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6 Reasons Why you Need a PEO Consultant or PEO Broker NOW!

 

By Shraga Jacobowitz

There are many reasons why you should use a PEO (not sure what they are? You can check out any one of the many blogs I’ve written about it such as this one). Every business owner, including hopefully you, has their own unique reason for partnering with a PEO. Perhaps you are just fed up with your administrative tasks eating up huge amounts of your time, overpaying for your company’s health coverage, or losing out on hiring top talent to companies that can offer better benefit packages.  Regardless of the reason is (although I do hope my newsletters had at least a little bit of bearing on the decision), you are now ready to make that leap and join the thousands of companies who partner with PEOs.

You ready? Let’s go, pull out the yellow pages–who am I kidding– turn to the all trusty Google and type in PEO providers. In 0.49 seconds 1.56 Million results come up (trust me, I tried it). Now what?

How do you know which PEO provider is the right fit for your business? Will get you the best service? Best prices? Understand you? With over 700 PEO companies servicing businesses throughout the country, finding the one that meets your business’s needs can be a huge headache.

Enter the PEO Consultant (AKA PEO Broker). And while the word consultant conjures to mind the famous adage “Those who can’t do, teach. Those who can’t teach, consult,” this is one case where a consultant can really DO a lot.  A PEO consultant/ broker will do all the research and negotiating for you so that you sign a contract with the PEO that is perfect for your industry and your particular organization. I mean, after all, your time is so precious; why bother researching and reviewing dozens of companies or even worse having to sit through countless sales pitches and lengthy (read: boring) presentations (although the swag and refreshments are always a nice perk, you have better things to do with your time) when you can have someone do it for you?

But hiring a PEO Consultant / PEO Broker is so much more than just the research. Here’s the top 6 reasons why you should use a PEO Consultant/ PEO Broker when partnering with a PEO:

  1. Comparison shopping made easy 

We all love the option of comparison shopping online, just click a couple buttons and have all the data to make an informed decision right in front of you. Unfortunately, it’s not that easy when it comes to PEOs. Pricing is going to be a huge factor in your decision about which PEO provider to use. But getting quotes from several companies can take loads of time, energy and endless paperwork on your part.  PEO proposals tend to be lengthy and as discussed in my last newsletter can be complicated, i.e., containing many easy-to-miss small details and varying pricing structures making comparison-shopping extremely difficult. A PEO Consultant/ PEO Broker can provide you multiple quotes to review at once, making your decision that much easier, and they can advise you to which PEO is the best fit for your needs and the best value for your company.

  1. Saving you time

When choosing a PEO, you’ll have to choose between a National, Regional or Niche PEO. You’ll need to do research into each kind of PEO, and once you’ve made that choice, you’ll need to do further research into PEO providers within each category. That’s a lot of research for one decision!

Think of the Consultant / Broker as that one guy who just knows everyone at the party….because honestly a good Consultant/ Broker will have already established dozens of relationships with PEO providers within each class. This way, they can guide you with this part of the process so you can make your final decision sooner.  In addition, as mentioned above, knowing which type of PEO is the best fit for your business, eliminates the need to even sit down, never mind listen to sales presentation from PEOs that don’t fit your company’s needs (you’ll just have to do without the keychain, hand sanitizer or Danish).  That’s why working with a PEO Consultant / PEO Broker will save you time and energy (and frustration), ensuring that you only sit down with those PEOs that services, technology and financial structure suit your business’ specific needs. 

  1. Better pricing 

Like every decision you make about your company, it’s all about the money, money, money! And to paraphrase the saying, “If you think hiring an expert is expensive, try doing it yourself.” Not hiring a consultant/broker can sometimes end up costing you more than any savings you might have thought you were gaining by doing it yourself. If you want to get the most value for your money with a PEO provider, hire a PEO Consultant / PEO Broker. An experience consultant / broker can negotiate on your behalf to get you the best service for the best price. And a good consultant / broker will use their exclusive relationships with PEO providers to draw up a deal that is favorable to everyone involved.

Hiring a PEO is a huge decision that will affect your bottom line for years to come. Why not get the most for your money? 

  1. Simplified paperwork 

Ever try to apply for something and simply give up just because of the sheer amount of paperwork?  We know that feeling! In order to provide you with an accurate quote, a PEO will need to gather a large amount of data from you, including your employees’ salaries, insurance policies, health care requirements, workers’ compensation history, and a whole lot more. Since each PEO uses a unique proposal system, you’ll need to fill out all that paperwork each time you research another PEO. That’s paperwork times infinity, or at least it will feel like that.

