Professional employer organizations (PEOs) enable clients to outsource the management of human resources, employee benefits, payroll and workers’ compensation. Companies contract with a PEO to assume these responsibilities and provide expertise in human resources management. A PEO delivers these services by establishing and maintaining an employer relationship with the employees at the client’s worksite and by contractually assuming certain employer rights, responsibilities, and risk.
As co-employers with their client companies, PEOs contractually assume substantial employer rights, responsibilities, and risk through the establishment and maintenance of an employer relationship with the workers assigned to its clients. Some of these responsibilities include:

  • Employee benefits administration.
  • Payment of wages and employment taxes of the employee out of its own accounts.
  • Reporting, collecting and depositing employment taxes with state and federal authorities.
PEOs and State Registration and Licensing Acts

PEOs operate throughout the country. Individual states may have comprehensive registration and licensing acts related to the PEO industry. In addition, state unemployment codes, workers’ compensation acts, and other statutes may have a direct impact on how PEOs operate in a particular state.


LEGISLATION: Businesses stressed by complicated changing rules
The confusion and uncertainty is taking a toll on some. Employers are faced with the reality that “the only thing constant, with respect to labor related laws is CHANGE ! “The law has changed 30–40 times so far, so everyone is asking if they’re in compliance. It creates stress, so brokers use that and deluge people with information.”
WELLNESS PROGRAMS: growth and evolution create confusion
Offering wellness programs to employees has become very common with large employers, and the growth of such programs will likely continue in 2015. Even though it is difficult to measure how much such efforts are holding down health care costs, employers still see them as a path to a healthier, more productive workforce — and employees like the additional perk. Employee Benefit Research Institute recently conducted a survey and found that “ nearly 36 percent of employers expected to add wellness programs in 2016.”

GENERATIONAL CHANGES: passing of the torch in a multi-generational workforce becomes convoluted
One of the biggest HR stories in 2016 may be the growing realization that an incredible amount of institutional knowledge is being lost as baby boomers retire in increasing numbers. So far, few employers have put a priority on dealing with the changing demographics of the workplace. But they may no longer have that luxury; as more than 100,000 Americans retire every month, something has to be done to replace this important resource.


4 keys to managing a multigenerational workforce:

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