What Is a  PEO?

Over the last two decades, this nation has seen a significant increase in employment-related federal, state, and local laws and regulations, as well as other fundamental changes in human resources management. As the challenges increase, the expertise required to manage the HR activities for small- to mid-sized businesses has outgrown the experience and training of many entrepreneurs who started these businesses.

Working Americans are demanding comprehensive, affordable health care, retirement savings plans, and other employee benefits for themselves and their families. Professional Employer Organizations (PEOs) assume the responsibilities of human resources management.

Companies that use PEOs have seen a wide range of positive effects. In fact, according to research conducted by an independent economist on the PEO industry and commissioned by the National Association of Professional Employer Organizations:

  • 70% report revenue has increased since they started using a PEO
  • Annual median revenue growth for PEO users was double that of comparable businesses not using a PEO
  • 66% report their profitability has increased since becoming a PEO client
  • 98% of business owners who use a PEO would recommend one to a colleague

Helping American Workers  and Their Families

In addition to providing important services to their business clients, Employers Personnel offers substantial advantages to worksite employees. In many cases, these employees would not be provided the number, or quality, of benefits that Employers Personnel can offer. These benefits include health insurance, retirement savings plans, disability insurance, life insurance, dependent care reimbursement accounts, vision care, dental insurance, employee assistance plans, job counseling, and educational benefits. 

Each individual small business’s cost of establishing and administering this range of plans would be prohibitive. However, due to economies of scale, Employers Personnel can sponsor and offer these plans at an affordable cost.

Employers Personnel:

  • Provides Workers’ Compensation insurance for employees
  • Pays wages and employment taxes of the employee out of its own accounts
  • Reports, collects, and deposits employment taxes with state and federal authorities
  • Provides access to benefits like healthcare, dental, vision, and 401k