PEO Services in Katy, TX

PEO Services in Katy, TX

What is a PEO?

Sometimes companies have trouble meeting their human resources needs, especially while also trying to increase profits. To assist in this area, many companies hire professional employer organizations (PEOs). When hiring one of these organizations, the company and its employees become employees of the PEO, and the company delegates many of its HR responsibilities to the PEO. Though the company still officially hires its employees, the PEO handles payroll, benefits administration, workers’ compensation, medical insurance and retirement accounts. Then, the company pays the PEO for its services (often a percentage of total salaries), along with an amount to cover the payroll for the employees.

PEO-provided Services
A typical PEO provides the following four main services to its clients:

• Human Resources Associate
• PEO acts as an off-site HR department by offering consulting in sexual harassment, discrimination, Family Medical Leave Act (FMLA), and hiring and firing practices
• Conducts background checks and pre-employment testing on potential employees
• Recruits employees through advertising, resume screening and interviewing
• Provides customizable employee handbooks and position descriptions
• Conducts performance reviews
• Provides employee training for new positions
• Employee Benefits Administration
PEO seeks out cost-effective benefits plans. By pooling all of its employees into one group (the vast array of companies hired by the PEO), the organization is able to spread their medical claims over a larger premium base. This equates to a lower annual rate increase, compared to smaller businesses.
PEOs typically offer the following benefit plans:
Health care
Long- and short-term disability
Life insurance
Section 125
COBRA compliance
• Payroll Administration
The PEO will take responsibility for the following:
Employee taxes
Quarterly reports
Workers’ compensation insurance
Premium audits
Claims management
Benefits procurement
• Handling Risk Management
PEOs manage any workers’ compensation or unemployment claims that arise, typically at a lower claim cost (as compared to what a company could achieve on its own).

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