Posts from the PEO Category
CPA’s! Talking about PEO – are you with us or against us?
Posted by Kristian Svindland on August 27th, 2010
Very frustrating to have Certified Public Accountants (CPA’s) attempt to scare the business out of clients.
Recently, we had a local CPA, who lost the payroll business on a 4 man company (I estimate they were charging $200/week to process payroll…PAYROLL!!!) call the State Department of Employment Securities to let them know that they were closing their account with the State.
The DES sends a letter to the client to let them know that they no longer have an account and could face fines if they do not re-open their account ASAP.
Some CPA’s do not understand, nor do they want to take the time to understand how PEO (professional employer organizations) work.
Some CPA’s do understand, they see the overall cost and time savings their clients will receive via PEO and recommend going forward.
Anyone else have any scary CPA stories? Don’t get me going on lawyers…
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AON Consulting’s Survey of PEO on going paperless
Posted by Kristian Svindland on August 20th, 2010
Interesting report by AON regarding how PEO’s are going paperless.
http://www.aon.com/attachments/2010_PEO_Survey_Final.pdf
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Department of Labor to step up on misclassifications
Posted by Kristian Svindland on July 12th, 2010
The Department of Labor (DOL) has submitted its fiscal year 2011 budget to Congress. One of its main objectives is to penalize employers who misclassify employees as independent contractors.
Another reason for small businesses to outsource their human resources to a solution like PEO (professional employer organization). Once the DOL finds a company that has classification errors, the liability for back wages and overtime pay, as well as to DOL penalties, will start adding up and potentially put them out of business.
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Entrepreneur Magazine touches on HR outsourcing
Posted by Kristian Svindland on June 28th, 2010
Here is a link to an article in Entrepreneur Magazine that is at the heart of why small and mid-sized businesses should be outsourcing their HR, in particular, PEO is mentioned as a more cost-effective way of doing business.
http://www.entrepreneur.com/magazine/entrepreneur/2010/july/207170.html
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Good article about what insurance agents should do before recommending PEO
Posted by Kristian Svindland on June 18th, 2010
PEO is a great solution for small to mid-sized businesses that cannot afford a full time HR department.
Here is a good article aimed at insurance agents that may be contemplating offering PEO services along with their other lines of insurance/business.
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Calculating Labor Costs
Posted by Kristian Svindland on June 14th, 2010
I have found another, third-party, website that talks about the true cost of labor. This link below will take you there. It delves a little deeper into the issue of unproductive work time, but you’ll get the drift.
With a PEO or other HR outsourcing model, you can expect your labor costs to be drastically lower than the 44% that this site highlights.
http://floriculture.osu.edu/archive/may97/labcost.html
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PEO for the restaurant and hospitality industry
Posted by Kristian Svindland on May 10th, 2010
With all the labor regulation that is a major cost and time loss to business, especially in the restaurant and hospitality, PEO is a great way to cost-effectively remain compliant.
Here is an article in Fast Casual by the president of NAPEO (National Association of PEO), that outlines some key points and considerations for businesses in the restaurant industry considering hr outsourcing in general, and PEO in particular.
http://www.fastcasual.com/article.php?na=1&id=18193
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Read between the lines…
Posted by Kristian Svindland on April 28th, 2010
For small businesses, outsource HR to a professional employer organization (PEO) or other HR outsourcing solution. Leave the strategic HR to upper management and the day-to-day, time-loss stuff to your provider.
http://www.smartmoney.com/personal-finance/employment/10-Things-Human-Resources-Wont-Tell-You/
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Article on the cost of payroll-only services
Posted by Kristian Svindland on March 23rd, 2010
This is a pretty concise overview on the cost of payroll services for small businesses.
Of course, if you bundle in additional HR services like software, benefits, compliance and workers comp, there are greater savings to be seen. That is why for small businesses, we recommend PEO and other total HR outsourcing solutions to gain economies of scale so the payroll is basically free.
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The most expensive way to do payroll…through your accountant
Posted by Kristian Svindland on March 17th, 2010
I always get a chuckle out of small business owners who will not make a change to PEO or other HR outsourcing solutions because they say that their accountant does their payroll and they are the only ones they trust to do it.
News Flash: Most accountants don’t do the payroll themselves. They farm it out to a clerk in their office…or more often they have ADP or Paychex do it, then pass if off as their own work and up-charge their clients for their “expertise.”
So, instead of saving money using PEO, a small business is paying, on average, $100/hour to their account for a service that only costs $100 per employee per year to do.
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