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Professional Employer Organization and HR Outsourcing News, Articles and Commentary

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6/10/2009 Ohio legislature considers amendments to PEO laws

Source: State of Ohio
The state of Ohio moves to enact legislation that establishes financial capacities and clarify the rights of PEOs and their client companies.
A financial statement required under division (B)(7) of this section for initial registration shall be the most recent financial statement of the professional employer organization or professional employer organization group of which the professional employer organization is a member and shall not be older than thirteen months. For each registration renewal, the professional employer organization shall file the required financial statement within one hundred eighty days after the end of the professional employer organization's or professional employer organization group's fiscal year. A professional employer organization may apply to the administrator for an extension beyond that time if the professional employer organization provides the administrator with a letter from the professional employer organization's auditor stating the reason for delay and the anticipated completion date.
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Ohio legislature considers amendments to PEO laws
6/5/2009 Florida puts new reporting requirements on Professional Employer Organizations.

Source: State of Florida
Florida passes "Accurate Employment Statistics Enhancement Act" to require PEO and Employee Leasing companies to submit client level detail information to the state government for use in unemployment compensation data analysis. Known as Florida House bill HB641 and Senate bill SB1062.
The bill amends the definition of “employee leasing company” in s. 443.036(18), F.S., to include a statement that requires employee leasing companies to produce quarterly reports concerning their clients and internal staff. The new definition will require employee leasing companies to “produce quarterly reports concerning the clients of the employee leasing company and the internal staff of the employee leasing company.” Quarterly reports will provide AWI with more timely and accurate labor market statistics.
Comment about: Florida puts new reporting requirements on Professional Employer Organizations.
Latest Comment: - 6/9/2009
What about client names?
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Florida puts new reporting requirements on Professional Employer Organizations.
6/3/2009 State of Nevada approves PEO legislation

Source: State of Nevada
The state of Nevada has approved significant enhancements to PEO legislation. New provisions ensure PEOs have flexibility for providing clients with workers' compensation insurance coverage and ensures uniform financial standards for the PEO industry.
AN ACT relating to employee leasing companies; authorizing the Administrator of the Division of Industrial Relations of the Department of Business and Industry to adopt regulations relating to a third party that may act on behalf of an employee leasing company; providing various means for an employee leasing company and its clients to provide workers’ compensation coverage; requiring employee leasing companies to pay an annual registration fee; requiring employee leasing companies to submit certain audited financial statements; providing the means by which an employee of an employee leasing company may notify a supervisor of an injury for the purposes of industrial insurance; and providing other matters properly relating thereto.
Comment about: State of Nevada approves PEO legislation
Latest Comment: - 6/11/2009
PEO Legislation
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State of Nevada approves PEO legislation
5/29/2009 State of Texas upgrades PEO legislation

Source: State of Texas
The State of Texas has modified the Texas PEO statutes to include new definitions for PEO working capital requirements as well as ensure PEO clients are defined as the eligible parties for other employer based tax credits. PEOs renewing their licenses and seeking new licenses to operate in Texas will need to be compliant with the provision effective December 31, 2011.
C.S.H.B. 2249 strengthens financial standards for staff leasing services companies, establishes a superior standard for determining a staff leasing services company's liquidity, creates maximum efficiencies at TDLR for the staff leasing services company licensing process, and allows a staff leasing services company to use an approved assurance organization to act on its behalf in complying with licensing requirements. The bill clarifies that nothing in a staff leasing services arrangement affects the ability of a client company to qualify for tax credits or other economic incentives. The bill requires a staff leasing services company to provide employment information required for the administration of any tax credit, grant, or economic incentive that is based on employment.
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State of Texas upgrades PEO legislation
5/29/2009 Nebraska moves forward with PEO legislation

Source: State of Nebraska
Nebraska moves forward with proposed PEO legislation and will consider the bill (LB570) as early as January 2010.
Unless otherwise expressly agreed by the professional employer organization and the client in a professional employer agreement, the client retains the exclusive right to direct and control the covered employees as is necessary to conduct the client’s business, to discharge any of the client’s fiduciary responsibilities, or to comply with any licensure requirements applicable to the client or to the covered employees.
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5/7/2009 The Coming of Zerocare

