Here are answers to some of the FAQs about Professional Employer Organizations.
Simply click on any of the links below or call us at (877) 736-2873 for more information.
General PEO FAQs
What is a professional employer organization?
A Professional Employer Organization (PEO, in short) is a company that takes care of your non-core competencies such as Payroll Administration, Compliance Management, HR Administration, Risk Management, and Benefits Administration.
With a PEO by your side, you can get better benefits for your employees at cheaper rates, retain your best employees, and focus on growing your business while not worrying about things that shouldn’t matter in the first place.
How many employees do I need to work with a PEO?
Companies of all shapes and sizes can work with a PEO.
As far as Employers-Rx is concerned, we’ve helped companies with an employee count ranging from 5 to 500 better manage their HR functions.
If I hire a PEO, will I lose control of my business?
No, you will not lose any control over your company. PEOs work with you to make it easier for you to run your business.
How do PEOs make money?
There is a generally a flat fee per employee that is charged to the company by the PEO. However, this amount is minimal compared to what you’ll save by outsourcing HR functions.
What is co-employment?
A co-employment relationship makes the PEO the ‘Employer of Record’, making the PEO responsible for all HR-related administrative functions such as Payroll Administration, Risk Management, Benefits Administration, Workers’ Compensation, etc. However, every work-related and hiring/firing decisions rest solely with the business owner.
What is employee leasing?
Employee leasing is basically a contractual arrangement that lets you hire employees, usually for short-term periods. The PEO maintains its position as the ‘Employer of Record’, and all employee responsibilities are shared between the PEO and the business owner. While the business owner handles essential management control over the leased workforce, the PEO handles HR-related administrative tasks.
How common are PEO agreements?
PEO agreements are far more common than what you might think. These systems operate in all 50 U.S. states and cover over 3 million American employees.
I’m an insurance broker. How can you help me?
Employers-Rs work with top carriers to help its partner companies get the best insurance products. So, if you are an insurance broker and wish to get your client the best insurance deal, we welcome you to get in touch with us.
Will I lose control of my employees by running payroll through a PEO?
No. By working with a PEO, you certainly will not lose control of your employees.
What kinds of reports will the PEO offer?
The PEO you partner with will offer many different types of reports, from comprehensive payroll ones to hourly reports on single employees.
What do I do if I have a question about my payroll system?
If you have a question about your payroll system, simply call your company representative or contact the PEO help desk.
Can I choose what my employees have access to and see when they log into the payroll site?
Yes, you can determine what your employees have access to and see when they log into the payroll site. You can grant or deny access at your discretion, whenever you like.
Every time I’ve tried to move payroll it’s been a pain. Why is this going to be different with you?
Because we take the effort to understand your payroll concerns, gather key information about your business, and pair your business with a PEO who will customize the payroll system to meet your specific needs. We’ll make the switching easy and convenient.
My accountant handles all of my taxes, W2’s, and quarterlies. Will the PEO handle all these or will I still need my accountant?
The PEO we help you partner with can handle your W2 and quarterly forms for you, and can even take care of your tax payment, but you still may need to keep your accountant on retainer for other business purposes.
How are W-2’s handled? What if we join the PEO mid-year?
Your PEO will process the W2s the moment they receive your payroll information. If you join the PEO mid-year, they will enter all your W-2 information into their system and bring things up-to-date for you and your employees to log in and see.
Will the PEO charge extra for W-2s?
No. W2s are included in the price of PEO services.
Whose name will be on the check stubs?
Your company’s name will be on the check stubs.
When do I have to submit my payroll?
Your PEO will work out your submission dates when you enroll in their services.
Things also depend on your current payroll schedule and whether your employees get paid weekly or biweekly.
Do PEOs offer direct deposit, and does it cost extra?
The PEOs we help our clients partner with do offer direct deposit, and it does not cost extra.
What if I don’t want to offer direct deposit?
The easy answer here is that you don’t have to. PEOs give you both the options — direct deposit or paper checks.
Where do I have to be to enter our payroll?
You can enter your payroll into the PEO provided payroll system from any device with internet access, including your phone.
Who will make the payroll entries?
To ensure information accuracy and avoid making unnecessary mistakes, it’s the client who takes responsibility for the payroll entries.
How do we submit hours to you?
You can either submit the hours manually on the payroll site or opt for a file upload.
Does the payroll software offer the ability to do job costing?
Yes. The payroll software provided by your PEO will offer the ability to do job costing.
Will our PEO run the books?
While your PEO won’t run all of your books, they can take care of your payroll and HR ones for you if you so wish.
