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.
Frequently Asked Questions
What is a PEO?
What type of companies use PEOs?
What is a co-employer?
How will my business benefit from a relationship with Compensation Solutions?
Will I be giving up control of my employees?
How do employees of the business usually accept Compensation Solutions PEO?
Will my company be better able to comply with ever-increasing government regulations?
Why is Compensation Solutions better than a payroll service?
How can Compensation Solutions negotiate better rates than I can get on benefits?
How is my company’s workers’ compensation experience affected by this arrangement?
What workers’ compensation function does Compensation Solutions PEO perform?
How can I determine if one PEO’s programs are better than another’s?
How can I determine whether a PEO is a reputable and financially stable company?
How long has Compensation Solutions been in business?
What other products and services does Compensation Solutions offer?
Can any organization become a Compensation Solutions client?
How does my company get the process started?
1) What is a PEO?
A PEO, or Professional Employer Organization, is an administrative employer of record and relieves companies of many of the administrative burdens, (i.e., payroll and employee benefits management) while providing superior benefits (i.e., health care, workers’ compensation and unemployment insurance) and human resource expertise. PEO���s also handle the development and administration of employment policies and procedures; employee recruitment and disciplinary actions; record-keeping; unemployment; disability and worker’s compensation claims and administration.
2) What type of companies use PEOs?
The companies that utilize PEO services all have one thing in common. They are all looking to increase their competitiveness. With increased benefits and human resource expertise, PEOs give employers the opportunity to attract better employees and retain existing employees. Additionally, with increased human resource expertise, PEOs assist employers in labor law compliance and handle all the filing and paperwork associated with such efforts. As a result, employers are able to devote more time to their core competencies. PEO clients represent all industries, serving many types of companies across the nation.
3) What is a co-employer?
Each entity has a right to direct and control work-site employees – the PEO directs and controls work-site employees in matters involving human resource management and compliance with employment laws, and the client company directs and controls work-site employees in the production and delivery of its products and services.
4) How will my business benefit from a relationship with Compensation Solutions?
Compensation Solutions benefits your business by assuming administrative duties for all human resource functions. This means you and our employees will be able to focus more on what your business does best -- its “core competency." And Compensation Solutions will focus on what it does best -‑ processing payroll, complying with regulatory and legislative workers’ compensation and unemployment, and completing all of the necessary filing and record-keeping. Compensation Solutions also offers HR best practices for satisfying and contesting workers’ compensation and unemployment claims. In addition, Compensation Solutions provides training for safety compliance issues, supervisory training and other human resource-related topics.
5) Will I be giving up control of my employees?
No. In a co-employer relationship you never, at any time, relinquish control of your employees. What you are giving up are the countless back-office administrative and human resource tasks and headaches involved in having employees on your payroll. Think of Compensation Solutions as an off-site human resources consultant group that serves as your administrative employer only. You remain the on-site employer, in charge of every day hiring and firing and decisions that affect your company’s bottom line.
6) How do employees of the business usually accept Compensation Solutions PEO?
Once employees understand that they will be receiving better employee benefits, they readily accept the co‑employer relationship. For our clients, increased employee benefits have resulted in higher morale and decreased turnover -- another benefit to businesses contracting with a professional employer organization.
7) Will my company be better able to comply with ever-increasing government regulations?
Compensation Solutions’ specialists are focused on staying aware of regulatory issues. Our team of experts has firsthand access to the latest reports and details on employment law. Additionally, our in-house legal department analyzes how new laws may affect our clients, so we can keep them in compliance with the latest requirements. We also take responsibility for assuring that proper postings exist within the workplace so employees are informed of the appropriate procedures. Many of the latest updates are communicated to our clients through our newsletters, seminars, and on-site instruction.
8) Why is Compensation Solutions better than a payroll service?
Compensation Solutions’ services are much more comprehensive than a payroll service provider. Compensation Solutions not only administers your payroll but has numerous specialists managing your workers’ compensation, unemployment and benefits programs, as well as handling regulatory compliance, filing and record keeping, and human resources.
