1. What is a professional employer organization?
A PEO who partners with your business will perform these processes, assume associated responsibilities, and provide ready expertise in human resources management.
At Genesis HR, we offer a tailored HR solution to effectively manage your critical human resource responsibilities and employer risks. 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.
2. How does co-employment work?
The PEO assumes much of the responsibility and liability for the business of employment, including risk management, human resource management, and payroll and employee tax compliance.
The client company retains responsibility for and manages the product development and production, business operations, marketing, sales, and service sides of the business. The PEO and the client share certain responsibilities for employment law compliance. As a co-employer, the PEO provides a complete human resource and benefit package for worksite employees.
3. How will our employees benefit by being in an employment relationship with Genesis HR?
- Access to our experts for advice and guidance whenever you need help. We’re happy to help whenever you (or your employees) need us.
- Both company-provided and voluntary insurance products to meet the needs of your employees.
- An expertly managed 401(k) savings plan (if applicable) with high-quality investment options and easy-access information, both online and in print.
- Powerful, easy-to-use online tools. Our portal puts information at your employees’ fingertips and reduces how much work you have to do to make changes, updates, or fill out forms.
- Employee discount programs.
4. What are the pitfalls of trying to manage my company’s HR, payroll, and benefits in-house?
5. Why is ESAC accreditation important when picking a PEO?
- ESAC audits and certifies PEOs on a quarterly basis.
- ESAC-certified PEOs are held to extremely high standards for compliance and financial stability. Of the more than 700 PEOs in the country, only 30 are ESAC-certified.
- We’ve been ESAC-accredited since 1996—only a handful of PEOs have continuously maintained that high standard for as long as we have.
6. Will I lose control of my employees when I partner with a PEO?
7. How are my taxes affected when I partner with a PEO?
- If you partner with a PEO at the first of the year, there should not be any tax implications. Any payroll taxes with wage caps will be reset whether or not you use a PEO.
- If you partner with a PEO during the calendar year, you will be subject to some tax restarts. Federal Unemployment Tax will restart when you begin your partnership.
- State Unemployment will also restart in “file by PEO” states. You can check with your PEO partner or NAPEO for a list of these states. Keep in mind that you will also assume the rate of the PEO in these states. This may be more or less expensive than your own rate in these states.
8. Is working with a PEO expensive?
9. Do PEOs work with my industry?
10. Is there a benefit to working with a privately held PEO or a publicly traded PEO?