Call Us 770-540-7182 ☰ ˟
Logo
Call Us 770-540-7182
  • Home
  • Get A Quote
    • Workers CompensationImage of right arrow
      • Workers Compensation Insurance Quote
    • Business & Commercial
    • Commercial Auto Insurance
    • Auto Insurance
    • General Liability Image of right arrow
      • General Liability Insurance Quote
    • Payroll Processing
    • Cyber Liability Insurance
  • Resources
    • Refer a Friend
    • Important Links
    • Insurance Glossary
  • About Us
    • About Us
    • Local Community Involvement
    • Privacy Policy
  • Contact Us
Workers’ Comp Icon

Workers’ Comp

We browse through a wide variety of coverages and find the right one for you.

Learn More
General Liability Icon

General Liability

We browse through a wide variety of coverages and find the right one for you.

Learn More
Payroll Processing Icon

Payroll Processing

We browse through a wide variety of coverages and find the right one for you.

Learn More 
Home > Blog > Professional Employer Organizations - ProRisk Advisors
WEDNESDAY, MAY 19, 2021

Professional Employer Organizations

Sometimes companies have trouble meeting their human resources needs, especially while also trying to increase profits. To assist in this area, many companies hire professional employer organizations (PEOs). When hiring one of these organizations, the company and its employees become employees of the PEO, and the company delegates many of its HR responsibilities to the PEO.  

Although the company still officially hires its employees, the PEO handles payroll, benefits administration, workers’ compensation, medical insurance and retirement accounts. Then, the company pays the PEO for its services (often a percentage of total salaries), along with an amount to cover the payroll for the employees. group of professionals smiling at camera

Advantages of Hiring a PEO 
The following are the benefits of hiring a PEO: 

  • Employers do not need to spend time and resources on HR tasks. Instead, they can focus on their core business and growing their bottom line. 

  • PEOs can provide consistent administration for larger companies, and often improved technology resources. 

  • Employers do not have to handle as many legal intricacies regarding HR tasks.  

  • PEOs can negotiate better insurance coverage because of the volume of business that they cover. 

  • Employers do not have to hire as many HR professionals in-house. 

  • When the PEO assumes its client’s payroll into its own accounts, it also assumes the liability for clients’ employees because it is technically now the legal employer. 

  • PEO assumes the liability of adhering to the legal tax and workplace standards. The PEO will ensure that its clients are knowledgeable concerning relevant standards in accordance with local, state and federal laws. 



Disadvantages of Hiring a PEO 
The following are the potential cons of hiring a PEO: 

  • A company no longer has employees after hiring a PEO. The company essentially fires all of its employees, who are then rehired by the PEO.  

  • By hiring a PEO, the company loses control and flexibility concerning compensation packages allotted to its employees. Though a company can decide how much to pay each of its employees, it has limited say on the benefits plans offered. 

  • Companies lose a bit of control over their workers since they are officially employed by the PEO. 

  • Employees may be confused by who truly is their employer; the PEO or the company that they report to each day. Employees may not know who to turn to when they have concerns regarding their compensation, benefits, etc.

Posted 2:55 PM

Tags: professional employer organizations
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2022
  • 2021

  • coverage(3)
  • workers compensation(3)
  • errors and omissions(3)
  • liability(2)
  • insurance(2)
  • general liability insurance(2)
  • benefits(1)
  • builders risk insurance(1)
  • builders(1)
  • risk(1)
  • compensation(1)
  • business insurance(1)
  • peo and payroll(1)
  • peo(1)
  • reputational harm(1)
  • professional employer organizations(1)
  • commercial(1)
  • general(1)
  • professional liability(1)
  • workers(1)

View Mobile Version

Contact Us Today!
770-540-7182

Social Social Social

Resources

  • Products
  • Payment/Claims
  • News
  • About Us
  • Refer A Friend
  • Our Carriers
  • Blog
  • Contact Us
  • conditioned air association of Georgia, inc

Contact Us

Serving all of Georgia, Tennessee, North Carolina,
South Carolina and surrounding areas.

Ph: 770-540-7182 | info@proriskadv.com
© Copyright. All rights reserved. | Powered by Insurance Website Builder