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
5/20/2010	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
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
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
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
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
7/21/2009	PEOs Focus on employees so you can focus on members Source: ASAE	The CEO of the National Association of Dental Plans discusses the benefits they have gained by using a Professional Employer Organization. However, small associations often have difficulty finding and maintaining good health coverage at affordable rates. Through the coemployment relationship established with a PEO, an association's risk is pooled with other businesses to create stability in coverage and cost. NADP's 2009 rate increase for health coverage is less than two thirds the average rate increase for the Dallas area. PEOs also provide 401(k)s, flexible spending accounts, disability and life insurance, and a host of other benefits that you can tailor to suit your environment.	Post the first comment about: PEOs Focus on employees so you can focus on members
7/7/2009	North Carolina House Insurance Committee Endorses PEO Amendment Source: North Carolina Legislature	The North Carolina House Insurance Committee has endorsed an amendment that would allow PEOs to continue to sponsor self-funded insurance plans. In the wake of the demise of the Castleton Group, the North Carolina department of Insurance sought regulatory changes that require PEOs operating in NC to post a $500K bond and eliminated the ability of PEO to offer self-funded insurance plans. Efforts to change the prohibition on self funded plans is underway, however the new additional PEO bonding requirement appears to be a new requirement in North Carolina that will stand. A BILL TO BE ENTITLED - AN ACT TO AMEND THE NORTH CAROLINA PROFESSIONAL EMPLOYER ORGANIZATION ACT CONCERNING BONDING PROVISIONS AND MAINTENANCE OF EMPLOYEE BENEFITS, AND TO CLARIFY THE APPLICATION OF TAX CREDITS AND OTHER INCENTIVES TO PROFESSIONAL EMPLOYER ORGANIZATIONS.	Post the first comment about: North Carolina House Insurance Committee Endorses PEO Amendment
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.	Post the first comment about: 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.	Post the first comment about: North Carolina Senate moves to amend PEO regulations
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.	Post the first comment about: Outsourcing still effective in saving business funds
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.	Post the first comment about: Texas makes correct call to reject SUTA - UI strings
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.	Post the first comment about: State of New Hampshire clarifies rules for PEOs with Group Health Plans.
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.	Post the first comment about: Nebraska PEO Legislation Introduced
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.	Post the first comment about: New Jersey Family Leave Posters Now Required
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.	Latest Comment: - 11/24/2008 Remember the major medical pla Read All 1 Comments about: Employers Hurt by Swollen Health Care Costs
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.	Latest Comment: - 11/14/2008 What about product pricing? Read All 1 Comments about: 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.	Latest Comment: - 10/30/2008 Read All 2 Comments about: Agencies can offer power in numbers
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.	Post the first comment about: Payroll Issues - Knowing when to ask for help
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.	Post the first comment about: Fast Growing PEOs crucial for small businesses
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 benefits and labor laws. This alternative can dramatically reduce a company's risk of liability and substantially diminish the likelihood of a lawsuit or an audit by a governmental agency. Unlike payrolling companies, an employee leasing organization is a third-party employer. Some or all of the company's 1099ers (as well as its long-term temps, project employees, per diems and consultants) can be hired as employees of the leasing organization, which withholds taxes; makes Social Security, Medicare and unemployment payments; pays Workers' Compensation premiums; and may also provide basic medical and dental benefits and offer participation in a 401(k) plan maintained by the leasing organization.	Post the first comment about: The Risk of Using Independent Contractors
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 -- the pioneering founder of LMC Resources and a 30-year industry veteran -- and most of his staff are joining the TriNet team as part of a combined group, now positioned as an industry leader in Colorado.	Latest Comment: - 4/25/2008 Job for the LMC staff Read All 1 Comments about: LMC Resources Acquired by TriNet.
