HR-To-Go Still Has Room To Grow

Overview: Hiring separate vendors to handle the company’s payroll and health insurance needs but concluded that a single point of contact would avoid confusion. It tends to be a little more expensive than doing it in-house, but if one puts a value on time, it is probably less expensive. Business owners are overwhelmed with the complexities of employment and regulation. Entrepreneurs generally are consumed with keeping their businesses afloat, so most are glad to transfer time-consuming HR tasks and headaches to someone else. Most offer 401(k) retirement plans, workers’ compensation insurance, risk management, and regulatory-compliance monitoring. Full-service PEOs sell an even broader range of services, including high-end benefits, such as adoption assistance, usually found only at the largest corporations. Perhaps the biggest point of confusion about PEOs is their legal status. As co-employers, they contract to perform certain services and to assume and share certain liabilities. For example, PEOs are usually solely liable for the payment of wages and payroll taxes. It opens huge opportunities for the industry to boom because clients will not have to second-guess PEOs’ legal status and their own liability.

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Format: HTML | Date: Feb 2000 | Pages: 1