What is a Professional Employer Organization (PEO)?

A Professional Employer Organization (PEO) is a company that provides a cost-effective outsourcing solution for many of a company’s administrative operations, including payroll, benefits, human resources and safety and risk management.  A PEO delivers these services by assuming an employer relationship with the employees at a business’s worksite and by contractually assuming certain employer rights, responsibilities and risks.

Historically, the PEO concept was focused on blue-collar industries.  But as employers have continued to experience problems and concerns surrounding human resources and employee benefits, PEO’s have become an increasingly attractive option in traditional white-collar industries as well.

Why should businesses contract with a PEO?

There are three reasons that contracting with a PEO makes good business sense: lower administrative costs; improved benefits options; and greater business efficiency. 

Many businesses need administrative assistance in managing increasingly complex employee related matters such as health benefits, workers' compensation claims, payroll, payroll tax compliance and unemployment insurance claims. By assuming these responsibilities, a PEO not only helps reduce administrative overhead but also provides expertise in human resource management. As a result, businesses are able to concentrate on the revenue-producing side of their operations.

A strategic advantage of a PEO is its ability to group smaller companies together in order to gain buying power for benefits and workers’ compensation insurance.  This buying power creates savings for both the client company and the employees who participate in the benefits program, as well as giving them a more robust set of benefits options.

What should businesses consider when selecting a PEO?

There is a considerable shift of liability when a company chooses to use a PEO as an outsource solution, and many different areas can become a concern if you are not working with a proven and reputable PEO.  Among the things to consider in selecting a PEO are:

• How long has the PEO been in business?
• What is the PEO’s reputation in the industry?
• Does the PEO adhere to all employer tax match limits? 
• Does the PEO have a proven track record of timely tax payments?
• Who holds the liability for prompt tax payments?
• What independently audited information is available for the PEO? 
• What has been the average increase to their medical insurance premiums each year? 
• Have they cut back benefits to save costs?

As with any professional service provider you are considering, you should check with your local business bureau, current client references and the Department of Work Force Services to ensure that you are working with a company in good standing.

Who is A Plus Benefits?

A Plus Benefits is the largest Professional Employer Organization in the Intermountain West.  Since the company’s founding in 1990, its client base has grown to over 700 companies and 16,000 worksite employees.  For the past seven years A Plus Benefits has been recognized as one of Utah’s top 15 revenue growth companies.  This growth has been built on integrity, a superior product and incredibly loyal clients.

How is A Plus Benefits different than other PEO’s?

Our leading competitive advantages are our large group programs in the areas of health plans and workers’ compensation.  By providing our clients access to the buying power of 16,000 employees, we typically save businesses thousands of dollars while adding resources and improving the richness of the benefits options.

A Plus Benefits is also very different in terms of how it charges for its services.  While other PEO’s fees are typically based on a percentage of gross payrolls, A Plus Benefits charges our clients a per-check fee – which means that our clients are only billed for active employees, not additionally for bonuses and employee raises.  With A Plus Benefits, there are no hidden costs.  Unlike other PEOs, we do not collect additional fees to process quarterly taxes, run payroll reports or provide direct deposit for employees.
 
We also have a local human resource and payroll advisor that is assigned to each of our clients, giving each employee the ability to access customized local support and expertise.  In essence, our staff becomes an extension of our clients’ administrative structure.  

How can A Plus Benefits help my business?

A Plus Benefits saves companies money, time and administrative headaches, while allowing business owners to focus on growing their companies.  Businesses benefit from a dramatic increase in buying power, lower fixed costs, access to human resource expertise and the peace of mind of transferring regulatory liabilities to a trusted business partner.

Because of A Plus Benefits' large group buying power, we can reduce costs without reducing the ability to provide value for employees. In most cases, our clients are able to double or triple benefit offerings to their employees while saving time and money.

What size companies benefit most from a relationship with A Plus Benefits?

A Plus Benefits currently partners with clients of all sizes in a wide variety of industries.
We have clients with as few as one employee and as many as 1,600 employees.

Do I have choices as to which services I want to utilize with A Plus Benefits?

Payroll administration is the gateway to our service offering.  Once a company has outsourced their payroll to A Plus Benefits, they are eligible to utilize our large group benefit programs, human resource advisors, large group workers’ compensation policy and extensive safety & risk management training.  Clients are able to keep any or all of those elements of their business in-house if they choose.  A Plus Benefits provides flexibility in employee benefits to both employers and employees. We offer multiple health coverage options, flexible contribution requirements and other enhanced benefit offerings. We try to meet the unique needs of each of our clients without affecting benefit expenses or company budget.

Will I lose control of my company or employees by contracting with A Plus Benefits?

This is a common concern for many entrepreneurs and business owners.  We can assure you that you will not lose ANY control of your business or employees by contracting with A Plus Benefits. In fact, you will find that you have gained greater control.  A Plus Benefits’ services provide businesses with the tools necessary to attract and retain key employees, deal with employer compliance issues and control company expenses without sacrificing employee benefit offerings.
 

How does A Plus Benefits ensure payment of taxes and benefits on its client’s behalf?

A Plus Benefits hires an independent, third-party accounting firm to audit its records quarterly to ensure that all clients’ taxes, premiums and other payments are made as promised.  In addition, A Plus Benefits is proud of the fact that since opening for business, it has never received a fine or penalty for a late payment of taxes.

Can A Plus Benefits help me with the ever-rising costs of health insurance and Workers’ Compensation insurance?

Absolutely!  A Plus Benefits has a vested interest in providing clients with long-term solutions to these increasing costs.  A Plus Benefits’ health and workers’ compensation plans provide an umbrella of protection to our clients that equates to lower annual increases.  Our business consultants will develop a customized proposal to provide you with potential savings and solutions.  A Plus Benefits’ high retention rate of clients proves that we do everything possible to ensure that our clients’ costs are controlled and benefits are not compromised.  

How can I learn more about A Plus Benefits and its ability to improve my business?

Please feel free to contact A Plus Benefits at 800-748-5102, or follow the website links to our contact page for more information.  Our business consultants will conduct an evaluation of your company to see how A Plus Benefits’ services might best fit your needs.

 

Allowing you to get back to business!