All PEOs Are Not Created Equal
A PEO (Professional Employer Organization) is a service company with expertise in administering all phases of the employment relationship. Business owners enjoy peace of mind when they allow Landrum Professional’s group of employment experts to assume many of the responsibilities and risks associated with being an employer.
Below are some important considerations when choosing a Professional Employer Organization:
Are Landrum Professional's clients and employees protected by the Employer Services Assurance Corporation (ESAC)?
ESAC membership assures clients that the Landrum Professional will timely meet its payroll, insurance and tax obligations. ESAC's $4 million surety bond provides employees and clients with protection in the unlikely event of a PEO payment default. ESAC's strict membership requirements provide further assurance that Landrum Professional meets strict industry financial, operational and ethical standards. Ask to see proof of ESAC membership.
Who are the people at the PEO who will be serving you? What are there credentials? Experience?
Investigate the company's administrative and risk management service competence.
Are Landrum Professional's clients and employees protected by the Employer Services Assurance Corporation (ESAC)?
Ask the PEO to demonstrate that payroll taxes and insurance premiums have been paid consistently and timely.
Ask for client and professional references.
Check to see if the company is a member of NAPEO, the national trade association of the PEO industry.
What are the human resource and risk management needs?
Can the PEO meet those needs? Does the PEO have certified human resource managers to assist your with compliance?.
Understand how the employee benefits are funded. Are they fully insured (required for health benefits in Florida) or partially self-funded? Who is the third party administrator or carrier?
Understand how the employee benefits are tailored. Determine if they fit the needs of your employees. Are you confident that the benefit providers are financially solid organizations?
Review the service agreement carefully.
Are the respective parties' responsibilities and liabilities clearly laid out? What guarantees are provided? What provisions permit you or the PEO to cancel the terms of the agreement?
