitfocus® for SHRM:

  • 52% of large employers surveyed offer one HDHP (high-deductible health plan). Its inclusion provides an apparently lower cost to the employee. Most have transitioned to this offering option, and more are considering making the HDHP their dominant offering in the next few years.

  • 41% of employees have opted for the HDHP. When given the choice, employees – especially younger workers – opt for the higher risk presented by the HDHP. Given the options, the HDHP allows for a lower employer premium, but it may not suit individual or family needs.

  • HDHPs also reduce the employer’s cost. In doing so, it positions the company better to avoid the Cadillac tax provisions of the Affordable Care Act by lowering the average paid per enrollee. But, the Cadillac tax may never see the light of day before its 2020 implementation, and health care inflation may wipe out that advantage by then.

  • HSAs (health savings accounts) are not performing well. The most effective HDHP assumes an offset by personal savings accumulated for health spending. Even where the employer subsidizes the savings contributions, employees are not using the accounts fully. Opting out of this behavior leaves employees vulnerable now and into their retirement.

  • Voluntary benefits go begging. Critical illness coverage, hospital indemnity, accidental injury policies, and more could fill some of the gaps presented with HDHPs. As of 2015, only 14% of employees enrolled in voluntary plans offered by only 36% of large employers.

Current behavior describes future outcomes, and some of this activity is not encouraging for employees or employers. Absent any miraculously workable solutions, you have to acknowledge the impact of decisions made now. These decisions are shaping an insecure status quo, much of which has secured footing as an entitlement.

If cost management continues to drive employer offerings, it continues to strengthen employee dissatisfaction. If corporate cost management concerns do not drive the benefits market, remedies will remain unexplored and untried.

Sometimes moving to a benefit plan offered through a PEO or professional employer organization can lower employer costs and offer more plan choices based on their leverage of high employee numbers. This economy must have the will and wherewithal to structure innovative solutions in employee sponsored medical benefits.

The results reported here come from the Benefitfocus® 2015 study of large businesses.  Benefitfocus® is a publicly traded employee benefits management platform.

Other research is found at:
National Bureau of Economic Research  
Bureau of Labor Statistics  
International Federation of Employee Benefit Plans





Implementing EEOC Protections for LGBT Workers

Equal_rights.jpgRecent debates in Mississippi and North Carolina have raised many questions about how to protect the specific legal rights of the LGBT community. As a business owner, one of the most important steps you can take is to look closely at your current anti-discrimination policies and make sure they comply with current EEOC interpretations of Title VII. Here’s what you need to know.

What the Law Says

Title VII of the Civil Rights Act of 1964 specifically prohibits employment discrimination based on race, color, religion, sex, or national origin. The EEOC interprets the term “sex” to include gender identity and sexual orientation.

Protections under Title VII include:

  • Recruiting and hiring. Hiring practices can be deemed discriminatory if they require qualifications or knowledge not essential to the performance of the job and/or they disproportionately exclude certain groups of people (for example, soliciting applications from a school or area which lacks diversity). Hiring decisions may not be based on statistics about sexual orientation or offer preferential treatment to a particular group.
  • Terms of employment/advancement. Compensation, benefits, work assignments, training, and opportunities for advancement should not be based on an employee’s race, color, or sexual orientation.
  • Work environment. The work environment should be free from hostility or harassment including slurs, jokes, negative comments, and verbal or physical attacks. In addition, employees should not be assigned to specific types of jobs or locations based on race, color, or sexual orientation.

How to Ensure EEOC Compliance In Your Business

Most business are eager to comply with EEOC guidelines, but it isn’t always clear whether current practices could create opportunities for discrimination. These five steps will help you protect the rights of all workers within your organization:

1. Understand EEOC interpretations of the law. It’s important to recognize not just the broad application of Title VII, but also the specific ways in which it has been interpreted with regard to LGBT workers. Take a look at recent legal claims so you will know what types of behaviors you should be protecting against. For example, failing to hire an applicant because he or she is transgender, denying a promotion based on sexual orientation, or denying spousal benefits to a same sex couple could all be considered EEOC violations.

