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
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?
7/11/2013 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
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
7/27/2012 Florida Amends Unemployment Compensation Rules for Employee Leasing Companies

Source: StaffMarket
The state of Florida now allows PEOs to elect to use either a master experience unemployment rate or the individual UI rate of each of their clients. Once declared, the method cannot be changed and applies to all of the PEO's existing clients and future clients.
Florida has adopted changes to the way employee leasing companies (also known as Professional Employer Organizations or PEOs) may pay and report contributions for state unemployment taxes. With the new rules, employee leasing companies in Florida are allowed to make a one-time election to use the unemployment rate (for non-internal employees) of each individual client rather than a single rate established for the whole employee leasing company. Under the client level election, the unemployment claims and tax payments may now be done using the tax identification number of the employee leasing client rather than the tax ID of the PEO.
Comment about: Florida Amends Unemployment Compensation Rules for Employee Leasing Companies
Post the first comment about:
Florida Amends Unemployment Compensation Rules for Employee Leasing Companies
6/8/2012 Tennessee Passes PEO Legislation

Source: StaffMarket
The state of Tennessee has passed Senate Bill 2633 that regulates Professional Employer Organizations operating in Tennessee.
The Tennessee State Senate has passed Senate Bill 2633 that codifies the requirements for PEOs with clients in Tennessee. The new legislation contains provisions for Professional Employer Organizations in TN and clarifies the rights and responsibilities of both PEO and their clients. PEOs operating in Tennessee will now be required to provide audited financial statements to the state, proof of workers' compensation policy validity and proof of adequate working capital (or appropriate bond).
Comment about: Tennessee Passes PEO Legislation
Post the first comment about:
Tennessee Passes PEO Legislation
5/16/2012 Is your business leaking money?

Source: Business 2 Community
Good information about how business owners can put costs under the microscope and how outsourcing to a PEO can help.
Obviously, any given business may vary from this list, depending on its operating model and industry. However, it's worthwhile to consider, not just how you can cut costs in these major categories, but how you can restructure them to be more appropriate for you. For example, a Professional Employer Organization (PEO) can save small businesses huge amounts of payroll, tax and benefits-related costs, while still giving workers similar compensation packages.
Comment about: Is your business leaking money?
Post the first comment about:
Is your business leaking money?
1/17/2012 Administrative Concepts Sells PEO Operation

Source: StaffMarket
Administrative Concepts (ACC) a long time PEO in Florida has sold its operation to Progressive Employer Management Company (PEMCO) a Professional Employer Organization located in Sarasota Florida.
January 15, 2012

Administrative Concepts (ACC) a long time PEO in Florida has sold its operation to Progressive Employer Management Company (PEMCO) a Professional Employer Organization located in Sarasota Florida.

ACC was founded in 1995 by George Bushong and his wife Sarah Peel. Mr. Bushong has had a long time involvement with the employee leasing industry and was part of the original group that created Staff Leasing in Bradenton, Florida in the early 1980s. Mr. Bushong helped maneuver his company, ACC, through the tumultuous period of workers’ compensation insurance in 2001 by starting his own workers' compensation carrier, Southern Eagle Insurance. Creating the insurance company allowed ACC to offer their employee leasing clients workers' compensation insurance when many traditional work comp carriers would not write policies to any employee leasing companies. The strategy helped ACC grow during a time period when many other employee leasing companies were being forced to close their doors. The effectiveness of that strategy came to an abrupt end when Southern Eagle Insurance Company was forced in to receivership by the Florida Chief Financial Officer, Jeff Atwater on December 16, 2011.

Any former clients of ACC who have outstanding workers' compensation claims prior to the merger with PEMCO should review information located at the Florida Division of Rehabilitation and Liquidation about how Southern Eagle Insurance claims will be paid. With the entry of the liquidation order, the Florida Workers' Compensation Insurance Guaranty Association (FWCIGA) was activated to help pay claims for workers' compensation policies.
Comment about: Administrative Concepts Sells PEO Operation
Post the first comment about:
Administrative Concepts Sells PEO Operation
12/5/2011 Chiropractors Explore Alternate Staffing Arrangements

Source: Chiropractic Economics
Article discusses the challenges faced by medical organizations when staffing to meet their business needs. Contract labor, staffing companies and Professional Employer Organizations offer options that come with differing employer responsibilities.
Today, many professional practices and businesses need help managing increasingly complex employee-related matters such as health benefits, workers’ compensation claims, payroll, payroll tax compliance, and unemployment insurance claims. They often contract with a professional employer organization (PEO) to assume those responsibilities and provide human resources management. This allows the business owner to concentrate on the operational and revenue-producing side of his or her operations.
Comment about: Chiropractors Explore Alternate Staffing Arrangements
Post the first comment about:
Chiropractors Explore Alternate Staffing Arrangements
8/31/2011 Florida Workers Comp Rates on the Rise

Source: St. Augustine Record
NCCI has submitted a proposal to Florida State regulators to increase workers’ compensation insurance rates by 8.9 percent. After changes were made to the system in 2003 that capped claim amounts and set limits on attorney fees in 2003, rates in Florida dropped until 2011 when rates were increased overall 7.8 percent. From the 2003 peak, work comp rates in Florida have dropped nearly 65 percent.
Comment about: Florida Workers Comp Rates on the Rise
Post the first comment about:
Florida Workers Comp Rates on the Rise
8/31/2011 Is a PEO Right For Your Company?