When using an experienced Consultant / Broker though, you only need to submit this information once. The Consultant/ Broker will evaluate your company’s data and give you quotes based on your specific needs so that you can make an informed decision with minimal paperwork involved.

You’ve got enough on your head already; why not save yourself some paperwork—and lots of time?

  1. They have your best interests in mind 

If you were in the market for a new computer and are not sure which one to get, do you go to a Dell store or an electronic store like Best Buy?  Unless you know you want a Dell, I’d suggest going to Best Buy, because the Dell representative is only going to sell you a Dell which may not be the best computer for you.

Similarly, when you work with a PEO directly, the company will try to convince you that they’re the best fit for your business. In contrast, when you work with a Consultant / Broker, they only have your own interests in mind and will help you make a decision that is best for you. They don’t make more money when you choose a particular PEO over another; they only want to make you happy.

It’s always best to work with someone who has your best interests in mind.

  1. They’re in the know 

When most people think about partnering with a PEO, it is to get competitive insurance rates or better employee benefit packages, but the pros of a PEO far exceed just saving your time and money. Many PEOs offer employee training, safety compliance assistance, creating company culture and employee engagement, workers comp insurance, assistance with onboarding, hiring and firing techniques, government compliance and regulation guidance and so much more. For more benefits of the PEO, check out some of my past blogs. But it’s hard to take advantage of all these amazing benefits if you don’t even know about them. A PEO Consultant/ PEO Broker can give you the complete rundown of all the myriad of ways a PEO can help your business.  And really, why would you want to miss out on something, simply because you didn’t know to ask for it?

Want to see exactly how a PEO Consultant / PEO Broker can help your business get the most out of your PEO? Call ARC Consultants today and let them not only consult you, but DO all the work for you.

The Economics of PEOs: The 411 on what PEOs cost and how they invoice

By Shraga Jacobowitz

Okay, it’s time to address the elephant (or should we say the piggybank) in the room.  I know as you read all my (I hope, helpful) articles, you’ve been wondering about one thing…..What’s the bottom line?  While PEOs seem too good to be true, offering an array of benefits for so little cost, they really are THAT good!

So how do PEOs do this? And how much is it going to cost you?

PEOs are able to offer so much for so little because of their very structure.  Companies using PEOs are entering into a co-employment arrangement, which actually means that your employees are not only employed by your company, but also by the PEO (much LARGER) company.  This co-employment allows your company to offset some of your liabilities and receive benefits usually only offered to much larger companies.

You may already know the benefits of PEOs. If not, you can always check out our inaugural newsletter article or any of the other newsletters that covered this topic.  And once you understand how a PEO can save you money, you can get down to the crux of things. As the saying goes, “there are no free lunches.”  And we’re back to that all important question, “What’s it going to cost me?”

So, of course, a PEO will charge you for their service, but their cost outweighs the savings you receive from partnering with a PEO tenfold.  Keep in mind when partnering with a PEO that in many cases even after factoring the fees of a PEO for their service, they are delivering a much bigger net savings to their clients.  As part of a PEO, you are being offered savings on your health benefits, workers comp and creating a lower-risk environment. In addition, partnering with the majority of PEOs can eliminate the need to have a HR department and will definitely eliminate the need to use a Payroll processing company, saving you even more money across the board.  As for the PEO cost, like everything else in the PEO world, every PEO is different. But there are three basic price models offered by a PEO:

The Flat Rate

The Percentage

The Bundle

I’m sure you’ve all already picked out your favorite pricing structure, but just in case you’re not sure which is best for you, here’s a quick rundown of the three options:

