What is a PEO?

General PEO FAQs

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A professional employer organization (also called a PEO), is a company that provides comprehensive HR services for businesses. By outsourcing payroll, HR, benefits, and risk management, business owners can offer employees higher quality benefits and can devote more time to growing their business.

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PEOs work with companies of all sizes. GMS typically works with companies with 20 employees or more.

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Absolutely not. You retain ownership of the company and control over its operations. Quality PEOs will simply help you make more informed business decisions.

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Many PEOs charge a fee per employee per month. However, PEOs help you realize significant savings on your HR functions. In many cases, these HR savings are more than what a PEO will charge.

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Co-employment refers to the relationship between your business, your PEO, and your employees. Your employees are technically employed by the PEO—insofar as it relates to HR functions, like payroll, worker’s compensation and possibly benefits.

Note that all personnel decisions, like direction and control of the employees, are still 100% determined by you. Good PEOs give you tools to help you make the best decisions for your company.

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Employee leasing involves supplying new workers to a company, usually on a short-term basis. The business owner “borrows” the labor and does not have control over decisions impacting those workers.

PEOs do not supply labor to worksites. Instead, they enter into a co-employment agreement in which the employer retains full control over employees.

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Very common. It is estimated that as many as 3 million Americans are employed in a PEO arrangement. PEOs operate in all 50 states, and the industry has grown by 20% each year for the last 6 years.

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GMS TPA offers self and fully funded insurance, HRA, MERP, HAS, COBRA and more. This scope of services can expand your product base and makes it easier to find policies for your clients. Plus, you can use our economies of scale to secure better rates for your customers, ultimately increasing client satisfaction and retention.

Give us a call at 330-659-0100 to learn more about how GMS can make your managing your business simpler, safer, and stronger.

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