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Types of
PEO's?
There are 3 basic types of
PEO arrangements:
Several
forms of PEO relationships are available to most businesses and
many PEOs can offer any one of the following option.
1. Traditional PEO
|
Category |
Responsibility |
|
IRS Employer of Record |
The
PEO.
Using their Federal/State Tax I.D. |
|
Work Comp Insurance |
The PEO
Coverage under PEO Master Policy |
|
Group Health Insurance |
The
PEO
Most traditional PEO's offer group health |
|
Other Employee Benefits |
The
PEO
Most benefits offered under PEO's policy |
|
Human Resources |
The
PEO
All available services included in factor |
|
Government Compliance |
The
PEO
Includes paperwork and legal guidance |
|
Risk Management |
The
PEO
Full services usually available by PEO |
2. PEO with service
options
|
Category |
Responsibility |
|
IRS Employer of Record |
The
PEO.
Using their Federal/State Tax I.D. |
|
Work Comp Insurance |
PEO, or the Client
Coverage under either policy available |
|
Group Health Insurance |
Usually
the Client
Some traditional PEO's offer group health |
|
Other Employee Benefits |
PEO,
or the Client
Benefits policies determined by client |
|
Human Resources |
PEO,
or the Client
Services may be selected by client |
|
Government Compliance |
The
PEO
Includes paperwork and legal guidance |
|
Risk Management |
The
PEO
Full services usually available by PEO |
3.
ASO (administrative Services Outsourcing)
|
Category |
Responsibility |
|
IRS Employer of Record |
The
Client.
Using Clients Federal/State Tax I.D. |
|
Work Comp Insurance |
The Client
Coverage under client Policy w/admin. |
|
Group Health Insurance |
The
Client
PEO provides administration of plan(s) |
|
Other Employee Benefits |
PEO
and/or Client
Most benefits offered under PEO's policy |
|
Human Resources |
The
PEO
Services may be selected by client |
|
Government Compliance |
The
PEO
Includes paperwork and legal guidance |
|
Risk Management |
The
Client
PEO/ASO may offer guidance |
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