PEO - Professional Employer Organization News and Articles

Selected Sort
Most Recent Articles
Most Recent Comments
Most Active Articles
Subject Area
PEO - Professional Employer Organization
Employee Leasing
HR Outsourcing
Worker's Compensation Insurance
Health Benefits
Retirement Plans
Time Period
Last 30 days
Last 90 days
Last year
All Time

Facebook MySpace Twitter Digg Delicious Stumbleupon Google Bookmarks

Listing DateArticle LinkArticle Review / ExcerptReader Comments
2/27/2014 OFCCP - Why your small business does not want to be a government contractor

Source: StaffMarket
The US department of Labor has new HR and pay rules for government contractors. It's not pretty.
The political zeal for enforced diversity and now, equal pay in the workplace has spawned a set of hiring guidelines so involved and confusing that no business owner in their right mind should seek to become a government contractor. If you thought figuring out how to comply with ACA was tough, take a look at this guidance from The Department of Labor on:

Interpreting Nondiscrimination Requirements of Executive Order 11246 With Respect to Systemic Compensation Discrimination and Voluntary Guidelines for Self-E valuation of Compensation Practices for Compliance With Nondiscrimination Requirements of Executive Order 11246 With Respect to Systemic Compensation Discrimination.

If the title alone doesn't scare you then take a few days and read the document. Then re-read it. Then think about what your company needs to do to be compliant. Then ask yourself if after doing all those things, you will be able to adequately defend your company from charges of discrimination from any of the new protected classes. Now go stick your head in the oven. Feel's better there doesn't it?
Comment about: OFCCP - Why your small business does not want to be a government contractor
Post the first comment about:
OFCCP - Why your small business does not want to be a government contractor
12/20/2013 Owner destroys business with one stupid move

Source: StaffMarket
Punching out an employee is a bad idea, Especially when you are the owner and need work comp insurance.
At StaffMarket we have reviewed the workers compensation situation for thousands of small businesses across the USA. This week we had a submission from a company hoping to obtain work comp coverage by hiring a Professional Employer Organization. The business has two restaurants in Jacksonville, Florida. The business was seeking some options that provided workers compensation coverage for their employees as required by law. Part of the work comp insurance underwriting process involves insurance carriers reviewing the “loss history” for the company which details the various situations and associated financial costs related to workers’ compensation claims over the last several years.
Comment about: Owner destroys business with one stupid move
Post the first comment about:
Owner destroys business with one stupid move
9/20/2013 New Study Shows PEO Clients Grow Faster

Source: StaffMarket
New NAPEO study demonstrates that businesses using a PEO have a higher growth rate than those that don't
While the overall environment for small businesses remains challenging, a new study commissioned by the National Association of Professional Employer Organizations (NAPEO) shows that small businesses using a PEO are growing. The increasingly burdensome tasks of meeting tax and regulatory compliance may be a factor hindering small business growth. But, this study shows that businesses who outsource those non-revenue producing compliance tasks to a PEO have reduced both their costs and risks. Those businesses are growing.

Comment about: New Study Shows PEO Clients Grow Faster
Post the first comment about:
New Study Shows PEO Clients Grow Faster
8/30/2013 PEOs get Favorable Ruling on ACA from the Treasury Department

Source: StaffMarket
PEO group health care plans to be treated as employer sponsored plans.
The IRS released final regulations on the requirement that individuals purchase health insurance adheres to the minimum essential coverage standard known as the individual mandate. These rules provided definition to those Professional Employer Organizations - PEOs offering group health plan coverage to employees on behalf of a PEO client employer. Th individual mandate requirement is satisfied by maintaining coverage under an eligible employer-sponsored plan. These new regulations include an eligible employer-sponsored plan offered by a PEO on behalf of a PEO client employer.

Specifically, the definition of eligible employer-sponsored plan in the final regulations (Section 1.5000A-2(c)) provides that an eligible employer-sponsored plan includes, in addition to coverage offered by an employer, (i) group health insurance coverage offered on behalf of an employer to an employee and (ii) a self-insured group health plan under which coverage is offered by, or on behalf of, an employer to the employee.
Comment about: PEOs get Favorable Ruling on ACA from the Treasury Department
Post the first comment about:
PEOs get Favorable Ruling on ACA from the Treasury Department
8/9/2013 Know your PEO – Preventing Work Comp Fraud

Source: StaffMarket
What business owners should know about PEO Workers' Compensation Certifications
Over the last several years there have been several incidents where business owners have contracted with a PEO to provide workers compensation insurance for their business only to later learn that the PEO did not have a valid workers’ compensation policy in place.

