Frequently Asked Questions
Professional employer organizations (PEOs) enable clients to cost-effectively outsource the management of human resources, employee benefits, payroll and workers’ compensation. PEO clients are able to focus on their core competencies to maintain and grow their bottom line.
A PEO provides integrated services to effectively manage critical human resource responsibilities and employer risks for clients. A PEO delivers these services by establishing and maintaining an employer relationship with the employees at the client’s worksite and by contractually assuming certain employer rights, responsibilities, and risk.
Who uses a PEO?
Any business can find value in a PEO relationship. An average client is a business with 19 worksite employees. Increasingly, larger businesses also are finding value in a PEO arrangement, because PEOs offer robust Web-based HR technologies and expertise in HR management. PEOs can partner with companies that have 500 or more employees and work in conjunction with their existing human resources department.
PEO clients include many different types of businesses ranging from accounting firms to high-tech companies and small manufacturers. Many different types of professionals, including doctors, retailers, mechanics, engineers and plumbers, also benefit from PEO services.
Can I access my company’s payroll reports, forms, invoices, etc. online?
Yes. ManageStaff offers an on-line portal for the client’s management team to access all employee information, invoices, and reports, submit payroll, & communicate with ManageStaff and their staff. Each employee can also have a separate login to view only their pay history, deductions, tax setup, & reprint W-2’s.
Does ManageStaff only offer PEO services?
ManageStaff offers several services and the 2nd most commonly used model is Administrative Services Only (ASO). The ASO model allows more flexibility for the client and their individual business model. ASO simply means that ManageStaff is a 3rd party provider for payroll/HR needs. You can have it all or simply utilize the payroll and quarterly tax filing only. It is an “a la carte” driven menu enabling you to decide what services you need. For example, a non-profit company might use the ASO route to fulfill certain requirements by state and federal Law that would not allow them to lease their employees to ManageStaff, as ManageStaff is a for profit company and would eliminate the benefits the non-profit would receive.
How does a PEO arrangement work?
Once a client company contracts with a PEO, the PEO will then co-employ the client’s worksite employees. In the arrangement among a PEO, a worksite employee and a client company, there exists a co-employment relationship in which both the PEO and client company have an employment relationship with the worker. The PEO and client company share and allocate responsibilities and liabilities. The PEO assumes much of the responsibility and liability for the business of employment, such as risk management, human resource management, and payroll and employee tax compliance. The client company retains responsibility for and manages product development and production, business operations, marketing, sales, and service. The PEO and the client will share certain responsibilities for employment law compliance. As a co-employer, the PEO will often provide a complete human resource and benefit package for worksite employees.
Do the business owners lose control of their businesses?
No. The client retains ownership of the company and control over its operations. As co-employers, the PEO and client will contractually share or allocate employer responsibilities and liabilities. The PEO will generally only assume responsibilities and liabilities associated with a “general” employer for purposes of administration, payroll, taxes and benefits. The client will continue to have responsibility for worksite safety and compliance. The PEO will be responsible for payroll and employment taxes and will maintain employee records. Because the PEO may also be responsible for workers’ compensation, many PEOs also focus on and improve safety and compliance at the client side. In general terms, the PEO will focus on employment-related issues and the client will be responsible for the actual day to day business operations.