2. Review spousal and domestic partner benefits. Federal law now requires that same-sex spouses be offered spousal benefits. Many businesses discontinued their domestic partner benefits after the supreme court decision that overturned DOMA, but others chose to offer benefits both to same-sex and opposite-sex domestic partners. Whichever approach you choose, make sure benefits apply equally to all employees.

3. Take a close look at your training programs. Good training informs both employees and management of their rights and responsibilities under the law. It should also describe unacceptable behaviors and delineate consequences for violating anti-discrimination policies. When problems arise, managers should be able to consistently enforce the policy in order to protect employees and prevent liability. Questions to ask:

  • Do you have clearly stated, written anti-discrimination policies?
  • Do your managers know the policy and do they follow it?
  • Do you have consequences in place for violations?
  • Do you have a clearly stated grievance process?
  • Can information and resources be easily accessed online or elsewhere in the organization?
4. Place an emphasis on diversity hiring. A strong reputation for diversity hiring in all its applications will create a more positive and welcoming workplace for every employee, including LGBT workers. Additional steps may include creating internal employee resource groups, offering domestic partner benefits (make sure they apply equally to both same-sex and opposite-sex couples), and encouraging diversity dialogue within your organization.

5. Review your FMLA polices. Since the repeal of DOMA, federal FMLA requirements must be extended to same-sex spouses and legal common law partners in every state. You may also choose to provide leave for employees to care for a domestic partner or children of a domestic partner as long as these opportunities are available equally to both same-sex and opposite-sex couples.

Anti-discrimination must be more than an ideal; it must also be a reality. These five steps will help you make your workplace a positive, productive environment for every employee while also protecting yourself from potential legal action.

How Will the SCOTUS Same Sex Marriage Decision Change Insurance Benefits for Small Businesses?

Global PEO: Expanding Beyond Your Borders

Global_PEO.jpgExpanding a business overseas is risky, but it can also deliver huge rewards. When you expand your company beyond your national borders, the compliance regulations and corporate business norms of multiple locations can be overwhelming. You can’t always anticipate every challenge of operating in a different country, but you can plan for the risks and challenges associated with daily business operations on a global scale. 

Global Business Challenges

Global business endeavors require you to manage all the same HR functions that you manage at home—but you’ll be doing it remotely. What are some of the challenges you’ll face when doing business on a global scale? 

  • Establishing Your Business Presence—Setting up an office in a different country usually means you have to jump through numerous hoops, such as incorporating a local company, appointing auditors and accountants, and registering your business.
  • Hiring—When you are ready to hire, you’ll need to recruit employees, determine taxes and withholdings, and create a contract that meets local employment regulations.
  • Regulatory Requirements—You will need to meet local and international requirements for safety, security, risk management, employee rights, workers compensation, and insurance.
  • Payroll/Benefits—As you oversee payroll and benefits in multiple countries, you will need to conduct global payroll audits, manage multiple financial systems, handle benefits elections, consider variable compensation, track data submissions, and manage time and attendance across time zones.
  • Risk Mitigation—Managing risk in another country requires knowledge of compliance, worker protection, insurance claims, employee assistance, and safety. Appropriate risk management strategies must address local concerns before they mushroom into an HR nightmare.

Why Outsource?

Of course, these are just a few of the challenges you will face when you expand your business into other countries. You’ll also be managing a new base of employees, creating marketing campaigns for a different audience, managing international supply chains, and operating within a new political and economic climate.

Outsourcing your HR responsibilities to a PEO that is well versed in the nuances of international business can give you the freedom to focus your attention on ensuring the success of your new venture. Your PEO will handle:

  • Payroll Benefits
  • Risk mitigation
  • Compliance
  • Hiring and termination
  • Employee interactions

Working with a PEO means that you can hire faster without incorporating a local company. Since the PEO is the employer of record, you minimize your own risk and expedite the time it takes to create a presence in that country. In some countries, the PEO may also be able to sponsor an employee’s work permit or residency visa. If you will be sending American employees to work in the global office, your PEO can make sure all paperwork and payroll information meets the requirements and get your employee on board in the new position as quickly and efficiently as possible.

