INTERNAL REVENUE SERVICE
DEPARTMENT OF LABOR
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
So, here we are, the big guns all on one side, and little ole you on the other.
The sad reality is, all it takes is a phone call from one disgruntled employee, for the wheels of the Feds to slowly start grinding into motion and make your life miserable for the next few years, leaving many to wonder why on earth did I ever even start this business.
So what’s the solution? Work by yourself? Don’t hire anyone? Only family and friends? Outsource everything to an overseas corporation? How about something easier?
JOIN A PEO!
PEO, also known as Professional Employers Organization is not a new concept, but is slowly entering the mainstream in the past 10 – 15 years. While the employees are yours to hire, fire & manage, the PEO becomes the employer on record, filing all taxes and manages all HR related issues. This means all the above issues become the headaches of the PEO to handle and resolve.
Consider the case of Paradise Detail of Dallas. In January 2013, after an investigation by the US Department of Labor, Dallas-based Paradise Detail agreed to pay nearly $230,000 in minimum wage and overtime back wages following a US Department of Labor investigation. The article does not make mention of any regulatory fines and penalties, but suffice it to say, it will be under the scrutiny of the Feds for some time to come.
How could a PEO help in the above scenario? To begin with, a PEO would probably not ever let a situation like this arise. PEOs have their own checks and balances and would very early on flag the time discrepancies and alert the client company.
PEOs do one thing, and they do it very well. They help companies manage every aspect of Human Resources. From payroll, life & health insurance, workers compensation, unemployment, injuries, 401k, IRS payroll taxes, regulatory compliance with DOL, EEOC, etc.
And. since the employees got paid under the Tax ID number of the PEO, any claim or investigation from any of the above agencies falls under the PEOs realm of responsibility and becomes their duty to defend. In a nutshell, a PEO will handle HR, Employee Handbooks, Legal Representation, IRS Payroll Disputes, Discrimination Law Suits, Work Comp Claims, and just about every aspect of employee related issues. High EMR rate due to past Work Comp accidents? Here’s an idea. Join a PEO and use their low EMR for a few years until your EMR settles down again.
What does all this cost? Probably a lot cheaper than staffing your own HR department & attorneys and undoubtedly far cheaper than fighting some of these issues by yourself.
Call today to see how a PEO can help bring about a positive change in your business. At Commercial Global PEO, we help you with your employees so you can manage your business.
Call 281-930-1600 or email email@example.com for more information on PEO
Commercial Global Insurance Services, www.cglobalins.com and Commercial Global PEO www.cglobalpeo.com are full service Commercial Property and Casualty agencies, committed to assisting our clients in every aspect of their business. Call today to discuss how a customized risk management program can benefit your company.