Frequently Asked Questions of Our Professional Employer Organization

  1. What is a PEO?
  2. "I have all of that covered…why would I need a PEO?"
  3. What is co-employment?
  4. What kind of company benefits from using a PEO?
  5. Do we lose control of our employees?
  6. How does the relationship with a PEO affect my employees?
  7. How do I know that the PEO is paying our payroll taxes?
  8. How long has PMI been in business?

1. What is a PEO?
A PEO, or Professional Employer Organization, takes on the role of the administrative employer-of-record in a co-employment relationship with its clients. People Management, as a PEO, relieves the administrative burdens of being an employer in one, all-inclusive, comprehensive package. We provide outsourced payroll services, employee benefits administration, unemployment claims administration, leaves of absence/disability management, workers compensation, and human resources consulting. We also oversee the development of employee handbooks and monitor compliance with Federal and State labor laws.

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2. "I have all of that covered…why would I need a PEO?"
Right now, you probably have a payroll processing service; perhaps a broker to provide some employee benefits support; another broker that handles your retirement plan, and yet another broker that helps you obtain workers' compensation coverage. In addition, you probably retain an accountant to reconcile your payroll and an attorney to provide HR consulting. That's a lot of separate entities that will say—when push-comes-to-shove—that it is you, not they, that are legally responsible for ensuring compliance with ever-changing employment laws and regulations. They would be right! Our professional employer organization in New Jersey assumes all responsibility and handles everything for you under one roof.

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3. What is co-employment?
Co-employment is the sharing of employment responsibilities between the PEO (the administrative employer of record) and the Client Company. Specifically, PEO organizations become contractually responsible for:

  • Paying wages and employment taxes of the employee from its own account.
  • Collecting, depositing, and reporting employment taxes with federal, state, and local authorities.
  • Maintaining an employment relationship with employees that are intended to be long-term, not temporary.
  • Reserving and retaining—along with the client company—the right to hire, reassign, and terminate employees.
  • Providing Workers' Compensation coverage for its employees.

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4. What kind of company benefits from using a PEO?
Most small to medium-sized businesses that don't have the budget to fund a human resources department will benefit from entering into a relationship with a Professional Employer Organization like PMI by improving their ability to retain excellent employees. This is accomplished through focusing on improving productivity and reducing the administrative headaches associated with being an employer.

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5. Do we lose control of our employees?
Not at all! The client company always retains control of the worksite or facilities, as well as the right to hire, discipline, reassign, and terminate employees. Additionally, you retain responsibility for the production of your product and service. Our New Jersey based PEO organization simply acts as an administrative employer providing off-site services such as HR consulting, outsourcing payroll processing, employee benefits strategies, and compliance with governmental regulations.

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6. How does the relationship with a PEO organization affect my employees?
Employees will enjoy being able to access employee benefits programs that were not available to them previously. In fact, a large variety of voluntary programs are offered to them because they are now co-employed by a PEO. From that point forward, they will be able to contact our professional employer organization in New Jersey's experienced and knowledgeable employee benefit consultants with questions that would have previously been directed to your staff.

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7. How do I know that the PEO is paying our payroll taxes?
In many states, Professional Employer Organizations are required to be licensed. In New Jersey, for example, in order to become licensed and retain licensed status, a PEO organization must maintain strict reporting requirements. Furthermore, the PEO's collection, payment, and reporting of payroll taxes are strictly monitored by means of quarterly independent audits. Our NJ professional employer organization strictly follows all directives mandated by state and federal regulations.

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8. How long has PMI been in business?
Our PEO organization is celebrating its 15th anniversary in 2012. We pride ourselves on excellent personal service with our focus on continuing to primarily serve clients in the New Jersey, New York metro, and Pennsylvania areas.

To learn more about the services People Management can offer your business, contact us, request a quote, or call 888.843.5789 today.

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Member of National Assciation of Professional Employer Organizations Society for Human Resource Management Somerset County Business Partners