  1. The Flat Rate: Here the PEO will charge you a flat rate per employee. People like this because they know what they’re paying. The downside of this is you’re paying the same amount no matter how much time each of those employees put in and how much they benefit from your PEO partnership. Rates usually vary depending on company size and/or a number of other variables and fall between $60 and $200 per employee.
  2. The Percentage: These PEOs charge a percentage of your gross payroll each month. The downside is as this will fluctuate payroll to payroll, there’s no consistency in fees and you never know what to expect. In addition, this pay structure may throw you some surprises along the way, in the form of higher service fees when you give an employee a raise or provide bounces further increasing your cost/fee for the PEO. Its simple math, the percentage on a $1000 weekly pay is going to jump up when you raise that employee’s pay rate to $1500/week. The upside is in many cases, it can actually end up cheaper than the flat rate. Again, this is simple math, i.e., dividing your percentage fee by your number of employees may show you that your percentage rate WILL often fall out cheaper than the flat rate amount. Rates are usually based within a range of 2 and 4 percent.
  3. The Bundle: While we generally like bundle deals (I mean, who doesn’t like the TV, Internet, Phone packages), you generally don’t want a bundled PEO rate. This means the PEO invoices you one percentage which includes your payroll taxes, workers comp costs, (and in some cases your employee benefits cost) and their administrative fee in one lump percentage against your gross wages per pay cycle.  Honestly, I don’t see any upside to this price structure, unless you just don’t want to be bothered with the actual cost of things and prefer to pay bills blindly (and if that’s the case, I have a bridge to sell you).   The downside to this is that you have no idea what your costs are and therefore have no way of tracking, reconciling or reporting your individual expenses. Besides that, not knowing what you pay, makes it quite difficult to shop around or negotiate lower rates for those items that are experience rates.

But be aware, not all bundles are created the same, some PEOs will bundle everything while others will bundle Workers Comp and Administrative fees.  If you’re looking for something bundle, the latter may be a better bet.

Regardless of which price structure you decide is best for you, it’s good to know that most PEO quotes will include six standard costs (whether they are bundled or not):

  1. FICA
  2. FUTA
  3. SUTA
  4. Workers Compensation
  5. Employee Benefits Premiums
  6. Administrative Fees

Not sure what these are, you can check out Unscrambling the ABC’s of the PEOs and Wrapping up the ABC’s of PEOs, but for our purposes, all you have to know is the first two, both federally mandated employee withholdings will not (or I should say SHOULD NOT) differ from PEO to PEO. When it comes to the next three, that is when you will see a difference in your quotes. Because SUTA (State Unemployment Tax), Workers Compensation and Employee Benefits Premium rates depend on a variety of factors (such as operating state, number of claims –whether unemployment or workers comp claim, and the workers comp code they are using), each PEO will offer these at different rates. This is where you can start comparing prices.  And finally, as discussed above, the administrative fees will depend on how the PEO decides to charge you.

Like I said above MOST PEOs will have these six standard costs (and if they don’t, that’s an immediate red flag), but it is also important that these six costs are broken down on the invoices you receive from the PEO.  While this seems obvious, many PEOs proposal will show you this breakdown but not include it on their invoices. Before signing on with a PEO, make sure you ask about their invoicing practices or ask your handy PEO consultant (like ARC) how to navigate the billing and invoice process.

My final word of advice, ALWAYS LOOK FOR HIDDEN FEES.  These fees can be anything from additional charges for HR Services, EPLI, additional support or added technology modules, employee training. Many times, these fees will not be included in the original quote. Before signing on, ask the PEO for documentation of all fees and read everything word for word, including footnotes, endnotes, addendums (and any other way a PEO can sneak in additional charges).

Sounds like a lot of work? It can be, but it doesn’t have to be.

My ultimate word of advice that will always stand true: Contact a PEO Broker or consultant such as ARC Consultants (of course) to do the heavy lifting for you. Because these consultants have relationships with many PEOs, they know the ins-and-outs of each PEO’s price structure, whether there are hidden fees, who offers supplementary services for free, who charges for them, and just about everything you need to know about choosing the right PEO at the best rate for you.

Want to know more information about price comparing PEOs and selecting a PEO that fits all your needs? Contact ARC Consultants today.

Should a PEO be your business’ New Year’s resolution? 7 Signs that will tell you if a PEO should be on the list

 

By: Shraga Jacobowitz

With New Year’s just past (Do we all remember Y2K pandemonium? Can you believe it was 18 years ago?), it’s time to reflect on those resolutions. For many that means personal resolutions. But believe it or not, New Year’s is also a good time for business resolutions, especially if your business is showing any of the following seven signs. And with the help of ARC, this is a resolution you can actually keep.

So what are the 7 signs you might need a PEO?

Read on and see if any sound familiar.

#1: Your administrative duties overwhelm you 

If you’re desperately searching for more hours in the day to get through your entire workload, a PEO is the ideal solution for you. A thriving, growing business translates into growing administrative duties that you may not be able to keep up with.

A competent PEO will streamline all of your administrative processes, such as overseeing payroll, new hire and termination processes, HR compliance and medical coverage for your employees. They assume the bulk of hiring and recruiting new workers, supervise employee data management and more.

