What is a PEO?
A Professional Employer Organization (PEO) provides outsourcing of HR-related services and functions through a co-employment relationship with its clients. Core services typically provided include payroll processing, employee benefits administration, workers’ compensation coverage, and worksite safety.
PEO’s allow business owners to focus on revenue generating activities instead of getting bogged down with administrative duties. It also allows small to mid-size businesses to provide their employees with benefits that are normally only available to much larger organizations.
What is a co-employment relationship?
In a co-employment relationship, the client company continues to direct the employees’ day-to-day duties and activities. However, the PEO contractually assumes certain rights, responsibilities, and risks thereby allowing the client company to focus on its core competencies.
A PEO is the “employer of record” on an employee’s W-2. As such, Regis delivers and manages employee benefits, payroll processing and tax administration, workers’ compensation, state unemployment insurance, EEOC claims, and much more.
Why Switch to a PEO?
Since a PEO can aggregate a number of small clients into a larger pool, the PEO is able to create economies of scale. The PEO then passes these advantages on to its clients who probably could not otherwise enjoy the benefits that a PEO can offer, for example, having access to world-class benefits and retirement programs. Offering these benefits allows you to compete with larger employers in attracting the best and brightest in an increasingly tight pool of talented workers.
How does Regis work with its clients in containing or reducing employer-related costs and improving profitability?
We view it as our duty to always find new ways of reducing employment related expenses thereby adding profitability to our clients’ businesses. The more ways we find to do this, the more you save and the more you profit.
How do my employees benefit from a relationship with Regis HRG?
Studies have shown that employee productivity increases when they are provided with professional human resources services, training, employee manuals, sound safety programs, and better communication.
Through our co-employment relationship we are able to offer your employees a comprehensive Health & Welfare Programs including flexible spending accounts, a section 125 cafeteria plan that allows their benefits contributions to be deducted on a pre-tax basis, quality retirement plans such as a 401(k), life insurance, disability insurance, discount programs, and many more.
How do I choose the right PEO or is one right for my business?
At Regis we realize that we may not be the right choice for every single prospect. To ensure that we have a mutually beneficial relationship with all of our clients, we do our homework and we encourage our prospects to do the same. We firmly believe in always steering you in the right direction, whether or not you become a client.
Perhaps the best place to start your research is at the National Association of Professional Employer Organizations (NAPEO). NAPEO has set forth some guidelines that all prospects should consider:
- Determine your HR and risk management needs.
- Make sure the PEO is capable of meeting your strategic goals.
- Ask for complete references – service, professional, banking, and financial – and meet the people who will serve your company.
- Carefully check the PEO’s financial background and prior record of paying payroll taxes and insurance premiums.
- Understand the PEO’s benefits offerings. How are they funded? Do the specific benefits being offered fit your employees’ needs?
- Understand how the various PEO services are delivered and the experience/qualifications of key staff, particularly in areas
such as risk management.
- Review the service agreement carefully and make sure you understand its provisions.