Working with a PEO to establish and manage your international business endeavors ensures that you get your new location up and running as quickly and efficiently as possible. It’s also the most cost effective way to enter a new market with minimal risk.

$15 Minimum Wage and your PEO

minimum_wage_worker.jpgWhen it comes to social legislation, what happens in California doesn’t stay there. It’s approval of a new minimum wage strategy will be followed in New York and, surely, other states. What does California’s business have to do with your business, and how well can your PEO protect you? Good questions!

The California model

The minimum hourly wage will rise to $10.50 effective January 1, 2017.

  • Businesses with fewer than 25 employees will have an additional year to comply.
  • Increases of $1/hour will occur every January thereafter until 2022.
  • Unions have agreed to avoid competing increases.
  • Research presented puts the equivalent of a 24% increase into the hands of 5.6 million workers.
  • The impact on government workers will cost California taxpayers $3.6 billion.

New York, Massachusetts, and Oregon have similar legislation in the works, and Seattle, Los Angeles, and Washington, DC have living wage laws in place.

The Impact

All predictions on the outcome fall out on party lines. Those in favor imagine the fast food worker who will suddenly become credit worthy and able to buy a home. Those against foresee the end of manufacturing and agrarian jobs.

However, The New York Times analysis sees that, despite some immediate modest benefit to workers in the major cities, the increase will likely be disruptive in lower wage cities. In places like Fresno, Bakersfield, Merced, and Chico, the $15 minimum wage will inflate the wage floor towards the expected worker in the middle of the wage scale. For example, as the earnings for base labor increase in these areas, the mid-labor workforce, like medical technicians, practical nurses, office clerks, mechanics, and more, will perceive an injustice, and their employers will seek offsetting options.

The PEO role

Your PEO offers no way to avoid the law of the land. The PEO offers neither solution or alternative; that’s not their job. However, with enough collaboration, you and the PEO can navigate some rough waters.

The PEO offers your business some arm’s length that enables strategic thinking and planning. With the minimum wage increments spread out, you still have time to reconsider your organizational structure.

  • Well-developed job descriptions and the PEO’s co-employment experience afford you a look at recruiting and managing talent to get you more bang from your labor burden.
  • Your PEO professionals can help draw a clearer picture to budget future obligations. For one thing, as the wages increase so will the employer’s costs in FICA, Workers’ Compensation, and other charges that are multiples of the wage.
  • The economies of scale enjoyed by the PEO will continue to negotiate and engage employer paid group benefits to the employer’s advantage.

The PEO can be your valuable partner for developing best practices to anticipate, assimilate, and respond to the challenges presented by significant increases in the minimum wage. The matching tool at PEOcompare.com helps steer you towards the provider best equipped and situated to make your business secure and promising.

How to Protect Yourself from Social Media Disasters

social_media_disaster.jpgSocial media has become an important marketing tool for businesses, but it’s also an integral part of personal interactions for both employees and employers. Sometimes the line between public and private becomes blurry and the two arenas can overlap—and not always in a positive way. 

For example, both Yelp and Chipotle have recently experienced negative publicity related to their handling of an employee’s social media comments regarding the company. Such cases usually require legal counsel to determine how best to approach the situation, but it’s also important to create a robust social media policy ahead of time before you find yourself in the middle of a public dispute.

How to Avoid a Social Media Disaster

Disgruntled employees often use social media to sound off about their grievances. What can you do to protect yourself from potentially damaging public accusations?

  • Create a written social media policy. If you haven’t written out your social media policy, now is the time. Small businesses in particular may find themselves hung out to dry if an unanticipated problem arises and there is no official policy to cover it. Be sure you plan appropriate steps proactively before something happens.

  • Know the law. The National Labor Relations Act (NLRA) governs what type of employee communications are protected from reprisal or discipline, including public statements about wages and working conditions. Your social media policy should clearly state what types of content are prohibited (harassment, discrimination, sharing trade secrets, or disclosing confidential HIPAA information), while making sure it does not prohibit content that is protected by the NLRA.