This might especially apply to you if: You have multiple locations, recently underwent an expansion, or experienced a large growth surge.

#2: You’re not 100% certain you are compliant with regulations and laws related to your industry

Running a lawful business has never been more complicated. New rules and regulations are constantly being passed, and just keeping yourself and your business updated with these laws can consume most of your time and energy.

Free up your brain space and drive for the things that really matter – like launching a new line of products or expanding your clientele beyond its current base – by outsourcing this tedious task to a PEO. They’ll do the hard work for you and ensure that your business is always fully compliant with all relevant laws.

This might especially apply to you if: Your industry is high-risk and is governed by many complicated rules and regulations.

#3: You want access to a Fortune 500 benefit employee benefit package 

Small businesses sometimes have to resort to hiring less-than-ideal candidates because they don’t have access to the handsome benefits package offered by larger firms. In an employee’s market, job-hunters can afford to be choosy and might not even give your business a chance if you can’t offer an attractive package.

By using the services of a PEO, you’ll have access to a much wider pool of benefits you’d otherwise never be able to reach. This way, you can give your employees what they really deserve.

While this is true with all employee benefits, it’s especially true with regards to medical coverage. A smaller business is often stuck with less-than-ideal coverage at ridiculously high premiums.

This might especially apply to you if: You are a smaller company but have exorbitantly high premiums and/or deductibles. 

#4: You’ve outgrown your current administrative system but don’t yet have the financial resources to build an internal HR department

Your business used to run perfectly well with its current administrative practice, but now it’s outgrown itself. You might be entertaining the thought of building an internal HR department and are wondering what this might run you in costs.

While the exact price tag varies with need, establishing an HR department is always time-consuming and relatively expensive. It can mean recruiting and hiring an HR director, using the services of a payroll company, and paying host of cost and fees that can be incurred by doing your HR in-house – all of which can total up to $200,000!

Do you stick with the system you have in place even though it’s not working too well or drop a ton of money on establishing an HR department?

You might think you’re stuck between a rock and a hard place, but there’s a simple solution: Hire a PEO! You’ll outsource all of your HR and you’ll have a greater depth and breadth of services at a reasonable price.

This might especially apply to you if: You’ve already experienced the fallout of administrative practices that aren’t sufficient for your current level of growth.

#5: You recently acquired a company

Acquiring another company is an exciting step for growing businesses and opens a plethora of new opportunities. Unfortunately, though, this process often leads to the realization that the current HR process was undermanaged or insufficient for the business’s needs. This can present a significant risk to acquirers, particularly in a stock purchase. You don’t want to end up losing out on the acquisition because of faulty administrative practices. By using a PEO, your HR will be handled efficiently and competently, removing all the employer risk inherent in an acquisition.

This might especially apply to you if: Your administrative process was already floundering prior to the acquisition. 

#6: You’ve just lost a long-time employee who handled all aspects of HR

Every business owner likes to think their best employees will stick around forever, but this is hardly true. Employees leave their places of work all the time – even ones they’ve worked in for decades. If you have an employee you depend on to manage HR, you might be lost if this worker leaves your company. It’s best to have a PEO working together with your employee so that you’re not up a creek if this key worker leaves.

If the inevitable happens and you did not employ the services of a PEO before it did, it’s not too late to start now. A PEO can swoop in and save the day when you feel like you’re completely lost without your key employee managing HR.

This might especially apply to you if: You’ve never played any part in the HR department at your business.

#7: Your industry has higher Workers Comp exposure causing higher workers comp rates and premium

Every business does it best to keep its employees safe, but understandably some work environments provide higher risk to their employees than others. When you are in an industry that has higher risks to your employees, the cost of your workers comp insurance can be quite high.

Because PEO’s are shopping for this insurance in higher quantities they can provide better rates on workers comp insurance plans. And since the company partnering with the PEO can often take on the EMR (Experience Modification Rate) of the PEO, even those companies with high EMRs can benefit from the PEOs lower rate.  In addition, PEOs can provide safety compliance guidance, improving your environment’s risk factors and your personal EMR to qualify your business for lower rates even if taking on the PEOs EMR is not an option.  So essentially a PEO can both make your business a safer place to work and save you money on workers comp insurance. Now what’s not to love about that?

This might especially apply to you if: You are in the construction or manufacturing industries which have high risk environments.

Okay, you have to admit it, at least 2 or 3 of those signs apply to you. If that’s the case, you definitely can benefit from a PEO.

