With the employment laws, health reforms and tax laws changing continuously, it is difficult for business owners to keep up with them. To meet the needs of employees and to protect your company from liability and compliance issues, make an investment in Professional Employer Organization(PEO) services. But before establishing a co-employment relationship with a reputable PEO, you need to keep a few things in mind and look for certain key points. www.gorman2000.org .
The first thing you need to confirm is that the company is registered in your state. Every state has their own set of rules and regulations in relation with unemployment insurance and workers’ compensation insurance. A PEO company that is licensed in your location will be better able to help you. Also, be sure of the length of the term as some requires a long term commitment while others, a month’s written cancellation notice.
2. HR Services
A good PEO company is one that could provide you assistance in all the HR related areas. Many even provide an HR professional to assist in such matters along with handling administrative tasks of your companies such as talent acquisition, payroll processing and claims management etc. This allows you to focus on business strategies and other important aspects of your business. So, ensure that you choose PEO services that could provide you all these services along with benefit packages for employees, health and vision insurance etc.
3. Expertize and Competence
The PEO company’s internal staff should have particular experience and depth, familiarity with the laws and is qualified enough to handle your business. Check the certifications, accreditations and background of the PEO. Also, find out if their HR specialists have professional trainings and ask them about staff’s competence and expertize.
4. Financial Strength and Security
Take a look at the PEO’s adherence to the professional performance practices of the industry. Also, verify that their financial statements are independently audited by CPA and risk management practices certified. It is important as many state laws require PEO’s to have audited financial statements. Moreover, it will confirm that the PEO statements are complete, accurate and presented fairly as per GAAP.
5. Professional References
Make sure when researching you ask every potential PEO for references from their business partners and clients. Also, look for the type of company PEO serve to see if it matches your needs and size. It would be better if the PEO serves all size of businesses and industries. You can even find a few testimonials on their website but go through them critically for the best results.
6. Funding and Tailoring of Employee Benefits
Is the group health plan partially self funded or completely insured? What carriers PEO use and if the carriers are authorized to do business? If it is fully insured then the employer will pay a fixed amount of premium to the insurer who will be responsible for all the claims. In self funded plans, a third party administrator is hired and takes the role of insurer.
You also have to make sure that the benefits offered by PEO fits the needs of your employees. Have a word with your employees beforehand so that you know what will work for your company.
When employing PEO services, its is imperative that they are readily available in case there are any concerns. Email, telephone, videos, articles, blogs, FAQs and even live chat would be a good way to provide proper support.
So, when going for PEO services, make sure you take your time in determining if the company fulfills all these criterias so that you can provide better services to your employees and manage your HR functions effectively.