PEO and Employee Payroll Processing

Human resource responsibilities of companies are usually outsourced to a PEO (Professional Employer Organization). Employee payroll processing is one of the major HR responsibilities businesses have to deal with. This resource consuming task is important for businesses to perform, but still something which distracts them from their core tasks that directly contribute towards profit generation. Outsourcing payroll responsibilities is the most practical way of streamlining business processes and channeling all resources towards increasing productivity.

The elaborate tasks involved in employee payroll processing can all be handled by a PEO efficiently. The services are offered in line with the needs and objectives of the business. In general, the responsibilities involved include:

• Payroll preparation and delivery
• Payroll taxes and filing
• Assumption of liabilities and responsibility for payroll taxes, reporting and audits
• Filing of quarterly reports - FICA, FUTA, SUTA
• Federal payroll summaries
• FICA, FIT & SIT tax withholdings
• Updating employee files
• Audits
• Job cost accounting reports
• Production and delivery of W-2s
• 941 and 940 reporting
• Garnishments
• New hire reporting
• Wage/hour law compliance

Apart from employee payroll processing, PEOs offer the entire range of human resource outsourcing services including recruitment and selection of staff, employee benefits administration, Workers’ Compensation administration, risk management, regulatory and government compliance, employer liability management, and more. With these comprehensive services, all aspects of managing your employees, right from their recruitment throughout their term in office are taken care of in a cost-effective and efficient manner, in line with the short term and long term objectives of your business.

Employee Benefits Outsourcing - Eliminates Administrative Burden

Employee benefits outsourcing eliminates administrative burden in more ways than one. Provided by a PEO that offers companies comprehensive human resource outsourcing solutions, employee benefits administration services help companies get rid of the financial burden of managing employees and get them focused on their core revenue churning tasks.

Why Employee Benefits Outsourcing Is Important

Employee benefits outsourcing eliminates administrative burden for a PEO’s client organizations, and benefits are one of the major motivating factors for staff. It gives employees the sense of being appreciated for their efforts. But providing benefits is also expensive, particularly for small and medium-sized concerns. That’s where the PEO comes in, using its relationship with the major insurance providers and National PPO carriers to offer stable rates and competitively priced and innovative coverage plans. Thanks to these competitive rates, companies can still offer comprehensive plans for employees without significantly draining their financial resources. Such benefit schemes keep the employees happy and encourage them to work with more dedication.

Attractive Benefits

Some of the benefit plans PEOs help client companies offer include:

• Employee health benefits & insurance plans (PPOs, HSAs)
• IRA solutions (Individual Retirement Accounts)
• Retirement planning
• Dental and vision care
• Long term and short term disability insurance
• Cancer, accident, hospital and other supplemental plans
• Education saving plans
• Adoption assistance
• Cafeteria plan
• Flexible spending accounts
• Individual coverage
• Employee voluntary benefits programs
• Prescription drug plans

Employee benefits outsourcing to a PEO eliminates administrative burden for client organizations. They get to be major influences in the job market, attracting qualified professionals, while they also have increased chances of retaining the skilled professionals already working for them. A relationship with a PEO also opens the doors to greater opportunities in cost cutting and greater streamlining of resources.

Human Resources Consultants in Tulsa

Human resources consultants in Tulsa provide comprehensive assistance in human resources management. These solutions are complete and cost-effective, and are typically offered by a PEO or Professional Employer Organization. With assistance from HR consultants, your company can divert its resources to core tasks alone and ensure greater productivity and earnings at lesser operating costs, leading to increased sustainability and profitability.

The HR outsourcing and consulting services offered by a PEO generally cover the fields of payroll and tax administration, employee benefits administration, workers’ compensation administration, human resources administration, risk management, regulatory and government compliance, recruitment and selection, employer liability management, immigration compliance, and more.

Human resources consultants in Tulsa not only provide great solutions that effectively take away your human resource burdens, but also give you valuable advice and the right direction for your company. A PEO is made up of a range of experts from all fields connected with HR management including administration, accounting, law, taxation, insurance and management. These industry experts can guide your company and help you make the right decisions that could make the difference between success and failure, increased market presence and total insignificance.