Still not convinced? Contact ARC Consultants today so that they can determine if a PEO is right for you and if so, which PEO is the right partner for your exact business! Now, that’s something to cheer about! Happy New Year to all!  Wishing you a stress-less and successful new year.

The IRS has given their stamp of approval to PEOs; What does that mean for your business?

By Shraga Jacobowitz

Earlier this month, the IRS released a new standard for PEOs — the ability to become a CPEO, or a Certified PEO. With the conferring of this new, coveted title on a handful of existing PEOs, the IRS has given their stamp of approval, acknowledging that these PEOs have met specific standards set forth by the US government. Ok, this is so HUGE, it’s worthy of being repeated – the IRS is giving their STAMP OF APPROVAL to PEOs!

Why am I so excited about this news? Well for one, having the IRS certify select PEOs lends the entire PEO industry credibility. By certifying PEOs the IRS is acknowledging that there is legitimacy to the PEO business model, and that this not some “back alley” concept that is skirting around the law to manage your business’ employee related tasks, obtaining competitive employee benefits, WC insurance and administer payroll taxes and compliance.  Instead, the IRS is essentially saying PEOs are a valid and reasonable method to obtain these items and services for your business. Something I’ve been saying all along, but it’s always nice to be backed up by one of the biggest government agencies in the USA.

In addition, having the IRS’s stamp of approval also ensures that these CPEO’s are secure and trustworthy. In fact, to ensure this security for PEO clients, PEOs that wish to become certified, must go through the following processes:

  • Annual Financial Audits
  • Quarterly assertions and CPA confirmation regarding payment of all employment taxes.
  • A third party surety bond of a minimum $50,000 or for an amount equal to 5% of the federal employment tax liabilities for the prior year.
  • Background checks of PEO and controlling persons at the PEO
  • Present a client service agreement that meets certain IRS standards.

But that’s not all! Besides the newfound security CPEOs will bring to this industry, this news carries with it tax implications for those looking to join or switch PEOs midyear. In the past, a midyear transition often resulted in a restart on your payroll tax calculation. That’s because in the past the IRS didn’t recognize the PEO as a continuation of your current employment status, but rather that all your employees were now employed by another entity; the PEO.

CPEOs now have clear authority to collect and remit federal employment taxes (Social Security, Medicare, Federal Unemployment Taxes, etc.) for the worksite employees and to do so under the EIN of the CPEO. In addition, because the IRS now recognizes the CPEO as a successor employer, a business joining or switching to a PEO midyear will not have their FICA and FUTA wage bases reset. But before you run out to switch midyear, be aware that while this will affect your Federal taxes positively, it will have zero impact on how your state taxes are calculated, and therefore, the state tax implications of signing up for or switching your PEO must still be taken into account.

In added good news, being part of CPEO ensures that special tax credit programs designed for small business clients will still be awarded to clients of the CPEO.  This means that your small business will still be viewed as a small business, and will not be denied these tax credits just because you are part of a larger PEO organization.

However, the final cherry on this CPEO cake is that having PEOs certified by the IRS, can help to take some of the guesswork out of choosing a qualified PEO. I repeat can, not will, because while having certified PEOs may be helpful, it is important to realize that not necessarily  are they the end all in determining what is the best PEO for you.

Firstly, there are many factors in determining the best PEO, and not necessarily will a CPEO meet your specific business’ needs. Secondly, the PEO industry has had in place already for many years means of keeping tabs on PEOs, ensuring that PEO customers are completely protected and that PEOs are meeting the needs of clients. So even before this news was announced, businesses joining a PEO had other assurances that they were working with either an accredited or at least privately audited PEO.

In fact, the Employer Services Assurance Corporation (ESAC) has been doing exactly that since 1995! ESAC provides accreditation and financial assurance programs for the PEO industry. Their process verifies the PEOs’ ongoing financial solvency and compliance with government regulations and important industry standards. Even more so, ESAC gives more security through underlying surety bonds held on behalf of each ESAC accredited PEO, plus a $15 million excess bond covering all program participants.

But even those PEOs that are neither certified by the IRS nor accredited by ESAC, are often vetted or audited by third parties or privately owned by investment firms, and therefore can be just as reliable, if not more so than a CPEO or ESAC.

