Frequently Asked Questions

What’s a PEO?

A PEO, or professional employer organization, provides businesses with many services including (but not limited too): low cost worker’s compensation insurance, payroll processing, human resources management, tax/business law management, and safety program management. Our information page provides more detailed explanations of PEO services or you can contact the PEO Link, Inc. today to find out more about how a PEO can provide you with a great business advantage!

What’s a broker?

Brokers represent several different companies in a given field. The PEO Link, Inc., for example, represents several different professional employer organizations. This allows us to generate the best possible offers to provide PEO services for your business.

How can a PEO save my company money?

Using economies-of-scale, PEO’s shop insurance markets and purchase products like workman’s compensation at greatly reduced prices. They pass these savings to the companies they service, providing your business with great protection at an extremely affordable price. In addition, PEO’s can accomplish traditional in-house business functions like payroll generation and human resources management in a more affordable and efficient manner. Talk to one of our brokers to find out more about how a PEO service can benefit your company!

How do I know if a PEO is right for my company?

At present, as many as 700 PEOs operate in the United States. These companies specialize in servicing a wide variety of clients. As representatives to several national PEO services, The PEO Link, Inc. can match your company with a specialized PEO provider, streamline your business functions, and lower your employment costs!

How will a PEO benefit my company?

First and foremost, a PEO will benefit your company by lowering your employment costs and providing important protection through workman’s compensation insurance. Additionally, a PEO can help with employee retention by providing a quality and affordable benefits package to your employees. Finally, the PEO will improve the overall viability of the company by insuring compliance with national, state, and local employment law while providing training and safety services to protect you and your employees.

How will my employees benefit from a PEO service?

A PEO provides employers and employees with greatly expanded benefit packages that include things like 401(k) plans, health and dental insurance, life and disability insurance, job training, safety services, employee manuals, flexible spending plans and more. In addition, employers and employees receive protection through affordable workman’s compensation packages.

What are economies of scale?

When a PEO enters into a co-employment relationship with an employer, it allows the PEO to represent the employer’s employees, along with thousands of other employees, when shopping insurance and benefits markets. In turn, this large number of represented employees allows the PEO to achieve far better rates on workman’s compensation insurance, health insurance, etc., than any individual employer shopping the market alone. PEO’s call this concept, economies-of-scale.

In the PEO relationship, who is responsible for employees’ wages and employment taxes?

PEO’s handle all responsibility or liability for payment of wages and compliance on rules and regulations governing the reporting and payment of federal and state taxes on wages paid to employees. PEO’s handle all reporting and handling of FICA and FUTA.

In the PEO relationship, who is responsible for state unemployment taxes?

As the employer of record for tax purposes, PEO’s handle all reporting and liability for state unemployment taxes in a PEO co-employment relationship.

In the PEO relationship, who is responsible for employment laws and regulations?

In the PEO co-employment relationship, both the PEO and employer bear responsibility for the employment law and regulations; however, the PEO uses a staff of professionals to aid the employer with compliance issues for every situation.