Source: American Thinker
A Florida doctor discusses the ramifications of nationalized health care.
Throughout this, there will be an encouragement to expand primary care while restricting access to anything sophisticated or expensive. Primary and preventative care as forms of cost savings are myths, as frankly these are of little use in an aging population. We spend one third of our budget now on individuals who are in the last three months of their life with terminal incurable illness. The government has a vested interest in having the end of life take place at an earlier date once their productive years are over and they become a negative financial entity on the books for healthcare, Social Security and nursing homes.
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The Coming of Zerocare
5/6/2009 North Carolina Senate moves to amend PEO regulations

Source: State of North Carolina
The North Carolina Senate has approved an amendment to the state regulations for PEOs to be licensed in the state. The act - Senate Bill S1029 stipulates that all PEOs licensed prior to October 1, 2008 must post a $100,000 surety bond. PEOs licensed after this date must post a bond equal to five percent of the prior years total sages, benefits, work comp premiums and UI contributions up to a max $500,000.
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4/28/2009 PEOs Ease Human Resource Concerns for Small Business

Source: Nebraska Cattleman
Nebraska feedlot owners and managers discover the advantages of using a PEO.
In the case of the feedlot, the frequency and severity of workmen’s comp issues is much higher than in urban companies, as feedlot cowboys grapple with getting potloads of finished cattle into loading chutes, and ranch cowboys tangle with disagreeable cows at weaning time. Accordingly, aside from HR services, ag-related PEOs provide guidance for improving workplace safety and managing workers’ compensation claims.
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PEOs Ease Human Resource Concerns for Small Business
4/17/2009 New Hampshire Employee Leasing Law May Change

Source: State of New Hampshire
Audit requirements for employee leasing companies in New Hampshire may be improved if senate passed legislation is approved.
An employee leasing company may meet its obligation to provide workers’ compensation insurance coverage for leased employees through 2 carriers, provided that each client company’s leased employees shall be covered by only one carrier and that such coverage shall clearly delineate such client company employees by client company name and federal identification number.
Comment about: New Hampshire Employee Leasing Law May Change
Latest Comment: - 4/20/2009
NH law
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New Hampshire Employee Leasing Law May Change
4/11/2009 Outsourcing still effective in saving business funds

Source: Wisconsin Post-Crescent
New Wisconsin law makes HR outsourcing with a PEO more viable.
Not only do PEOs save businesses money and tackle HR matters, they can provide additional savings not accessible to all businesses. Because PEOs provide services to many companies, they can take advantage of economies of scale by combining all of their "employees" to obtain cheaper group rates for life, disability, health, unemployment or workers' compensation insurance and other benefits.
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Outsourcing still effective in saving business funds
4/6/2009 Outsource human resources to make time for making money

Source: Kansas City Star
Kansas City companies confirm the operating efficiencies obtained when they hire a PEO to take over non-revenue producing tasks.
"The way many small businesses survive bad economic times is to cut costs, which I refer to as saving paper clips," Milan Yager of NAPEO said. "But you can't save enough paper clips to make money. At some point, you have to increase revenues. What PEOs do is give owners their time back." The concept behind PEOs isn't new. Employers have been using outside services for payroll, insurance and other functions for years. The difference is that PEOs provide one-stop shopping for everything from payroll and risk management to employee recruitment, retention and termination.
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Outsource human resources to make time for making money
4/1/2009 Avoiding Court During a Recession

Source: Risk Management Magazine
Good advice for avoiding lawsuits for unfair employment termination.
According to the Equal Employment Opportunity Commission (EEOC), 2007 had the highest number of incoming private sector discrimination charge filings since 2002, along with the largest annual increase since the early 1990s. All this combined with the expected onslaught of age-bias lawsuits from baby boomers means that risk managers must work harder than ever to avoid employment-related lawsuits during the current recession.
Comment about: Avoiding Court During a Recession
Latest Comment: - 6/19/2009
Termination
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Avoiding Court During a Recession
3/17/2009 Texas makes correct call to reject SUTA - UI strings