These rare events unfortunately give the entire industry a bad rap. The vast majorities of PEOs provide a valued service and access to insurance products at a competitive price. However, as in all businesses there will be a few bad actors that may financially injure others or commit outright fraud. Remember, insurance is one of the few products people buy where they exchange cold hard cash and in turn receive nothing more than a promise. Each state recognizes that the nature of any insurance product is ripe for fraud and has implemented checks and regulations to ensure insurance companies have the financial ability to meet their obligations to their policy holders.

A recent case in Florida serves as an example: "An investigation by the Department of Financial Services Division of Insurance Fraud revealed that Otto Biltres, owner of a temporary staffing agency called Preferred Staffing of America, Inc., knowingly misled consumers into believing that his company was a licensed professional employer organization (PEO) and could perform PEO services such as providing workers’ compensation insurance coverage to client companies. Biltres charged client companies more than $130,000 for services and workers’ compensation insurance that was never provided."
Comment about: Know your PEO – Preventing Work Comp Fraud
Post the first comment about:
Know your PEO – Preventing Work Comp Fraud
8/6/2013 Detroit business exodus: Fight back with a PEO?

Source: StaffMarket
Detroit business exodus: Are the same problems coming for your business? Business owners in Detroit explain why the moved their companies out of the city.
A recent article at American Thinker exposes some of the key costs and risks that business owners face when trying to staff their companies in an area that becomes hostile to employers. The stories about the problems of Detroit span the spectrum from race to politics to crime to global economics. But one factor that gets overlooked is the hostile environment Detroit created for small businesses. As we all know, small businesses create the majority of jobs in America but the problems they face don’t get much attention. When small businesses fold or flee, the underpinnings of a local economy are in peril.

In this article I would like to comment on the frustrations expressed by the business owners quoted in the New American story and note how in many cases these same problems are happening across the USA. PEOs are in business to help their client companies address these risks.

Excerpts from The American Thinker "How Detroit Almost Killed My Business" are highlighted in red: Businessman Don Wilkie discusses his experience as a small business owner in Detroit and explains his reasons for relocating his business. His story is something many small business owners can relate to.

Rather, the beam that really broke the behemoth’s back was built with "Unemployment Insurance, Workman's Compensation and Wrongful Discharge (i.e. age discrimination, sex discrimination, racial discrimination etc.) [lawsuits]," writes Wilkie. He says there’s a dearth of jobs in the city because "in Detroit, hiring someone became the worst thing an employer could do, and being fired became one of the best days in an employee's life."

Let's take a look at the three main things Mr. Wilkie mentioned, why they are important for business owners and how hiring a PEO could have reduced Mr. Wilkie's pain.

Comment about: Detroit business exodus: Fight back with a PEO?
Latest Comment: - 1/15/2014
Detroit business exodus
Read All 1 Comments about:
Detroit business exodus: Fight back with a PEO?
7/30/2013 HR - Big savings for small business

Source: The Fiscal Times
Article is largely a commercial for TriNet, but does discuss some great PEO subjects.
Yet Professor Peter Cappelli of University of Pennsylvania’s Wharton Business School, disagrees. "I'm usually not a fan of these things, but this is one of those rare instances that is both cheaper and better," he says. "It's a big burden on a local HR manager to know everything."
Comment about: HR - Big savings for small business
Post the first comment about:
HR - Big savings for small business
7/11/2013 Tortilla Factory Owner Jailed for Workers' Comp Felony and Labor Law Violations

Source: New York Times
The state of New York has jailed a business owner who failed to provide workers compensation insurance and ignored other payroll laws.
Mr. Ponce, 57, was arrested by the attorney general’s office in March 2012. In June 2012, he pleaded guilty to failing to pay adequate wages, a misdemeanor. He also pleaded guilty on behalf of his company to another count of failure to pay wages, and a count of failure to secure workers’ compensation insurance for his employees, a felony.
Comment about: Tortilla Factory Owner Jailed for Workers
Post the first comment about:
Tortilla Factory Owner Jailed for Workers' Comp Felony and Labor Law Violations
7/11/2013 Affordable Care Act: Employer Mandate Delayed, but Other 2013 Requirements Remain

Source: StaffMarket
While the employer mandate to provide health insurance or pay a fine has been delayed one year until 2014, other provisions of the ACA will still be implemented for employers in 2013.
The US Treasury Department announced a change to the Affordable Care Act timeline that all US employers should understand. The deadline for compliance with the employer mandate has been postponed for one year. The ACA provision for large employers (50 or more employees as defined by the ACA) to offer qualifying health coverage to employees, or pay a penalty, has been delayed for one year from January 1, 2014, until January 1, 2015.