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 the right plan. That’s when they can turn to Staff Management Inc. of Rockford or Miller Buettner Employee Benefits & Communications of Winnebago.Staff Management, started more than 20 years ago by John and Fran Morrissey, is a human resources outsourcing firm. If you own a small company and would like to concentrate on the core business while leaving such tasks as payroll management, 401(k) management and health care to an outside firm, you would hire Staff Management. In this model, your employees become its employees, with the health-insurance plan it has purchased for the more than 1,000 employees under its coverage.	Post the first comment about: Valued insurance far from assured with small companies
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 last fall unveiled a group healthcare option that is administered and marketed by a third party. Advisors are guaranteed coverage from the carrier Trustmark, and LPL contributes nothing toward their premiums. Zambito says LPL considered a professional employer organization model like MyBackOffice uses, but chose the group plan for its competitive rates and ease of use. LPL's health insurance is a standalone option, unlike RJFS's offering. "The feedback has been exceptional," Zambito says. After the plan was announced last fall, 1,250 of LPL's 11,000 advisors enrolled. Prospective advisors visiting LPL are excited to learn health insurance would be available to them if they join the broker-dealer, he adds.	Post the first comment about: Take Cover
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 jobs. In terms of staff leasing, you are not just leasing any employee, you're leasing your own employee. Everything is the same, except that your employee receives paychecks and benefits from an outside firm. The employees still work for you, but all their taxes, benefits and insurance are handled by an outside source.	Post the first comment about: Professional Employer Organizations can help small companies cut costs
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 2009 revenue or income targets for this unit. In July last year, Convergys said it will provide HR administration and payroll services for Starbucks’ partners in the US and Canada, along with benefits services for Starbucks’ partners in Canada.	Post the first comment about: Starbucks and Convergys part ways
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 payroll, health insurance and workers’ compensation. The company sought to expand into the HR outsourcing business, in which clients could outsource certain services like payroll to Gevity without a co-employment relationship and without having Gevity provide health and workers’ compensation coverage. The HR outsourcing business was seen as a way for Gevity to attract larger businesses that were able to contract for health and workers’ compensation coverage on their own but still sought limited outsourcing of things like payroll as a cost-saving measure.	Post the first comment about: Gevity Changes Leadership
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 the Tampa Bay area is unusual in being home base for dozens of professional employer organizations. PEOs are employee leasing firms to which companies outsource services like payroll and health benefits.	Latest Comment: - 2/27/2008 Regions Hot Job Growth Doubted Read All 2 Comments about: Regions Hot Job Growth Doubted
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-resources staff of some duties.	Latest Comment: - 1/18/2008 Cost of business Read All 1 Comments about: Workplace Trends for 2008
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 10 businesses told the National Association of Professional Employer Organizations they would dump their health coverage next year or are unsure about it.	Post the first comment about: Human Capital Management
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 though employer-sponsored health plan premiums rose an average 7.7 percent this year. Holding the line on employees' contributions is not unusual - many companies large and small aren't contemplating raising this amount, either. Where most employers are making employees reach into their own pockets is in actual expenses at the point of service, such as higher deductibles and co-payments for medical care and prescription drugs.	Post the first comment about: Small Business survey on health benefits and government mandates
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 equipment is necessary to protect employees from job-related injuries, illnesses, and fatalities.	Post the first comment about: OSHA issues final ruling about employers cost for protective clothing
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 firing, and dealing with risk management issues, such as workers' compensation. The biggest draw to employee leasing companies is the benefit packages — such as health, dental and 401(k) — they offer.	Latest Comment: - 10/9/2007 PEO's help with health benefit Read All 1 Comments about: HR Liaisons Help Small Companies Compete
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 per employee on health care—which will go up some with universal coverage, but not much. Politicians say, ‘we’ll get the coverage in first, and we’ll worry about the costs later,’ but you’ll never be able to do the cost part later.”	Post the first comment about: Cost of Health Care System Bugs Employers
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 rose 2.2 percent over the past year, but fewer claims were filed, making a rate reduction possible, he said.	Latest Comment: - 8/30/2007 Read All 1 Comments about: Workers' Comp falls for fifth time
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, reduce vulnerability to key employee turnover and enhance the perceived value of benefits.	Latest Comment: - 8/24/2007 Not a HR professional Read All 3 Comments about: Labor laws force businesses to outsource HR
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 to the PEO and should not be subject to the general excise tax. HB 317 became Act 225 of the 2007 session.	Latest Comment: - 8/24/2007 Pass through costs Read All 1 Comments about: PEOs get a boost in Hawaii
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, and the PEO afforded our physicians and staff a much wider menu of benefits.” Evans is now executive director of finance and administration of the internal medicine department at The University of Texas Health Sciences Center in Houston. The staff there is also under a PEO beloved for its benefits.	Post the first comment about: The Bigger Picture: No more HR headaches?
