What is a PEO?

What is a PEO?

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by Jonathan Schulman on 10/19/2015Leave a Comment
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A professional employer organization (PEO) is a firm that provides a service under which an employer can outsource employee management tasks, such as employee benefits, payroll and workers compensation, recruiting, risk/safety management, and training and development.

PEO’s provide employers with a one-stop shop.  In addition to the costs of insurance premium, PEO’s also charge a monthly administrative charge that typically range in cost from $80 – $150/month for each employee.  While the insurance premium can be lower than non-PEO traditional plans, the administrative fees sometimes make the PEO more expensive.  Careful analysis is required before moving to a PEO.  It’s also important to take into account the tax implications of moving to a PEO outside of January 1st.   Moving to a PEO mid-year will create a tax reset with FICA( Social Security Portion) & Federal & State unemployment tax that can result in thousands of dollars of additional taxes.

We work with several leading and accredited PEO’s and help client’s make informed decisions. To schedule a consultation, please click here.

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