Source: US Chamber of Commerce
This article, authored by the new CEO of NAPEO, provides a brief introduction to the benefits for companies of hiring a Professional Employer Organization or PEO.
Article Comments from StaffMarket: This article is a great starting point for business owners and managers to use when starting to investigate the viability of using a PEO for their company. Companies with up to 500 employees often find that the overhead associated with hiring a dedicated internal staff to perform the long list of employer related duties is not cost effective compared to outsourcing to a PEO. Every PEO has economies of scale and expert staff ready to handle issues related to: HR administration and risk management, insurance plan management, workers compensation claims administration, unemployment administration, payroll, etc. The reality is the most small businesses who do things “in-house” do it poorly at a higher cost than using a PEO. For business considering hiring a PEO, the things to consider is a bit more expansive than listed here. StaffMarket.com has a PEO and Employee Leasing buyers guide that may be helpful. In addition, understanding each PEO's pricing can be a challenge, so having an independent advisor or CPA review each PEO proposal is also a good idea. As with any business arrangement, having a clear understanding of what services and fees are included and not included makes for a good long term relationship. After advising thousands of clients on how to target and evaluate PEO and employee leasing solutions for their company, we concur that the hiring a PEO can be the best decision many businesses can make. Finding the right PEO makes the difference.
Comment about: Is a PEO Right For Your Company?
Post the first comment about:
Is a PEO Right For Your Company?
7/19/2011 Staff Leasing Signed by Texas Governor

Source: Insurance Journal
Texas has implemented measures that require Professional Employer Organizations to provide workers' compensation loss runs for their PEO clients when requested. Several PEOs in Texas have joined forces with independent insurance agents to promote the new rules.
While most PEOs would ultimately provide the information, some would not. HB 625 "simply corrects that situation and makes it clear that if you are outside or inside a PEO, if you’re an employer, you have access to that loss information," VanDelinder said. He added that PEO professional organizations were in favor of standardizing the requirements and were instrumental in drafting some of the language in the bill.
Comment about: Staff Leasing Signed by Texas Governor
Post the first comment about:
Staff Leasing Signed by Texas Governor
5/17/2011 Streamlining HR: Use a PEO

Source: Wall Street Journal
A brief introduction to the advantages to business owners of hiring a PEO.
This article offers a starting point for evaluating PEO solutions; however other significant factors are involved with targeting the best PEO for a particular company. Workers’ compensation insurance is a significant expense for many companies in manufacturing and construction. Each PEO has certain risk for work comp they can or cannot accept. For white collar companies this is not such a concern. Also, many states require PEO licensing. HR services vary widely in the PEO industry. Some PEO clients have high demands for HR services like employee recruitment and unemployment claims management where others… not so much. Finally access to health insurance plans is a major driver for many PEO clients and each PEO has access to different carriers, plans and pricing. The PEO industry (over 700 PEOS) is a diverse lot of companies and all of these factors and more should be considered when evaluating PEO options.
Comment about: Streamlining HR: Use a PEO
Latest Comment: - 6/10/2011
WSJ could have used some bette
Read All 2 Comments about:
Streamlining HR: Use a PEO
1/12/2011 Illinois State Senate Changes Work Comp Reporting Rules for PEOs

Source: State of Illinois
The state of Illinois has proposed an amendment to senate bill SB1066 that requires PEOs to provide all clients with an insurance coverage document that specifies its rights and obligations under the PEOs master policy and includes the date of the start and termination of the policy coverage.
For purposes of this subsection, "Professional Employer Organization" or "PEO" means an entity or group of entities that provides the services of its workers to its client or clients through an arrangement for a fee pursuant to an agreement, written or otherwise. "Professional Employer 11 Organization" or "PEO" also includes an employee leasing company or other similarly administered arrangement. Any workers' compensation insurance policy issued to a PEO shall at a minimum provide the following information to the Commission or any entity designated by the Commission regarding each policy issued to the PEO: (1) Each client company of the PEO listed as additional named insured. (2) Information schedules attached to the master identify each individual company's name, FEIN, and job location. (3) A certificate of insurance coverage document issued to each client company specifying its rights and obligations under the master policy that clearly establishes both the identity and status of the client, as well as the dates of inception and termination of coverage, if applicable.
Comment about: Illinois State Senate Changes Work Comp Reporting Rules for PEOs
Post the first comment about:
Illinois State Senate Changes Work Comp Reporting Rules for PEOs
1/12/2011 Colordao Business Roundtable Discusses Business Issues and Solutions

