What is a PEO?
A PEO is a business entity that provides Human Resources Services, Employee Benefits, Payroll Administration, and Risk Management Services to its clients and their employees on an outsourced basis through the use of a co-employment relationship.
What is co-employment?
In a co-employment relationship, the PEO acts as the administrative employer and the client acts as the worksite employer. The employer maintains control of the business and is in charge of all business decision-making including employee supervision and staffing decisions. The PEO handles the time-consuming administrative tasks associated with the employment relationship.
What types of organizations partner with PEOs?
Companies of all sizes and industries can benefit from services provided by a PEO. Any company interested in trying to improve its performance in an increasingly competitive marketplace should consider investigating this type of partnership.
How will my company benefit from a relationship with The Mission HR?
In partnership with The Mission HR, you'll see the following impact:
Spend More Time on Core Business Activities – Eliminate unproductive HR-related tasks and spend more time on what matters: developing and retaining customers.
Increase Profitability by Lowering Expenses – Outsourcing your human resources, benefits, and payroll administrative tasks to a partner who can provide economies of scale and broad expertise lower the total cost of being an employer.
Top Tier Employer Benefits – By providing world-class Employee Benefits programs that enable you to attract and retain top talent.
Safeguard Your Business – Protect your company and ensure legal compliance with improved workers' compensation coverage, risk management, safety support, training, and claims processing services.
Does the PEO have to process my payroll?
Yes. Paying wages is a necessary function of the co-employment relationship. Without providing payroll processing, a PEO would not be able to provide the PEO-sponsored workers’ compensation, health benefits, and various other services that depend on the co-employment relationship’s existence. The good news is, the process is still really simple. Employers provide the salary and hours for each worksite employee and the PEO processes the payroll co-branded with your company name on each check and files all payroll-related taxes and reports.
Who is responsible for my payroll tax liability?
While the worksite employer is responsible for providing the funds to cover the necessary payroll and payroll taxes, the PEO administers payment of wages to employees and payment of taxes to the appropriate agencies. The PEO owns the responsibility for making sure this is done correctly, and on time.
Who is responsible for managing regulatory compliance with local and federal employment agencies?
A huge responsibility and benefit for clients in a co-employment relationships is that the PEO will provide clients with guidance, best practices, and education regarding employment laws and regulations. This is usually coupled with a library of tools, forms, and resources to help proactively prevent errors in managing compliance. Ultimately, the responsibility for complying with most of these laws lies with the client, but they are heavily mitigated by the efforts of most PEOs.
How can The Mission HR help me attract and retain great employees?
By deploying a robust and cost effective benefits strategy, The MIssion HR gives employers the opportunity to attract better employees, retain existing employees, compete on the same level as larger employers and become an employer of choice. We also provide a professional staffing solutions which provides access to professional recruiting services.
How many people are employed in a co-employment arrangement?
According to recent reports, the PEO industry co-employs approximately 3 million Americans.