FAQs

A professional employer organization (PEO) is an organization that provides human resource services to small and mid-sized businesses. By transferring existing employees and certain employer responsibilities, PEOs provide economies of scale for the necessary fulfillment of payroll administration, workers’ compensation insurance, employee benefits, and other HR functions so business owners can focus on their business operations.

PEOs establish a co-employment relationship with client companies using a client service agreement to outline the rights and responsibilities for each party. Typically, both sides commit to a one-year term of service. The client company retains control over day-to-day business operations, and it shares certain employer responsibilities with the PEO. By using well designed, integrated systems, HR management takes much less time and employers have peace of mind knowing things are being handled by a professional firm sharing the responsibility.

Partnering with a Professional Employer Organization provides many advantages for small businesses:

• Access to Fortune 500-style benefits at an affordable cost. PEOs leverage their size to negotiate competitive rates on health insurance, retirement plans, and other benefits.
• Reduced administrative burden. PEOs handle time-consuming HR tasks like payroll, benefits administration, workplace compliance, and risk mitigation.
• Cost savings. PEOs help companies save on HR expenses through economies of scale and optimized processes.
• Compliance peace of mind. PEOs help companies remain compliant with labor laws and regulations, avoiding potential fines and penalties.
• Employee satisfaction and retention. Comprehensive benefits and HR support lead to higher job satisfaction, morale, and employee retention.

With a professional employer organization, the relationship frequently enables the client company to participate in insurance programs based on the cumulative size of the leased employee group. Large group policies for workers’ compensation can eliminate down payments, audits, and many claims related responsibilities. Risk management becomes a shared responsibility and the PEO has a vested interest in improving the safety record of its client companies. Additionally, the benefits to the employer can include access to “A” rated carriers, fewer lost days, better employee morale, and less hassles. Employee benefits can be made available in a PEO relationship. Some PEO’s negotiate and manage policies on behalf of their client companies, while others offer access to large group policies negotiated on the entire leased employee population. Available administrative tools track enrollment, contribution, billing and reconciliation. Frequently the PEO assumes the responsibility for renewal, COBRA and Section 125 administration. Ancillary products become less of a hassle and employers can offer group term life, dental, vision and disability insurance with fewer participation obstacles. These are great tools for attracting and retaining the best employees.

In most cases, the day to day responsibility is assigned to the client employer thus hiring, firing, setting wage and job performance standards remain in-house.

By transferring the employees to the PEO and leasing them back to the client, an insurable risk relationship is created between the PEO and the employee.

An HMO – Health Maintenance Organization, is a health care system shares the risks associated with providing comprehensive medical services to enrollees in a particular geographic region, usually in return for a fixed, prepaid fee. Services provided by health care providers outside the system (sometimes called networks) typically is not covered by HMOs.

A PPO – Preferred Provider Organization is a system that provides lower cost health care by providing incentives for members of the PPO to use health care providers who belong to the system but a PPO also provides some coverage for providers who are outside the PPO system.

Not necessarily. In most states, once notice is given in a predetermined time period, post accident drug testing can be required of all employees filing a workers’ compensation claim. This is to ensure that each individual is responsible for their own actions. Claims can be reduced or restricted when an employee tests positive. Procedures are in place to ensure accuracy and confidentiality. Post accident drug testing protects the system of coverage from abuse by the wreckless lifestyle choices of few.

Many employers have been challenged to provide cost effective solutions to their employees. Costs for care have continued to rise as medical technologies improve, malpractice costs soar and our population continues to age. Please know that most employers are sensitive to your pain and do the best they can for their employees. The cost for not having coverage when you need it is much higher. Consider choosing a lower cost option among those offered by your employer. If you are married, consider the plan offered by your spouse’s employer. Remember, most plans restrict entry at a later date.

With the proper fact finding, we endeavor to make available the best options to our clients. However, the final decision to offer coverage is controlled by the carrier underwriting staff.

Do you know what you need to buy? Do you understand what you are buying? Are you comfortable with answers being provided by “Operator 97” instead of an experienced agent you know by name?

Life is a journey not a destination. We will take into consideration the many facets of your life and lifestyle which will allow us to more accurately assess your current and future needs.

Lowering your monthly premium does not necessarily lower your cost. We address you as the individual you are, not just your date of birth. We will take the time to listen to your concerns, experiences and needs.