Question 1

What is a PEO?

Accepted Answer

As a Professional employer organization (PEO), EssentL provides human resource services to small businesses—paying wages and taxes under EssentL's EIN, offering workers' comp and risk management services, and providing compliance assistance with employment-related rules and regulations.

In addition, PEOs like EssentL provide HR technology systems and access to 401(k) plans, health, dental, and life insurance, dependent care, and other benefits. In doing so, PEOs help businesses take care of employees by enabling them to offer Fortune 500-level benefits at an affordable cost and providing access to experienced HR professionals.

EssentL also helps business owners and executives save time by taking administrative and HR-related tasks off their plates, allowing them to focus on the success of their businesses.

Question 2

Who uses a PEO?

Accepted Answer

Any business can benefit from partnering with a PEO. PEO clients range from accounting firms to high-tech companies and small manufacturers. A broad range of professionals, including doctors, lawyers, retailers, mechanics, engineers, plumbers and more also benefit from PEO services.

Question 3

How many businesses use a PEO?

Accepted Answer

More than 200,000 businesses across the country use a PEO. Collectively, these businesses employ more than 4.5 million people.

Question 4

What are the benefits of working with a PEO?

Accepted Answer

A recent study by noted economists Laurie Bassi and Dan McMurrer showed that businesses that use a PEO grow two times faster, have employee turnover that is 12% lower, and are 50% less likely to go out of business.

Through a PEO, the employees of small businesses gain access to Fortune 500-level employee benefits such as: health insurance, dental and vision care, life insurance, retirement saving plans, and even pet insurance. These are benefits they might not typically receive as employees of a small business.

PEOs also provide access to human resource professionals as a part of their services to small businesses. Through this service, PEOs help small businesses comply with myriad federal, state, and local employment laws, and help their employees better understand their rights and responsibilities under these requirements.

By providing payroll, benefits, and HR services and assisting with compliance issues under state and federal law, PEOs allow small businesses to improve productivity and profitability, to focus on their core mission, and to grow.

Question 5

How does a PEO arrangement work?

Accepted Answer

A PEO relationship is built on co-employment, which is a contractual partnership between your company and the PEO outlined in a Client Service Agreement (CSA).

In this model, your employees are employed by both your company and the PEO for different purposes: you remain the common-law employer and keep full control of day-to-day operations—hiring decisions, supervision, job duties, performance management, and business direction.

The PEO becomes the administrative employer for HR-related functions like payroll processing, payroll tax filing and remittance, workers' comp coverage and claims support, benefits access/administration, compliance assistance, and HR technology. Typically, the PEO issues W-2s under its EIN and handles employment tax reporting, while you continue running the business and managing your team.

Question 6

Do business owners lose control of their business when they work with EssentL?

Accepted Answer

The business owner retains ownership of the company and control over its operations. As co-employers, EssentL and our clients contractually share or allocate employer responsibilities and liabilities per a client service agreement (CSA).

In general terms, EssentL will focus on employment-related issues, and our client companies will make all decisions related to day-to-day operations, business growth, supervision and evaluation of employees, job assignments, and employees' salary and benefits.

Question 7

How does a PEO arrangement impact employees?

Accepted Answer

There is little, if any, disruption to employees.

Employees appreciate the wide array of benefits available to them through the PEO, as well as the online technology PEOs can offer and the availability of HR expertise. Studies showed that, when a company uses a PEO, employees have greater trust and confidence in the business and higher levels of engagement.

Question 8

Who can join EssentL?

Accepted Answer

We work with companies starting at 1 employee!

Question 9

Can I keep my current benefits while joining EssentL?

Accepted Answer

Yes. You can join EssentL for PEO services even if you do not switch your insurance right away. We'll even partner with your benefits broker to help administer your current employee benefits package.

Question 10

What's the process from here?

Accepted Answer

Click here (link to Join Now page) to schedule a consultation to assess if we're a good fit. Together, we'll create a solution that fits your business. If it makes sense, we can onboard you and your team in 30 days or less.

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The HR Department You Never Had: What a PEO Actually Takes Off Your Plate

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The HR Department You Never Had: What a PEO Actually Takes Off Your Plate