PEO

July 17, 2019
PEO

PEOs: The Difference Between Full Co-Employment and ASO Models

As business leaders review the PEO marketplace for human resource services like payroll, employee benefits and HR administration, two options emerge: a full co-employment model and an ASO model. What are the differences? Why choose one over the other? A co-employment PEO is a Professional Employer Organization that provides small to medium-sized businesses with HR services through a co-employment model. An ASO PEO is an Administrative Services Organization that also serves as a source for HR services but without a co-employment agreement. Both models aim to streamline the behind-the-scenes administration requirements associated with having employees. It is important to note that co-employment does not mean the PEO delves into the day-to-day operations of a business. They are there to add efficiency, structure, and accountability to the backend of an organization. The Benefits of a Co-Employment PEO: The Power of Pooling: A co-employment PEO combines all of their clients’ employees into one group, creating one large pool to cover under a group health plan. This pooling allows the PEO to offer the bargaining power of large businesses to small and medium-sized businesses, which can lead to better coverage and lower premiums. The ASO model is based on outsourcing services separately for each employer that contracts with them. While ASOs also alleviate their clients from the responsibility of finding and implementing a group health plan, they are not able to offer smaller employers the preferred rates and benefits available to large companies. Full Suite of HR Services: With co-employment comes a full array of human resource services: health insurance, payroll functions, HR admin, HRIS, reporting and compliance. The PEO essentially takes on responsibility for their client’s employees like they are their own. The organization enrolls those employees in a timely manner into a group health coverage plan, provides payroll and payroll reporting, and manages COBRA and COBRA compliance as well as other human resource functions. An ASO is based on a cafeteria plan model, where an employer can pick and choose which services they would like to outsource. This type of PEO may not be able to reap the benefits of the bargaining weight of larger organizations, as it may not have enough participants in each service line. The co-employment PEO model includes many benefits to a small or medium-sized employer. Case in point, Worksmart Systems is an Indiana-based PEO that has been offering HR outsourcing services for 21 years. They provide a group health insurance plan. By pooling health risk-rating groups over many employees, Worksmart can offer small to medium-sized businesses competitive rates that larger businesses enjoy. Questions about PEO services? Send me an email, or give me a call at 317-663-4138.
June 11, 2019
Value_of_a_PEO

The Value Proposition of a PEO

How we work has changed quite a bit over the last decade. We’ve seen growth in the gig economy, and in the complexity of employment regulations. Even if your organization is fortunate enough to still have human resources professionals on staff, it can be difficult for them to stay up-to-date in this quickly changing world. A Professional Employer Organization, or PEO, offers your small to medium sized business the opportunity to efficiently manage these employee-based business operations. When you partner with a PEO, you are getting the benefit of economies of scale, shared liability and expertise. As a co-employer, the PEO streamlines your business operations, and provides a safety net for your decisions. They are not there to make day-to-day decisions about how you run your company – that’s your area of expertise. A PEO adds efficiency, structure, and accountability to the backend of your organization. PEO Services: Payroll: Once you have entered the co-employment status with a PEO, services begin with payroll. As the financial management center for employment, how you pay your employees is the key to the tracking and reporting requirements for your business. Quality PEOs go above and beyond the typical payroll service company by offering you access to other services, such as streamlined ACA reporting requirements and a pooled cost structure for areas like employee benefits and worker’s compensation. Employee Benefits: With the increasing cost of providing employee benefit plans, as a business owner you may be feeling squeezed. You want to take care of your employees, but the bottom line has to come first. A PEO is a great solution to this problem. Your business joins one large group plan, taking advantage of the economies of scale enjoyed by much larger organizations. For example, Worksmart Systems, an Indiana-based PEO, offers a self-funded plan offering four options, with 8,000 participants. They partner with Anthem, whose expansive network in Indiana offers greater discounts leading to more cost savings for you and your employees. Worksmart allows you to offer your employees a menu of benefits like a Fortune 500 company! Human Resources: During the economic downturn, many businesses downsized their non-revenue generating staff like human resource managers. However, that skill set is still needed. PEOs can serve as your human resources department, providing a wide range of services from employee training, hiring and termination assistance, and downsizing plans to EEOC claims, mandatory postings and employee handbooks. If you already have an HR department in place, PEOs can create an infrastructure to manage your day-to-day operations more efficiently. By offering a system that streamlines the multiple vendors that come with medical and dental benefits, 401k plans, payroll, worker’s comp, etc., PEOs allow your HR professionals to focus on the human aspect of their job. Benefits and HR Compliance: Businesses are finding it more difficult to stay in compliance in this constantly evolving world of employment law. The Affordable Care Act reporting requirements alone have placed a greater burden on business owners. Employers also must follow strict procedures within […]
March 11, 2015

Did Your Employee Group Health Insurance Rates Skyrocket? You Have Options.