Source: North Colorado Business Report
Employer Solutions Group director outlines Health Insurance and Human Resources issues facing small businesses in 2011. Jessica Hergenberger explains the impacts of Health Care reform, helath care plan grandfathering and new enforcement efforts by the Department of Labor and OSHA.
HERGENRETER: So the first thing that I think a lot of employers are really struggling with right now is whether to grandfather or not to grandfather. If you had a health plan in place before March 23, 2010, that became your plan; and if you didn't want to make any changes to it and you wanted to keep it, then all of a sudden, you could call it a grandfathered plan. But to keep this grandfathered plan, you couldn't make any significant changes to it. So why would someone stay grandfathered? The biggest effect working right now is on small to midsized employers who have a benefit plan that gives greater benefit to highly compensated employees - we call them management carve-outs. For example, the top five executives, they want to pay a hundred percent of their premiums and their family's premiums, but for the rest of the employees, they only pay 50 percent or maybe they don't offer it at all. During grandfathering, you can't make significant changes in your plan in terms of benefits, pensions. If you do, and you don't offer it to all your employees, you're going to pay a $100 tax per employee per day. I don't think it's inhibiting people from hiring, but I think it's freaking them out from offering health care. In conversations, it's been so bad for the last couple of years anyway because of rate increases that they're saying, 'I don't know where to go with this one.' It's very directed for the consumer, to the employee. There's some information for small businesses, but there's not a comprehensive solution say, 'OK, I've got 25 employees. This is what my plan is doing. What do I have to do this year? What do I have to do the next year?' It's hard to get somebody to bring you through the whole life cycle. Everybody has their fingers in it. Health and Human Services. IRS has a piece of regulation. And the Department of Labor. If you have a full-time person to do the regulations, who do you start talking to first? And we're waiting for interim final regs. Is there anything good in it? There's a small business tax credit. If you have 24 or fewer full-time employees whose average compensation is less than $50,000, you can get a tax credit of 35 percent of the employer's portion of the premium. But it's a degrading tax credit. So for every employee over 10 and every wage over $25,000, the tax credit starts to go away. We have a nonprofit here in Northern Colorado. The average person makes $37,000 a year. They're not high income earners, and they have 27 employees. By the time we did the math, which took us almost two hours, their tax credit was zero. The important part here is - by the time we did the math. We do all their HR and payroll, so we have really good data. How many employers really have that kind of data? They don't. So if you have 10 employees and everybody is making about $27,000 a year, yeah, those aren't people who have health care. We're trying to incent them to get the health-care plans, but even at 35 percent of the tax credit, it's not helping. Because everyone was talking about health-care reform, the HIRE act got passed unnoticed. But essentially, most people benefited from the HIRE act, because if you hire employees that haven't been working for 60 days then you didn't have to pay the employer FICA match this year. And if you retained them for 52 weeks, you got an additional tax credit. That is a tax benefit that employers could really use. The other benefit that we have to talk through is the cafeteria plan. In a cafeteria plan, you have a plan in which you have 100 or fewer employees, you could say, I'm going to give you 400 bucks a month, and you guys go buy your benefits with it. That's really a cool way to do it, and people really get engaged in that, and you see your participation go up. But it used to be, you'd have a whole lot of documentation and things like that, and they passed the cafeteria plan health-care reform. That's a benefit. You know, in 2012, we'll have to report, on their W-2s, employees' cost of health care. The government wants to know what that is. So again, for people who outsource this stuff, it's easier, because hopefully, their provider is tracking these things. For the small employer who is writing payroll in QuickBooks, are they tracking that? I don't know. I think it's going to cost them time, money and energy, and I think the penalties are frustrating, because there's not a lot of recourse in how you do it.
Comment about: Colordao Business Roundtable Discusses Business Issues and Solutions
Latest Comment: - 11/23/2011
fasfsad
Read All 2 Comments about:
Colordao Business Roundtable Discusses Business Issues and Solutions
12/20/2010 PEO versus an ASO Which is a better solution for your company: PEO or ASO?

Source: StaffMarket
This brief article explains the differences between these outsourcing models, and how they might benefit your company.
As a client advocate in the PEO industry, I often get asked the question, “What is the difference between a PEO and an ASO, and what makes sense for my company?”

First of all, to understand this, we must take a look at the acronyms.

PEO stands for Professional Employer Organization, and ASO stands for Administrative Services Only.

Basically, a PEO is a comprehensive vendor that will handle the four core aspects of outsourcing: Human Resources, Benefits Administration, Payroll Administration and Workers Compensation. In a true PEO or “co-employment” arrangement, there is a transfer of liability. Your employees actually move to the FEIN number of the PEO.

