PEO FAq

What is a PEO, ASO, HRO, and why should I care about them?

A PEO is a Professional Employer Organization; a single source provider of integrated services which enable business owners to cost-effectively outsource the management of human resources, employee benefits, payroll and workers’ compensation, and other strategic services, such as, recruiting, risk/safety management, and training and development through co-employment. It does this by hiring a client company’s employees, thus becoming their employer of record for tax purposes and insurance purposes.

An ASO is an Administrative Services Organization provides business transaction-based human resources services such as support with payroll, benefits, and employee data management. An ASO solution differs from a Professional Employer (PEO) model because there is no co-employment – the employment relationship is maintained by the client.

HRO is Human Resource Outsourcing in an HRO model, the solution focuses on managing the entire HR business process, unlike the Administrative Service (ASO) model which focuses on the transaction. An Employee Call Center is inherent to the solutions within an HRO offering. An HRO solution differs from a Professional Employer (PEO) model because there is no co-employment – the employment relationship is maintained by the client.

What services and solutions does a PEO offer?

A PEO offers a complete suite of services and solutions; through our strategic partnerships we have established relationships with the industry leaders in their respective markets. We offer solutions’ in the following areas:

• Payroll and Human Resource Administration
• Human Resource Management Systems (HRMS)
• Benefit Plans and Total Benefit Management
• COBRA, HRA, HSA, FSA Management and Implementation
• Commuter benefits and Health and Wellness programs
• Ancillary coverages (dental, vision, LTD, STD, etc.)
• Worker’s Compensation and Claim Management
• Property and Casualty (business and personal)
• Self-Insured Plan development and implementation
• PEO, ASO, & HRO and Human Capital Outsourcing
• EPLI and Risk Consulting
• 401-k plan designs and TPA services and financial planning
• Employee Assistance Programs

How does a PEO arrangement work?

In the relationship among a PEO, the employee, and a client company, there exists a co-employment relationship in which both the PEO and client company share an employment relationship with the worker.  The PEO and client company contractually allocate some and share other traditional employer responsibilities and liabilities. The PEO assumes responsibility and liability for the business of employment such as risk management, personnel management, human resource compliance, and payroll employee tax compliance.  The client company manages product development and production, marketing, sales, and service. The PEO assumes and establishes an employment relationship with the employee and provides a complete human resource and employee benefit package.

Who uses a PEO?

Historically, the average client customer of a PEO was a small business. Increasingly, larger businesses with employees in the 5 to 500+ range are finding value in a PEO arrangement, by avoiding the investment in new or additional human resource personnel and maintenance of costly infrastructures.  These companies include every single type of business from accountants to zookeepers and every profession in between including doctors, retailers, mechanics and more.

• Technology firms
• Professional & Business Services
• Marketing and Advertising
• Financial Services
• Private Charter Schools
• Non-profits
• Healthcare
• Media and Publishing
• Start-ups

Why would a business use a PEO?

As businesses grow, most business owners don’t have the necessary human resource training; payroll and accounting skills; knowledge of regulatory compliance; or backgrounds in risk management, insurance and employee benefit programs to meet the demands of being an employer.  Business owners want to focus their time and energy on the business of their business and not on the business of employment. Most do not have the desire to invest and maintain non-core infrastructure associated with human resources, benefits, payroll and the associated software systems.  More and more, these functions are outsourced to professionals and organizations where these tasks are fundamental to the business. PEO’s facilitate this process by assuming and providing support for all aspects associated with employment management.

How many Americans are employed in a co-employment PEO arrangement?

An estimated  4 million Americans are currently co-employed in a PEO arrangement. PEOs are operating in every state, and the industry has historically grown between 20-30% per year. Future growth projections for the industry is anticipated to be in the 35% range for 2002.  Today, there are approximately 900 PEO companies who are responsible for over $24 billion in employee wages and related human resource and employee benefits.

Does the business owner lose control with a PEO?

This is the most common question we get.  The client retains ownership of the company. As co-employers, the PEO and business owner become partners in the employment of their workers.  The PEO assumes most responsibilities and liabilities associated with a general employer.  The client usually retains those rights and responsibilities associated with special employers.  The PEO assumes a real and factual employer role.  PEOs are responsible for payroll and employment taxes, maintaining employee records, in consultation with the client reserve the ultimate right to hire and fire, and have the authority to resolve employee disputes.  By shifting these responsibilities to the PEO, the client gains command of the core revenue generating aspects of their business.

Do you have any PEO Case Studies or examples?

Yes, you can access our PEO Case Studies here.

What are the downsides of using a PEO?

If you don’t want your payroll, benefits, HR, and compliance support centralized in one place, it might not be the right fit for you. However, most small business owners find a high level of convenience in consolidating certain HR functions so they can focus on the real work of running their business.

What are the differences between a PEO and Employee Leasing?

We encourage you to read more about the differences in our article.

What if I already work with a PEO?

That in fact is many times the case; however our platform has every PEO, ASO, and HRO provider in one location. We scoured the market to find the best in breed in the PEO, ASO, and HRO market and our strategic partnerships for a la carte services are industry leaders. Our proprietary software allows you to shop the entire PEO, ASO, and HRO market in one submission, versus going it alone and collecting quotes from each individual provider. Many of our current clients were with other providers prior to working with us; we ensure that your current solution is giving you the best deal. If you current solution is the best fit for you, then we will advise of that as well.

Who are the providers you work with?

Millennium Medical Solutions, a Division of World Insurance Associates, works with the leading providers, some national in scope and others regional in scope. We are constantly evaluating and adding new providers, so our vendors are currently growing daily.

What does human capital mean?

Human Capital refers to the management of a company’s most valuable asset, their employees. We refer to human resources as human capital.

I have heard of Human Resources Outsourcing, but what is the advantage of dealing with Millennium Medical Solutions, versus a company directly?

The advantage is that while working with one company can provide a solution, however they only can quote their respective services. Millennium Medical Solutions, a Division of World Insurance Associates, works with numerous Human Resource Outsourcing organizations; we enable you to efficiently compare all providers through one simple application. Since there is no fee for our service, we offer an unbiased comparison and aren’t tied to one specific provider, leaving us the ability to objectively compare all solutions with your best interest at the core of solution.

What are the costs for your services?

For our PEO, ASO, and HRO services, there are no fees, we are compensated by our strategic partners. Very few of our services actually have a fee, contact us for more information and we’ll be happy to tailor a solution to fit your needs and breakdown all the costs associated with our services and solutions.

If I am interested in learning more about PEOs, how can I get more information?

We are all about options. You can call us at (855) 667-4621, email us at info@medicalsolutionscorp.com, or request a quote.