PEO

*And The Better Alternative Solution

What is a PEO?

 

PEO, also known as a Professional Employer Organization, is an employee management concept that was created around the 1960s.

 

The goal was to make a more affordable way for businesses to stay protected from all of the compliance regulations by reducing some employment taxes and by offering a group benefits package more similar to larger, enterprise companies.

 

PEO’s are what’s known as a “co-employment” model, meaning from a tax perspective, your employees are paid via the PEO company but you still retain full control over the staff and make all business decisions. Your company will operate under the FEIN of the PEO.

 

Our advisors have years of experience in the PEO industry because we have the background from working with the top PEO companies in the country. This insight allows us to give you a non-bias comparison of the good, the bad, and the Power difference.

What's Bad?

 

  • Roughly only 10% of companies pass underwriting to be approved by a PEO. That means over 90% of companies that want to be on the PEO model don’t get approved by the vendor.

  • Of that 10 % that does get approved, 30-40% DO NOT get approved to participate in the PEO’s medical insurance plans due to underwriting restrictions.

  • The administration fees PEO companies charge are either a percentage of payroll or a flat, per employee fee. This can cost you upwards of $1,000+ per employee per year. You need to save over that amount just to break even.

What’s Good?

 

  • In states with many “pro-employee” laws, PEO’s absorb all the liability risk. California is a good example of this.

  • Payroll, Benefits, HR, and Compliance are typically done through one platform/vendor.

  • Most companies experience lower workers comp rates and tax payments.

  • Companies get access to “large, enterprise” style group benefits generally reducing the premium liability.

  • Dedicated support resources for payroll and HR.

The Power Difference

 

By analyzing all the pro’s and con’s that a PEO has to offer, we wanted to take it to the next level by adding in what makes the "Power" process work so well.

 

The best scenario for employers is to have one “company” that truly understands your business, but not be locked into the products of just one vendor.

 

This way you can truly maximize cost savings by using only the best providers in the marketplace while saving on the overpriced PEO administration fees.

 

 

  • All businesses can qualify for our "PEO level" of services.

  • Through our extensive partnerships and experience in group insurance, we can provide “small” companies of less than 50 full-time employees the same type of benefits strategies that large group employers use.

  • No admin fees! We do the work of sourcing all the highest rated and most competitively priced vendors and pass those savings to you through an “a la carte” method of bundle packaging.

  • You get dedicated support from experts in payroll, HR, benefits, and compliance.

  • Top of the line technology systems to increase efficiencies and improve the employee experience.