Comment about: PEO versus an ASO

Which is a better solution for your company:  PEO or ASO?
Post the first comment about:
PEO versus an ASO Which is a better solution for your company: PEO or ASO?
10/15/2010 Florida Workers' Comp Rates Going Back Up in Florida

Source: Florida Restaurant Association
Florida Insurance commissioner Kevin McCarty signes off on a proposed rate hike of 7.8% for January 2011
Rates in Florida had been generally falling since lawmakers made a host of changes in 2003 -- including putting limits on attorney fees in workers' compensation cases. “The rate increase that has been justified would still give Florida the lowest rates in the Southeast, and likely keep us in the top 10 states nationally for most affordable workers’ compensation insurance,” said McCarty in a statement. “The NCCI’s prior seven annual filings represent the largest consecutive cumulative decrease in rates in our state’s history.” McCarty added that even with the latest proposed hike that rates have fallen a total of 61.9 percent since 2003.
Comment about: Florida Workers
Latest Comment: - 11/19/2010
Florida rates going up, but Ca
Read All 1 Comments about:
Florida Workers' Comp Rates Going Back Up in Florida
10/12/2010 Hawaii PEO makes market inroads

Source: Honolulu Star Advertiser
Former resort executive makes career change and enters the PEO industry.
After spending the bulk of his career in the cyclical hospitality and real estate industries, Delaney decided to join Meichtry last year in starting up a professional employer organization (PEO) and marketing company called The Hawaii Group. The company's four brands -- HiHR, HiAccounting, HiEmployment and HiMRK -- cater to about 120 businesses and their 1,300 employees. The family of companies, which has grown in just one year to become the isles' third-largest PEO behind Altres and ProService Hawaii, offers outsourcing, human resources and health benefits administration, payroll, accounting, workers' compensation, risk management, business insurance and marketing.
Comment about: Hawaii PEO makes market inroads
Post the first comment about:
Hawaii PEO makes market inroads
8/11/2010 Should You Outsource your HR?

Source: Fast Casual
A tax advisor in the restaurant and hospitality industry provides some guidance for business owners about outsourcing their Human Resource tasks by engaging a Professional Employer Organization.
One area of outsourcing that is becoming increasingly popular is the human resources administration function, through the use of a professional employer organization, or PEO. Sometimes referred to as an employee leasing company, a PEO enables you to outsource the human resource management functions, including payroll, employee benefits, record keeping, and workers compensation coverage. However, before deciding to outsource that important function, the restaurant owner must fully consider the benefits and risks of such an arrangement.
Comment about: Should You Outsource your HR?
Post the first comment about:
Should You Outsource your HR?
8/7/2010 More Profitable Than Ever

Source: Architectural Record
A New York City architecture and engineering firm gets serious about cutting costs and discovers a PEO can provide cost effective solutions for reducing HR and insurance costs.
We started by looking at our insurance and benefits," says Carpenter. "As a small firm, we simply didn't have enough people to get good health-insurance rates. We joined a professional employer organization (PEO). It takes care of payroll, benefits, and insurance." One of the advantages for both the firm and employees (who are technically coemployed by the Meltzer/Mandl and ADP) is that they can receive health insurance at far less cost than they could as a small group. Costs for both the employees and the firm, which pays half of the employees' health-insurance costs, have gone down by half. "Our employees are able to get much better insurance than we could offer them." The PEO also carries the firm's workers' compensation insurance, which in the past had been a major expense.
Comment about: More Profitable Than Ever
Post the first comment about:
More Profitable Than Ever
1/28/2010 State of Ohio moves forward with PEO Legislation

Source: State of Ohio
The State of Ohio has moved forward to consider legislation regarding the operation of Professional Employer Organizations operating in Ohio. Included in the bill are provisions for PEOs to be the employer of record for Unemployment Insurance and to use subaccounts for client level tracking. Also included were provisions for benefit plan sponsorships and clarification of workers' compensation classifications.
(1) A professional employer organization shall not be liable for the acts, errors, and omissions of a client employer or a shared employee when those acts, errors, and omissions occur under the direction and control of the client employer. (2) A client employer shall not be liable for the acts, errors, and omissions of a professional employer organization or a shared employee when those acts, errors, and omissions occur under the direction and control of the professional employer organization. (D) Nothing in divisions (B) and (C) of this section shall be construed to limit any liability or obligation specifically agreed to in the professional employer organization agreement.
Comment about: State of Ohio moves forward with PEO Legislation
Post the first comment about:
State of Ohio moves forward with PEO Legislation
12/28/2009 Florida moves to amend UI reporting for Employee Leasing Companies

Source: State Of Florida
The State of Florida Senate bill S1062 will require employee leasing companies and Professional Employer Organizations to report employment related data on their clients to the Labor Market Statistics Center within the Agency for Workforce Innovation on a quarterly basis. The motivation for the collection of this information is more accurate information about the employment in various industries and a better understanding of the impacts on the state unemployment insurance compensation funding contributions.
"Employee leasing company" means an employing unit that has a valid and active license under chapter 468 and that maintains the records required by s. 443.171(5) and, in addition, is responsible for producing quarterly reports concerning the clients of the employee leasing company and the internal staff of the employee leasing company.
Comment about: Florida moves to amend UI reporting for Employee Leasing Companies
Post the first comment about:
Florida moves to amend UI reporting for Employee Leasing Companies
11/3/2009 North Carolina Work Comp Premiums to drop 9.6%

Source: Charlotte Business Journal
The State of North Carolina has negotiated a deal with the NC rate bureau that will lower overall work comp premiums for NC companies by $100 million.
Comment about: North Carolina Work Comp Premiums to drop 9.6%
Post the first comment about:
North Carolina Work Comp Premiums to drop 9.6%
10/29/2009 Alphastaff Acquires Selective HR Solutions

