- What Is a PEO?
- Who Uses a PEO?
- How Does a PEO Arrangement Work?
- Why Would a Business Use a PEO?
- Do the Business Owners Lose Control of Their Businesses?
- What Is the Difference Between Temporary Staffing Services and a PEO?
- How Do PEOs Control Costs and Help Grow The Bottom Line for Their Clients?
- How Do Employees Benefit From a PEO Arrangement?
- Do Workers Receive Comprehensive Benefits?
- Who Is Responsible for Workers’ Compensation?
- Who Is Responsible for the Employee’s Wages and Employment Taxes?
Professional Employer Organizations (PEOs) enable clients to effectively outsource employer services, including the transactional management of human resources, employee benefits, payroll, and workers’ compensation. As a result, PEO clients can then focus on their core competencies to maintain and grow their bottom line.
Any business can find value in a PEO relationship. An average client is a business with 10–15 work-site employees. Increasingly, larger businesses are also finding value in a PEO arrangement because PEOs offer robust Web-based HR technologies and expertise in human resource outsource management. PEOs can partner with companies that have 500 or more employees and work in conjunction with their existing human resources department. They can also just as easily partner with companies that have under 10 employees and are looking to grow.
PEO Canada clients include many different types of businesses ranging from accounting firms to high-tech companies and small manufacturers. Many different types of professionals, including doctors, retailers, mechanics, engineers, and plumbers, also benefit from PEO services.
Once a client company contracts with PEO Canada, PEO Canada becomes your HR team. We work with you to take care of your employees, providing support from the moment you hire new employees through to their retirement. We consult with you on the best practices that assist in attraction, retention, and legislation. We also become the “Employer of Record” for payroll purposes, thereby reducing your company’s risk in compliance issues.
Business owners want to focus their time and energy on the “business of their business” and not on the “business of employment.” As businesses grow, most owners do not have the necessary human resource training, payroll and accounting skills, knowledge of regulatory compliance, or background in risk management, insurance, and employee benefit programs to meet the demands of being an employer. PEOs give small-group markets access to many benefits and employment amenities they would not otherwise have.
No. The client retains control over its operations. PEO Canada will assume responsibilities and liabilities associated with administration of payroll. The client will continue to have responsibility for work-site safety and compliance. PEO Canada will be responsible for payroll and employment taxes and will maintain employee records. In general terms, the PEO will focus on employment-related issues and the client will be responsible for the actual business operations.
A temporary staffing service recruits employees and assigns them to clients to support or supplement the client’s workforce in special work situations such as employee absences, temporary skill shortages, or seasonal workloads. These workers are traditionally only a small portion of the client’s workforce. PEO Canada contractually assumes and manages employer HR duties for the majority of a client’s workforce. Generally, work-site employees participate in the PEO’s full range of employee benefits (i.e., health, dental, and life insurance, and retirement savings plans).
PEO Canada’s economy of scale enables each client company to lower employment costs and increase its bottom line. The client can maintain a simple in-house HR infrastructure or none at all by relying on us. The professionals at PEO Canada can provide critical assistance with employer compliance, which helps protect the client against liability. In addition, PEO Canada provides time savings by handling routine and redundant tasks for its clients. This enables the business owner to focus on the company’s core competency and growing its bottom line.
Employees seek financial security, quality health insurance, a safe working environment, and opportunities for retirement savings. When a company works with PEO Canada, it shows that the company cares about its employees. Job satisfaction and productivity increase when employees are provided with professional human resource services, training, employee manuals, safety services, and improved communications. And, in many cases, a PEO Canada relationship provides employees with an expanded employee benefits package, which may include a GRSP (Group Retirement Savings Plan), life insurance, disability insurance, discount plans, a health care spending account, access to assigned specialists, and more.
Frequently, a PEO Canada arrangement is the only opportunity for employees of many small businesses to receive Fortune 500-quality employee benefits like health insurance, dental, life insurance, retirement savings plans, and additional employee benefits. Without PEO Canada, a small business can neither afford nor manage these benefits to the same level as larger companies.
Ultimately the employer is responsible for their employees workers compensation. PEO Canada will assist the employer in every way in order to administer their account.
PEO Canada assumes responsibility and liability for processing wages within the guidelines of federal and/or provincial legislation, based on employment agreements as well as submitted and approved payroll information.