Professional Employer Organization and HR Outsourcing News, Articles and Commentary

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Listing Date	Article Link	Article Review / Excerpt	Reader Comments
8/15/2010	University of Louisville Nucleus Hires a PEO Source: The Lane Report	University of Louisville Kentucky created an economic development entity called Nucleus to leverage the innovations in Life Sciences into the marketplace. Nucleus recognized the value provided by a Professional Employer Organization and has partnered with a PEO to provide their startup with a full suite of HR services. UofL Nucleus has also developed relationships with a number of entities to provide services needed by start-up companies. For instance, UofL Nucleus has entered into a contract with a professional employer organization (PEO) that can provide the full compendium of benefits to a start-up company, including healthcare benefits, as if the small company was a large employer. The PEO also offers back-of-the-office type services such as employment manuals and legal services.	Post the first comment about: University of Louisville Nucleus Hires a PEO
8/11/2010	Should You Outsource your HR? Source: Fast Casual	A tax advisor in the restaurant and hospitality industry provides some guidance for business owners about outsourcing their Human Resource tasks by engaging a Professional Employer Organization. One area of outsourcing that is becoming increasingly popular is the human resources administration function, through the use of a professional employer organization, or PEO. Sometimes referred to as an employee leasing company, a PEO enables you to outsource the human resource management functions, including payroll, employee benefits, record keeping, and workers compensation coverage. However, before deciding to outsource that important function, the restaurant owner must fully consider the benefits and risks of such an arrangement.	Post the first comment about: Should You Outsource your HR?
8/7/2010	More Profitable Than Ever Source: Architectural Record	A New York City architecture and engineering firm gets serious about cutting costs and discovers a PEO can provide cost effective solutions for reducing HR and insurance costs. We started by looking at our insurance and benefits," says Carpenter. "As a small firm, we simply didn't have enough people to get good health-insurance rates. We joined a professional employer organization (PEO). It takes care of payroll, benefits, and insurance." One of the advantages for both the firm and employees (who are technically coemployed by the Meltzer/Mandl and ADP) is that they can receive health insurance at far less cost than they could as a small group. Costs for both the employees and the firm, which pays half of the employees' health-insurance costs, have gone down by half. "Our employees are able to get much better insurance than we could offer them." The PEO also carries the firm's workers' compensation insurance, which in the past had been a major expense.	Post the first comment about: More Profitable Than Ever
8/5/2010	The Healing Game Source: Colorado Biz	A PEO executive warns against playing games with employees to circumvent health reform rules for companies with over 50 employees. And larger businesses are creating ways to reap the under-50 rewards, Regalado said. "People are getting very clever about it," he said, referring to talk of firing and hiring back staff. For instance: Maybe a 70-employee company will fire 25 staff members and hire the workers back through an employment staffing company or a Professional Employer Organization, he said. Between the fact that legitimate PEOs "don't play that game," and that the government is sure to rapidly respond to such ploys, Greg Hammond advises scheming businesses to reconsider. The hire-and-fire ploy has been played out before with COBRA, the Consolidated Omnibus Budget Reconciliation Act, which requires companies of 20 or more to offer extended health care coverage in certain circumstances. A provision was written into the Internal Revenue Code to prevent such circumvention. "That doesn't work. Those employees are still working for you," said Hammond, the chief legal officer for TriNet, a large PEO.	Post the first comment about: The Healing Game
6/21/2010	Health Insurance Renewal Decisions - Plan "grandfathering" Complicates Things Source: StaffMarket	With the new health care rules, companies that keep their existing health plans will be exempt from some of the legal requirements, such as providing yearly physical exams and other benefits that may add up to higher costs starting in 2014. Companies forfeit "grandfathered" status if they change their health plans.	Post the first comment about: Health Insurance Renewal Decisions - Plan "grandfathering" Complicates Things
5/26/2010	Hawaii Passes PEO Legislation Source: StaffMarket	In May of 2010 the State of Hawaii passed legislation - SB1062 that impacts PEOs operating in Hawaii	Post the first comment about: Hawaii Passes PEO Legislation
5/20/2010	Health Care Law will limit job growth Source: Cape Cod Times	Massachusetts business owners and CPAs discuss impacts of state and federal health care credits and laws on their business plans. It's hard to say how these time-consuming new calculations and credits will affect job creation, with the possible exception of government workers and accountants. Fifteen years ago, the average number of employees in a small business was 17; now it's 10. But recently, a "Cape Cod Commission" effect has come into play with more businesses choosing to stay at nine employees to avoid triggering all these expenses, reporting and paperwork, and simply leasing workers if more help is needed. It's worth noting that many employee leasing companies simply choose to pay the penalty rather than try to comply with the government reporting requirements.	Post the first comment about: Health Care Law will limit job growth
5/16/2010	Employers At Risk For Discrimination Suits Source: The Oklahoman	Article discusses the changing landscape of state and federal employment laws for businesses in Oklahoma. Violation of the law's intact provisions can have dire consequences, said Sandi Ransom, director of human resources at Accord Human Resources, an Oklahoma City-based company that provides businesses nationwide with outsourced HR solutions. "You could be convicted of a felony for driving a truck (of undocumented workers) to a work site, or even driving a friend to lunch," Ransom said.	Latest Comment: - 5/25/2010 Accord PEO Read All 1 Comments about: Employers At Risk For Discrimination Suits
4/18/2010	Capitol Hill Efforts Support PEOs on Health Care Reform Act Source: StaffMarket	Questions surrounding the impact of the Health Care Reform Act on Professional Employer Organizations (PEOs) and PEO clients took a positive step on March 30, 2010 when Senator Nelson of Florida discussed the value provided by PEOs to small business throughout the USA and the intent of the legislation to not penalize employers from joining a PEO and thus exposing themselves to the regulatory demands of larger employers.	Post the first comment about: Capitol Hill Efforts Support PEOs on Health Care Reform Act
3/14/2010	Wisconsin PEO Legislation Source: State of Wisconsin	The State of Wisconsin has moved to revise the regulatory requirements for Professional Employer Organizations operating in the state. After approval, the new rules allow PEOs with less than 50 worksite employees to register with the state as "small operations" and removes the requirement of the PEO to provide financial statements to the department. In addition the state will maintain and publish a list of all PEO and PEGs (2 or more PEOs). Other provisions specify that all state taxes, assessments or benefits required by the state must be paid by the PEO client. This bill provides that the employees of a PEO or PEG who are providing services for the client will also be considered the employees of the client for the purposes of determining the value of any tax credits or economic development incentives that may be provided by a local governmental unit to a client who provides employment.	Post the first comment about: Wisconsin PEO Legislation
3/12/2010	Nebraska PEO Legislation Source: StaffMarket	Nebraska moves forward with PEO legislation.	Post the first comment about: Nebraska PEO Legislation
3/5/2010	Background Checking - Burden of Proof is coming Source: WorkForce	Employers who use background check information as criteria for hiring decisions may be forced to demonstrate relevance for the job. New EEOC regulations demanding an evidence-based approach to screening may help hone more effective hiring practices and provide a safe harbor from negligent-hiring lawsuits. The criminal screening process now in place at many companies may be an expedient method for culling candidates, but employers with hiring bars may soon have to rely more on proven methods for mitigating risk: job-specific hiring policies, proper supervision and effective performance management.	Latest Comment: - 3/4/2010 Background Checks and Burden o Read All 1 Comments about: Background Checking - Burden of Proof is coming
1/28/2010	State of Ohio moves forward with PEO Legislation Source: State of Ohio	The State of Ohio has moved forward to consider legislation regarding the operation of Professional Employer Organizations operating in Ohio. Included in the bill are provisions for PEOs to be the employer of record for Unemployment Insurance and to use subaccounts for client level tracking. Also included were provisions for benefit plan sponsorships and clarification of workers' compensation classifications. (1) A professional employer organization shall not be liable for the acts, errors, and omissions of a client employer or a shared employee when those acts, errors, and omissions occur under the direction and control of the client employer. (2) A client employer shall not be liable for the acts, errors, and omissions of a professional employer organization or a shared employee when those acts, errors, and omissions occur under the direction and control of the professional employer organization. (D) Nothing in divisions (B) and (C) of this section shall be construed to limit any liability or obligation specifically agreed to in the professional employer organization agreement.	Post the first comment about: State of Ohio moves forward with PEO Legislation
1/21/2010	State of New Hampshire changes stance on PEO Sponsored Group Health Insurance Plans Source: State of New Hampshire	The State of NH insurance commissioner has changed his stance on the authorization of PEOs to offer clients in New Hampshire access to their group health plans.	Post the first comment about: State of New Hampshire changes stance on PEO Sponsored Group Health Insurance Plans
1/19/2010	State of Nebraska introduces PEO legislation Source: State of Nebraska	Some issues remain for Nebraska legislators to review prior to approval of this PEO legislation.	Post the first comment about: State of Nebraska introduces PEO legislation
