iPEO Solutions Spotlights the 7 Contractual Relationships Business Owners Must Understand Before Committing to a Co-Employment Arrangement

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Maintaining a quality workforce without having to endure administrative headaches may seem a dream to many business owners. Co-employment is a viable option, but iPEO Solutions (http://www.ipeosolutions.com) points out what business owners need to recognize when they commit to such an agreement.

'Most people invest in the services of a PEO to thwart some level of pain,' Ortoll said. That pain results from a variety of reasons, including issues like Workers Comp/Risk Management, Employee Benefits, HR and Payroll.

Entrepreneurs are often inspired by big dreams and the possibility of making them come true, but they don’t always relish the administrative headaches that accompany such transformational enterprises. iPEO Solutions (http://www.ipeosolutions.com) helps minimize organizational pain so innovators can concentrate on the vision that motivated them in the first place.

“In business process outsourcing, a Professional Employer Organization (PEO) provides a diverse range of employment-related products, services and functions including integrated payroll, benefits, risk and human resource management,” explains Michael A. Ortoll, CEO and founder of iPEO Solutions.

Ortoll, a Florida State University graduate and Miami native with strong ties to the Cuban/Hispanic community, is a seasoned insurance specialist with 25-plus years as an industry executive. His experience, technical knowledge and professional relationships make him one of the PEO industry’s leading dealmakers.

“Most people invest in the services of a PEO to thwart some level of pain,” Ortoll said. That pain results from a variety of reasons, including issues like Workers Comp/Risk Management, Employee Benefits, HR and Payroll.

“iPEO Solutions tailors PEO solutions producing the greatest value for its clients,” said Ortoll. “For example, the best fit may be workers comp accompanied by improved risk management services, payroll processing and a tax-reporting solution reducing the administrative burden on staff.”

Ortoll’s company specializes in delivering co-employment alternatives for a variety of industries, including: Private Equity portfolio firms, Associations, Franchises, Real Estate/Property Management, Healthcare (Senior Housing), Construction, Hospitality and Transportation.

“We can deliver lower Workers Comp costs, including better service aimed at keeping costs lower, as well as provide improved HR compliance and Payroll Administration via higher-end technology and resources.”

In addition, iPEO can help manage implementation of the Affordable Health Care Act and improve cash flow through “pay-as-you-go insurance and taxes,” thus spreading out a company’s cash a bit.

According to the National Association of Professional Employer Organizations (NAPEO)—which dubs itself “The Voice of the PEO Industry”—PEO relationships involve “a contractual allocation and sharing of employer responsibilities between the PEO and the client. This shared employment relationship is called co-employment.”

In co-employment arrangements, the NAPEO stipulates that Professional Employer Organizations contractually assume substantial employer rights, responsibilities, and risk through the establishment and maintenance of an employer relationship with the workers assigned to its clients.

NAPEO spotlights seven key points regarding co-employment, emphasizing that a Professional Employer Organization “establishes a contractual relationship with its clients whereby the PEO”:

ONE: “Co-employs workers at client locations, and thereby assumes responsibility as an employer for specified purposes of the workers assigned to the client locations.”

TWO: “Reserves a right of direction and control of the employees.”

THREE: “Shares or allocates with the client employer responsibilities in a manner consistent with maintaining the client's responsibility for its product or service.”

FOUR: “Pays wages and employment taxes of the employee out of its own accounts.”

FIVE: “Reports, collects and deposits employment taxes with state and federal authorities.”

SIX: “Establishes and maintains an employment relationship with its employees that is intended to be long term and not temporary.”

SEVEN: “Retains a right to hire, reassign and fire the employees.”

An extensive elaboration about co-employment by industry experts can be found at http://www.napeo.org/peoindustry/coemployers.cfm.

It should be noted, however, that analysts agree that PEOs neither provide daily supervision nor get involved with the recruiting process—except when necessary, such as in background checks and drug testing.

In fact, some people confuse PEOs with temporary help companies. Here’s how a spokesperson at the American Staffing Association (ASA) explained the difference to Entrepreneur.com: "Generally speaking, temporary help companies recruit employees and assign them to client businesses to help with short-term work overload or special projects on an as-needed basis."

Conversely, Entrepreneur.com defines a PEO as, “A company that technically ‘employs’ the workers of several other companies and oversees all HR-related functions.”

For more information about co-employment as well as insight into selecting a Professional Employer Organization, call 1 (813) 220-3132 or visit the iPEO Solutions website at http://iPEOsolutions.com — also on Facebook at https://www.facebook.com/iPEOsolutions.

ABOUT: iPEO Solutions is an independent broker and single-source co-employment solution that works with the industry’s best Professional Employer Organizations, ensuring that each meets the following requirements: A-rated insurance carriers, leading technology, experienced and stable management teams, strong financials, a history of success and qualified internal personnel in all service areas.

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Michael Ortoll - ARM CEO/Founder
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