Tag Archives: employer liability

Use a PEO to avoid employer red tape and fines

Just got off the phone with a small business owner that is facing a $2,000 fine for non-compliance for some labor law paperwork they had no idea that they were responsible for.  Pretty hefty stuff for a 5 man company, right?

Just another reason that small businesses should consider HR outsourcing models like PEO.  Imagine having a staff of 50 employees, but no employer liability.  Not to mention the savings in a major medical health plan, workers comp and other benefits.

 

PEO for staffing

We have had a lot of success lately with setting up staffing companies with PEO.  Think about it…what do staffing companies do best?  They find people to fill positions at their client companies.  They often put that employee on their payroll and upcharge their clients for this service. 

Now the PEO steps in and takes on all employer liability.  That allows the staffing company to continue to do what they do best, filling positions for their clients, and still insure that their employees are paid.  In addition, the economies of scale that the PEO brings them saves 10 – 30 percent on workers comp insurance.  That saved margin goes towards the admin charge of the PEO.  Win.  Win.