12/28/2009	Florida moves to amend UI reporting for Employee Leasing Companies Source: State Of Florida	The State of Florida Senate bill S1062 will require employee leasing companies and Professional Employer Organizations to report employment related data on their clients to the Labor Market Statistics Center within the Agency for Workforce Innovation on a quarterly basis. The motivation for the collection of this information is more accurate information about the employment in various industries and a better understanding of the impacts on the state unemployment insurance compensation funding contributions. "Employee leasing company" means an employing unit that has a valid and active license under chapter 468 and that maintains the records required by s. 443.171(5) and, in addition, is responsible for producing quarterly reports concerning the clients of the employee leasing company and the internal staff of the employee leasing company.	Post the first comment about: Florida moves to amend UI reporting for Employee Leasing Companies
11/18/2009	TriNet Reports Strong Third Quarter 2009 Revenue Source: Bradenton Herald	TriNet reports that revenues doubled since the acquisition of Bradenton based Gevity in the summner of 2009. TriNet has added 350 small business clients since it acquired Gevity. Of those, 212 clients were recruited in the third quarter. TriNet’s client base is now about 8,000 small businesses, which have a combined 130,000 employees.	Latest Comment: - 11/18/2009 Why have revenues only doubled Read All 1 Comments about: TriNet Reports Strong Third Quarter 2009 Revenue
11/18/2009	Florida Employers Face Large Increase in Unemployment Taxes Source: Tampa Bay Times	Florida's high and climbing rate of claims for unemployment insurance has caused the state Department of Revenue to increase the minimum and maximum rates for employers must pay for SUTA. In addition to the rate schedule changes, the state is increasing the wage base used to calculate the tax, increasing it from $7,000 to $8,500 dollars for every Florida employee. In Florida SUTA taxes are paid wholly by the employer. Get the 2010 Florida SUTA tax rates facts sheet. Notices of businesses' individual rates will be distributed in November and December, effective for wages paid on or after Jan. 1. The increases are needed to replenish the state's trust fund used to pay unemployment insurance benefits. Under state law, if the fund falls below 4 percent of the total taxable payroll in the most recent fiscal year, it automatically triggers an adjustment in unemployment tax rates.	Latest Comment: - 11/18/2009 This is just wrong Read All 1 Comments about: Florida Employers Face Large Increase in Unemployment Taxes
11/17/2009	Frank Crum Signs Deal with Tampa Bay Lightning Source: Tampabay.com	Longtime Lightning fan Frank Crum increases sponsorship and human resources services to the Tampa Bay Lightning hockey team. As part of the contract announced Tuesday, FrankCrum will provide other services to the Lightning such as employment tax expertise and unemployment claims management. It also will be the team's exclusive provider of staffing services.	Latest Comment: - 11/18/2009 Nice! Read All 1 Comments about: Frank Crum Signs Deal with Tampa Bay Lightning
11/3/2009	North Carolina Work Comp Premiums to drop 9.6% Source: Charlotte Business Journal	The State of North Carolina has negotiated a deal with the NC rate bureau that will lower overall work comp premiums for NC companies by $100 million.	Post the first comment about: North Carolina Work Comp Premiums to drop 9.6%
11/2/2009	State of Texas Proposes Updates to Staff Leasing Regulations Source: State of Texas	Texas is considering amending the law regarding employee leasing companies requirements for "net worth" of the PEO to "working capital" among other changes. Proposed rule 72.40 details the proof of net worth requirements for staff leasing services companies, which are set out in general terms in the statute and which are critical for ensuring the performance of the companies’ obligations to their clients and assigned employees. The proposed rules explain the options for demonstrating net worth that are available to staff leasing services companies. They detail the general requirements that are applicable to all options and the specific requirements that accompany each option.	Post the first comment about: State of Texas Proposes Updates to Staff Leasing Regulations
10/29/2009	Alphastaff Acquires Selective HR Solutions Source: PR Inside	Selective HR Solutions of Sarasota, Florida has been acquired by Alphastaff Inc of Ft. Lauderdale, Florida. Selective HR Solutions has been part of Selective Insurance with Headquarters on Branchville, New Jersey. According to the press release an estimated 20K worksite employees of Selective HR will be affected by the acquisition and the number of client companies affected was not disclosed. Selective HR has been marketed through their network of Selective insurance agents and the acquisition is being billed as a way for Alphastaff to expand their agent network as well as increase their client count. Alphastaff has committed to maintaining Selective HR's pricing with the affected clients, however the transition planning for clients to move from Selective HR's payroll and PEO platforms to Alphastaff was not disclosed. Starkman noted that a key factor in the deal was the vast potential to increase sales by offering AlphaStaff’s robust product and commission structure to Selective Insurance’s over 900 agents. AlphaStaff will be the only PEO partnering with the insurance subsidiaries of Selective Insurance Group, Inc. for workers compensation insurance pursuant to the terms of the agreement.	Post the first comment about: Alphastaff Acquires Selective HR Solutions
