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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.
July 15, 2019
personal insurance

Words to Thrive By | Business Quotes from Wharton & Power Insurance

July 10, 2019
independent insurance broker

Complicated Life? How an Independent Insurance Broker Can Help Protect It

The Wharton & Powers Team prides itself on being an independent insurance broker focused on comprehensive risk protection. But what does that really mean for you? You may relate to the following story, which illustrates how our business model helps protect our clients’ complicated lives. One of our clients is a good reflection of many of the people we serve: he is a family man and business owner. His company has locations in Indiana and Texas, and we provide business insurance and group health insurance to both. On the personal side, he and his wife own a brand new home in Carmel along with the house they used to live in, a lake cottage, five vehicles, jewelry, etc. Needless to say, there are many moving parts to his life. Our client reached out to us recently about a home he and his wife are in the process of purchasing in Siesta Key, Florida. They plan to use it for themselves and as a rental. The first complication here is that the home is located in Florida; it’s difficult to insure homes in that state because of hurricanes and the proximity to water. Compounding the problem is the plan to rent it out, since those properties have the reputation of not being as well cared for as when the owner lives there. Florida A-rated insurance companies really do not want to touch this type of coverage. And, most affiliated insurance brokers can only write policies within the areas they are located, which means our client would have to develop a new relationship in Florida. Fortunately, our client works with us. All of the properties our client owns currently were insured by the same company which did not want to take on the Florida place. Regardless of how well they knew and liked him (especially the income he provides), they said no. All homeowners know you cannot get a mortgage without homeowner insurance and the closing was coming up fast.  As an independent insurance broker, we are not tied to one insurance company for coverage. Also, we have been in business for over 28 years and have strong relationships with multiple underwriters. Our network helped us find a broker in Florida who was willing to offer coverage. In addition, we were instrumental in ensuring our client was able to close on the new home when complications with the deal arose. Being a full line independent insurance agency, we were able to tap our extensive resources to get our client what he needed. And, were are not beholden to one company’s process, quotas and rules. Insurance agencies affiliated with one underwriter do not have the flexibility to help cover complicated lives. Like you, our clients do not live one-dimensional lives. Wharton & Powers is perfectly suited to help you protect every aspect. Reach out to us to learn more.
July 8, 2019
business insurance

Words to Thrive By | Business Quotes from Wharton & Power Insurance

June 24, 2019

Words to Thrive By | Business Quotes from Wharton & Power Insurance

June 17, 2019
personal insurance

Words to Thrive By | Business Quotes from Wharton & Power Insurance

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 […]
June 10, 2019
business insurance

Words to Thrive By | Business Quotes from Wharton & Power Insurance

June 3, 2019
personal insurance

Words to Thrive By | Business Quotes from Wharton & Power Insurance

May 27, 2019
business insurance

Words to Thrive By | Business Quotes from Wharton & Power Insurance

May 20, 2019
personal insurance

Words to Thrive By | Business Quotes from Wharton & Power Insurance

May 13, 2019
business insurance

Words to Thrive By | Business Quotes from Wharton & Power Insurance

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