A Professional Employer Organization (PEO) provides companies with outsourced HR solutions that include HR services, regulatory compliance management, payroll processing, employee payroll tax filing, workers’ compensation insurance and risk management, health benefits, employers’ practice and liability insurance (EPLI), retirement (401k), and a Human Resources Information System (HRIS).
PEOs use a model known as co-employment which involves a shared tax ID with the client company. This arrangement allows the client company to transfer many of its key employer responsibilities to the PEO, while continuing to manage their employees’ day-to-day activities.
The PEO relationship between the PEO and the client creates a contractual allocation and sharing of employer responsibilities pursuant to a client service agreement (CSA). This “co-employment” model of human capital administration shifts the burden and liability of employer-related duties from the clients to the PEO. These duties generally include payroll and tax-related activities, benefit offerings and management, worker’s compensation and related risk management and HR compliance.
The PEO typically remits wages and withholdings of the worksite employees and reports, collects and deposits employment taxes with local, state and federal authorities. The PEO also issues the Form W-2 for the compensation paid by it under its EIN. The client company retains responsibility for and manages product development and production, business operations, marketing, sales, and service. As a co-employer, the PEO will often provide a complete human resource and benefit package for worksite employees.
The PEO relationship between the PEO and the client creates a contractual allocation and sharing of employer responsibilities pursuant to a client service agreement (CSA). This “co-employment” model of human capital administration shifts the burden and liability of employer-related duties from the clients to the PEO. These duties generally include payroll and tax-related activities, benefit offerings and management, worker’s compensation and related risk management and HR compliance.
The PEO typically remits wages and withholdings of the worksite employees and reports, collects and deposits employment taxes with local, state and federal authorities. The PEO also issues the Form W-2 for the compensation paid by it under its EIN. The client company retains responsibility for and manages product development and production, business operations, marketing, sales, and service. As a co-employer, the PEO will often provide a complete human resource and benefit package for worksite employees.
This myth stems from the fact that a PEO becomes a co-employer with the partner company. Some might think that there is potential for a company to have to give up their decision-making power and the ability to operate their company as they would like. But remember, a PEO is an employer for only certain aspects such as payroll, benefits, risk management, etc. The employer and PEO partnership allow business owners to retain control and decision-making power over their business.
A certified professional employer organization (CPEO) is a PEO that has applied and is approved to be certified as a CPEO by the Internal Revenue Service (IRS) after meeting rigorous qualifying requirements.
If a PEO is certified, client employers are fully protected from sanctions and compliance lapses, including issues related to payroll taxes, as recognized by the IRS certification program. So, if anything goes wrong, the CPEO is held liable. With an ordinary PEO, client employers are not guaranteed this protection. In fact, in the event that taxes are filed wrongly or late, the IRS will hold the primary employer responsible.
Syndeo is the single solution that equips you with a full, custom HR solution for your business. Our team of experts work closely with clients on how to solve their issues in human resources, employee benefits, workers compensation and risk, and payroll and technology. Syndeo is the centralized vendor for HR solutions that comes fully equipped with a team of HR professionals dedicated to ensuring HR compliance with your organization. You won’t need to hire multiple vendors. We are passionate about providing custom HR solutions that match your culture so you can focus on growing your business.
Syndeo’s web based HRIS platform is a secure, world-class employee management platform that empowers business owners with custom reporting and electronic efficiencies. We provide a centralized database for employee onboarding, benefit management, compliance reporting, and automation for performance reviews and appraisals that keep your organization streamlined. Worksite employees also have access to their secure employee portals where they can easily update personal information and have access to employment-related data like payroll vouchers and PTO balances.
The benefits of HR outsourcing services include reduced costs, increased productivity, and improved quality of service. The primary benefit of outsourcing HR is relief from administrative tasks. Payroll and HR are essential to any organization, but they are non-income-generating activities that take up a lot of bandwidth. Outsourcing some or all of your HR functions allows you to focus on core business operations and growth.