Source: PR Inside
Selective HR Solutions of Sarasota, Florida has been acquired by Alphastaff Inc of Ft. Lauderdale, Florida. Selective HR Solutions has been part of Selective Insurance with Headquarters on Branchville, New Jersey. According to the press release an estimated 20K worksite employees of Selective HR will be affected by the acquisition and the number of client companies affected was not disclosed. Selective HR has been marketed through their network of Selective insurance agents and the acquisition is being billed as a way for Alphastaff to expand their agent network as well as increase their client count. Alphastaff has committed to maintaining Selective HR's pricing with the affected clients, however the transition planning for clients to move from Selective HR's payroll and PEO platforms to Alphastaff was not disclosed.
Starkman noted that a key factor in the deal was the vast potential to increase sales by offering AlphaStaff’s robust product and commission structure to Selective Insurance’s over 900 agents. AlphaStaff will be the only PEO partnering with the insurance subsidiaries of Selective Insurance Group, Inc. for workers compensation insurance pursuant to the terms of the agreement.
Comment about: Alphastaff Acquires Selective HR Solutions
Post the first comment about:
Alphastaff Acquires Selective HR Solutions
9/29/2009 Employee Leasing Rules Eased in New Hampshire

Source: New Hampshire Business Review
New law allows PEO Client Service Agreements to specify which party is responsbile for violations of state labor laws. New Hampshire PEO clients should check their CSA for definition of liability.
The new law also allows leasing companies to get two workers' compensation carriers, which should give them more flexibility in which occupations to place their workers. The bill does require leasing companies to file audited financial statements with the state.
Comment about: Employee Leasing Rules Eased in New Hampshire
Post the first comment about:
Employee Leasing Rules Eased in New Hampshire
7/2/2009 Arizona Senate to review workers' compensation coverage options for PEOs and PEO clients.

Source: State of Arizona
Already passed by the Arizona house, HB 2087 allows PEOs to offer either master policy coverage or individual policies to PEO clients. Insurers will be required to report loss experience at the client level.
If a professional employer agreement does not provide for the professional employer organization to purchase workers' compensation for covered employees, the client is responsible to purchase a client based policy for all employees, including the covered employees.If the professional employer agreement provides for the professional employer organization to purchase the workers’ compensation for covered employees pursuant to section 23-562, the professional employer organization shall fulfill the responsibility through an individual policy, a master policy or multiple coordinated policies obtained from a carrier or carriers licensed to do business in this state.
Comment about: Arizona Senate to review workers
Post the first comment about:
Arizona Senate to review workers' compensation coverage options for PEOs and PEO clients.
6/5/2009 Florida puts new reporting requirements on Professional Employer Organizations.

Source: State of Florida
Florida passes "Accurate Employment Statistics Enhancement Act" to require PEO and Employee Leasing companies to submit client level detail information to the state government for use in unemployment compensation data analysis. Known as Florida House bill HB641 and Senate bill SB1062.
The bill amends the definition of “employee leasing company” in s. 443.036(18), F.S., to include a statement that requires employee leasing companies to produce quarterly reports concerning their clients and internal staff. The new definition will require employee leasing companies to “produce quarterly reports concerning the clients of the employee leasing company and the internal staff of the employee leasing company.” Quarterly reports will provide AWI with more timely and accurate labor market statistics.
Comment about: Florida puts new reporting requirements on Professional Employer Organizations.
Latest Comment: - 6/9/2009
What about client names?
Read All 1 Comments about:
Florida puts new reporting requirements on Professional Employer Organizations.
6/3/2009 State of Nevada approves PEO legislation

Source: State of Nevada
The state of Nevada has approved significant enhancements to PEO legislation. New provisions ensure PEOs have flexibility for providing clients with workers' compensation insurance coverage and ensures uniform financial standards for the PEO industry.
AN ACT relating to employee leasing companies; authorizing the Administrator of the Division of Industrial Relations of the Department of Business and Industry to adopt regulations relating to a third party that may act on behalf of an employee leasing company; providing various means for an employee leasing company and its clients to provide workers’ compensation coverage; requiring employee leasing companies to pay an annual registration fee; requiring employee leasing companies to submit certain audited financial statements; providing the means by which an employee of an employee leasing company may notify a supervisor of an injury for the purposes of industrial insurance; and providing other matters properly relating thereto.
Comment about: State of Nevada approves PEO legislation
Latest Comment: - 6/11/2009
PEO Legislation
Read All 1 Comments about:
State of Nevada approves PEO legislation
5/6/2009 North Carolina Senate moves to amend PEO regulations

Source: State of North Carolina
The North Carolina Senate has approved an amendment to the state regulations for PEOs to be licensed in the state. The act - Senate Bill S1029 stipulates that all PEOs licensed prior to October 1, 2008 must post a $100,000 surety bond. PEOs licensed after this date must post a bond equal to five percent of the prior years total sages, benefits, work comp premiums and UI contributions up to a max $500,000.
Comment about: North Carolina Senate moves to amend PEO regulations
Post the first comment about:
North Carolina Senate moves to amend PEO regulations
4/28/2009 PEOs Ease Human Resource Concerns for Small Business