In addition, the requirement for employers to report information to the IRS about the health coverage they offer was delayed until the 2015 tax year. Now, reporting health coverage information will be voluntary when businesses file their 2014 tax return.
Comment about: 
Affordable Care Act: Employer Mandate Delayed, but Other 2013 Requirements Remain
Post the first comment about:
Affordable Care Act: Employer Mandate Delayed, but Other 2013 Requirements Remain
7/9/2013 High Wage Earners may feel ACA Impacts

Source: StaffMarket
For High Wage Earners without Company Sponsored Health Insurance things are likely to get way more expensive.
High wage earners who work for a company that does not offer health insurance are the biggest losers under the new ACA regulations. Those people making more than 4 times the poverty rate or roughly $85,000 per year that do not have employer sponsored health insurance will be the ones who pay the freight under ACA. Why? In a nutshell, they make too much money to be eligible for a health insurance subsidy on the individual health care exchanges and in addition they do not get the favorable tax treatment for their health insurance payments that they get with an employer sponsored health plan. Of course they can get tax deductibility for medical expenses but only once the out of pocket expenses for the year exceed 7.5% percent of their total income and then for only the expenses above that amount. Very few people are in that unfortunate situation. So the bottom line is: No subsidy from the government, no tax deductibility for insurance premiums and forced to purchase health insurance at the prices on the individual market exchange.

Individual market health insurance exchange – what does it cost? Everyone in the country seems to be using the Kaiser website to get an estimate of their heath insurance premium costs (and subsidy) under the new ACA guidelines. However, the fine print there states that these are just “estimates” and that the actual cost of the plan(s) is yet to be determined. So what will the rates look like in the ACA individual marketplace? Who knows, but the answer will depend on several factors:

ACA Health Insurance Rates By State Location

Government Price Setting States

Some states like California are getting involved with rate setting for the insurance carriers and are digging deep in the claims costs and expenses for the insurance companies. While NBC News calls this model a “passive” state, this is just newspeak for government price setting. Of course this could be why Aetna and United (the nation’s largest insurance carrier) have exited the California insurance markets for individual polices.

Open Market Pricing States

Other states will let the insurance carriers set the rates available for the plans they offer on the exchange. This means that each insurance company will look at their claims costs and their market competition and price their plans accordingly.
Comment about: High Wage Earners may feel ACA Impacts
Post the first comment about:
High Wage Earners may feel ACA Impacts
7/2/2013 Understanding the ACA "Large Employer" Threshold. Who is subject to the penalty, er tax.

Source: StaffMarket
Does the ACA affect your company? Understanding the 50 employee threshold and who is considered a Large Employer. Information about calculating Full Time Equivalent(FTE) employees.
Update for July 2, 2013. An announcement by the US Treasury Department has stated that the implementation of the “Employer Mandate” will be delayed one year until 1/1/2015. Originally the mandate was to be in force on 1/1/2014.

The ACA mandate for employers to provide health insurance only affects employers with over 50 employees. Some businesses owners may think that they will be under that 50 employee threshold when in reality they may not. The considerations for part time employees and the business aggregation rules may surprise many business owners who thought they were not affected. Per the ACA employees who work over 30 hours per week (130 hours per month) are considered full time employees. To determine whether you will be considered a large employer you need to add together 2 groups:
  • The number of current full time employees
  • Plus: The number of FTE (full time equivalent) employees

Determining the FTE Full Time Equivalent Numbers
The rational for calculating an FTE is to ensure that part time employees are included in the determination of the status as a “large employer”. Part time employees are included in the calculation on the basis of how much time they actually worked (or were paid). This means that even companies with a small full time staff and a large part time staff may very well be considered a large employer under PPACA. Restaurants and other hospitality based business with a large part time staff can expect to be impacted.

To determine the number of FTEs, add together the total number of hours in the month worked by all the non full time employees (up to a maximum of 120 hours per part time employee). Next divide this number by 120 (monthly rate of 30 hours times four weeks). Do this calculation for each month of the prior year and then compute the annual average by adding the numbers for all the prior 12 months and then divide by 12. The resulting number is the value for the full time equivalent employee count. Click here for an example FTE calculation. It is important to note that leased employees are included in the FTE calculation. If your company is currently using a PEO, your company still must include those leased employees in the FTE calculation. In addition, seasonal employees working less than 120 days during the prior year are excluded from the FTE calculation.

