If you’re in the staffing industry, you’ve heard the term PEO or professional employer organization. In order to truly understand a PEO, you must first understand the concept employer-of-record.
What is a PEO’s Role as an Employee of Record?
Let’s say you own a staffing company. All the employees that work for you; they’re your employees. You’re the employer of record.
You are the employee-of-record and are the entity in which employees’ payroll taxes are paid. Now, this all changes with a PEO. A PEO enters into a joint employment relationship with your company.
The PEO promises to handle your business: Administrative tasks, management tasks, payroll workers, comp, recruiting, risk and safety management training and development. Sounds good, right? The problem is, you are now no longer the employer-of-record.
The Downside of a PEO
When you sign up with a PEO, all of your employees are now their employees. You may feel that the people working for you are part of your team. They’re actually not.
To make matters worse, you lose control of your business. A PEO is handling everything for you, just giving you a simple output.
That’s where it ends. This concept is called black-box testing. You’re in the dark now, and you’re simply a recruiting gun for hire.
Without a PEO, you understand your business inside and out. This is called white-box testing.
If you’re looking for a more efficient way to run your business, your human resources functions are a great place to start building in efficiencies. That’s where we come in.
Choose the Better Option
At Madison Resources, we offer full-service solutions to those administrative problems. This includes everything from 100% payroll funding, managing payroll billing collections, payroll tax filing, technology, business intelligence, et cetera. The only difference is we are not the employer-of-record. You are! Also, we keep you in the loop with your business.
We wrap a whole team around you, all experts that help guide you through your business. So all you have to do is sell and focus on revenue-generating activities! Partner with Madison Resources for the funding, technology, back-office support, and business intelligence needed to grow your staffing agency. Learn more today.