Professional Employer Organization and HR Outsourcing News, Articles and Commentary

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Listing Date	Article Link	Article Review / Excerpt	Reader Comments
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
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
4/7/2008	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
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
4/17/2007	Better Business Solutions and Ohio based Sequent merge Source: Birmingham News	Article reviews merger of Better Business Solutions based in Birmingham, Alabama and Sequent Inc. based in Columbus, Ohio. The new company will operate under the name of Better Business Solutions. The combined firm will handle 7,000 outside employees in 40 states. Such "professional employment firms" take over many personnel and payroll functions for small- and mid-sized companies. They also serve as the legal employer of record, allowing them to negotiate pooled retirement and insurance plans on behalf of the employees they represent. The large pool of workers usually means more options and better rates than small employers can negotiate individually.	Latest Comment: - 4/23/2007 Sequent - Are they in Columbus Read All 1 Comments about: Better Business Solutions and Ohio based Sequent merge
11/28/2006	Juggle No More Source: Pitney Bowes	Real life stories about companies who have partnered with a PEO. PEOs’ best-known services include payroll, health insurance (the organizations typically represent thousands of employees, so they can negotiate good rates), worker’s compensation, 401(k)s, and other benefit plans. In fact, however, those offerings only scratch the surface. PEOs also can help with management training, policy development, employee handbooks, OSHA compliance, workshops on issues such as sexual harassment and workplace safety, leadership development seminars, headhunting services, guidance for compensation plans and employee evaluations… the list goes on and on. “Most small-businesspeople probably aren’t aware of all the HR consulting services that PEOs offer,” says Monette Galello, vice president of Burlington, Massachusetts PEO Genesis Consolidated Services. “Those services can boost productivity, protect small businesses and their employees from various risks, and help small firms compete with big corporations for employees.”	Post the first comment about: Juggle No More
11/6/2006	PEOs cover ABC of human resources Source: Akron Beacon Journal	Companies take care of hiring, payroll and benefits. Most small businesses are new to the ``human resources'' or ``HR'' field. One advantage of using a professional employer organization is that they already have experienced HR pros who can handle benefits, payroll, Occupational Safety and Health Administration compliance and just about everything else you will need. By bringing employees into a larger overall group, a PEO can offer your workers benefits, such as health insurance and retirement plans, that you would be hard-pressed to deliver on your own.	Post the first comment about: PEOs cover ABC of human resources
9/5/2003	Association answers employers' questions Source: Tampa Bay Business Journal	Summary article from NAPEO about PEOs. Through the use of a PEO relationship, client companies make a long-term investment in their workers because in most cases the PEO provides access to health insurance, retirement savings plans, and other critical employee benefits for their work site employees. In the event a PEO relationship is terminated, the co-employees will cease to work for the PEO but will continue as employees of the client.	Post the first comment about: Association answers employers' questions
6/25/2003	As business grows, outside help is the in thing to get Source: NJ.com	Article about HR Outsourcing. Also known as PEOs, personnel management companies handle everything from payroll, tax filings and compliance with government regulations to hiring and firing employees in exchange for becoming co-employers of your staff for a fee. The largest PEO, Texas-based Administaff, charges about 3 percent of total payroll. CSSC, a Morristown-based regulatory compliance consulting firm serving the pharmaceutical and biotech industries, signed on with Administaff in 2001. Through the PEO, the 75-employee company has saved money and provided better health and retirement benefits to its employees, Chief Financial Officer Don Viglione says.	Post the first comment about: As business grows, outside help is the in thing to get
5/6/2003	Making benefits benefit you Source: CNN Fn	Article that describes how small business owners can offer a benefits package the competes with larger companies by joining a PEO. Small businesses often pay even more, lacking the buying power to cut competitive deals with insurance companies and pension firms. But small-company owners don't need to bang their heads against the wall. For one thing, small-business owners can enrich their benefit packages by turning their staffs over to a "professional employer organization," or PEO. Once known as "staff-leasing firms," PEOs "hire" the employees for the purposes of benefits, human resources and tax administration. In return, the employees' company pays the PEO either a percentage of payroll, or a flat fee per week for the service. Because PEOs bring lots of employees together into a single group, they can offer participating small businesses lower group-rate fees for standard benefits such as health insurance, 401(k) plans, disability, life insurance and more.	Post the first comment about: Making benefits benefit you