Comment about: Understanding the ACA "Large Employer" Threshold. Who is subject to the penalty, er tax.
Post the first comment about:
Understanding the ACA "Large Employer" Threshold. Who is subject to the penalty, er tax.
5/30/2013 EMPO Clients Acquired by G&A Partners

Source: StaffMarket
Minnesota based PEO delivers clients to Texas based G&A Partners
G&A Partners a Professional Employer Organization (PEO) in Houston Texas, announced that they have acquired the clients of EMPO Corporation, a Minnesota domiciled PEO. According to the announcement in the Wall Street Journal, EMPO had roughly 100 PEO/ASO clients that will be transferred to G&A partners. According to the article the staff at EMPO will remain and transition to positions with G&A Partners. Financial details of the client acquisition were not disclosed. Clients of EMPO may want to review the StaffMarket article for what to do if your PEO was just sold.
Comment about: EMPO Clients Acquired by G&A Partners
Post the first comment about:
EMPO Clients Acquired by G&A Partners
5/17/2013 NAPEO Announces Ad Initiative

Source: StaffMarket
The National Association of Professional Employer Organizations expands the PEO message.
NAPEO recently release a new slogan, “Keep Calm and Call a PEO”. The advertising is shown with the image of the British crown. The ad copy appears to be a take off from a campaign in Britain at the beginning of World War II that was meant to keep up the spirits of the British population who feared invasion. Watch a video about the origin of the “Keep Calm” campaign. Given the situation facing many small and medium sized business today, the campaign slogan appears very appropriate for the times. NAPEO - Keep Calm
Comment about: NAPEO Announces Ad Initiative
Latest Comment: - 7/27/2013
metaslim
Read All 1 Comments about:
NAPEO Announces Ad Initiative
5/2/2013 Workers Comp Pricing Gets Harder

Source: CFO.com
CFO article about increases in work comp insurance costs and what larger companies are doing to keep costs down.
The examples of how companies are take lots of first dollar risk and implementing safety and claims management practices is important for companies to understand. However these are large companies like Red Robin that can afford to have dedicated staff to implement these changes. Many small companies do not have the expertise or the knowledge to implement these kinds of strategies and therefore are getting hit the hardest with rate increases and in some bad cases are finding it difficult to get any WC coverage. Even Professional Employer Organizations or PEOs are being challenged to underwrite many of these small accounts.
Comment about: Workers Comp Pricing Gets Harder
Latest Comment: - 7/27/2013
metaslim
Read All 1 Comments about:
Workers Comp Pricing Gets Harder
5/1/2013 Merit Resources Acquired

Source: Iowa Network Services
Merit Resources an Iowa based PEO has been acquired by a telecom company named Iowa Network Services.
The information release indicates that the senior management team at Merit Resources will remain in place. Merit has been a longtime PEO presence with clients primarily located in Iowa. Merit has been based in Des Moines, IA since 1989 and is the largest PEO in the state. Today, Merit provides valuable HR solutions to more than 400 clients and 11,000 worksite employees across 40 states.
Comment about: Merit Resources Acquired
Post the first comment about:
Merit Resources Acquired
4/29/2013 NFIB Survey - Many Top Business Concerns Addressed by PEOs

Source: StaffMarket
The National Federation Of Indepedent Businesses survey conducted in August 2012 ranks top business concerns. PEOs help with 14 out of 75 main areas.
Comment about: NFIB Survey - Many Top Business Concerns Addressed by PEOs
Latest Comment: - 5/3/2013
Good article
Read All 1 Comments about:
NFIB Survey - Many Top Business Concerns Addressed by PEOs
4/25/2013 Obama 2014 Budget Proposal - Impact for Employers

Source: StaffMarket
President Obama's proposed budget for 2014 has impact for small businesses
President Barack Obama has sent the US Congress his proposed budget for 2014 and it has some significant impacts and opportunities for small employers. Whether these provisions actually become law remains to be seen, however, HR and business managers of small and medium sized companies need to be aware of what may be coming down the road. Business owners should review the highlights listed below and start planning now for how these items may impact their companies and what processes will need to be implemented or revised in order to ensure regulatory compliance. Companies using a PEO should review the items below and discuss them with their PEO HR advisor to understand how their PEO will be addressing these items on the client’s behalf. 
Comment about: Obama 2014 Budget Proposal - Impact for Employers
Post the first comment about:
Obama 2014 Budget Proposal - Impact for Employers


StaffMarket Services, LLC
431 12th Street West, Suite 202
Bradenton, Florida 34205 (get map)
Phone: 941-750-9450 - Fax: 877-471-5608
Office hours are 9:00am to 5:00pm EST
Send e-mail to: StaffMarket Information
Copyright 2014 StaffMarket Services. All rights reserved.
StaffMarket and StaffMarket.com are registered trademarks of StaffMarket Services, LLC.
Patent Pending

NAPEO

Better Business Bureau

You are viewing our regular site View Mobile Site

StaffMarket Sitemap

America's best PEOs
are ready to help your company: