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Professional Employer Organization and HR Outsourcing News, Articles and Commentary

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Listing DateArticle LinkArticle Review / ExcerptReader Comments
6/10/2008 Contractors must verify employees' legal status

Source: El Paso Times
Effective June 10, 2008 all contractors and others who do business with the federal government must us the E-Verify system to verify an applicants right to work.
Pat Villalobos, president and owner of Barnhart/Taylor, which provides engineering, heating and ventilation, bids on government contracts and has worked on various projects at Fort Bliss. "When it comes to my employees, I keep up with their documents...
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5/28/2008 State of Colorado passes PEO and Employee Leasing Legislation

Source: State of Colorado
Colorado passes legislation that clarifies the rights and responsibilities of companies when hiring a professional employer organization. PEO and employee leasing arrangements have recognized legal status in Colorado.
EACH EMPLOYEE LEASING COMPANY SHALL PAY WAGES AND COLLECT, REPORT, AND PAY ALL PAYROLL-RELATED TAXES FROM ITS OWN ACCOUNTS FOR ALL COVERED EMPLOYEES. EACH EMPLOYEE LEASING COMPANY SHALL PAY UNEMPLOYMENT COMPENSATION INSURANCE TAXES AND PROVIDE, ...
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5/23/2008 CoAdvantage Resources Acquires Gevity ASO Clients

Source: StaffMarket
Article about the CoAdvantage - Gevity deal.
Gevity’s foray into the ASO marketplace was the brainchild of former CEO Erik Vonk who departed the company in October 2007. Mr. Vonk led the drive to acquire HRAmerica for $10M in February of 2007. At the time HRAmerica was acquired by Gevity it had...
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Latest Comment: - 5/27/2008
Back to the Basics
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5/20/2008 Most Small Business Owners Optimistic

Source: Jacksonville Business Journal
Administaff survey claims that small business owners are optimistic about growth in the coming year.
Nearly 78 percent of owners and managers of small businesses say their companies will meet or surpass growth expectations this year, according to a national survey. The Business Confidence Survey by Administaff found more than 26 percent of employers...
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Latest Comment: - 6/2/2008
New Sales VP
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5/18/2008 Tampa Bay Companies Persevere

Source: Tampabay.com
Brief article about the strengh of Tampa Bay PEOs and employee leasing companies.
Bradenton's Bealls defies the national retail chains because it knows the Florida market well. And Clearwater's Frank Crum and Holiday's Southeast Personnel Leasing are big parts of an employee leasing industry that's become densely packed in this pa...
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5/16/2008 Businesses Benefit From Training

Source: BLR
ADP TotalSource president discusses using a PEO to help implement training programs that reduce employee turnover and employer liability costs.
An alternative to in-house training programs is to work with a Professional Employee Organization (PEO). PEOs provide small- and mid-size businesses with full-service human-resource management and payroll services. A major benefit of a PEO relationsh...
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5/15/2008 Worklife Financial Plans Growth

Source: Oakland Business Review
Worklife Financial Plans PEO Growth Through Acquisitions.
WorkLife Financial Co. provides financial administration services such as payroll, tax compliance, risk management and succession planning. The company was formed in April by CEO Steve Groulx using outside investment and by acquiring a Dallas-base...
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5/15/2008 The Risk of Using Independent Contractors

Source: New York Law Journal
Misclassification penalties of independent contractors get more attention from the IRS and state agencies.
The use of a responsible employee leasing organization is a practical and viable alternative that allows 1099ers to continue to provide services to the company, yet it substantially minimizes a company's exposure to liability under the tax, employee ...
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5/5/2008 Connecticut Advances Legislation for PEOs.

Source: StaffMarket
Connecticut house bill 5113 is advanced for PEOs and Professional Employer Organizations.
Coemployment relationship" means an ongoing relationship, rather than a temporary or project-specific relationship, in which the rights, duties and obligations of an employer are allocated between a professional employer organization and a client pur...
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4/16/2008 LMC Resources Acquired by TriNet.