10/2/2009	Vetting E-Verify Source: QDR Magazine	Problems for employers are discussed when social security numbers provided by employees do not match the IRS records and what E-Verify means for employers. Also of concern for quick-service analysts are the added time, cost, and security liabilities E-Verify might bring. Elizabeth Murray is vice president of human resources and chief legal officer for professional employer organization Modern Business Associates. Several of her clients are quick-service owners seeking help in setting up E-Verify for their businesses. Murray says making E-Verify mandatory could place a technological and financial burden on many quick-service businesses that they are not prepared to handle. “A quick-service restaurant that does not have the needed equipment and space, or that does not have back-office support, could find compliance with E-Verify to be difficult and potentially costly,” Murray says.	Post the first comment about: Vetting E-Verify
9/29/2009	Colorado Amends UI Laws Regarding Employee Leasing Source: Commerce Clearing House	Brief on SUTA rules for PEO and employee leasing companies in Colorado. The Act now requires employee leasing companies to notify the Division as to whether the company elects to report and pay unemployment insurance taxes as the employing unit or whether it elects to report taxes attributable to employees under the respective accounts and rates for each work site employer. Employee leasing companies electing to report and pay unemployment insurance taxes as the employing unit under its own unemployment accounts and tax rates are permitted to change the election one time after the initial election by notifying the Division no later than the end of the current calendar quarter. An employee leasing company's election to pay unemployment taxes under the respective unemployment accounts and tax rates of the work site employer is final and may not be reversed.	Post the first comment about: Colorado Amends UI Laws Regarding Employee Leasing
9/29/2009	Employee Leasing Rules Eased in New Hampshire Source: New Hampshire Business Review	New law allows PEO Client Service Agreements to specify which party is responsbile for violations of state labor laws. New Hampshire PEO clients should check their CSA for definition of liability. The new law also allows leasing companies to get two workers' compensation carriers, which should give them more flexibility in which occupations to place their workers. The bill does require leasing companies to file audited financial statements with the state.	Post the first comment about: Employee Leasing Rules Eased in New Hampshire
9/28/2009	Employee Engagement and Transparency Key For HR Professionals Source: The Business Ledger - Chicago	Review by HR experts of the coming changes in the areas of employment laws affecting small and medium sized businesses. Also discusses a new business survey that states that over a three year period the number of businesses that used outsourcing to deal with regulatory compliance has increased from 46 percent to 70 percent. Progressive legislation has created a host of new laws that have complicated the work of HR professionals, said Ross I. Molho, partner in the Wheaton law firm of Clingen, Callow & McLean. “We have a tougher Americans with Disabilities Act and new FMLA regulations,” he said. We have proposals before congress for Paid Family Leave Act. We’ve got something called the Healthy Families Act, which provides for seven paid sick days from employers with 15 employees or more. “The Working Families Flexibility Act includes a statutory right for employees to request a change of schedule. There are various vigorous immigration and customs enforcement laws. Finally we have the Arbitration and Fairness Acts which, for those of you who draft employment contracts, might preclude you from arbitrating in employment disputes.	Post the first comment about: Employee Engagement and Transparency Key For HR Professionals
9/20/2009	Ohio Moves Forward With Legislative Clarity for PEOs Source: State of Ohio	Ohio clarifies the ability of PEO clients to retain all applicable tax credits. For purposes of determining tax credits and other economic incentives that are provided by this state or any political subdivision and based on employment, shared employees under a professional employer organization agreement shall be considered employees solely of the client employer. A client employer shall be entitled to the benefit of any tax credit, economic incentive, or similar benefit arising as the result of the client employer's employment of shared employees. If the grant or amount of any tax credit, economic incentive, or other benefit is based on number of employees, each client employer shall be treated as employing only those shared employees coemployed by the client employer. Shared employees working for other client employers of the professional employer organization shall not be counted as employees for that purpose.	Post the first comment about: Ohio Moves Forward With Legislative Clarity for PEOs