Outsourced HR services can also help you mitigate business risks. If you don’t have HR specialists in-house, you may have to handle payroll and compliance on your own—a task that becomes more and more complicated as regulations change. Outsourcing your HR functions to experts can help prevent costly mistakes and give you greater peace of mind with compliance safeguards. You also gain access to a wider range of HR talent as well as top-tier HR technology that streamlines processes, enhances efficiency, and ensures you are up-to-date with the latest industry standards.
We provide a tailored HR solution for your organization that improves the overall experience for your employees. Our team will help you create a custom employee handbook that aligns with your work culture. We will build job descriptions, create custom employee training, administer FMLA, provide performance management tools, ensure FLSA compliance, and develop compensation plans aligned with your organizational goals.
Syndeo works with clients who have a wide range of worksite employees. PEOs generally work with small to mid-sized businesses ranging from 25 to over 500 employees. Syndeo will create a custom HR solution that will fit the needs and size of your organization.
Each client structure is unique. We work with clients who do have an in-house HR professional, and the Syndeo client service team serves as their support team and ensures HR compliance. By giving the administrative burden of pre-employment requirements, new hire orientation, company policies, and performance management to Syndeo, your on-site HR professional has time to dedicate toward high-level strategic HR initiatives
The Employer Services Assurance Corporation (ESAC) accredits PEOs through a rigorous process to ensure a PEO is compliant with more than 40 industry best practices across all states of the operation. Those with ESAC accreditation have demonstrated financial stability, ethical business conduct and adherence to operational standards and regulatory requirements.
In addition, the Internal Revenue Services has a voluntary federal certification program that qualifies certain PEO's for a Certified Professional Employer Organization (CPEO). As a CPEO, Syndeo has met the financial reporting requirements to be awarded the IRS certification.
Syndeo is also proud to be a multi-year winner of the ClearlyRated Best of HR Services award for providing remarkable service to our clients.
Syndeo will process your payroll by gathering total hours worked for your employees and ensure all payroll is calculated correctly and employees are paid on time. We will create a custom new-hire workflow that collects the appropriate employee data, tax calculations, and year-end W-2 reporting. Our technology offers online financial reporting, allows for employee portal access, and tracks interactive paid time off requests and compliance records.
Syndeo will manage and streamline the payroll tax management of your organization. As a CPEO, we are an extension of your business and handle the responsibilities of managing your payroll administration and employee-related taxes. By using our own tax identification number (EIN), we assume responsibility for calculating your company’s employee-related taxes for federal, state and local taxes.
Syndeo provides access to quality healthcare coverage that can be customized to the benefits that are most important to you and your employees. We help design a benefit plan that includes health, dental, vision, disability and life insurance, as well as an employee assistance plan, health savings accounts (HSAs), and flexible spending accounts (FSAs). We also have a 401k retirement plan option that allows your employees to save for retirement without the burden of plan administration and compliance.
While the core benefits within any organization are key to a successful recruiting and retention strategy, supplemental benefit plans like pet insurance, personal identity protection and employee assistance programs that promote personal well-being are gaining popularity in the workforce.
One benefit of partnering under Syndeo's PEO model is the opportunity to provide richer medical, dental and vision plan options that are typically only available at larger-sized companies with thousands of employees. While qualification into our plans does require a thorough review process, Syndeo facilitates this process with you and your employees, saving hours of work on your end and making the decision to tailor your insurance options hassle-free.
Syndeo is dedicated to keeping your business and employees safe. Our risk management experts can provide workers’ compensation coverage and manage your workers’ compensation claims. Ensuring you have a safe work environment that includes industry-specific safety training, OSHA compliance, safety policies, return-to-work policies is a top priority for our team.
The PEO is considered the “Employer of Record” for tax and insurance purposes, as well as federal and state employment laws like wage and hour regulations. If legal problems arise that are related to the HR function, the PEO assumes some of that risk. Formal agreements between the PEO and client company are used to spell out the division of responsibilities between the two.
The PEO can also sponsor employee benefit programs, such as retirement plans and health coverage. PEOs are able to provide more cost-effective benefits through their combined buying power and spreading the risk across many clients while giving small to mid-sized businesses access to larger company benefits.