Source: Texas Public Policy
Texas governor Rick Perry rejects federal unemployment insurance assistance because of long term burdens for Texas businesses. This article explores the rationale behind the governor's decision.
The fallacy promoted by advocates of these eligibility changes is that the federal funds will "pay" for several years of the expanded benefits. In fact, those dollars will be used immediately to partially shore up the UI trust fund, and employers will foot the cost of the expanded benefits from Day One. There are better options to address the projected trust fund deficit that control the level of taxes paid by Texas employers and preserve Texas' ability to manage our unemployment system as we see fit.
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Texas makes correct call to reject SUTA - UI strings
3/14/2009 Gevity - Trinet Merger Acquisition

Source: StaffMarket News
General Atlantic Partners engineers taking Gevity private through Trinet merger.
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3/13/2009 State of New Hampshire clarifies rules for PEOs with Group Health Plans.

Source: State of New Hampshire
Earlier communications from the state of New Hampshire were incorrect and were corrected in the linked memo.
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State of New Hampshire clarifies rules for PEOs with Group Health Plans.
3/9/2009 Verifying Green Cards Not So Easy

Source: Long Island Business News
New York company gets caught in grey area when applicants provide bogus work credentials.
We’re clearly moving toward more oversight,” said Dawn Davidson Drantch, director of employee relations and counsel a professional employer organization providing human resources services. Mitchell Zwaik, an immigration attorney based in Bohemia, said, “The move is toward enforcement of the rules more than toward changing the rules. The basic principle hasn’t changed.” Employers must complete I-9 forms within three days of hiring, obtaining documents showing identification and right to work. But employers have traditionally filed and forgotten these documents.
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3/2/2009 Some companies find savings in outsourced HR services

Source: Jacksonville Business Journal
PEOs can offer hard and soft dollar savings for small businesses.
The added pressures of a harsh economic climate that has forced many businesses to lay off workers and do more with less have provided little relief. But professional employer organizations, which are essentially outsourced human resources, are flourishing in this climate by offering small businesses the chance to outsource their headaches and save money at the same time.
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Some companies find savings in outsourced HR services
3/1/2009 MetLife Releases Annual Study of Employee Benefit Trends

Source: Met Life
Study demonstrates the value of employee benefit programs to their client companies.
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MetLife Releases Annual Study of Employee Benefit Trends
2/25/2009 Mass Layoffs in January 2009

Source: Bureau of Labor Statistics
The BLS reports on the industries reporting the highest number of mass layoffs initial claims in January 2009.
Professional Employer Organizations report 11,345 initial claims for January 2009.
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Mass Layoffs in January 2009
2/17/2009 ADP TotalSource Financial Results

Source: Seeking Alpha
ADP Reports 2008 fourth quarter financial results
By segment, Employer Services (ES) revenue grew 6% to $1.64 billion with 3% growth in the U.S. payroll and tax filing business and 10% growth in beyond payroll revenue. Year–to-date client retention declined 0.5 percentage points. The dollar value of new business sales declined 13% for ES and Professional Employer Organization (PEO) Services due to price sensitivity and the increased number of companies going out of business. PEO Services revenue grew 14% to $285.4 million and Dealer Services revenue decreased 1% to $342.7 million.
Comment about: ADP TotalSource Financial Results
Latest Comment: - 2/17/2009
Dollar Value?
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ADP TotalSource Financial Results
1/29/2009 Workers' Comp Rates to Rise in Florida

Source: South Florida Business Journal
Florida Workers' Compensation rates will be going up as a result of a recent Florida supreme court ruling that disallows a rate schedule for lawyers.
Florida Insurance Commissioner Kevin McCarty is expected to approve a 6.4 percent increase in Florida's workers' compensation insurance rates on April 1.
Comment about: Workers
Latest Comment: - 2/17/2009
Just great - not
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Workers' Comp Rates to Rise in Florida
1/28/2009 OSHA 300 Log Posting Requirement

Source: US Department of Labor
All employers are reminded that workplace posting of OSHA 300 logs must be audited and completed by February 1.
You must post a copy of the annual summary in each establishment in a conspicuous place or places where notices to employees are customarily posted. You must ensure that the posted annual summary is not altered, defaced or covered by other material.
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1/27/2009 New I9 effective February 2 2009