After all, becoming a CPEO is a voluntary choice made by the individual PEOs, not a mandatory obligation. Which means while being a CPEO says a lot about that PEO, i.e., there is a standard you must uphold to be certified, (according to the IRS website, “To become and remain certified under the CPEO program, CPEOs must meet tax status, background, experience, business location, financial reporting, bonding and other requirements described in the statute and regulations”), it does not say anything about those organizations that are “just plain old simple” PEOs.

Which begs the question…

What really is the most important letter in this industry? The “C” or the “P”?  What is really more important to your business, the certification, i.e., the “C” or the professionalism, i.e., the “P”?

And even more so, what does the presence of CPEOs on the market mean to you? To your business? To the industry? To us as a PEO consulting firm?

But finally and most importantly, which option is really the best choice for you? A CPEO, PEO, ESAC, or some other combination of letters that we haven’t even heard of yet?

Well, I can’t give away all my secrets in one breath. Sorry, but for that answer you’ll just have to give us a call….after all having someone to help you navigate through the alphabet sea of PEOs, CPEOs, ESACs is exactly why using a PEO consultant is so important.

To find out if your PEO is the right fit for your business, or if you should sign up for a PEO, click here or contact one of the ARC Consultants today.

The Popularity of PEO’s: It’s history, growth and effect on your business.

By: Shraga Jacobowitz

A recent survey conducted by the National Association of Professional Employer Organizations (NAPEO) this past February has some not so surprising results.  Well, not surprising to anyone who is currently working for, with, or partnered with a PEO.  The survey revealed that the PEO industry is experiencing continued growth across all areas including: revenue, gross profits, operating income, average number of worksite employees, and average number of clients.  What these survey results all boil down to is one simple fact: PEOs are becoming increasingly more popular and an increasingly more common way for businesses to provide their employees with the best HR, benefit, and insurance packages.

Of the 71 PEO executives who took part in the survey, a whopping 99% are optimistic about the prospects for strong industry growth in 2017.  We assume that the remaining 1% were just having a bad day the day of the survey.  The remaining executives all agree that more and more businesses are recognizing the value of a PEO, creating a bright future for the PEO industry.

So why are PEOs becoming so popular? And more importantly, what does all this mean for your business?

Unbelievably enough, the concept of PEOs has been around since the 1960’s, then known as Employee Leasing Firms. The industry was established as a way to help companies cope with the rising costs of workers’ compensation coverage.  However, it was not until the 1980’s when regulatory laws were increased and businesses were forced to deal with even more complex legal red tape than ever, that PEOs really began to gain popularity.

A PEO firm can handle payroll, and even assist with the hiring, training, and firing of employees. With a PEO, the employer is no longer left to deal with such tedious tasks as onboarding new hires, handling all the necessary paperwork, providing employment information, conducting performance reviews, managing expenses, recruiting, conflict resolution, providing substance abuse services, conducting company policy review, dealing with OSHA and EEOC and I-9 requirements…and the list goes on and on.  Plus, a PEO allows companies to offer insurance and benefit packages that rival those of bigger companies. With a PEO, it’s no longer only the bigger fish that get the bigger benefit package.

PEOs basically take on the tasks that are too time consuming, expensive, and complicated to handle in-house, so that your time is freed up to grow your business, allowing you to save money. But even better, with a PEO, less mistakes occur, allowing you to build a better company with better employees and better incentive packages to retain employees.

But PEOs do a lot more for business owners than rescue them from HR and red tape purgatory. Since the PEO’s job is to stay on top of business regulatory laws, including all those new ones that seem to endlessly pop up, a business that partners with a PEO is more likely to always be compliant. A PEO also helps their clients navigate the hundreds of regulations and labor laws that are applicable to their specific industry, undertakes audits to determine if the company is in violation of any laws, and then helps their client address any issues they may have.

And as any business owner understands, better compliance means fewer penalties and fines, saving businesses time, money, and frustration, while increasing employee contentment, productivity, and as a result, the company’s bottom-line.

In recent years, PEOs have begun including even more sophisticated services, such as employee screening and training, safety training and audits, lawsuit protection, processing payment of premiums, certificates of insurance and injury claims, giving businesses further reason to partner with a PEO. With workplace lawsuits and increasingly complicated government regulations becoming more and more common, it’s no wonder that the idea of using a PEO to handle these tasks have also becoming more and more common.

So as I stated at the start of this article, the results of the recent NAPEO survey are not very shocking.  PEOs are definitely becoming the standard way of business for many smart businesses. The only question remains is: Is your business one of them?

To find out more about how a PEO can help your business or if you are getting the most out of your PEO partnership, click here or contact one of our PEO consultants today.