What is a PEO?
A professional employer organization provides a service, sometimes called co-employment, by which an employer outsources employee management tasks like employee benefits, payroll, workers’ compensation, recruiting and risk/safety management. It hires the client company’s employees, thus becoming their employer of record for tax and insurance purposes.
Our experience counts
Since 1997, CCPEO Consulting, Inc. has provided PEO consulting services to business owners from start-ups to large companies.
We gather information to assist business owners in finding solutions to the challenges they face. We give them the ability to get back to basics and focus on what they do best — run their core businesses.
“… 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 employee.”
Fast-growing PEOs crucial for small businesses
September 2, 2008
The Business Ledger
“PEOs are in the business of staying up-to-date on the ever-changing federal, state and local regulations. Through an experienced staff of HR professionals, a PEO helps businesses navigate through the government red tape. A PEO shares some of the liability by monitoring important work-related laws and taking care of the administrative functions, such as government reporting, unemployment claims and payroll taxes. By doing this, PEOs help ensure compliance is met on an ongoing basis.”
Sharing the liability burden – Understanding the benefits of using a PEO
Gwinnett Business Journal
“PEOs give companies with 10 to 50 employees a competitive edge by allowing them to offer corporate-quality benefits on an entrepreneur’s budget. Outsourcing HR also frees larger businesses from the payroll burden of an in-house HR department, so executives and top managers can focus on growing their core business instead of managing personnel issues.”
Outsourcing Trend Creates PEO Niche
Boulder County Business Report
“Across the country, entrepreneurs and small-business owners are turning to professional employer organizations (PEOs)… 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? Sometimes, PEOs even save a company money. A PEO typically charges 3% to 6% of net salary. But passing along the lower costs of group benefits or handling administrative chores efficiently can result in net savings.”
You do the Work, They do the Paperwork
Gail DeGeorge for Businessweek