Frequently Asked Questions:

Why would a business use a PEO?

All business owners want to focus their time and energy on the "business of their business" and not on the "business of employment." Most business owners don'y have the necessary human resources training, payroll and accounting skills, knowledge of regulatory compliance, or background in risk management, insurance and employee benefit programs to meet all the demands of being a good employer. PEOs provide worksite employees with coverage under the entire spectrum of employment laws and regulations, including federal, state, and local discrimination laws, Title VII of the 1964 Civil Rights Act, Age Discrimination in Employment Act, ADA, HIPAA, Equal Pay Act and COBRA.

In a PEO arrangement, does the business owner lose control of his or her business?

Absolutely not! The client retains ownership of the company and manages the day-to-day activities of the workers.

What is the difference between temporary staffing services and a PEO arrangement?

A temporary staffing service provides workers to its business clients to meet temporary or longer-term staffing needs. A PEO provides employment services to help its business clients with its existing workers and future hires.

What types of businesses would use a PEO.

The average client of NAPEO members, like Payman, is a small business with an average of 20 employees. Increasingly, larger businesses are signing up too. Clients range from accounting firms and high-tech companies to manufacturers and government agencies.

Why would a worker want a PEO as an employer?

Many PEOs provide exceptional employee benefits including health benefits, retirement savings plans, and aggressive workplace risk management. Job security is improved as the PEO's economies of scale permit a business to lower employment costs.

http://www.NAPEO.org