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See what BusinessWeek Online had to say about PEOs.
Why should we use a Professional Employer Organization?
Average annual cost of regulation, paperwork, and tax compliance for firms with fewer than 500 employees is about $5,000 per employee, compared with $3,400 per employee for firms with more than 500 employees - U.S. Small Business Administration.
The average small business owner spends between 7% and 25% of his or her time handling employee-related paperwork. - U.S. Small Business Administration
What is a Professional Employer Organization?
The PEO relationship involves a contractual allocation and sharing of employer responsibilities between the PEO and the client; this shared employment relationship is called co-employment. When evaluating the employer role of either the PEO or the client, the facts and circumstances of each employer obligation should be examined separately, since neither party alone is responsible for performing all of the obligations of employment. Each party will be solely responsible for certain obligations of employment, while both parties will share responsibility for other obligations. When the facts and circumstances of a PEO arrangement are examined appropriately, both the PEO and the client will be found to be an employer for some purposes, but neither party will be found to be "the" employer for all purposes.