Source: Centerdaily.com
Longtime StaffMarket member PEO LMC Resources has been acquired by TriNet of San Leandro California. LMC has primarity served the Colorado PEO marketplace.
The newly combined operation will capitalize on the best of local service joined with TriNet's industry leading employee benefits, technology, and human resource management expertise. Customers will see a seamless transition process as Richard Lang ...
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Latest Comment: - 4/25/2008
Job for the LMC staff
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4/10/2008 California Flexible Work Week Defeated Despite Support from California Chamber of Commerce

Source: Calfornia Chamber of Commerce
Party line vote kills employer flexibility in California.
Benoit´s bill was sponsored by the California Chamber of Commerce and received a wide array of support from California´s business community, with more than 43 local Chambers signing on as co-sponsors of AB 2127. ...
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Latest Comment: - 4/16/2008
Too bad
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4/7/2008 Valued insurance far from assured with small companies

Source: Rockford Illinois Star
How small companies are creating health insurance options for their employees through self-funded plans or by joining a Professional Employer Organization.
To find the right plan, Muldowney turned the research over to Savant’s business manager, Scott Kaiser, who put together several options to choose from.Many companies, though, don’t have the luxury of one staffer with the time and expertise to find th...
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4/1/2008 Take Cover

Source: Financial Planning
How Raymond James uses a PEO to access benefit programs for their groups of independent contractors.
LPL Financial struggled for years to structure a health insurance program that would keep the distinctions clear, says Sal Zambito, senior vice president for business development. The broker-dealer put its legal counsel to work on the problem and las...
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3/19/2008 Professional Employer Organizations can help small companies cut costs

Source: San Francisco Chronical
Article covers the basics of how small companies benefit from a PEO.
Although sometimes aligned with temporary employment agencies and staff leasing firms, the organization provides a much different type of service. Unlike a temp agency, your employees are intended to be permanent and not moved around to a variety of ...
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3/10/2008 Starbucks and Convergys part ways

Source: Daily News and Analysis
Outsourcing and Offshoring are often confused. Starbucks ditches offshoring arrangement with Convergys.
Cincinnati, Ohio-based Convergys has call centre and back office operations in Gurgaon, Mumbai and Bangalore among other cities in India. The company recently said in an analyst meet that the deal termination would have no effect on its 2008 or 20...
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2/27/2008 Gevity goes back to basics

Source: Bradenton Herald
Gevity announces plans to focus on core PEO model.
Gevity deviated from its traditional role and found the venture 'disruptive and cash dilutive' ...
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Latest Comment: - 2/27/2008
Good News
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2/15/2008 DOL proposes changes to FMLA rules for PEOs

Source: StaffMarket
On February 11, 2008, the U.S. Department of Labor (DOL) published a proposed major overhaul of its FMLA regulations, including a specific amendment to the joint employer coverage regulation that will address PEO arrangements and clarifies the differences between staffing arrangements and Professional Employer Organizations.
...
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2/15/2008 St. Pete Times Commentary on Employee Leasing is misguided

Source: StaffMarket
Jim Hamilton, president of StaffMarket Services replies to St. Pete Times editor about E-Verify compliance and employee leasing.
...
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2/14/2008 Entrepreneur.com magazine article about PEOs is misguided

Source: StaffMarket
StaffMarket president Jim Hamilton replies to Entrepreneur.com business advisor.
Most PEOs also offer an ASO product and many ASO offer a PEO product. Whether a PEO or ASO makes more sense for you company depends on your current insurance, HR and administrative service needs. Companies should look at both options depending on the...
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2/13/2008 Employee Leasing Companies May Become Singularly Liable for Wages Based Taxes

Source: StaffMarket
Bush 2009 budget contains provisions that affect tax liabilities for employer wages
Standards for holding employee leasing companies solely liable for such taxes would also be provided for employment tax returns required to be filed for wages paid...
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2/12/2008 Gevity Changes Leadership

Source: Workforce Management
Article discusses changes in leadership and strategy at Gevity and their return to core PEO services.
Based in Bradenton, Florida, Gevity started out as a professional employer organization aimed at small businesses. A PEO serves as a co-employer of the client companies’ employees and takes over a wide range of human resources functions, including pa...
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2/11/2008 Regulating PEOs makes sense for Wisconsin's small businesses

