What is a Professional Employer Organization (PEO)?
A PEO assists clients in reducing their administrative headaches by sharing the burden of managing their employees.
Clients do not give up the day to day control of their employees. PEOs reduce the time and expense involved in dealing with employee payroll, benefits, taxes, governmental compliance, unemployment and recruiting.
The result is a lower total labor cost and more time to focus on their core business.
Are PEOs are a new concept?
PEOs have been in operation since the early 1970's.
In many parts of the country, PEOs are already an integral part of the business community, nationally managing over 3 million employees. Thirty-One states currently require PEOs to be licensed or registered. For example, in New Jersey and New York, all PEOs are regulated by the Department of Labor, which require annual registration, minimum net worth and quarterly CPA certified tax filings.
New Jersey Dept of Labor PEO Registrations
New York Dept of Labor PEO Registrations
What are the Benefits of using the Extensis PEO solution?
- Lower total labor cost
- Less time spent on administration
- Lower employer risk
- Employee benefits beyond the reach of Small to Midsized employer
- Better year to year control of benefit costs
- Regain focus on growing and managing core business
Who is responsible for Payroll Taxes and Regulatory Compliance?
Extensis pays all payroll and statutory taxes and assists our clients in complying with the ever growing list of government regulations including: Homeland Security, FMLA, ADA, Wage and Hour Laws, Fair Labor Standards Act, immigration, EEOC, COBRA, etc.
How are benefit claims handled?
Extensis provides everything our clients need to effortlessly handle any claims. Acting as our clients HR department, Extensis works with our insurance providers to ensure promptness and accuracy, including dedicated enrollment and claims support.
Who hires and fires my employees?
At our client’s request, Extensis may be involved with employee hiring. Extensis provides approved employment applications, legally compliant offer letters and related agreements, complete drug testing and background checks. We can even offer complete recruiting services when requested. Additionally, Extensis advises our clients on state and federal labor laws, applicable to the hiring process.
If our client decides to terminate an employee, Extensis provides necessary documentation, assists in maintaining compliance and protecting our clients against potential unemployment litigation. Our Employment Liability Practices Insurance (EPLI), included in our basic fees, covers our clients in the event a judgment is made against them.
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