siff
Scott "Rufio" Feather
Just got this email from my company's CFO. What the hell is he talking about?
All Employees,
I am pleased to announce that XXXXX has entered into a client service agreement with YYYYY (formerly known as ZZZZZ), a professional employment organization (PEO) which will be responsible for our Human Resources administration, compliance and payroll processing. The effective date is January 1, 2012.
We wish to provide our employees with the most comprehensive benefits offering, but given our size and rising health care costs, this has become a daunting task. Over the past six months we have been evaluating alternative solutions to deal with rising health care costs and weighed options, but found that many of these solutions had many negative aspects. Concurrently we researched going with a PEO, and after careful consideration, determined this relationship would provide our employees a very comprehensive and cost effective benefits program.
Joining a PEO requires all of us to become co-employees of the PEO - in this case YYYYY. This co-employment relationship enables us to be part of a 125,000+ employee group and thus obtain more cost effective benefits than we could as a small group. Our relationship with YYYYY does not allow them to obtain control over how we conduct business, makes hiring decisions, nor allows any ownership of the company. Their primary focus beyond the benefits and payroll arena is to ensure that we are in compliance with HR regulations. Additional support services available through Insperity will be in the areas of recruiting, training, performance management, liability management and health and safety.
Our pay stubs will reflect XXXXX but our year-end W-2’s will say YYYYY, as they are the “Employer of Record” in the eyes of the IRS. Payroll services will be provided by YYYYY and no longer through ADP.
Stay tuned for the announcement of a kick-off meeting in October to explain this model in more detail.
All Employees,
I am pleased to announce that XXXXX has entered into a client service agreement with YYYYY (formerly known as ZZZZZ), a professional employment organization (PEO) which will be responsible for our Human Resources administration, compliance and payroll processing. The effective date is January 1, 2012.
We wish to provide our employees with the most comprehensive benefits offering, but given our size and rising health care costs, this has become a daunting task. Over the past six months we have been evaluating alternative solutions to deal with rising health care costs and weighed options, but found that many of these solutions had many negative aspects. Concurrently we researched going with a PEO, and after careful consideration, determined this relationship would provide our employees a very comprehensive and cost effective benefits program.
Joining a PEO requires all of us to become co-employees of the PEO - in this case YYYYY. This co-employment relationship enables us to be part of a 125,000+ employee group and thus obtain more cost effective benefits than we could as a small group. Our relationship with YYYYY does not allow them to obtain control over how we conduct business, makes hiring decisions, nor allows any ownership of the company. Their primary focus beyond the benefits and payroll arena is to ensure that we are in compliance with HR regulations. Additional support services available through Insperity will be in the areas of recruiting, training, performance management, liability management and health and safety.
Our pay stubs will reflect XXXXX but our year-end W-2’s will say YYYYY, as they are the “Employer of Record” in the eyes of the IRS. Payroll services will be provided by YYYYY and no longer through ADP.
Stay tuned for the announcement of a kick-off meeting in October to explain this model in more detail.