Employees are the backbone of any organization and the importance of managing them can never be overemphasized for the long term success of your firm. With HR consultants by your side, you’ll attract the most skilled and experienced staff in the job market, train them well through innovative techniques, motivate them through a great pay package and comprehensive rewards, ensure their continued effort and satisfaction that could contribute to greater retention of staff, manage all related responsibilities including tax calculation, accounting, and ensure legal compliance.

All this comes at a cost-effective price from the human resources consultants in Tulsa. With their assistance you can kick-start the growth of your company.

Advantages of Employee Benefits Administration Outsourcing

The advantages of employee benefits administration outsourcing for organizations are threefold – reduced costs, greater focus on core tasks, and motivated workforce.

Employee benefits administration outsourcing for organizations brings about streamlined operation of the business, with the potential of attracting skilled professionals in the job market as well as increasing the chances of retaining existing staff. Employee benefits are one of the most important elements of human resource management and its administration is one of the services provided by a professional employer organization (PEO) to client organizations.

Outsourcing Employee Benefits Administration to a PEO

One of the advantages of employee benefits administration outsourcing is that PEOs can help client organizations secure attractive rates for attractive coverage plans. This truly serves the cost cutting needs of organizations, be they large or small. The services provided by a PEO with regard to employee benefits include:

• Employee health benefits & insurance plans (PPOs, HSAs)


• IRA solutions (Individual Retirement Accounts)


• Retirement planning


• Dental and vision care


• Long term and short term disability insurance


• Cancer, accident, hospital and other supplemental plans


• Education saving plans


• Adoption assistance


• Cafeteria plan


• Flexible spending accounts


• Individual coverage


• Employee voluntary benefits programs


• Prescription drug plans

As can be seen from the above list, one of the other advantages of employee benefits administration outsourcing is the wide range of benefits that a PEO helps its client organizations offer, even if they be small or medium-sized concerns. It ensures a greater attraction for young professionals looking for the next big thing. Benefits go a long way in getting the right people to work for you. The PEO is always available to help in the other aspects of HR management as well including recruitment, training, payroll administration, workplace safety and legal compliance.

Employee Benefit Administration Customized to Your Needs

A professional employer organization (PEO) offers employee benefit administration customized to your needs.

Administering employee benefits is one of the extensive responsibilities within HR management, and PEOs offer comprehensive solutions to manage the existing benefit plans of their client companies or bring about more comprehensive benefits in a cost-effective manner according to the needs of client companies.

Outsourcing HR Management

Coordinating a benefits plan involves much effort and plenty of resources. All HR responsibilities consume a significant amount of resources for businesses. In order for the focus of the company to rest on its core tasks that directly contribute to its earnings, businesses would do well to outsource these responsibilities to the experts at the professional employer organization.

PEO Employee Benefit Services

PEOs have the resources and expertise to effectively coordinate the benefit plans of businesses. Benefits administration includes accurate calculation of sick days and vacations, management of paid leave, working in coordination with the department in charge of payroll to ensure employees are paid for approved days, educating employees about the benefits eligible to them, ensuring companies make their end of the payment to the insurance provider and that employees’ deductions from the salary are accurately made for the coverage plans, ensuring whether employees are living up to performance expectations that make the benefits eligible.

Employee benefit administration customized to your needs ensures these administrative chores are taken care of efficiently. The flexibility of the services offered ensures the benefits offered and their management are in line with the scope of the organization. The experienced professionals at the PEO also ensure legal compliance and lawful accounting of all the required factors for the client company.

Streamlined Functioning

With PEOs offering employee benefit administration customized to your needs, your organization will be able to offer comprehensive benefits without compromising on its financial resources. PEOs also provide other HR solutions, including recruiting and training, payroll management, legal compliance, risk management and immigration compliance.

Administration of Employee Benefit Programs

PEOs provide comprehensive HR management solutions that cover areas other than benefits administration.