Source: Nebraska Cattleman
Nebraska feedlot owners and managers discover the advantages of using a PEO.
In the case of the feedlot, the frequency and severity of workmen’s comp issues is much higher than in urban companies, as feedlot cowboys grapple with getting potloads of finished cattle into loading chutes, and ranch cowboys tangle with disagreeable cows at weaning time. Accordingly, aside from HR services, ag-related PEOs provide guidance for improving workplace safety and managing workers’ compensation claims.
Comment about: PEOs Ease Human Resource Concerns for Small Business
Post the first comment about:
PEOs Ease Human Resource Concerns for Small Business
4/17/2009 New Hampshire Employee Leasing Law May Change

Source: State of New Hampshire
Audit requirements for employee leasing companies in New Hampshire may be improved if senate passed legislation is approved.
An employee leasing company may meet its obligation to provide workers’ compensation insurance coverage for leased employees through 2 carriers, provided that each client company’s leased employees shall be covered by only one carrier and that such coverage shall clearly delineate such client company employees by client company name and federal identification number.
Comment about: New Hampshire Employee Leasing Law May Change
Latest Comment: - 4/20/2009
NH law
Read All 1 Comments about:
New Hampshire Employee Leasing Law May Change
1/29/2009 Workers' Comp Rates to Rise in Florida

Source: South Florida Business Journal
Florida Workers' Compensation rates will be going up as a result of a recent Florida supreme court ruling that disallows a rate schedule for lawyers.
Florida Insurance Commissioner Kevin McCarty is expected to approve a 6.4 percent increase in Florida's workers' compensation insurance rates on April 1.
Comment about: Workers
Latest Comment: - 2/17/2009
Just great - not
Read All 1 Comments about:
Workers' Comp Rates to Rise in Florida
1/9/2009 State of Colorado moves forward with Employee Leasing Legislation

Source: State of Colorado
The Colorado department of Labor and Employment moves to implement PEO and employee leasing regulations for the first quarter of 2009.
Each employee leasing company shall pay wages and collect, report, and pay all payroll-related taxes from its own accounts for all covered employees. each employee leasing company shall pay unemployment compensation insurance taxes and provide, maintain, and secure all records and documents required of work-site employers under the unemployment insurance laws of this state for covered employees. For unemployment reporting purposes, each employee leasing company is the only employing unit for covered employees and shall have the responsibility for unemployment compensation insurance as required of an employer pursuant to the "Colorado employment security act", articles 70 to 82 of this title.
Comment about: State of Colorado moves forward with Employee Leasing Legislation
Post the first comment about:
State of Colorado moves forward with Employee Leasing Legislation
11/17/2008 Florida - NCCI Proposes 18.6% Workers Comp Rate Hike

Source: Palm Beach Post
Although workers' compensation rates are expected to drop in January 2009, NCCI has proposed to hike rates shortly thereafter beginning in March and another hike later in 2009.
The schedule, a key part of the 2002 workers comp reform, capped attorneys fees that had helped make Florida's rates among the highest in the nation. Since the legislative overhaul, rates have fallen by 60 percent, and Florida is now among the lowest states in terms of workers comp rates. A representative of the Florida Chamber of Commerce said small businesses cannot tolerate an increase, and he charged trial lawyers with getting a "bailout'' as the result of the Supreme Court decision.
Comment about: Florida - NCCI Proposes 18.6% Workers Comp Rate Hike
Latest Comment: - 11/24/2008
Related Link
Read All 2 Comments about:
Florida - NCCI Proposes 18.6% Workers Comp Rate Hike
11/13/2008 California State Fund files for 8.9% workers’ comp increase

Source: San Francisco Business Times
Since dropping by 63% since 2003, work comp rates in California are now on the rise, with state fund jacking rates up 8.9% for 2009.
Since increases in workers’ compensation premium rates typically hit some lines of business harder than others, the steepest increases are likely to affect businesses in areas such as construction, manufacturing, transportation and retail, which are already struggling due to the rapidly weakening U.S. and California economies.
Comment about: California State Fund files for 8.9% workers’ comp increase
Latest Comment: - 11/19/2008
Is this Good or Bad News?
Read All 1 Comments about:
California State Fund files for 8.9% workers’ comp increase
10/1/2008 Administaff Announces Results of Business Survey and Compensation Data

Source: Business Wire
Survey of small and medium sized businesses show more caution for 2009.
The economy was listed by 81.5 percent of business owners as their biggest concern for 2009 versus 45.8 percent last year. More than 60 percent listed controlling costs as a leading concern, compared to 53.3 percent in Nov. 2007. Rising health care costs were another concern for 43.1 percent of respondents, a slight decrease from 44.6 percent in 2007. Retaining their most valued employees ranked fourth by 31.2 percent of those polled, and 28.9 percent of respondents listed hiring the right people.
Comment about: Administaff Announces Results of Business Survey and Compensation Data
Latest Comment: - 11/14/2008
What about product pricing?
Read All 1 Comments about:
Administaff Announces Results of Business Survey and Compensation Data
9/2/2008 Payroll Issues - Knowing when to ask for help