How does the HR function of payroll work?
Among some of the many HR functions that your PEO will offer you is the ability to track employee vacation days, paid time off, and the number of hours worked. You can also upload and keep instruction materials, handbooks, and other documents for your employees to see whenever they like.
Will our PEO pay the workers’ compensation premiums?
Absolutely. Your PEO can take care of this for you.
Can I get Time Keeping Systems?
Yes, your PEO can get you time keeping systems as well.
Human Resources FAQs
If I outsource my HR functions to a PEO, will I lose control over my employees?
No, you remain in control of all of your work-related and hiring/firing decisions. Your PEO simply handle the HR-related administrative operations and make things easy for you.
Why should I outsource my HR functions to a PEO?
Because by outsourcing your non-core job functions, like payroll, compliance, and HR administration to a PEO, you can focus your attention and dedicate your critical resources to tasks that help your business grow.
What HR services do you offer?
From handling your payroll and employee benefits to managing risks and compliance, and providing you with a reliable HRIS (Human Resource Information System), Employers-Rx provides a gamut of HR services and solutions that help businesses grow.
How can my employees access their HR information?
Your employees will be able to view their HR information by simply logging into to the web-based HR system that will be provided to you by your PEO.
Where can I access my company’s HR information?
You can track every employee’s HR information through the PEO-provided HRIS (human resource information system). You will also have access to a customer service representative who will answer any of your HR information related questions and pull up details for you.
Who answers my HR-related questions?
You will have a designated customer service representative who will be responsible for answering any question that you may have.
How often will I meet with my HR account manager?
You can meet with your HR account manager as little or as much as you’d like. It really is up to you.
Why do small businesses outsource their HR needs?
Small businesses outsource their HR needs because they either cannot afford to have a full HR department of their own or because they are run by only a few people who have a lot on their plates.
By partnering with a PEO, you can also get premium offers and Fortune 500 level benefits packages that only larger companies can usually access.
Who is responsible for employment law and regulatory compliance?
While you – or your designated employee – is responsible, your PEO will work with you to ensure that you are compliant with all laws and regulations.
What types of companies outsource their human resources?
Companies of all types and sizes outsource their HR services.
At Employers-Rx, we have had extensive experience in working with companies with an employee count ranging between 5 to 500. If you want us to take care of your HR burden, let us know — we’re just a call away.
Employee Benefits FAQs
Healthcare is crazy these days. How can you help?
We can help by providing you with Fortune-500 level employee benefits packages, which will help you attract and retain top talents. Besides, you’ll have access to a dedicated off-site HR department who’ll constantly take care of your employee benefits packages and sort out any issues you may have.
Do you offer comprehensive benefits for my employees?
Yes, we do offer comprehensive benefits for all of your qualified employees.
Will you be able to save us money?
We can’t promise that. But what we can definitely promise is the fact that with us you’ll have access to the best employee benefits packages, which in turn shall enable you to attract and retain the best talents.
How are you different from my broker?
Owing to our immense experience in working with some of the most renowned and trustworthy names in the PEO industry, we have industry connects and the negotiating power to get you the HR solutions and employee benefits packages that your present broker may not have access to.
Should I move my business from my current broker?
That depends. If you’re happy with your current broker, then stay with him or her.
However, if you decide to move your business to Employers-Rx, you can rest assured that you shall have access to the best employee benefits packages — which usually are beyond the reach of small businesses — and a dedicated off-site HR team to look after your paperwork and all the nagging administrative hassles.
What carriers do you work with?
We work with some of the best carriers in the business — which is why we can get you attractive employee benefits packages.
Are the benefits included in your service fee?
No, the benefits aren’t included in our service fee.
Your cost depends largely on the sort of employee benefits that you’d like to offer your employees. Please call us to find out more.
I don’t offer a company health plan, but contribute to individual plans for my managers. Do you offer individual plans?
Yes, we offer individual plans, company plans, and everything in between.
Will a PEO health benefit specialist work with our new hires to explain our healthcare plan?
Yes, your PEO can have someone come out to your office on demand in order to go over everything.
What do you need to put together a Health Care quote?
We simply need you to fill out this form.
How long does it take to get a health care quote?
We can get you a number of quotes to choose from within days of receiving all of the necessary details.
Do my employees get lumped in with thousands of other employees when it comes to quoting my health insurance?
No. Your employees remain in their own group. However, having thousands of employees clubbed together does have its advantages in the form of better benefits packages and discounts.
What is an MEP?
MEP, short for Multiple Employer Plan, lets unrelated small businesses club their 401(k) plans together to manage their 401(k) risks and responsibilities and leverage better prices and increase operational efficiency.
