Common PEO Misconception Explained
There are many concerns when a business considers a PEO, Professional Employer Organization, as its HR partner. One of them is the fear of “losing” control over its employees. That couldn’t be further from the truth.
The business owner retains ownership of the company and control over its operations, but enters into a co-employment relationship with the PEO that it chooses. As co-employers, the PEO and client will contractually share or allocate employer responsibilities and liabilities per a written client service agreement. The PEO will only assume responsibilities associated with an employer for purposes of administration of benefits, remittance of payroll, and payroll taxes. The client will continue to have responsibility for worksite safety and compliance. The PEO will be responsible for remittance of payroll, employment taxes, and maintaining employee records. Because the PEO may also be responsible for providing access to workers’ compensation coverage, many PEOs also focus on and provide assistance with safety and compliance. In general terms, the PEO will focus on employment-related issues, and the client will be responsible for the actual business operations.
Why not think about a PEO as an option for your clients? DecisionHR is a full-service human resource outsourcing company serving small- and mid-sized businesses nationwide. We exclusively partner with agents to offer your clients options. We empower our clients with industry-leading benefits and human resources so that they can focus on what’s truly important: running their businesses, competing to win, boosting their bottom lines, and protecting their profits.