Source: Nevada Business Journal
Article reviews the ever-changing complexities of doing payroll correctly and maintaining legislative compliance.
Similarly, more companies are outsourcing to professional employer organizations (PEOs), which provide payroll, workers compensation, human resources and employee benefits administration. However, unlike a BPO, PEOs assume employer risks for their clients via co-employment. The PEO becomes the employer of record for tax and insurance purposes. This industry has evolved to where you can go from being the employer into a PEO relationship and not ever have to worry about or know these rules because the PEO handles it as a co-employer.
Comment about: Payroll Issues - Knowing when to ask for help
Post the first comment about:
Payroll Issues - Knowing when to ask for help
7/21/2008 Cutting the risk to Workers and the bottom line

Source: NJ Biz Journal
Article discusses the cost to employers for work related injuries and reviews OSHA tool that calculates the cost of additional sales needed to make up for impact to workers' compensation costs.
The average direct cost of a workers' compensation claim is between $5,000 and $7,000 among the clients of Gevity HR Inc a Bradenton Florida based Professional Employer Organization with and office in Edison, according to Chris Davis the firm's vice president of finance insurance. Most injuries occur when employees are doing manual labor such as lifting heavy objects.
Comment about: Cutting the risk to Workers and the bottom line
Post the first comment about:
Cutting the risk to Workers and the bottom line
5/28/2008 State of Colorado passes PEO and Employee Leasing Legislation

Source: State of Colorado
Colorado passes legislation that clarifies the rights and responsibilities of companies when hiring a professional employer organization. PEO and employee leasing arrangements have recognized legal status in Colorado.
EACH EMPLOYEE LEASING COMPANY SHALL PAY WAGES AND COLLECT, REPORT, AND PAY ALL PAYROLL-RELATED TAXES FROM ITS OWN ACCOUNTS FOR ALL COVERED EMPLOYEES. EACH EMPLOYEE LEASING COMPANY SHALL PAY UNEMPLOYMENT COMPENSATION INSURANCE TAXES AND PROVIDE, MAINTAIN, AND SECURE ALL RECORDS AND DOCUMENTS REQUIRED OF WORK-SITE EMPLOYERS UNDER THE UNEMPLOYMENT INSURANCE LAWS OF THIS STATE FOR COVERED EMPLOYEES. FOR UNEMPLOYMENT REPORTING PURPOSES, EACH EMPLOYEE LEASING COMPANY IS THE ONLY EMPLOYING UNIT FOR COVERED EMPLOYEES AND SHALL HAVE the responsibility for unemployment compensation insurance as required of an employer pursuant to the "Colorado Employment Security Act", articles 70 to 82 of this title.
Comment about: State of Colorado passes PEO and Employee Leasing Legislation
Post the first comment about:
State of Colorado passes PEO and Employee Leasing Legislation
5/15/2008 The Risk of Using Independent Contractors

Source: New York Law Journal
Misclassification penalties of independent contractors get more attention from the IRS and state agencies.
The use of a responsible employee leasing organization is a practical and viable alternative that allows 1099ers to continue to provide services to the company, yet it substantially minimizes a company's exposure to liability under the tax, employee benefits and labor laws. This alternative can dramatically reduce a company's risk of liability and substantially diminish the likelihood of a lawsuit or an audit by a governmental agency. Unlike payrolling companies, an employee leasing organization is a third-party employer. Some or all of the company's 1099ers (as well as its long-term temps, project employees, per diems and consultants) can be hired as employees of the leasing organization, which withholds taxes; makes Social Security, Medicare and unemployment payments; pays Workers' Compensation premiums; and may also provide basic medical and dental benefits and offer participation in a 401(k) plan maintained by the leasing organization.
Comment about: The Risk of Using Independent Contractors
Post the first comment about:
The Risk of Using Independent Contractors
2/12/2008 Gevity Changes Leadership

Source: Workforce Management
Article discusses changes in leadership and strategy at Gevity and their return to core PEO services.
Based in Bradenton, Florida, Gevity started out as a professional employer organization aimed at small businesses. A PEO serves as a co-employer of the client companies’ employees and takes over a wide range of human resources functions, including payroll, health insurance and workers’ compensation. The company sought to expand into the HR outsourcing business, in which clients could outsource certain services like payroll to Gevity without a co-employment relationship and without having Gevity provide health and workers’ compensation coverage. The HR outsourcing business was seen as a way for Gevity to attract larger businesses that were able to contract for health and workers’ compensation coverage on their own but still sought limited outsourcing of things like payroll as a cost-saving measure.
Comment about: Gevity Changes Leadership
Post the first comment about:
Gevity Changes Leadership
1/1/2008 Hawaii Proposes PEO legislation

Source: Hawaii House of Representatives
Hawaii proposes bill that would require client based workers' compensation policies for PEOs operating in Hawaii. NAPEO is working to amend the bill to more closely follow the NAPEO model act.
Every professional employment organization that maintains or will be maintaining workers' compensation coverage for assigned employees shall register with the commissioner. An insurer may not issue a workers' compensation insurance policy to a professional employment organization that is not registered, nor enter into an agreement with an unregistered professional employment organization to issue policies to clients of the professional employment organization.
Comment about: Hawaii Proposes PEO legislation
Post the first comment about:
Hawaii Proposes PEO legislation
10/31/2007 Cedar Hill - PEO Workers Comp administrator is sold