Source: US Citizenship and Immigration Service
All employers must transition to the new I9 form after February 2 2009.
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New I9 effective February 2 2009
1/22/2009 Making Ledbetter Better, or at Least Less Bad

Source: The Heritage Foundation
The Lilly Ledbetter Fair Pay Act (HR 11-S181) is being pushed through congress. All employers need to understand the ramifications for HR practices and the long term financial exposure of this legislation.
In particular, three words in the legislation that have received little attention would be particularly conducive to this sort of abuse. Rather than focusing on discriminatory pay decisions, the Ledbetter Act would include within the definition of an unlawful employment practice “a discriminatory compensation decision or other practice.” This loose language would allow trial lawyers to channel potentially all discrimination claims, no matter how tenuously related to compensation, through the Ledbetter Act, thereby evading Title VII’s and the Age Discrimination in Employment Act’s (ADEA) limitations periods entirely. In this way, nearly any alleged discrimination could be the subject of claims brought years after the fact—a recipe for abuse.
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Latest Comment: - 1/27/2009
Full employment act for lawyer
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Making Ledbetter Better, or at Least Less Bad
1/15/2009 Nebraska PEO Legislation Introduced

Source: State of Nebraska

The Legislature finds: That professional employer organizations provide a valuable service to commerce and the citizens of this state by increasing the opportunities of employers to develop cost-effective methods of satisfying their personnel requirements and providing employees with access to certain employment benefits which might otherwise not be available to them; That professional employer organizations operating in this state should be regulated by the Department of Labor; and That any allocation of the employer duties and responsibilities pursuant to the Professional Employer Organization Registration Act will preserve all rights to which covered employees would be entitled under a traditional employment relationship.
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1/15/2009 Wyoming PEO Legislation

Source: State of Wyoming

Each professional employer organization operating within this state as of July 1, 2009 shall complete its initial registration not later than one hundred eighty days after July 1, 2009. The initial registration shall be valid until one hundred eighty (180) days from the end of the professional employer organization's first fiscal year end that is more than one (1) year after July 1, 2009. Each professional employer organization not operating within this state as of July 1, 2009 shall complete its initial registration prior to commencement of operations within this state.
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1/14/2009 North Dakota Debates removing PEO Financial Requirements

Source: State of North Dakota
The state of North Dakota proposed amending existing legislation that requires professional employer organizations to provide audited financial statements as a condition of obtaining a license to operate in the state. Industry representatives are opposing the measure and it has been tabled until a subcommittee returns to the legislature with its findings.
A person may not provide, advertise, or otherwise hold itself out as providing professional employer services, unless the person is licensed under this chapter. A person engaged in the business of providing professional employer services shall obtain a license regardless of its use of the term or conducting business as a "professional employer organization", "staff leasing company", "registered staff leasing company", "employee leasing company", "administrative employer", or any other name.
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1/9/2009 State of Colorado moves forward with Employee Leasing Legislation

Source: State of Colorado
The Colorado department of Labor and Employment moves to implement PEO and employee leasing regulations for the first quarter of 2009.
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, maintain, and secure all records and documents required of work-site employers under the unemployment insurance laws of this state for covered employees. For unemployment reporting purposes, each employee leasing company is the only employing unit for covered employees and shall have the responsibility for unemployment compensation insurance as required of an employer pursuant to the "Colorado employment security act", articles 70 to 82 of this title.
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State of Colorado moves forward with Employee Leasing Legislation
1/8/2009 State of North Carolina sets PEO bond requirements

Source: State of North Carolina
Renewal application still must meet the $100K bond requirements.
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State of North Carolina sets PEO bond requirements
12/11/2008 New Jersey Family Leave Posters Now Required

