We become the employer, so you can be the boss.

What Is A PEO?

What is a Professional Employer Organization (PEO)?

PEO’s enable small and mid-sized companies to cost-effectively outsource the management of their human resources.  A PEO is defined as an organization that provides an integrated and cost-effective approach to the management and administration of the human resources and employer risk of its clients.  The PEO relationship is consummated through the legal concept of co-employment.  In short, a PEO serves as a company’s off-site HR department.

A PEO offers four main services:

             1)  Payroll administration—tracking work time, deducting taxes, and issuing checks.

             2)  HR compliance—ensuring that employee procedures comply with federal and                   state laws.

             3)  Benefits administration—can include health benefits, vacation, sick leave, and                   retirement.

             4)  Risk management—primarily workers’ compensation and safety

 

How does a PEO relationship work?

When a company contracts with a PEO, a co-employment relationship is created.  The PEO assumes responsibility and liability for the employee administration functions of payroll, benefits, human resources, and risk management.  The client company still maintains control over all other employment aspects, including hiring, setting wages, supervision, etc.

 

 

 

Who are PEO clients?

The typical PEO client is a small company with 20-100 employees, although some clients may have as many as several hundred employees or as few as one.  These clients cover a wide variety of industries and professions including doctors, retailers, restaurants, construction companies, plumbers, and so on.

 

How does a company benefit from contracting with Allegiance HR Solutions?

We become the employer, so you can be the boss!  Allegiance HR Solutions provides time savings by handling routine and redundant tasks for the client company, allowing the business owner and employees to focus on revenue generating opportunities for your business and grow its bottom line.  We also provide assistance with employer compliance, helping to protect against liability and to avoid allegations resulting in costly litigation, fines and penalties.  By engaging Allegiance, you can outsource your employee related tasks to one vendor, one expert, and one PEO.

 

How does an employee benefit from a PEO relationship?

Often, a PEO arrangement is the only opportunity for workers of many small businesses to receive quality employee benefits such as health insurance, dental and vision care, life insurance, and 401(k) plans.  Without the PEO, many small businesses can neither manage nor afford these benefits.  Also, employees can expect on time and accurate paychecks.

 

Are PEO’s recognized as employers at the state and federal levels?

Yes.  Many states provide some form of specific licensing, registration, or regulation for PEOs and statutorily recognize PEOs as the employer or shared employer of worksite employees for many purposes, including workers’ compensation and state unemployment taxes.  The IRS has accepted the right of a PEO to withhold and remit federal income and unemployment taxes for worksite employees.  The IRs has specific guidelines confirming the authority of PEOs to provide retirement benefits to workers.

 

 

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