It is estimated that more than three million American workers are currently employed by a Professional Employer Organization (PEO) that offers employee leasing services. These employees represent every facet of the workface, from accountants to zookeepers. There is no stereotypical PEO - employee leasing client.
















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PEO Horizon Reducing Employer Liabilities
Each issue addresses one area of employer liabilities with practical advice on how to manage that liability. This is free advice on some very critical employment law issues, useful to every employer.

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What appears below is a breakdown of the cost of employment. This list is not exhaustive and ignores other costs that may face an employer depending on the number of employees and the state in which the employees are located.
Mandated BenefitsSocial Security
Federal Unemployment Insurance
State Unemployment Insurance
Mandated benefits are considered part of your payroll costs. Whether you hire a PEO or you process your own payroll, this cost will remain almost the same. A minor deviation may occur if your state unemployment insurance rate is different than that of the PEO.
Payroll Administration Preparing Earning logs
Calculating regular and overtime
Tracking bonuses and holiday pay, severance, and sick leave
I-9 Compliance
W-4 and records
Issuing checks
Making Payroll Deposits
Preparing Quarterly and Annual reports
Maintaining Payroll RecordsBookkeeping
W2 and year end reports
In a PEO relationship, almost all items in this list are handled by a PEO. Occasionally, a company representative may have to decide how much to pay employees who do not have set wages. In a PEO relationship, instead of cutting payroll checks, you wire the PEO one amount every pay period. It’s that simple. The PEO then processes and distributes accurate paychecks to your worksite on time, and often offer direct deposit of paychecks. Outsourcing your payroll to a PEO is one of the many benefits of PEO relationship.
Workers’ Compensation Workers Compensation Insurance
A PEO can generally obtain a more affordable workers compensation policy for you because a PEO is better situated to do so and it has more experience in this area. As the cost of workers comp grows, the savings on the workers comp insurance could outweigh the entire cost of PEO services.
Consulting Cal-Osha Consulting
Workers’ Compensation Claims
Unemployment Claims
Wage Garnishment and Records
Wage Law Compliance
Labor Board Disputes
ADA Compliance
Wage and Hour Law Compliance
Discrimination Compliance
Background Checks
This is one of the most under-rated area of liability for most companies. Employment errors can be dangerously lethal to a business. With so many employment laws, including COBRA, ADA, INS, EEOC, OSHA and others, even the smallest mistake can be legally significant. In fact, the minutest detail can become a company’s chief detriment.
Payroll SupportPayroll Software and Computer
Payroll Files and Space
Employee Handbooks
Personnel Forms
A PEO is best equipped to handle this area of employment. More importantly, a PEO can make the company appear more professional and hence increase employee retention.
BenefitsCost of search for benefits
Administration of Benefits
Benefits booklet
Cobra Administration
More and more companies try to increase employee retention by offering better quality benefits that is more affordable to the employees. This is one area when a PEO can truly benefit a company. With thousands of employees, a PEO is able to offer Fortune 500 benefits to a small company, at reduced rates. 23945 Calabasas Rd. Suite 106, Calabasas, CA 91302 818-222-4572
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