| Once upon a time, when government regulations were | | | | regulations. They handle payroll, human resources, |
| simpler and easier to comply with, companies had no | | | | workers compensation, regulation compliance, and |
| problem taking care of payroll. "Human Resources" | | | | even employee benefits. Many PEOs can enable small |
| usually consisted of a stack of contracts that the | | | | businesses to supply Fortune 500 benefits to their |
| employees had signed saying when and for what they | | | | employees. This aids in employee retention and |
| would work. Come pay day, the employer would hand | | | | satisfaction. With all these great benefits you, the |
| them their wages or, in later times, a check. Sounds | | | | business owner, can focus on running your business, |
| wonderful doesn't it? If you could take care of your | | | | rather than complying with every new rule made. |
| employees, give them top notch benefits, and comply | | | | Wheres the catch? |
| with every government regulation ever passed, and | | | | No catch. Ok, let me rephrase that. There aren't any |
| make it as easy as it was 150 years ago, no matter | | | | catches, as long as you have the whole picture. The |
| what the size of your company, you would take it | | | | one main objection business owners have, is that they |
| wouldn't you? Welcome to the world of PEO. | | | | loose control of their business. Not true. When you sign |
| Scenario | | | | a contract with a PEO, they become the employer of |
| So lets assume that you are a new business owner, | | | | record, and all taxes and claims are filed under their |
| an entrepreneur, a go-getter. You get your capital | | | | tax number. All liability is with them, but since they do |
| together, you get your location, you file 500 pieces of | | | | this for a living, they have all compliance issues down. |
| paper with the local, state, and federal government to | | | | You maintain control of your employees, except |
| get all your licenses, and you are ready for opening | | | | where the government is concerned. And with most |
| day. You put an ad in the local paper looking for | | | | PEOs, you can cancel your contract at anytime, (with |
| employees, and when they come in, you hire 10 of | | | | no fees) and immediately regain complete control of |
| them. It's a few months in, business is good, and then | | | | your employees. You'll have to re-assume liability for |
| one of your employees suffers a workplace injury. | | | | them though, so you better make sure you know what |
| They go and complain to the local workers comp | | | | you are doing. Apart from that, there's no catch. Really. |
| office, and all of a sudden you find yourself out of | | | | I'm sold, where do I go now? |
| business, with all your money gone. What happened? | | | | Well, there's a few places you could start. The first is |
| You failed to comply with Regulations (Standards - 29 | | | | Google. Look up PEO and your state (eg: "PEO in |
| CFR) and Directive CPL 02-00-135 of OSHA. What? | | | | Arkansas) and you should get quite a few results. Also |
| You didn't know that regulation even existed? Well | | | | look at other companies in your area. Find out if they |
| that's too bad for you, because your business is | | | | outsource their payroll, or employees. Many PEOs |
| already gone. | | | | offer payroll services as well, so it's not out of the |
| Why choose PEO? | | | | question to find a neighboring company that |
| So, you now know that Regulations (Standards - 29 | | | | outsources payroll. You may want to tell them about |
| CFR) exists, but what about the rest of the directives? | | | | this article so that they can reap the same benefits |
| How could you possibly keep up to date with all these | | | | that you will. One of my favorite PEOs is GWC |
| standards and new regulations while running your | | | | Capstone Solutions, a branch of a much larger PEO |
| business? The answer is, you couldn't. That's why you | | | | that operates in almost all 50 states. The reason I |
| outsource. Most companies find it easier to outsource | | | | endorse them is because they donate 100% of the |
| payroll, but why not just get rid of all that liability at one | | | | profits to fund student scholarships. But all points aside, |
| time? PEO stands for Professional Employer | | | | you need to do a little bit of homework in order to find |
| Organization. Essentially, the PEO you contract takes | | | | the best PEO available in your area, because one day |
| on all the liability of your employees. They will have | | | | something will happen and you don't want to be out on |
| teams of people dedicated only to complying with | | | | the street because you failed compliance code 29. |