Is The PEO Market Healthy?

Blog / Human Resources Services

If you asked an entrepreneur what they knew about the PEO market ten years ago, chances are you would have seen some pretty blank faces staring back at you. Do you think many of them could honestly say what a PEO was? How about today? The PEO market certainly has come a long way in the last decade. There have been many new players in the industry, as well as growing pioneers who have now branched out into International waters. There are PEOs of every size and shape. For some, it might look like the wild west in terms of being able to gauge which ones are the right ones to work with. How well is the PEO market doing? Should every entrepreneur be excited to dive into what a PEO can offer them and what can they do to be assured their PEO today will be around tomorrow? How do you determine if working with a PEO is safe for your business to work with?

How The PEO Market Has Grown In 10 Years

The PEO market is actually close to 50 years old. Many don’t know this is not a new concept in HR outsourcing, but one that is maturing with success. In the late 1960’s, the first PEO began to operate. Back then it was referred to simply as employee leasing. By the time 1985 rolled around, the U.S. had 275 PEOs to choose from. As of 2012, the National Association of PEOs (NAPEO) reported over 700 PEOs operating nationally and internationally. In 2010, the PEO industry was reported to be worth over $18 Billion dollars. All this data makes the PEO industry proven to be able to grow for sure.

Is The PEO Market Legally Sound?

Another point to look at is whether or not the government is regulating or overseeing the PEO industry. With an estimated 2.7-3.4 million employees on the books with PEOs across the country, you better the believe the federal government is paying attention. So much so that legislation was passed in July of 2016 to institute an IRS certification process for PEOs under the Small Business Efficiency Act. These new regulations work as a stringent way for the government to ensure that PEOs are paying the payroll taxes they are withholding and paying on behalf of their clients and exceeding minimum insurance requirements under the ACA. In short, A PEO is legally responsible for all payroll tax payments and filings for clients they co-employ with and the IRS is making sure that they do. Individual small businesses are not held responsible failure to pay or file because of a PEO's status with the federal government as a co-employer. Most states have a PEO licensure process as well, so it is very likely that your state government is keeping tabs on their compliance as well.

How Can A PEO Broker Help You Navigate The PEO Market?

With so many large PEOs out there, it is hard to find a PEO that is operating a less than integritous business, but it has happened in the past. This realization could make a small business owner shy about getting involved. This is where a PEO Broker comes in handy. PEO brokers work on your behalf to help you understand the PEO market, help you understand what your needs are, and point you in the direction of the PEOs with high client ratings and clean operating records. PEO brokers have relationships with the top PEOs in the industry so they have the inside scoop on the 100 to work with. They are your sherpa in the journey through the PEO market. They will even help with contract negotiations.

The PEO Market Is Safer Than Ever

All this information should help you realize that there has never been a better time to get your small business involved in a PEO if you are looking for the kinds of benefits your competitors are offering top talent in your area. Because PEOs are now federally regulated, state licensed and monitored by PEO brokers like PEO Spectrum, there are plenty of safeguards in place to ensure that small business owners are protected and satisfied with their services. If you are are working with a PEO and are not happy with your provider, there are ways to switch your PEO provider easily. You can ask your PEO broker to help you switch without any difficulty or interruption of insurance coverage. So what are you waiting for? There is no need to fear and every reason to get involved with the PEO market so you are much more able to provide the kinds of benefits and employee perks you want to and often at a lower cost than you are paying for small business plan benefits now. PEOs are built to be affordable to the small business owner. Ask your PEO broker about what your options are today.

If you’d like to find out more about how PEOs can help you provide great benefits and payroll management at less than you are paying now, contact us today for a free consultation.

Blog

Is The PEO Market Healthy?

Blog / Human Resources Services

How The PEO Market Has Grown In 10 Years

Is The PEO Market Legally Sound?

How Can A PEO Broker Help You Navigate The PEO Market?

The PEO Market Is Safer Than Ever

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