Our clients who renewed their employee group health insurance plans for December 1, 2014 saw an average of a 12-15% rate increase. In 2013, we were closer to 7-8%. With the drastic changes in health insurance over the past two years, no one knows when this upward trend will level off. Fortunately, Wharton Insurance & Financial Services has access to unique options for employers of 50+ full-time employees to reduce their benefit costs sooner rather than later. 1) PEO Program Professional Employer Organizations offer large employers an efficient way to manage all of their human resource efforts. By entering into a co-employment contract with the PEO, all HR services are taken care of while the employer retains overall management of their employees’ work. The PEO’s group health insurance plans allow access to large-group programs and pricing, shielding employers from the volatility of the group health insurance market. As the Indiana Broker of Record for local PEO, Worksmart, the WIFS Team is in the unique position to present this option. 2) BAGI Group Health Insurance Program Builder members of the Builder’s Association of Greater Indianapolis have access to the organizations’ employee group health program. By pooling the buying power of their members, BAGI’s program allows for a more even spread of risk, less rate volatility, and a viable answer to the double-digit rate increases we are seeing this year. With 12 different plans, from benefit-rich and low out-of-pocket plans, all the way up to plans with the maximum allowed federal out-of-pocket limits, there is an option for everyone. WIFS is the sole administrator of the program, offering local, personalized service to all BAGI members. There may be no need to just accept the huge increases for your employee group health insurance rates, or to wait until the next renewal cycle. Send us an email, or give us a call at 317.663.4138 to learn more about your options to lower your costs now.
February 18, 2015
ACA employer reporting requirements

Managing the New Affordable Care Act Employer Reporting Requirements

As of January 1st, 2015, businesses with 100+ full-time employees must be in compliance with the Affordable Care Act mandate to provide affordable employee health benefits or be subject to penalties. (Click here to read our blog post about what this change means for your business.) Along with the benefits mandate came a whole new layer of employer reporting requirements. The costs of non-compliance are now stiff, making it worthwhile to find a viable option to fulfill your obligations under the law. Human Resources Administration is becoming more complex and expensive to mismanage. Beyond the ACA, it seems the world of human resources is getting more and more complex, and expensive to mishandle. The reporting requirements for employers are also becoming more intricate. With the adoption of the ACA came additional paperwork that is tied to current payroll reporting requirements: employers may now have to report the value of employee health benefits on the employee’s W-2. With the cost of miscommunicating this information becoming more substantial, it is important that your HR Administrator fully understand the complexities of this new structure. PEOs Offer Employer Solutions As the HR landscape changes, how are you as a business owner meant to keep up? One way to insure that you are following the law is to contract with a Professional Employer Organization, or PEO. These entities offer employers a way to outsource their human resources needs, including payroll, employee benefits, and workers’ compensation insurance. PEOs are experts in their field. They allow the reporting process to be consolidated into one place, alleviating employers of the stress of trying to understand and abide by the new laws. Wharton Insurance & Financial Services has partnered with Worksmart, a local PEO with a 17 year history of satisfied clients. When you enter into a co-employment relationship with Worksmart, they become the employer of record for tax and insurance purposes while you retain the management of your employees’ overall work. Worksmart manages your payroll reporting requirements, which with the ACA is now tied to your health insurance obligations. As a co-employer with the expertise in dealing with HR administration on a daily basis, partnering with Worksmart provides a layer of protection from potential compliance and reporting issues. PEOs serve as a smart choice for one-stop shopping for your compliance reporting needs. For more information on how to manage the new Affordable Care Act employer reporting requirements using Worksmart, send us an email, or give us a call at 317.663.4138.
September 24, 2014
Wharton Insurance PEO

What the Heck Is A PEO and How Would It Benefit My Business?

If you own a small to medium-sized business that employs people, you could use a PEO. PEO stands for Professional Employer Organization, which is an entity that offers employers a way to outsource everyday Human Resource tasks like Payroll, Employee Benefits and Workers’ Compensation. Taking advantage of the power of a PEO’s pooled resources can offer greater efficiency within your business operations.  Benefits of a PEO: Full-service Human Resources Department at your fingertips, leaving the intricacies of compliance to the experts Employee Benefits programs similar to large companies, providing you with protection from volatility in premiums and a wide variety of plans Management of Workers’ Compensation insurance and claims Payroll administration services managed by professionals Access to employee development services like employee skills testing, management training programs, and risk management programs Customized Human Resources Information Systems, giving you and your employees online access to tools and records Internal Human Resource professionals have the time to manage individualized needs with your business rather than dealing with endless paperwork How Does a PEO Work? You and a PEO enter into a co-employment relationship, where the PEO becomes the employer of record for tax and insurance purposes. The PEO then manages the everyday tasks of human resources administration and payroll, while you retain the overall management of your employee’s work. The PEO offers cost savings for these services by pooling their resources for the benefit of their clients. Where Do I Find a Reputable PEO? Wharton Insurance & Financial Services partners with WorkSmart Systems Inc. an Indianapolis-based PEO founded in 1998. Our long-standing relationship is built on a commitment to providing cost-effective services based on best practices in human resources administration. For more information on how your company could benefit from a PEO, give us a call at 317.663.4138 or send us an email.
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