Source: Wisconsin Small Business Times
Legislators in Wisconsin promote Bill that regulates PEOs
AB 760 will require PEOs serving business clients in Wisconsin to register each year with the Department of Regulation and Licensing (DORL) and meet certain requirements to operate in our state. It's revenue neutral; the fees paid by PEOs will offset...
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2/5/2008 Regions Hot Job Growth Doubted

Source: St. Petersburg Times
Article discusses how the growth of Tampa Bay Employee Leasing companies may be skewing local employment growth statistics.
As late as last year, Tampa-St. Petersburg's higher-than-average job growth earned the area honors as Forbes magazine's seventh hottest jobs market in the United States. But the accuracy of the numbers has been called into question. That's because ...
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Latest Comment: - 2/27/2008
Regions Hot Job Growth Doubted
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1/15/2008 Oasis Outsourcing Inc. acquires two Tampa Florida PEOs

Source: Sarasota Herald Tribune
Professional Employer Plans and Advantage Employer Solutions have been acquired by Oasis Outsourcing of West Palm Beach.
Oasis Outsourcing Holdings Inc., a privately held professional employer organization with an office in Sarasota, said Monday that it has acquired Professional Employer Plans Inc., Advantage Employer Solutions Inc. and related companies, which are hea...
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Latest Comment: - 1/18/2008
Oasis buys Professional Employ
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1/9/2008 Help your Business Thrive in 2008

Source: American Chronicle
Good thoughts on surviving business cycles and outsourcing non-core activities
Employee leasing is a fast growing opportunity, growing by over 20% per year. It's a way to outsource not only the employee contingent of the business, but generally the organizational aspect of employees. Most employee leasing groups handle all the ...
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Latest Comment: - 1/10/2008
Good Ideas if we have a downtu
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1/3/2008 CoAdvantage Holdings completes acquisition of Bradenton professional employer organization

Source: Orlando Sentinel
NELCO sells to Co-Advantage Holdings of Orlando.
Both CoAdvantage and Nelco, which was founded in 1983 and is one of the country's oldest professional employer organizations, have each been major companies in their field, said Milan Yager, spokesman for the National Association of Professional Empl...
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Latest Comment: - 1/3/2008
ELS - Employee Leasing Solutio
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1/1/2008 Hawaii Proposes PEO legislation

Source: Hawaii House of Representatives
Hawaii proposes bill that would require client based workers' compensation policies for PEOs operating in Hawaii. NAPEO is working to amend the bill to more closely follow the NAPEO model act.
Every professional employment organization that maintains or will be maintaining workers' compensation coverage for assigned employees shall register with the commissioner. An insurer may not issue a workers' compensation insurance policy to a profe...
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12/26/2007 Workplace Trends for 2008

Source: Kansas City Star
Article mentions that employers are gaining HR efficiencies with a PEO.
Similarly, expect more small businesses to look for ways to reduce the cost of benefits administration by turning to professional employer organizations. With PEOs, some businesses take advantage of economies of scale and relieve their human-resource...
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Latest Comment: - 1/18/2008
Cost of business
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12/26/2007 Human Capital Management

Source: The Spectrum
Brief on NAPEO assessment of health insurance costs increases.
After pay, health insurance is the most important inducement small businesses use to recruit and keep workers. Yet more than half the 365 small businesses in a recent survey said their premiums rose as much as 10 percent this year, and almost one in ...
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12/5/2007 Employee use of Internet limits needed

Source: Chicago Tribune
With holiday season in full swing, employees spend lots of time surfing.
That can sound scary to a company owner worried about work time lost to the Internet. But if you are tempted to ban personal Internet use outright, other business owners, labor lawyers and human resources professionals will advise against it. "It'...
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12/4/2007 Small Business survey on health benefits and government mandates

