Frequently Asked Questions
What is A PEO?
Professional Employer Organizations (PEO) such as ASI, enables companies to cost-effectively outsource the management of human resources, employee benefits, payroll and workers' compensation to a HR specialist.
Why Would A Business Use a PEO?
As a business owner, you need to focus your time and efforts on that business, not on the day-to-day employment issues. As your business grows, these issues grow and require a much deeper knowledge of human resources, regulatory compliance, risk manangement, employee benefits, and a host of other areas. Working with a PEO gives you access to experts in each of these areas. A PEO can provide you and your employees with the employment resources needed to move your company forward, allowing you to concentrate on the other business needs.
How Does Using A PEO Work?
When you sign a contract with a PEO, such as ASI, we officially co-employ your employees. Under this arrangement, we assume much of the responsibility and liability for employment, such as risk management and human resources, as well as payroll and employee tax compliance. As the business owner, you are still responsible for your day-to-day business operations. The company and the PEO share responsibilities for employment law compliance.
Will I Lose Control of My Business?
No. As the owner, you will still fully control your business' operations. The PEO generally only assumes responsibilities and liabilities associated with a "general" employer for purposes of administration, payroll, taxes and benefits. You will continue to have responsibility for worksite safety and compliance. The PEO will be responsible for payroll and employment taxes, you maintain employee records and reserves a right to hire and fire employees.
Because the PEO also may be responsible for workers' compensation, many PEOs also focus on and improve safety and compliance. In general terms, the PEO will focus on employment-related issues and the client will be responsible for the actual business operations.
How Do My Employees Benefit from a PEO?
Working with a PEO provides your employees several advantages. First, your organization runs more efficiently by lowering employment costs.
Job satisfaction and productivity also increase when employees are provided with professional human resource services, training, employee manuals, safety services and improved communications.
And in many cases, a co-employment relationship provides employees with an expanded employee benefits package, to include a 401(k), life insurance, disability insurance, discount plans, a flexible spending plan and more.