Source: State of New Jersey
Starting December 18, 2008 all New Jersey employers are required to post notifications about the new provisions available to employees regarding the family leave insurance provisions that will become effective July 1, 2009. New Jersey law will require up to six weeks of Family Leave Insurance benefits.
Employers covered under the Family Leave Insurance provisions of the New Jersey Temporary Disability Benefits Law are required by law to post notification detailing program information and employee rights to New Jersey Family Leave Insurance benefits. Employers must conspicuously display the notification poster in each of your workplaces, in a place or places accessible to all employees by December 15, 2008. Employers must also provide each employee with a written copy of the notification: no later than December 15, 2008; at the time of an employee's hiring; whenever an employee notifies you that he/she is taking time off to bond with a newborn or newly adopted child or to care for a seriously ill family member; at any time, upon the first request of an employee.
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12/2/2008 Ohio Amends UI Regulations

Source: Commerce Clearing House
Ohio defines terms for SUTA - state unemployment taxes for clients using an employee leasing company.
Employee leasing. The term “unrelated third party client” is now defined as an entity unrelated to, or not sharing common ownership, management or control with, an employee leasing company, and to which individuals are provided by the employee leasing company to perform services on a permanent basis.
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Ohio Amends UI Regulations
11/21/2008 Employers Hurt by Swollen Health Care Costs

Source: Long Island Business News
The drastic rise in the costs for employer for health insurance is fueling demand for Health Savings Accounts or HSAs
Another option is an HSA, in which dollars are allocated to employees, who can roll the accounts over every year and take them with them when they leave. I have a host of clients that uses HRAs, and a host of clients that uses HSAs,” Bradley said. “Some companies prefer HRAs because they are not as cumbersome to set up, and they retain the funds, rather than returning them to employees.” But others favor the HSA for the effect it has on employees. “It encourages them to become better consumers of health care, since they’re spending their own money,” Bradley said. For instance, “if the money is coming out of their own pocket, consumers might ask doctors if they really need all three tests, or if they really need 100 pills instead of 50,” said Lou Basso, president of The Alcott Group, a Farmingdale-based professional employer organization and provider of human resources services.
Comment about: Employers Hurt by Swollen Health Care Costs
Latest Comment: - 11/24/2008
Remember the major medical pla
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Employers Hurt by Swollen Health Care Costs
11/17/2008 Florida - NCCI Proposes 18.6% Workers Comp Rate Hike

Source: Palm Beach Post
Although workers' compensation rates are expected to drop in January 2009, NCCI has proposed to hike rates shortly thereafter beginning in March and another hike later in 2009.
The schedule, a key part of the 2002 workers comp reform, capped attorneys fees that had helped make Florida's rates among the highest in the nation. Since the legislative overhaul, rates have fallen by 60 percent, and Florida is now among the lowest states in terms of workers comp rates. A representative of the Florida Chamber of Commerce said small businesses cannot tolerate an increase, and he charged trial lawyers with getting a "bailout'' as the result of the Supreme Court decision.
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Latest Comment: - 11/24/2008
Related Link
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Florida - NCCI Proposes 18.6% Workers Comp Rate Hike
11/13/2008 California State Fund files for 8.9% workers’ comp increase

Source: San Francisco Business Times
Since dropping by 63% since 2003, work comp rates in California are now on the rise, with state fund jacking rates up 8.9% for 2009.
Since increases in workers’ compensation premium rates typically hit some lines of business harder than others, the steepest increases are likely to affect businesses in areas such as construction, manufacturing, transportation and retail, which are already struggling due to the rapidly weakening U.S. and California economies.
Comment about: California State Fund files for 8.9% workers’ comp increase
Latest Comment: - 11/19/2008
Is this Good or Bad News?
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California State Fund files for 8.9% workers’ comp increase
11/6/2008 Department of Justice Provides Additional No-Match Guidance

Source: StaffMarket
The Department of Justice (DOJ) has issued new guidance confirming that an employer using the safe harbor provisions of the new Department of Homeland Security (DHS) no-match rule when letters or notices that a worker’s Social Security number does not match existing records, will not be potentially guilty of discrimination.
New rules from the DOJ help employers meet the letter of the law for hiring and avoid discrimination charges.
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Department of Justice Provides Additional No-Match Guidance
10/29/2008 Get Ready to Relearn the Americans with Diabilities Act