Source: Insurance Newsnet
Cedar Hill a large insurance administator specializing in workers' compensation programs for the PEO industry has been purchased by Arthur J. Gallagher & Co.
Cedar Hill Insurance Agency, Inc. is a retail property/casualty insurance program administrator and business process outsourcing firm. They specialize in workers compensation insurance programs for professional employer organizations and temporary service industries throughout the U.S.
Comment about: Cedar Hill - PEO Workers Comp administrator is sold
Post the first comment about:
Cedar Hill - PEO Workers Comp administrator is sold
9/20/2007 West Virginia Considers PEOs and Work Comp Transition

Source: West Virginia Record
As West Virginia moves from a monopolistic to a market driven workers' compensation insurance program, legislation needs to consider hybrid employment structures like Professional Employer Organizations. Article discusses actions by NAPEO and others to ensure PEO workers comp plans are effective solutions for West Virginia employers.
He said legislators did not act on PEO proposals last year because they felt they needed more information and time. "We made some progress but they wanted to make sure we got it right," Tucker said. "We make workers comp a good line for insurers to write. It is imperative that we have a good understanding of what risk and exposure each client has. "Clark praised PEOs as having "exceptionally good" risk managers. "A PEO can assist in ensuring that worksite employees are provided with a worksite that is safe, conducive to productivity and operated in compliance with employment laws and regulations," the website states.
Comment about: West Virginia Considers PEOs and Work Comp Transition
Post the first comment about:
West Virginia Considers PEOs and Work Comp Transition
6/14/2007 Florida - PEO client based Workers' compensation policies.

Source: NAPEO
Florida reviews client based WC policies.
The national advocacy group for the PEO industry - NAPEO has indicated it is urging the Florida Board of Employee Leasing Companies (BELC) to challenge the legislature's Joint Administrative Procedures Committee's (JAPC) interpretation that current Florida statute does not permit PEO clients to have individual workers' compensation policies. NAPEO is meeting with key legislative leaders and agency staff to defend the PEO industry's position regarding the permissibility of PEO client-based policies.
Comment about: Florida - PEO client based Workers
Post the first comment about:
Florida - PEO client based Workers' compensation policies.
3/15/2007 National Association of Insurance Commissioners Model Rule for PEO Workers’ Compensation.

Source: NCOIL
NCOIL proposes a national model for regulators and PEO. All PEOs need to be aware of this draft (model rule) and the way it affects PEO workers' compensation policies.
The purpose of this Act is to require the registration of professional employer organizations (PEOs) and to regulate the use of experience ratings in PEO relationships. [Drafting Note: This model is specifically designed to address the registration and use of experience ratings by PEOs in workers’ compensation insurance. Some states may wish to address additional PEO rights and responsibilities, or require PEOs to be licensed.]
Comment about: National Association of Insurance Commissioners Model Rule for PEO Workers’ Compensation.
Post the first comment about:
National Association of Insurance Commissioners Model Rule for PEO Workers’ Compensation.
3/12/2007 Arizona considers Work Comp discount for drug testing.

Source: Arizona Star
Drug testing for Arizona workers may allow insurance companies to offer discounts to employers with drug testing programs.
Workers' compensation in Arizona is a no-fault system. Employees injured on the job are entitled to have their medical bills paid and a percentage of their salary, regardless of who caused the mishap. In exchange for guaranteed compensation, the workers give up the right to sue the employer for negligence. Most companies buy insurance coverage, though some larger firms are self-insured. A 1999 state law says that if a company has a drug-testing policy, an injured worker can be denied benefits for failing a drug test or refusing to take one. But two years ago the state Supreme Court ruled that law unconstitutional. The justices said the workers' compensation system — and the no-fault provision — is part of the state constitution and lawmakers are powerless to alter that.
Comment about: Arizona considers Work Comp discount for drug testing.
Latest Comment: - 3/12/2007
Finding Employees
Read All 1 Comments about:
Arizona considers Work Comp discount for drug testing.
2/24/2007 A quiet Florida giant begins to make noise

Source: St. Petersburg Times
Growth at FrankCrum (formerly known as Crum Staffing) is taking off. Summary article about the company and its president and CEO, Frank Crum Jr.
The company, FrankCrum, is a PEO, or professional employer organization, which means it does human resources work for other companies. Crum, 57, also owns Crum Staffing, a temporary staffing firm; and Frank Winston Crum Insurance, a workers' compensation insurance carrier. Up next: FrankCrum is rolling out a service called Frank Advice. Crum hopes that his 3,000 client companies will use the information, available online and by hotline, to make sure they're following the law when hiring, firing, paying and educating employees.
Comment about: A quiet Florida giant begins to make noise
Latest Comment: - 10/13/2009
Doing business with Frank Crum
Read All 1 Comments about:
A quiet Florida giant begins to make noise


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: