:: Questions to Consider While Choosing a PEO

Not all PEOs are alike. There are various types of PEOs, some with very strong Human Resources support and a menu of benefit plans, while others provide only a basic level of services. Some PEOs focus on serving local firms in their region, or specialize in one industry, while others serve a diverse cross-section of industries, or target national clients. The key to outsourcing your employee administration tasks is selecting a PEO that will provide the level of services, and benefits your organization requires.

As a business owner or manager, you are faced with a number of regulatory and administrative rules which sometimes make your day to day operations a challenge. You are also faced with the challenge of providing a competitive benefit package in an effort of retaining your best staff. PEOs can help you do just that.

Some of the items you will need to consider when evaluating a specific PEO are as follows:

1. Can the PEO meet your specific needs? Always ask for client and professional references. 2. Investigate the competence of the PEOs' internal staff. Be sure to understand the experience and depth of knowledge of the staff assigned to your company 3. Check the PEOs financial background, including bank and credit references. Be sure the PEO pays its insurance premiums and payroll taxes in a timely manner. 4. Makes sure the PEO adheres to industry and financial standards such as those established by the Institute for Accreditation of Professional Employer Organizations. 5. Is the PEO a member of the National Association of Professional Employer Organizations? 6. Does the PEO participate in industry training opportunities? 7. What specific types of benefits can the PEO provide? Do they fit with your needs? 8. Does the PEO maintain a fully or partially insured self-funded plan? 9. Review the contract carefully. Does their contract contain appropriate language to hold the PEO accountable for the services promised. What provisions permit you or the PEO to cancel the terms of the contract? 10. How does the PEO earn its compensation? 11. Check with your state and make sure the PEO is licensed?

Understanding all the nuances and profit centers of a PEO is a challenge that requires a diverse range of financial and insurance expertise. That is where we come in. We have the knowledge and experience with various PEOs to identify if your company is being treated fairly. We understand the benefits of outsourcing and can help you navigate this complicated transaction.

Mark J. Burger, CPA/PFS is CEO of PEO Solution Advisors LLC., providing companies with outsourced human resource solutions. Mark can be reached by telephone at 561-889-3503.