Employers-Rx can help you access a lucrative MEP.
If I do switch my 401(k) plan over to a PEO, am I still the fiduciary?
No, your PEO shall take on all the fiduciary responsibilities.
Who will I be working with for 401(k)?
By partnering with Employers-Rx, you can rest assured that you will get access to the best 401(k) plans provided by some of the most reputed and trustworthy names in the business.
Do we have to match if we utilize the PEO401(k)?
No, but you can if you want to. PEOs leave that decision fully up to you.
If we are a part of the PEO’s 401(k), do my employees still control what funds they invest in?
Yes, just like with any 401(k) plan, your employees are in control of where their funds go.
Can I keep my own 401(k)/IRA?
Sure. You can remain in charge of the IRA or 401(k) that you are currently invested in.
What ancillary benefits do you offer?
You can avail everything from dental and vision care plans to disability and more.
How will my PEO implement the wellness programs?
The PEO you partner with offer dedicated Wellness Coordinators to implement and take care of the wellness programs. The assigned Wellness Coordinator will help you create a custom wellness program for you, which you may leverage to take benefits of certain tax credits.
How will my PEO run PTO (paid time off)?
If you decide to opt for your PEO’s PTO model, they would take responsibility for guiding and suggesting you on what would work best for your company and its employees.
My vacation and sick policies are outdated. Can you help?
Absolutely. Your PEO can help you update all of your policies to meet current regulations.
Do you help with COBRA administration?
Yes. The PEO we help you partner with will handle COBRA and send out necessary COBRA documents and letters to all of your former employees.
Who do I call if I have a healthcare question?
If you have a question related to healthcare, simply contact the customer service representative or contact your PEO’s help desk.
What is a section 125?
This is a special part of the regulatory code that allows health insurance costs to come out of each employee’s paycheck on a pre-taxed basis. Contact us for further details.
What is the difference between HSA and FSA?
An HSA is a health savings account, where you can put aside money to be used towards health care charges. This money is taken out before taxes. An FSA or Flexible Spending Account works similarly but can be used for childcare as well.
Risk Management FAQs
Can my PEO help save me money when it comes to workers’ compensation?
Well, we cannot say that for certain as your PEO will first need to evaluate your claims.
However, given the experience and expertise of the PEOs, we help businesses partner with, you do stand a chance at minimizing your losses and saving money on workers’ compensation.
What all do I need to do when a workers’ comp claim comes across?
All that you need to do is gather as much information as possible and contact your service representative. If we need additional information, we will let you know.
Will we lose all control of how our workers’ comp claims are managed?
No, you won’t, since your PEO will check in with you as needed and won’t move forward on important claims without your permission.
I have a lot of workers’ compensation claims right now. Will that impact my ability to secure lower rates with the PEO?
Having workers’ compensation claims do not necessarily impact your ability to secure lower rates with your PEO. Your rates depend on many different factors. Please call us today for further details on this.
What happens if I have a workers’ comp claim? Will I get kicked out of any discount that a PEO may offer me now?
Again, that depends on the type and size of the claim. Often one claim won’t hurt your discount rate, but it really does depend on the details.
Will my PEO help with OSHA compliance?
Yes. Your PEO can and will absolutely help you comply with all relevant worker’s safety rules and regulations.
Can I get any employee safety training that I can use?
Yes. Your PEO can help you with employee safety training programs.
Will my PEO enforce a drug-free work environment?
PEOs generally prefer to enforce a drug-free work environment, as that provides a safe working environment for every one of your employees.
Do you recommend employment drug testing?
Yes, we do, and we have a list of providers available should you need one.
How can a PEO help us save money on unemployment?
Your PEO will get you access to risk management experts who will ensure you don’t get ripped off on fraudulent unemployment claims.
How are unemployment claims handled?
Unemployment claims are handled by the customer service representatives provided by your PEO. The customer service representative will discuss every part of the unemployment claim with you and bring in risk management experts who will help you with the claim.
With my PEO fighting our unemployment claims, do we have a final say in what gets fought and what doesn’t?
Absolutely. You are in control of your own claims. Your PEO will simply handle them for you.
What happens when someone files an unemployment claim?
Once a claim is filed against your company, it will go to your authorized customer service representative who will then contact you to see how the claim should proceed.
Can I come aboard my PEO’s State Unemployment account number if it gets me a better rate?
Yes, your PEO will offer this as an option. However, every state has a different rule regarding this, and your PEO will handle your request as per the applicable laws and regulations.