Understanding a PEO

Exploring the Value of a PEO

A professional employer organization (PEO) creates a co-employment relationship with its clients and undertakes many employee-related responsibilities like human resources, employee benefits, payroll, and risk management. Because the client reports its wages under the PEO’s federal employer identification number (FEIN), the client enjoys a reduction in liability and the many benefits a PEO has to offer. Outsourcing employer-related responsibilities to a PEO has quickly become an attractive option for companies in virtually any industry.

PEO Services

While not all PEOs are the same, most provide the same general services, including human resources, payroll, benefits, and risk management. A PEO should not be mistaken for an administrative services organization (ASO) or employee leasing company. The main difference between a PEO, an ASO, and employee leasing is the arrangement where the PEO absorbs most of the client company’s payroll and compliance liabilities.

Costs

The cost of PEO services is based on several factors, such as number of worksite employees and services outsourced, but can vary from provider to provider. Typically, PEOs collect payment via one of two methods:

1.
Payroll percentage:

This payment model relies on a percentage of total employer payroll dollars for each pay period, including taxes, workers’ compensation, and employment practice liability insurance (EPLI), as well as administrative fees (if applicable).

2.
Per employee per month:

This payment model does not include additional fees. For example, if a PEO charges $100 per employee per month and you have 50 employees, you will pay $5,000 per month or $60,000 per year.

Choosing a PEO

Whether you have an existing administrative service professional or department, the most common question business owners ask is why use a PEO?

Because businesses enjoy a reduction in workload, liability, and the many additional benefits a PEO has to offer. Outsourcing employer-related responsibilities to a PEO has quickly become an attractive option for companies in virtually any industry. PEOs allow business owners to focus on growing and nurturing their revenue streams and company culture rather than administrative functions.

Customizing services that fit your business model. Through Al

Through Alliance Group, you can mix and match the services you need. For example, if you need payroll services only, we can offer you a payroll specialist who will support your payroll processing. Or if you want Alliance Group to undertake most of your administrative burdens, we are equipped to do so. Not only do we offer a flexible solution for your business, we also pride ourselves on creating efficient services that streamline your operations so you can focus solely on growing your company.

Customizing services that fit your business model.

Through Alliance Group, you can mix and match the services you need. For example, if you need payroll services only, we can offer you a payroll specialist who will support your payroll processing. Or if you want Alliance Group to undertake most of your administrative burdens, we are equipped to do so. Not only do we offer a flexible solution for your business, we also pride ourselves on creating efficient services that streamline your operations so you can focus solely on growing your company.

Accessing industry expertise, tools, and resources.

Aside from providing services, Alliance Group also offers a single-system technology platform, compliance oversight, full suite of benefit options, and a team of industry experts to support you.

  • Our technology provides a single, comprehensive platform to manage your administrative tasks. From access to HR templates to payroll and tax reporting, our technology is user-friendly and built for business.
  • Through our seasoned team of professionals, we can reduce the liabilities of non-compliance, as well as implement continued education and training support.
  • Additionally, Alliance Group can provide access to Fortune 500 employee benefits to assist in competing for top talent in today’s job market.

Frequently Asked Questions (FAQs)

Workers seek financial security, quality benefits, a safe working environment, and opportunities for personal growth. When you partner with Alliance Group, your employees will feel you value them because you have hired experts to provide support that will impact them, including accurate payroll, paid time off (PTO) tracking, access to unique benefit offerings that fit various lifestyles, and technology to support a positive employee experience.  Your business will be protected by industry experts who will provide you the tools, resources, and expertise to operate more efficiently and cost-effectively. As a result, your employees will enjoy higher job satisfaction and productivity, safety, and growth.

All business owners want to focus their time and energy on profit-related functions, not compliance and/or cost-related activities. Most business owners don’t have the necessary resources to single-handedly address human resources, risk management, employee benefits, and regulatory compliance issues. Outsourcing these non-productive activities immediately makes staff more productive and accountable to the primary business objectives.

Business owners like the additional support our consultants can provide dealing with employee related issues.

Experienced staff capable of providing professional human resource services and advice. Look for a PEO with a proven, stable, established track history and the client references to back it up.

The good PEO’s have great technology but also will back that up with in person, on-site visits to your places of employment.

The old adage you “get what you pay for” can also apply to PEO Services. If your company were to hire just one HR Generalist, the costs for such a person can exceed $50,000 per year. Our clients gain the advantage of a fully staffed HR department for a fraction of the cost. The real question ought to be “Can you afford to create and staff your own HR department?”