What Is a PEO Service?
“… reducing busy work on the employer’s end…”
A professional employer organization, or PEO service, allows employers to manage their employees without worrying about the fine details. Tasks like payroll, reporting and compliance are all handled by the PEO, reducing busy work on the employer’s end and ensuring the employer is compliant with all employment laws. In short, it’s like having an expert HR team without the expense that comes with having a team on staff.
How do PEO Services Work?
Co-employment
The important term when discussing PEOs is “co-employment.” This term means that the PEO acts as the employer of record for their client’s employees, but does not manage their day-to-day supervision. This service is much like leasing your employees back to yourself. PEO officially and legally employs the employees, but the company manages them.
PEO Does Not Interfere
An important note: The PEO is the employer of record, but the company still directs the employees in their day-to-day tasks. The PEO does not interfere with the company’s daily operations in any capacity.
Benefits of PEOs
The concept of PEOs emerged in the late 60s, and by the 80s, there were hundreds of PEOs operating in the U.S. Today, companies focused on growth and employee retention understand the benefits of bringing on a PEO to better manage a team of employees.
“No matter the number of employees they can always handle our payroll needs.”
– Vickie Matthews
Payroll
PEOs can manage every step of the payroll process and are flexible enough to account for specialized commissions or bonuses.
Workers Compensation
Our PEO provides workers’ compensation to all of our client’s workers. This benefit provides a critical layer of protection, particularly for employers who do not have coverage.
Benefits Management and Tracking
Accent PEO offers an attractive health, dental, and retirement benefits package and provides employees personalized help in managing their plan.
Personnel Management
Experienced PEOs often have personnel management software that makes it easy to track a variety of values.
Payroll
Ideally, a PEO should offer several payroll options, including check delivery, direct deposit (into an account the employee specifies) or offering debit cards instead. A PEO should also account for bonuses, commissions or other adjustments to an employee’s salary.
With Accent PEO, employees can update their payroll information (such as withholding changes) directly through their online portal instead of processing the change through their manager. Essential tax information and any changes are also recorded, collected and delivered to the proper institutions.
Our PEO also handles tax payments for the employer, by collecting and paying out withholding amounts, garnishments or other judgments. Doing so provides peace of mind, as major penalties can result from late, missed, or improperly filled tax administration.
Workers Compensation
A PEO provides workers’ compensation to all of the client’s workers. This benefit provides a critical layer of protection, particularly for employers who do not have coverage. The PEO, again, is the employer of record for all of the client’s employees, so the PEO has a major incentive in protecting the employer from liability.
To assist with reducing liabilities, Accent PEO develops resources materials (such as handbooks or applications) that may assist in countering grievance claims made by employees. Because we hold a vested interest in this area, we also offer safety inspections and provide consultations regarding safety regulations.
PEOs use OSHA’s regulations as the template for developing safety procedures, and this, along with workers’ compensation, will shield the employer from liability. Accent PEO also processes any claims made against the company and ensures that employees have the help they need in obtaining workers’ compensation or other benefits.
Benefits management And Tracking
Just like a PEO can offer and oversee workers’ compensation, the PEO can often provide an attractive benefits package and help employees manage it. This is especially useful for small and medium-sized businesses who are unable to provide affordable benefits.
With a superior benefits package, the employer can attract highly skilled and talented workers. A PEO offers clients and their workers tools to track benefits usage and details. Through our online platform, an employee can view a summary of benefits, make changes, add beneficiaries, and keep track of all payroll deductions.
Additionally, the employer can set up a benefits package, put together incentive programs, and create reports for further analysis, which improves benefits administration.
Personnel Management
Accent PEO performs many tasks, large and small, that allow companies to get the most out of their employees. Our specialized personnel management software makes it easy to track a variety of values, such as attendance and time, using a simple punch in and punch out system.
The system is cloud-based so employees can log in their times from anywhere. Our clients receive real-time tracking of employee attendance The software can also be used to monitor performance and set up performance goals using custom metrics.
Performance management software allows employees and companies to collaborate with each other in developing performance goals and plans, strengthening the relationship between worker and employer. The employee is given a more initiative-taking role in developing their skills and career, and the employer has tools to support and motivate their workers.