  • Carefully review old policies for potential problems. Chipotle’s social media snafu was partly due to an old policy being distributed to an employee. The policy included language that was not compliant with current NLRA provisions. In addition, make sure managers know what to do when problems arise so that their actions do not violate the law (for example, asking an employee to remove a tweet that is protected by the NLRA).

  • Be consistent. Your policy should remain consistent for all social media interactions. Inconsistencies can open you up to lawsuits. For example, if an employee requests HR records via social media (as Yelp’s employee did during the course of discussion about her termination), make sure you have a consistent policy in place governing how to handle such requests. If your policy states that all requests must be presented in person, over the phone, or via email, then responding to a social media request can create an undesirable precedent, particularly if you do so publicly.

  • Consult a lawyer about potentially volatile situations. When situations occur that could be damaging to the company, it’s usually best to consult a lawyer before taking action. That’s the best way to protect yourself from lawsuits while also making sure your handling of the situation complies with NLRA regulations.

Your PEO Can Help

Traversing the social media landscape can be tricky, especially since information formerly considered private or semi-private (such as employee discipline) can now be broadcasted publically. A PEO can help you ensure that your social media policy complies with all NLRA regulations and that you have the help you need when dealing with employee discipline or unauthorized disclosures. Many PEOs also provide legal assistance if you find yourself facing a lawsuit or if you are seeking to protect yourself from potential legal action. Your PEO will work with you to manage employee interactions both on- and off-line, including discipline situations.

If you are ready to partner with a PEO, our PEO matching tool can help you find a provider that meets your requirements and addresses the specific needs of your business.

Are You a Good Candidate for a PEO Partnership?

PEO_partner_candidate.jpgChoosing to partner with a PEO is a big decision—one that shouldn’t be made lightly. PEOs offer many benefits to their clients and can increase efficiency, but that doesn’t mean they are the right choice for every business. In this post, we’ll look at five signs that you’re ready to make the switch.

Who Can Benefit From a PEO?

Businesses of all sizes can benefit from a PEO partnership. The PEO helps remove much of the administrative burden of running your business by handling tasks like payroll, taxes, benefits administration, and workman’s comp. As the employer of record, the PEO assists with these day-to-day processes while leaving you free to manage the growth and operation of your business. You may benefit from a PEO partnership if:

  • You need help with vendor management. Vendor management often requires hours of office time each week. A PEO will negotiate with the many vendors needed to keep your business running—recruiters, payroll administrators, insurance brokers, accountants, safety specialists, and more. The PEO will help you choose vendors, integrate them into your operations, manage interactions, and evaluate over time.

  • You want to reduce your administrative workload. Many of the tasks handled by the PEO involve filing forms, filling out paperwork, and managing tedious details. Your PEO partner will file tax forms, manage workers compensation, handle employee onboarding, facilitate training and safety, create employee handbooks, create online portals for employee interactions, and answer questions. With these tasks removed from your plate, you’ll be free to focus on the core competencies of your business.

  • You want better employee benefits and lower insurance costs.
    Because the PEO serves as the employer of record for thousands of employees, they can often get better insurance rates and offer a wider range of employee benefits than a business with few employees can. PEO benefits often include medical, dental, and vision coverage as well as an attractive retirement plan, short-term and long-term disability coverage, educational assistance, and even adoption assistance in some cases.

  • You want to focus more on the growth of your business.
    Outsourcing the daily administrative aspects of running your business frees you up to focus your attention on growth. You retain full control over decision-making, employee responsibilities, core job functions and requirements, hiring decisions, and the structure of your organization.

  • You need help with compliance or tax filing.
    Both compliance and tax filing require research and attention to detail in order to stay on top of current regulations. Missing even one of these small details can result in huge fines and penalties. A PEO will manage those details for you, giving you the freedom to focus your attention elsewhere.

What Else Can a PEO Do For You?

