Madison Insurance Group also offers PEO brokerage services. A PEO is a Professional Employer Organization also known as employee leasing service that administers most all back office and HR functions for a client company. The PEO acts as the employer of record and services many non-revenue generating activities such as payroll and state unemployment administration, work comp, employee benefits and other compliance tasks. Again, most of these items are revenue neutral so in some cases it actually pays to outsource these tasks. Another point worth mentioning is that the liability of being the employer of record is actually removed. So when it comes to any EEOC issues you aren't liable as the employer. This means you have the benefit of the workforce without the liabilities associated with employing todays worker.
The IRS recognizes the PEO arrangement and the leasing firm as the employer of record for all payroll activities. That means the PEO is responsible for processing checks, making tax deposits, filing all tax reports, W-2 issuance, and all other regulatory issues associated with payroll. All you do is report the payroll or hours per employee and the PEO handles the rest. You can select the PEO option on our Get A Quote page.
When it comes to work comp the PEO is responsible for all claims as the employer of record. You can verify coverage of the PEO has active coverage on the work comp verification services for your individual state. VERIFY COVERAGE FOR EACH STATE When it comes to work comp coverage the PEO covers all of their clients under their master policy. You no longer have to maintain active coverage under your FEIN and name. Because of the large number of employees under a PEO master policy they are often able to obtain work comp coverage at a reduced rate and are able to pass along those savings. Most firms will have a large deductible per claim policy to also reduce overall costs in hopes of making an underwriting profit. These policies are collateralized with cash or a letter of credit in favor of the insurance carrier so there is no liability on the client. All you need to know is the insurance carrier will be liable for coverage as long as the policy is still active.
With the PEO brokerage options outside the CSG states we verify several key factors before partnering with an PEO and along with work comp we ensure that the partner PEO is up to date on all tax payments with no outstanding or unpaid liabilities. A tax bond is also a good selling point along with benefit plans and other services. Remember that you get what you pay for and this isn't always the cheapest solution for a company. Outsourcing your HR functions isn't for everyone and there are several key factors we can help you in your decision making process.
Employee benefits are a tool to keep good employees with your company long term. To obtain the best benefit packages available, employers often turn to an employee leasing arrangement to access Fortune 500 level benefit packages. In many cases we can help tailor the package to specific needs of the employer and their employees. We also work to make plans as accessible and user friendly as possible. Our partner PEO's provide inclusive, immediate coverage without the usual clauses and conditions inherent to many small employer plans. We support this package with complete employee benefits administration and compliance, helping you recruit and retain top talent without having to deal with administrative headaches. Now you have a fixed cost for HR and back office administration so you can better plan for profit and growth of your company.