Source: Law.com
Beginning January 1, 2009, employers must comply with the ADAAA - Americans with Disabilities Act Amendments Act. Since originally passed (ADA) in 1990, judicial decisions have limited the scope of coverage originally intended by congress. The ADAAA legislatively broadens the responsibility and liabilities for employers. All employers need to review the new rules and ensure they are ready to be compliant.
Consequently, in the new world of the ADAAA, employers should keep records of accommodations requests made and accommodations denied or provided, along with some evidentiary back-up for the decisions made. Further, consider refresher training of human resources professionals and line managers about the ADA's requirements about the interactive process and reasonable accommodations. The ADA is about to change. Your company's managers need to be ready.
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10/2/2008 HR 7103 Introduced to Congress - tax treatment and reporting of wages paid by professional employer organizations.

Source: PEO Legislation Introduced to Congress
Also known as the small business efficiency act.
A certified professional employer organization entering into a service contract with a customer with respect to a work site employee shall be treated as a successor employer and the customer shall be treated as a predecessor employer during the term of such service contract.
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organizations.
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HR 7103 Introduced to Congress - tax treatment and reporting of wages paid by professional employer organizations.
10/1/2008 Administaff Announces Results of Business Survey and Compensation Data

Source: Business Wire
Survey of small and medium sized businesses show more caution for 2009.
The economy was listed by 81.5 percent of business owners as their biggest concern for 2009 versus 45.8 percent last year. More than 60 percent listed controlling costs as a leading concern, compared to 53.3 percent in Nov. 2007. Rising health care costs were another concern for 43.1 percent of respondents, a slight decrease from 44.6 percent in 2007. Retaining their most valued employees ranked fourth by 31.2 percent of those polled, and 28.9 percent of respondents listed hiring the right people.
Comment about: Administaff Announces Results of Business Survey and Compensation Data
Latest Comment: - 11/14/2008
What about product pricing?
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Administaff Announces Results of Business Survey and Compensation Data
9/14/2008 Agencies can offer power in numbers

Source: Florida Keys Keynoter
Companies in the Florida keys discuss the advantages of co-employment, employee leasing and PEO arrangements.
“It helps me stay more focused on what I do, and that’s construction,” he said. “They keep me more in the field and out from behind a desk. Compared to what I was spending doing payroll myself and paying workman’s compensation, I’m saving at least 30 percent going through them.” A PEO provides outsourcing of payroll, workers’ compensation, human resources and employee benefits administration. It does this by hiring a client company’s employees, and becoming their employer of record. It then leases them back under contract to the original employer. This is known as co-employment, employee leasing or staff leasing.
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Latest Comment: - 9/30/2008

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9/9/2008 Colorado amends law for employee leasing companies

Source: CCH
Colorado lawmakers formally define the co-employment relationship.
The law now defines the term “co-employer” as an employee leasing company or work-site employer. The term “co-employment relationship” is defined as one intended to be ongoing, rather than temporary or project specific, and where the rights and obligations of the employer have been allocated between the co-employers by an employee leasing contract. In addition, the employee leasing company and work-site employer are entitled to enforce only the employer rights and obligations allocated to them under the contract. The work-site employer also may enforce any right and perform any obligation not specifically allocated to the employee leasing company by the contract. The terms “covered employee” and “work-site employee” mean an individual who is in an employment relationship with an employee leasing company and work-site employer and has received notice of the co-employment.
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9/2/2008 Payroll Issues - Knowing when to ask for help

Source: Nevada Business Journal
Article reviews the ever-changing complexities of doing payroll correctly and maintaining legislative compliance.
Similarly, more companies are outsourcing to professional employer organizations (PEOs), which provide payroll, workers compensation, human resources and employee benefits administration. However, unlike a BPO, PEOs assume employer risks for their clients via co-employment. The PEO becomes the employer of record for tax and insurance purposes. This industry has evolved to where you can go from being the employer into a PEO relationship and not ever have to worry about or know these rules because the PEO handles it as a co-employer.
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9/2/2008 Fast Growing PEOs crucial for small businesses

Source: Chicago Business Ledger
Why some Chicago businesses have partnered with a PEO for HR Outsourcing services.
The process usually involves one HR professional within a PEO who is designated as a representative for a small stable of clients. When employees in any client company have HR-related questions or problems, they can directly call their representative to get the issue resolved. The value proposition for client companies is that a PEO saves time and labor costs associated with payroll and the administration of benefit plans. In addition, the client company may also be able to offer a better overall package of benefits, which is attractive to more skilled employees.This is especially helpful considering the current state of the economy. When businesses aren’t as profitable, the staff is usually the one of the first costs to be cut, said Lisa Callaway, vice president of the Management Association of Illinois, in Downers Grove.
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8/27/2008 The Upcountry Revolution

Source: Haleakala Times
How small businesses in Hawaii are increasing efficiencies by joining a PEO.
In response to the quiet economy, some businesses are adjusting their hours of operation and staffing, increasing or decreasing as needed, hoping to make it more convenient and appealing for residents to shop locally. Another shift is that businesses are using a PEO (Professional Employer Organization) to run the core functions of a small business such as payroll, insurance, and human resources. Carole Kooy, Maui Chamber of Commerce chair-elect and the owner of KilaKila Professional Employer Services says that in times of economic downturn outsourcing does become an option to alleviate some of the high costs related to owning and operating a business.
Comment about: The Upcountry Revolution
Latest Comment: - 9/30/2008
Health Coverage
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The Upcountry Revolution
7/30/2008 Gevity earnings up

Source: Bradenton Herald
Gevity earnings show improvement from focusing on core PEO product areas and reducing expenses. Challenges remain due to the Florida smal business environment.
During an earnings conference call Tuesday morning, Gevity officials said they expect to gain traction in gaining new clients, particularly since Gevity Edge Select was discontinued and the company's sales force can focus fully on the company's core business as a professional employer organization, or PEO.
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7/21/2008 Cutting the risk to Workers and the bottom line

Source: NJ Biz Journal
Article discusses the cost to employers for work related injuries and reviews OSHA tool that calculates the cost of additional sales needed to make up for impact to workers' compensation costs.
The average direct cost of a workers' compensation claim is between $5,000 and $7,000 among the clients of Gevity HR Inc a Bradenton Florida based Professional Employer Organization with and office in Edison, according to Chris Davis the firm's vice president of finance insurance. Most injuries occur when employees are doing manual labor such as lifting heavy objects.
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7/15/2008 State of Connecticut releases new legislation for Professional Employer Organizations

Source: State of Connecticut
Connecticut establishes rules for PEOs who operate in the state including registration with the state.
Professional employer organization" means any person engaged in the business of providing professional employer services, regardless of whether such person uses the term or conducts business as a professional employer organization, staff leasing company, registered staff leasing company, employee leasing company, administrative employer or any other name.
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State of Connecticut releases new legislation for Professional Employer Organizations
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," Villalobos said. "When they come work for me, I ask them for their documents, especially if they're going to be on government property. "The E-Verify system is very user-friendly," she added. "When I use employee leasing companies, the leasing companies verify (in advance) the legal status of the workers they send me. Anyone who is not ready for this will hinder their recruiting efforts, and (immigration authorities) can conduct an audit at any time."
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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, MAINTAIN, AND SECURE ALL RECORDS AND DOCUMENTS REQUIRED OF WORK-SITE EMPLOYERS UNDER THE UNEMPLOYMENT INSURANCE LAWS OF THIS STATE FOR COVERED EMPLOYEES. FOR UNEMPLOYMENT REPORTING PURPOSES, EACH EMPLOYEE LEASING COMPANY IS THE ONLY EMPLOYING UNIT FOR COVERED EMPLOYEES AND SHALL HAVE the responsibility for unemployment compensation insurance as required of an employer pursuant to the "Colorado Employment Security Act", articles 70 to 82 of this title.
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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 75 clients with 16,000 worksite employees.
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Latest Comment: - 5/27/2008
Back to the Basics
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CoAdvantage Resources Acquires Gevity ASO Clients
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 plan to increase salaries this year, while 50 percent will maintain current wage levels. Sixty-four percent said they expect overtime to remain about the same. The business confidence survey was conducted this month via Administaff Inc.'s database of more than 6,000 small and mid-sized businesses.
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Latest Comment: - 6/2/2008
New Sales VP
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