PEOs or professional employer organizations take care of the administration of employee benefits programs – one of the most important human resource management tasks – to client organizations. These services help companies cut down costs and ensure sustainability, while still offering an attractive benefits package for staff and prospective employees.

Advantages of Offering Comprehensive Benefits

Employee benefits offered by multinational companies are comprehensive and attractive, covering almost all aspects that lead to the comfortable and even luxurious living of employees, giving them the extra motivation to put more effort into the organization. It also instills in them the sense of being appreciated for their input.

However, small and medium-sized organizations can’t necessarily afford offering extensive benefits. A PEO can make that happen though. Through its connections with major providers and PPO carriers, the PEO can offer competitive and stable rates for some great coverage plans. These are provided with regard to the individual needs of client companies, enabling even small and medium-sized firms to be able to offer, and thereby attract, well-qualified and experienced professionals.

General List of Benefits

The administration of employee benefit programs is one of the major responsibilities of a PEO. It helps in offering a benefit portfolio that generally includes:

• Employee health benefits & insurance plans


• IRA solutions


• Retirement planning


• Dental and vision care


• Long term and short term disability insurance


• Cancer, accident, hospital and other supplemental plans


• Education saving plans


• Adoption assistance


• Cafeteria plan


• Flexible spending accounts


• Individual coverage


• Employee voluntary benefits programs


• Prescription drug plans
  

With the administration of employee benefit programs taken care of by a PEO, companies have an ace up their sleeve when it comes to attracting the right people to work for them. It doesn’t cause a severe dent on the resources as well, while companies can also focus their efforts on their core responsibilities, as PEOs provide comprehensive HR management solutions that cover areas other than benefits administration.

Auto Workers Lose Case of “Rehiring” Rather Than “Reinstating” Them

The difference between “reinstated” and “rehired” was felt deeply by some employees of a world famous automobile company, Ford.

The company sued it for what they felt was a violation of the Employee Retirement Income Security Act (ERISA) when they were rehired rather than reinstated at Ford after being transferred to Ford’s sister concern, Visteon.

The Issue

They were transferred to Visteon Corp. in 2000 when it was under the ownership of Ford Motor Co. But in 2001 Visteon was spun off to stockholders. According to the employee transition agreement that was issued then, Ford had to take up liability for pension benefits of the transferred employees till the time of transfer of ownership, while Visteon was also directed to conceive a comparable and equally beneficial retirement plan for the employees. For the transferred employees, their combined years of service at both Ford and Visteon would be considered for eligibility for early retirement while the monthly pension benefit for an employee would depend upon the individual’s salary provided by Visteon.

The transition agreement was modified by Ford more than three years from the date of transition to an agreement that offered less attractive terms for employees hired or rehired after January 1, 2004. Visteon became part of Ford’s reacquisition plans in 2005 and the once transferred employees were rehired, but as new employees of Ford. Their years of service at both the companies would be combined to determine their eligibility for pension benefits, according to the less favorable plan it introduced through its amended transition agreement. The benefits amount that would be administered was again decided not to be determined.

The Complaint

These rehired Ford employees, who were once transferred to Visteon would no longer be eligible for equal benefits as the non-transferred Ford employees who were at the company before January 1, 2004, according to the new amendment to Ford’s transition agreement. This prompted those employees to sue the auto major under ERISA for rehiring rather reinstating them, making them settle for a less attractive pension benefits package.

The Verdict

Following the dismissal of their case by a federal district court, the employees appealed to the 6^th Circuit. The appellate judges felt convinced by Ford’s argument that was based on a 1991 directive which stated that transferred employees are stripped of any reinstatement rights, leading to the employees’ suit being shown the door again.

What made the case weak for the Ford employees was that, though the new transition agreement drawn up by Ford in 2004 was less satisfactory than the previous one, and thereby violates ERISA Section 510 that classifies as unlawful any action of an employer interfering with its employee benefits, there were some pension benefits they couldn’t expect, making the difference between “rehiring” and “reinstating” them somewhat negligible.