6/25/2007	Professional Organizations give 'peace of mind' Source: Kansas City Star	Article talks about the value of PEOs for small and medium sized businesses. Also, because a PEO aggregates its clients’ total employee numbers, it can get a better deal on health-insurance costs, for example, and can offer more employee benefits than a small business could on its own.	Latest Comment: - 8/24/2007 PEO a tremendous help! Read All 1 Comments about: Professional Organizations give 'peace of mind'
3/13/2007	Employee Benefits and Retention Study for PEOs Source: StaffMarket	MetLife releases a study the shows that employee retention is a major reason companies want to keep a strong benefits package in place for their employees. The challenge for employers is clear: how best to use benefits as a retention tool that meets the needs of an increasingly diverse workforce, while keeping rising costs at a reasonable level.	Post the first comment about: Employee Benefits and Retention Study for PEOs
3/12/2007	Arizona considers Work Comp discount for drug testing. Source: Arizona Star	Drug testing for Arizona workers may allow insurance companies to offer discounts to employers with drug testing programs. Workers' compensation in Arizona is a no-fault system. Employees injured on the job are entitled to have their medical bills paid and a percentage of their salary, regardless of who caused the mishap. In exchange for guaranteed compensation, the workers give up the right to sue the employer for negligence. Most companies buy insurance coverage, though some larger firms are self-insured. A 1999 state law says that if a company has a drug-testing policy, an injured worker can be denied benefits for failing a drug test or refusing to take one. But two years ago the state Supreme Court ruled that law unconstitutional. The justices said the workers' compensation system — and the no-fault provision — is part of the state constitution and lawmakers are powerless to alter that.	Latest Comment: - 3/12/2007 Finding Employees Read All 1 Comments about: Arizona considers Work Comp discount for drug testing.
3/3/2007	ADP CEO identifies growth goals Source: Business Week	ADP CEO Gary Butler discusses outsourcing of administrative functions and HR self service as their biggest growth opportunities. CEO discusses the challenges and rewards for offering co-employment and bundled worker's compensation insurance, recruiting and legal advice - services offered by many PEOs. Our biggest challenge there is not the leads, but doing the proper underwriting. If I'm your co-employer and you're a bad worker's compensation risk and you've got people falling off roofs and running over people with lawnmowers, I don't want you on my worker's comp policy. If you have a tainted health care history, my suppliers of health care are not going to be interested in underwriting you on our health care policy.	Latest Comment: - 3/6/2007 Work Comp Risk Read All 1 Comments about: ADP CEO identifies growth goals
3/2/2007	IBM gets HR outsourcing deal with American Source: InfoWorld	IBM and Mercer HR Services take over HR outsourcing functions for American Airlines. Researchers at Gartner estimated that the market for HR-related business process outsourcing reached $24.6 billion in 2006, a roughly 5 percent gain over 2005. However, the research firm has also predicted that some services providers might struggle with profitability during 2007, impeding growth of the U.S. sector of the market specifically. HR remains the largest segment of the worldwide business outsourcing market at 18.7 percent, Gartner reported, with payroll and benefits administration ranking as the most popular tasks that are being farmed out to service providers.	Post the first comment about: IBM gets HR outsourcing deal with American
1/31/2007	PEOs provide human-resource, payroll services Source: Orlando Sentinel	Business columnist Harry Wessel answers a question from an employee whos' company recently hired a PEO. Question: The company where I've worked for several years recently signed an agreement with another company to take over all labor-relations activities. An "employee leasing" statement we were given to sign expressly acknowledges this new company, which I've never heard of, as a co-employer. It appears to make me an employee of the new company. The statement even says there will be a 90-day evaluation period, during which I could be dismissed for any reason, and that I could be reassigned to another job at the company's discretion. In addition to having to revert to rookie status, I'm worried that, if I sign, it will affect the benefits I've accrued, as well as unemployment benefits should I need them. Can the company legally do this?	Latest Comment: - 2/9/2007 Decent Advice Read All 1 Comments about: PEOs provide human-resource, payroll services
1/28/2007	Labor and business seek common ground on workers' comp Source: New Your Journal News	New York moves to revise workers' compensation benefits in order to reduce premium costs. New York state has some of the hightest workers' compensation insurance costs in the nation and yet also has some of the lowest benefits for injured workers. The workers' compensation program cost New York businesses $5 billion in 2004, or nearly as much as all the state's business taxes combined, Robert Ward, director of research at the business council, said in a study released last week. That staggering cost comes despite the low benefit payments and even though New Yorkers get hurt on the job 17 percent less often than the national average, he said. The maximum benefit is less than half as much as it is in some states, Ward wrote. "There's obviously a problem when employers are paying Cadillac prices and workers are getting Volkswagen benefits," said Matthew Maguire, a spokesman for the business council.	Post the first comment about: Labor and business seek common ground on workers' comp