One of our clients, a group of approximately 48 employees, approached us recently with a dilemma. They had been growing slowly but steadily over the past several years, adding 5-7 new staff members each year, and were projecting to continue the same pace of growth over the next few years. Although they no longer thought of themselves as a small business, they were also not large enough where they could afford to hire a full-time HR staff. They were feeling overwhelmed trying to process and maintain the large volumes of paperwork required by HR functions and were concerned that they might fall out of compliance with any of the Affordable Care Act and related regulations.
We introduced them to the concept of a Professional Employer Organization (PEO), which they were not familiar with. We explained that a PEO is an organization that pools together many small businesses to provide large company benefits. In addition to providing medical, dental, life and disability coverage at lower costs, PEOs also manage HR issues, such as maintaining personnel files, managing the employee onboarding process, the filing of required forms and ensuring that the group maintains compliance with any applicable tax, state and federal laws. We assured our client that their employees paychecks would come from the PEO, they would continue to manage the day to day responsibilities of the employee, as well as control in any hiring or firing of the employees.
After we presented a few of the programs and costs for several different leading PEOs available in the area (PEOs charge either a monthly fee or a monthly fee per employee), our client decided the benefits and cost were too good to pass up. After a successful first 12 months on the program, they have recently decided to renew for another year.
BSB Consultants prides itself on keeping abreast of all the latest products, services and legislation regarding employee benefits. Allow our expertise in these areas guide you through this complex maze so you can focus on the things that will allow your business to grow!