9) How can Compensation Solutions negotiate better rates than I can get on benefits?
As an employer of thousands, Compensation Solutions enjoys greater economies of scale when purchasing employee benefits. This not only applies to employee medical benefits (i.e. health and dental insurances) and financial benefits -- i.e. 401(k) and Section 125 --but also to workers’ compensation rates. Compensation Solutions often can negotiate better workers’ compensation rates because its claim experience is spread over a much larger number of employers.
10) How is my company’s workers’ compensation experience affected by this arrangement?
Any claims you may have while engaged in a PEO contract are the responsibility of the PEO.
11) What workers’ compensation function does Compensation Solutions PEO perform?
Your employees are covered by Compensation Solutions’s policy with each client receiving its own individual policy as required by state and federal law, so you have no prepayment of premium, finance charge, deposit, audit and punitive rate responsibilities. We provide loss control, risk management, claims management, year-end audits, employee safety programs, processing of forms, follow-up on claims and litigation, and filing of all notices and certificates of insurance. Compensation Solutions will provide updates on new legal requirements in the care of injured workers, as well as provide a managed care program.
12) How can I determine if one PEO’s programs are better than another’s?
Many PEOs are simply aggregators that deliver tax and benefit cost savings. However, successful PEOs focus on quality, superior human resource solutions and strategic alliances. Effective PEOs, like Compensation Solutions, are proactive in implementing human resource programs and in educating employers and employees on new employment laws. Although a PEO is off‑site, they should provide you with far greater services than providing advice on just hiring and firing practices and should constantly be educating staff on the effects of newly introduced employer/employee legislation.
13) How can I determine whether a PEO is a reputable and financially stable company?
No matter what PEO you consider, you should investigate its background diligently. First, check to see if the PEO is licensed or registered with the state. Certain states, like New Jersey, require PEOs to be licensed and satisfy strict reporting requirements. Second, check to see if the company is an active member of the National Association of Professional Employer Organizations (NAPEO) – an organization that works with regulatory and legislative bodies to monitor the PEO industry, as well as the New Jersey Association of PEOs. Third, ask for client and professional references. Fourth and foremost, ask for financial audits information to make certain that the PEO has paid payroll taxes and insurance premiums in a timely fashion, for its clients, over a substantial period of time. Compensation Solutions satisfies all of these requirements.
14) How long has Compensation Solutions been in business?
Compensation Solutions was founded in 1997 by a team of human resource professionals with more than 25 years experience. With over 200 Clients, the company conducts business in more than 25 states. Compensation Solutions was specifically created to service the needs of the sophisticated and demanding business owners of the New York/New Jersey metropolitan area. The breadth of our experience ensures a financially stable company with the expertise to fulfill your company’s needs.
15) What other products and services does Compensation Solutions offer?
Compensation Solutions offers a variety of products and services, which can be tailored to meet the needs of your company. These services include: Section 125 Cafeteria Plans, short and long-term disability, safety training & audits, drug testing, background checks, computer skills training, psychological profiling, executive recruitment and pre-paid legal services, as well as access to Magellan's Employee Assistance Program.
16) Can any organization become a Compensation Solutions client?
No. Compensation Solutions has strict underwriting criteria. Because our employee benefits and workers’ compensation rates are determined by our experience (the total claims experience of all our co-employer clients), we cannot and do not contract with companies which have a high disregard for safety or willfully engage in unlawful employment practices. We screen our applicants just as carefully as we would expect them to screen us.
17) How does my company get the process started?
The process begins with a human resource audit review. During this review, our Professional Employer Consultants collect data on your company’s operations, such as payroll and benefit programs, and past experiences, such as workers’ compensation and unemployment. In addition, our Consultants meet with you to learn more about your company’s human resource strengths and identify any areas for improvement. After the information gathering process, we will analyze the data and share our findings with you. Upon acceptance, a start date is determined and materials regarding your company’s new set of benefits and procedures will be prepared. Prior to your first payroll, employee enrollments will be scheduled to introduce the new program and benefits. From that point on, Compensation Solutions will administer all payroll and human resources for you. It’s that simple!