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What is a PEO and how does it work?

Joe Ford

What is a PEO and how does it work?

The PEO processes payroll, withholds and pays payroll taxes, maintains workers’ compensation coverage, provides access to employee benefit programs, offers human resources guidance, and handles HR tasks on your behalf, such as benefits administration.

What does a PEO cost?

The flat fee is normally between $900 and $1,500 per employee each year, depending on the PEO in question. If the business owner elects to be charged as a percentage of the company’s overall payroll, PEOs charge about 3-10% on average.

What is a PEO health plan?

A PEO, or Professional Employer Organization, is an outsourced solution for HR, payroll, benefits, workers’ comp, and compliance. It allows you—the employer—to focus on your day-to-day work while the PEO handles your company’s back-end office stuff.

What do you look for in a PEO?

Guidelines for Choosing a PEO

  • Assess your workplace to determine your human resource and risk management needs.
  • Make sure the PEO is capable of meeting your goals.
  • Ask for client and professional references.
  • Check to see if the company is a member of NAPEO, the national trade association of the PEO industry.
  • Is the PEO IRS certified?

What services do PEO provide?

Typically, the PEO offering may include human resource consulting, safety and risk mitigation services, payroll processing, employer payroll tax filing, workers’ compensation insurance, health benefits, employers’ practice and liability insurance (EPLI), retirement vehicles (401(k)), regulatory compliance assistance.

Is Paychex a certified PEO?

Paychex, Inc., a leading provider of integrated human capital management solutions for payroll, HR, retirement, and insurance services, today announced that the IRS has certified subsidiaries of Paychex Business Solutions, LLC, (PBS) to provide professional employer organization (PEO) services under the Small Business …

Does Paychex offer health insurance?

Group health insurance through Paychex Insurance Agency can be bundled with payroll and other services so you can manage benefits and HR more accurately in just a few steps.

What kind of company is Paychex?

Paychex, Inc. is an American provider of human resource, payroll, and benefits outsourcing services for small- to medium-sized businesses. With headquarters in Rochester, New York, the company has more than 100 offices serving approximately 670,000 payroll clients in the U.S. and Europe.

Does Paychex do background checks?

What is a Paychex Employee Screening Services background check? A Paychex Employee Screening Services background check can look at a potential employee’s background once a conditional job offer has been made and accepted. This can help give employers the confidence that they have made the right choice.

Why are background checks important?

The background check is often a final step taken by employers to help ensure a sound hiring decision and protect the employer from a number of potential risks. For many employers, a background check is a reliable way of verifying claims made by job seekers during the hiring process.

How far back do ADP background checks go?

You must retain the written background check authorization at the worksite for a period of five (5) years.