PEO providers can help you with a wide range of tasks including human resources, payroll, tax administration, benefits administration, compliance, safety management, and workers compensation. From preparing your state and federal taxes to managing employee records and handling employee questions about benefits and workers comp, your PEO will take care of the administrative responsibilities that keep your business running.

 Ready to find a PEO partner? Use our unique selection tool at PEOcompare.com to find the right PEO partner for your business based on your search criteria.  

Is Your Compliance Department Up to the Task?

compliance.jpgOne of the primary responsibilities of a PEO is to ensure regulatory compliance for your business. If you handle compliance in-house, you know how time-consuming it can be to stay on top of new regulations and keep your policies up to date. One study found that among global compliance practitioners, almost 40% spent at least seven hours each week analyzing developments in regulatory information in order to remain compliant. Among the same group, 75% believe that the amount of new information regarding compliance regulations will increase going forward. Small business owners and those with limited resources will be the most affected by the influx of regulatory information. Is your business up to the task?

What Types of Regulation Changes Can We Expect to See?

Compliance regulations evolve over time as laws shape the responsibilities of businesses to their workers. Current trends in workplace culture policy could drive change in the following areas:

Hot-Button Issues: Laws Vary From State to State

Do you have the right to prohibit employees from leaving guns in their cars on your property? Are you responsible to provide marriage benefits for same-sex spouses? Questions like these and many others that involve the gradual evolution of laws may not be easy to answer. Laws vary from state to state, and state law may sometimes differ from federal law. As more states consider changes to same-sex marriage legislation, gun laws, and even drug law in some cases, businesses must remain vigilant in order to keep current on their compliance policies.

Workplace Culture Accommodations

The workplace culture within an organization can inadvertently lead to compliance violations. For example, male-dominated industries like computer programming or sports may unwittingly reinforce unethical policies that favor males. If your company culture tends to favor one group of people over another, it’s time to take a close look at your compliance policies to determine whether you are in danger of committing violations.

Gender Diversity in Corporate Leadership

Many organizations still fall woefully short of diversity hiring goals that seek to include both genders at all levels within an organization. While studies demonstrate greater effectiveness for companies that include women on the board of directors and in senior management, many companies still have not taken needed steps to promote gender diversity. Some European countries have begun imposing quotas to close the gender gap. If the United States follows suit, be prepared for a new influx of compliance guidelines.

These are by no means the only areas in which change could occur, but they do represent a few ways your company may need to make subtle shifts in current policy.

How Can Your Business Meet the Challenge?

Since compliance violations can result in a lawsuit for your business, you need someone who will oversee the tracking and implementation of compliance regulations. If you don’t have time to spend seven or more hours per week tracking this information (or paying someone on your staff to do it), a PEO may be the solution you need to remain compliant. The PEO will handle all your regulatory compliance issues in order to prevent violations and potential legal action. Outsourcing this responsibility will leave you free to focus on the business of growing your company and delivering the products or services that keep your clients happy.

Works cited:

Thomson Reuters Accelus’ annual Cost of Compliance Survey 2014, Stacey English and Susannah Hammond
The Washington Post, More women at the top, higher returns 2014, by Jena McGregor

Try our PEO Matching Tool to find the best PEO company for your needs.

Find a PEO That Matches Your Unique Criteria


Quickly Compare PEO Companies


Newsletter Signup

Testimonials! The finest folks on the web have used PEOcompare to guide them in their PEO selection.

"I found PEOcompare and could use their services matching tool as a guideline, choosing wisely what services we wanted for our company. Quickly we received responses from some PEO Companies and selected MyBackOffice within a week. It has been a great relationship and great fit for our business. I would have never found MyBackOffice, so if you need a PEO that is a fit for your business, I suggest  PEOcompare.com."

Jack Trompert, President
Talent 101

"PEOcompare narrowed my search, saving me time & reducing my amount of research.  I had limited staff and a limited budget, I needed a PEO company that could fit my needs. PEOcompare provided a free, easy to use tool with an automated PEO scoring framework that let me control the process.  I chose the companies I wanted information from."

Todd Girard, Owner
Trinity Optical