Compensation Solutions will provide your company with a Fortune 500 or "Big Company" style integrated personnel management program.
Your employees will have access to the same human resources and benefits programs as the nation's largest companies (Employee Benefits, Direct Deposit, Workers Compensation, Staffing, etc.), while still maintaining your small to mid-sized company culture.
Overview of PEO Features
|Classic PEO||Classic PEO Detail||Considerations for your company|
|Employer of Record Responsibilities||Employer and employee taxes reported and deposited under the PEO’s FEIN.||Relief from responsibility for making tax deposits to the government or risk getting fined for incorrect withholding amounts. 940 and 941 reports are filed by the PEO. All issues with tax compliance are the PEO's responsibility. Payroll is done by the PEO. The PEO will require you to sign a Client Service Agreement (CSA) when becoming a client. This is an important document which defines each party's responsibilities in the PEO relationship.|
|Workers’ Compensation Insurance||Coverage provided under PEO’s master policy, with each client maintaining their modification rate.||Your employees are covered under the PEO's master policy and the PEO has the responsibility for managing the claims. When seeking a PEO relationship, most PEOs will want to see a history of your Workers' Compensation claims (risk underwriting). PEOs want to pool "good risk" accounts. In most states your modifier rate will follow your company. By joining a PEO your company may be able to enjoy significant discounts or get coverage that is otherwise difficult to obtain.|
|Safety & Risk Management||Claims management provided by PEO. Safety program compliance administered by PEO.||Since you are joining the PEO's master Workers' Compensation policy, the PEO has a strong financial interest in ensuring that the claims are managed. The PEO will work to ensure that the questionable claims are contested and legitimate claims are paid promptly. They will work to implement or improve safety programs in your company. If your company needs assistance with reducing your claims, quality PEOs maintain expert staff to assist you. PEOs work hard to ensure that their PEO has an attractive policy in place for all of their clients. This means that PEOs will shop insurance companies (annually) to ensure the PEO group is obtaining competitive coverage. Be sure to ask the PEO about the carrier providing the coverage and their rating.|
|Health, Dental & Vision Plans||Coverage offered under PEO's master policy or may choose to use client's policy.||Many PEOs negotiate master policies for all of their clients/employees. These policies may be Health Maintenance Organization (HMO), Preferred Provider Organization (PPO) or Point of Service (POS) policies. Options vary by PEO and by state. Most PEOs require your company to obtain a "participation rate" that is calculated by dividing the number of employees seeking coverage divided by the number of employees eligible for the plan (less people covered elsewhere, eg: under a spouse's policy). Participation requirements vary by PEO. Most PEOs will allow your company to split premium costs between your company and the employees. Companies who offer to contribute to the premium costs are more attractive to a PEO. All PEOs want to review an "employee census" that shows the age, sex and level of dependent coverage (single, family, etc.) for the group, and will work with you to ensure ERISA compliance.|
|Supplemental Benefits & Retirement Plans||Supplemental benefits offered under PEO's master policy. 401(k) provided by PEO Multiple Employer Plan (MEP) or as a Standalone Plan in client's name.||Supplemental Benefits cover a large area of services including; Life Insurance, Short Term Disability, Long Term Disability, 401(k), Flexible Spending Account (FSA), etc. PEOs often have a master policy in place that will be made available on a voluntary basis to your employees. For 401(k) plans, the rules for PEOs have changed recently, PEOs can assist your company in setting up a 401(k) plan that meets your needs and satisfies governmental regulations. Types available may include: Traditional 401(k), Simple 401(k), Safe Harbor 401(k) or Profit Sharing.|
|Human Resources||Majority of human resource (HR) services are included in PEO pricing.||PEOs vary widely in their offerings and pricing for HR services. Some services, like preparation of employee handbooks, are included while others, such as drug testing, may be provided for an additional fee. Be sure to check your CSA for details about your co-employment responsibilities. Once you are engaged with a PEO, you will be assigned a dedicated HR professional to assist with most of your HR needs. If you currently have an HR staff member, the PEO can act as an invaluable advisor. The HR services you expect should be clearly listed in the CSA.|
|Regulatory Compliance||Required to be provided by PEO in conjunction with client.||PEOs work to ensure compliance with a multitude of governmental regulatory agencies. If you do not have a dedicated HR staff member or department, the PEO will act as one. Employer rules regarding policies, procedures, employee handbooks and other regulatory issues vary from state to state. Clarifying and distributing formal policies and procedures can reduce your company's liabilities in the event of a sexual harassment suit, discrimination suit, workers compensation or unemployment claim.|