Professional Employer Organization (PEO)

Professional employer organizations (PEOs) enable companies to cost-effectively outsource human resource management including workers’ comp. This allows your firm to concentrate on the operational and revenue-producing side of its operations. A PEO option:

• Provides a workers’ comp solution often with less expensive rates than some direct carriers and State Funds (depending on your comp loss experience.)
• Administers workers’ comp claims
• Manages employee benefits and payroll
• Manages payroll tax compliance
• Administers unemployment insurance claims
• Manages health benefits

As employee related requirements become more and more complex, a PEO solution assumes all these human-resource management responsibilities using a business model identical to ADP’s or Paychecks. A PEO provides integrated services to effectively manage critical human resource responsibilities and employer risks for clients. A PEO delivers these services by establishing and maintaining an employer relationship with a your company’s employees, and by contractually assuming certain employer rights, responsibilities, and risks.

Your company still controls the daily management of employees and controls all aspects of the employees’ work schedules.

Thousands of companies use PEOs, and estimates show 2-3 million Americans are currently “co employed” through a PEO. Even though there are over 800 PEOs in 50 states, Right works Comp Solutions has found only about ten PEOs that specialize in servicing the heavy industrial industry codes. These PEOs manage between $136 billion and $156 billion in gross revenues. PEOs have an 88 percent client retention rate due to strong client satisfaction.