5/6/2003	Let a Pro handle benefits Source: CNN Fn	Article about the benefits of using a PEO. Businesses with fewer than 100 employees spend as much as 25 percent of their resources handling management and personnel matters, according to the Small Business Administration. But a fast growing industry is taking on these management hassles, while offering small business employees better benefits. Professional Employer Organizations are managers hired by small businesses to oversee payrolls, pay taxes, advise on hiring and firings and even administer health and 401-k plans. Because PEOs manage the operations of numerous companies, they get volume discounts for benefits. Those cost savings to a company can offset the expense of PEO services, averaging three to five percent of payroll. Sal Carfaro, who runs his own auto repair business, turned to a PEO after helping one of his seventeen employees get a green card two years ago. An administrative mistake in the process cost his business dearly.	Post the first comment about: Let a Pro handle benefits
5/6/2003	You do the work, they do the paperwork Source: Business Week	Article on what responsibilities get shared and what don't. Across the country, entrepreneurs and small-business owners are turning to professional employer organizations (PEOs), as companies such as San Leandro (Calif.)-based TriNet are called, to be their human-resources managers. Billing themselves as "co-employers" PEOs check references, set up 401(k) plans, and even do the dirty work of firing while generally exercising no more than a veto over key personnel decisions. More than 2.5 million workers are hired through such arrangements, up from 200,000 a decade ago, according to the National Association of Professional Employer Organizations. Most are full-time, permanent employees, not temps. For a small business, the potential benefits are obvious. Imagine if someone else screened job candidates you interviewed, and sorted through health and retirement plans--and then ran them. What small-business owner would not gladly give up scrutinizing compliance with federal and state employment laws?	Post the first comment about: You do the work, they do the paperwork
5/6/2003	How to handle the nitty gritty Source: Info USA	Quick notes on using a PEO. PEOs can give you a much-needed recruitment and retention edge over large corporations. "Small businesses need to attract the very best employees," Yager observed. "If you're not able to offer a tight benefit package, how do you stay competitive? Use a PEO." PEOs often provide the only way in which a small business owner can offer Fortune 500-caliber benefits such as retirement savings plans, life insurance, health insurance, vision and dental care, job counseling, and education reimbursement. Employee morale and job satisfaction increase with a PEO, Yager said. In addition to benefits, workers feel secure having human resource materials like employee handbooks and grievance procedures.	Post the first comment about: How to handle the nitty gritty
5/5/2003	Of checks, balances and outsourcing Source: Business Week	Article about where startup companies should spend their time. As your business grows, you may find that you lack the necessary human-resource training, knowledge of regulatory compliance, or background in safety, insurance, and employee-benefit programs to manage your growing workforce. If you don't want to hire a human resources director, you can also look into outsourcing employee management, experts say. TIME IS MONEY. Professional Employer Organizations not only do payroll and tax reporting, they also offer retirement benefits, health insurance, and worker's compensation packages geared to small-business needs. Many payroll services have value-added PEO functions that can be opted into as companies grow.	Post the first comment about: Of checks, balances and outsourcing
5/5/2003	HR efficiency without the hassles Source: Black Enterprise	Article about why people are turning to PEOs. Many small businesses are partnering with professional employer organizations (PEOs) to handle payroll, worker's compensation, and employment laws and regulations. And by signing on with a PEO, small business owners find they can get a reprieve from everyday HR duties. The PEO and the company split the employer's responsibilities. PEOs handle benefits, 401(k) plans, and labor law compliance issues. The small business is responsible for managing daily work assignments and on-site supervision, ensuring production or service delivery, and providing supplies and equipment to employees. Though state rules vary, the IRS generally considers the PEO to be the employer of record responsible for paying trust fund, income, and employment taxes.	Post the first comment about: HR efficiency without the hassles