Source: NAPEO
PEO clients were surveyed for their thoughts on health benefits and the recent government push for coverage mandates.
The vast majority (95%) of the NAPEO survey respondents offer healthcare plans and will not raise employees' share of the cost of their health insurance plans in 2007. They will hold the line on employees' contributions toward the plan premiums, even...
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12/2/2007 OSHA issues final ruling about employers cost for protective clothing

Source: OSHA
Employers are now responsible for covering the costs of personal protective equipment (PPE) with a few exceptions for clothing that can be worn off the worksite.
Many Occupational Safety and Health Administration (OSHA) health, safety, maritime, and construction standards require employers to provide their employees with protective equipment, including personal protective equipment (PPE), when such equ...
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11/7/2007 US Citizenship and Immigration Services releases revised I9 - Employment Eligibility Verification form.

Source: USCIS
New I9 Form is in place.
The instructions for Section 1 regarding Social Security numbers were also revised. The instructions now state that an employee is not obligated to provide the Social Security Number in Section 1 of the I-9 form, unless the employer participates in t...
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10/31/2007 Cedar Hill - PEO Workers Comp administrator is sold

Source: Insurance Newsnet
Cedar Hill a large insurance administator specializing in workers' compensation programs for the PEO industry has been purchased by Arthur J. Gallagher & Co.
Cedar Hill Insurance Agency, Inc. is a retail property/casualty insurance program administrator and business process outsourcing firm. They specialize in workers compensation insurance programs for professional employer organizations and temporary s...
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10/31/2007 SOI - Strategic Outsourcing Inc. plans public offering.

Source: CNN Money
SOI plans public offering through Lehman Brothers and Credit Suisse for $86.2M.
The Charlotte, N.C.-based professional employer organization said it plans to use the proceeds from the offering to repay a portion of a term loan. ...
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10/1/2007 HR Liaisons Help Small Companies Compete

Source: IN Business Las Vegas
Article about Las Vegas businesses turning to PEOs.
With employee-leasing companies, small businesses can consolidate their workforces to better compete with corporations for employees seeking a lucrative benefits package. Leasing companies also take over the painstaking chores of payroll, hiring and ...
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Latest Comment: - 10/9/2007
PEO's help with health benefit
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10/1/2007 Frank Crum - Extreme Makeover

Source: Smart Business
FranCrum reengineers - branding and software for future growth
While rebranding the company and getting everyone working together was a major part of the process, gaining efficiencies from the newly united companies was the other part. And those efficiencies were only going to happen if people were using the sam...
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9/24/2007 Cost of Health Care System Bugs Employers

Source: Financial Week
USA employers paid over two thirds of the $694B (with a B!) total premiums for employee health insurance. Maybe they should have a say in how the system is reformed.
It’s ironic: the main reason people do not have coverage is because they can’t afford it,” she explained. “We must put in protections that control costs too. And this isn’t for the sake of large employers, who already spend an average $9,000 a year ...
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9/20/2007 West Virginia Considers PEOs and Work Comp Transition

Source: West Virginia Record
As West Virginia moves from a monopolistic to a market driven workers' compensation insurance program, legislation needs to consider hybrid employment structures like Professional Employer Organizations. Article discusses actions by NAPEO and others to ensure PEO workers comp plans are effective solutions for West Virginia employers.
He said legislators did not act on PEO proposals last year because they felt they needed more information and time. "We made some progress but they wanted to make sure we got it right," Tucker said. "We make workers comp a good line for insurers to w...
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9/7/2007 Many Employers Think Applicants Lie on Resumes

Source: The Journal Record
Survey shows that staffing problems start in the hiring process and explores ways problems can be prevented.
For that matter, don’t trust the average worker, either, results from a recent survey by the National Association of Professional Employer Organizations (NAPEO) suggest. The group, which represents companies that do human resource chores for small bu...
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Latest Comment: - 9/13/2007
Employers need to do the same.
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9/1/2007 Using PEOs to Handle Human Resources and Assist in Employment Law Compliance

Source: AICPA
Brief discussion about PEOs from the American Institute of Certified Public Accountants. Rudimentary discussion about how to research a PEO.
"We have a PEO because we are competitive, and because of the PEO we stay competitive" says John Maddox CPA. ...
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Latest Comment: - 9/18/2007
Making a choice
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8/30/2007 PEOs Stake Claim to Marketplace

Source: The Business Ledger
Chicago based PEOs and HR experts discuss the lack of awareness about Professional Employer Organizations in their area and the advantages for medium sized businesses.
"Do your homework and do a cost benefit analysis," said Mary Lynn Fayoumi, president and CEO of the Management Association of Illinois in Downers Grove. "Get multiple quotes from PEOs and make sure that you are getting a plan that is designed for you...
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Latest Comment: - 8/30/2007
Best PEO in Illinois?
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8/28/2007 Workers' Comp falls for fifth time

Source: Daytona Beach Business
Work comp rates may be dropping once again for Florida employers. NCCI is proposing a 16.5 percent rate reduction.
The latest decrease, the fifth in five years, will trim rates to just half the level in 2002, before the Legislature enacted stricter rules for paying benefits to injured workers, according to Insurance Commissioner Kevin McCarty. Costs of claims ros...
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Latest Comment: - 8/30/2007
Squeeze the lawyers and save m
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8/27/2007 StaffMarket Sponsors 2007 NAPEO Conference

Source: StaffMarket
StaffMarket again sponsors annual NAPEO conference.
This year's annual conference being held October 21-24 in Chicago, Illinois in the Sheraton Chicago Hotel and Towers. Hosted by NAPEO – the National Association of Professional Employer Organizations. StaffMarket will be sponsoring the musical entert...
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8/20/2007 DHS Issues SSN - Final Mismatch Rule

Source: DHS
The Department of Homeland Security issues the Final Mismatch Rule effective 9/14/2007. The Social Security Administration (SSA) delayed the issuance of SSN mismatch letters from 2006 W-2 returns, that now will be released in to employers across the nation. The DHS has indicated that the fines for known violations will be going up by up to 25 percent, and by the end of the 2007, it expects to mandate that federal contractors participate in the E-Verify Program.
DHS Rules for IRS - SSN Non Match letters....
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Latest Comment: - 8/24/2007
Check out this article in the
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8/9/2007 Labor laws force businesses to outsource HR

Source: Las Vegas Business Press
Las Vegas based business has $1.14M fine levied by the Labor Department Wage and Hour division for improperly recording employee work hours. PEO owner discusses how outsourcing HR tasks with a PEO can prevent these problems.
A PEO eliminates many of the employer responsibilities and liabilities, as well as eliminates non-productive administration functions. It also allows a small business to re-focus on its bottom-line activities, create predictable operating costs, redu...
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Latest Comment: - 8/24/2007
Not a HR professional
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8/7/2007 PEOs assist employers with EEV - Basic Pilot Program

Source: StaffMarket
Brief article on what Professional Employer Organizations are doing to assist business owners with the Employment Eligibility Verification Program offerd by USCIS.
Since compliance with employment law is one of the core services of a PEO, many PEOs are reviewing the rules being established by the US Citizenship and Immigration Service and various state bodies for compliance....
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8/7/2007 PEOSelect.com

Source: StaffMarket
Malicious website experience
Further research show that address listed as the office for peoselect.com is also the address for many business that appear to be using the address as a business front. A Google search of their address shows 10 pages of business all using the same ad...
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7/16/2007 PEOs get a boost in Hawaii

Source: Hawaii Reporter
Hawaii resolves general excise tax problems for PEOs.
This year after more than seven years of being debated in the legislature, a measure has passed and been signed into law that recognizes that the amount of reimbursement for wages, salaries, benefits and insurance premiums is really not gross income...
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Latest Comment: - 8/24/2007
Pass through costs
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7/9/2007 The Bigger Picture: No more HR headaches?

Source: Physicians Practice
Many medical practices are considering hiring a PEO. Some of the concerns over costs in the article are a bit overstated.
Ronald L. Evans loved the PEO he used as a manager at a nine-physician cardiology practice. “The transition to the PEO went rather smoothly for us,” he recalls. “The practice saved a considerable amount of money on group health insurance expenses, an...
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