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A Professional Employer Organization contracts with small companies (generally with 5 to 500 employees) to manage all or most of their human resource functions. PEOs help their clients in two critical areas: improving and managing employee benefits and obtaining administrative relief. To be more specific, a PEO can handle the payroll, benefits, Section 125 cafeteria plans, workers' compensation, unemployment claims, labor law compliance, record keeping, payroll taxes, and 401(k) pension plans for its clients. In the process, PEOs can save a business owner time and money, increase employee morale, and reduce his liabilities as an employer.


What is a PEO?
Human Resources
Risk Management
Payroll Administration
Benefits Administration
Administrative Services
Healthcare Plans & Benefits
Guideline for choosing a PEO
Background Checks & Drug Screens
Employee Assistance Program (EAP)
Frequently Asked Questions About PEOs

What is a PEO?
In the PEO relationship, a PEO contracts to a worksite employer to co-employ the workforce of the client. The PEO and client establish a co-employment relationship with the workforce employees. The PEO provides a complete human resource, payroll, and employee benefits package.

The PEO assumes responsibility and liability for the "business of employment," including risk management, human resources, labor law compliance, payroll, and payroll taxes. The client manages the day-to-day operations of his/her business, including production, marketing, sales, service, and direction of the company.

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Human Resources
With the growing number of federal, state, and local laws and regulations, one of the greatest challenges facing business owners today is Human Resources Management. To stay on top of all the changes, the skills and knowledge of a Human Resources professional are critical. This can be extremely expensive for a small business, and trying to handle it yourself requires time and energy that you just don't have. So, what's the solution for managing your Human Resource issues?

Let Select Focusact as your HR Department, offering you HR support and consultation on:

  • recruiting

  • selecting

  • managing

  • developing

  • retaining

  • protecting
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    Risk Management
    From Workers' Compensation management and policy development to maintaining a drug free work environment, the Select Focus team of professionals can help you provide the best possible work conditions for your employees.

  • Compliance Management

  • Workers Compensation

  • Alternative Dispute Resolution (ADR)

  • Safety Inspection and Policy Development

  • Drug Free Workplace


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    Payroll Administration
    We bet you would agree, if all you had to do was figure the hours, multiply them times the wage rate, and cut the check, payroll would be a breeze! But payroll is not that simple. You must also address such issues as weekly, monthly, and quarterly tax filings or child support garnishments.

    And as if that's not enough, in some areas, there may be more local tax checks than payroll checks. All the while, your Account Receivables aging creeps past 75 days. Oh yes, and by the way, there are those tax law and deposit frequency changes that come along as the size of your payroll changes. Plus, at the end of the year, you get to run, then re-run, and maybe re-run again, all those W-2s.

    As a Professional Employer Organization, Select Focus assumes all of these responsibilities and the liabilities that go with them. We have the knowledge and expertise to handle the most trying and time-consuming payroll concerns. Our procedures make payroll processing easy and flexible, no matter the frequency or pay type. And the payroll will arrive to you on time and accurate.

    Of course, the employees' pay statements will accurately detail all deductions and wage payments for the current period and YTD. And when it comes to payroll reports, you'll have 100s to choose from. Just tell us what information you need.

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    Benefits Administration
    A comprehensive health and welfare benefits program can be the key to helping you find and keep the best employees available. With Select Focus, you can have access to the quality benefits that you and your employees want, including medical and dental insurance from some of the leading providers in the nation.

  • Health and medical insurance
  • Major and minor medical
  • Dental program
  • 401(k) plan
  • Disability insurance
  • Life insurance
  • Credit union
  • Banking services
  • Employee Assistance Program


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    Administrative Services
    For clients who may not be ready for our PEO product, Select Focus can also provide your company with Payroll/HR Consulting (ASO) services only. As a PEO operating in several states, we have the knowledge and expertise to handle your most trying and time-consuming payroll concerns.

    Based on your payroll frequency, Select Focus will process your payroll in a timely and accurate manner. We will also assume total liability for filing and depositing your federal, state, and local payroll withholding taxes, as well as your federal and state unemployment taxes. Your state Worker's Compensation liability will be calculated based on your current rates and reported to you so that you can make your payments as required.

    A variety of standard reports are available to help you manage your business, including a detail payroll journal and cost accounting report. This service also includes W-2s for your employees and annual reconciliation, plus filings for all federal, state, and local payroll-taxing authorities.

    Select Focus can accommodate all pay types including:

  • Hourly
  • Salary
  • Commission
  • Tipped
  • Direct deposit
  • Specific deductions
  • Garnishments
  • Bonus pay


  • We can provide various payroll stub information:
  • Benefit deductions
  • Sick and vacation time used
  • Cafeteria Benefit Plan administration


  • Select Focus Human Resources Service (ASO):
  • Employee handbooks
  • Health and welfare benefits
  • Workers' Comp Management
  • All necessary HR forms
  • Employee testing and selection
  • Safety/risk management services
  • In-house HR professionals
  • EEOC and wage hour compliance
  • Wage and salary administration
  • Unemployment administration
  • Performance management consulting
  • Employee sourcing and training
  • Employee relations and complaint investigation


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    Health Care Plans & Benefits
    Select Focus can fashion a health program that meets all your company's needs by providing the best care at the lowest prices. Because of our large employee base, we are able to offer many health care plans through several different carriers, including the same coverage offered by many Fortune 500 companies.

    SAMPLE RATES
    Range Single Family
    Low End:
    Middle:
    High End:
    $110
    $179
    $245
    $380
    $468
    $647

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    Guideline for Choosing a PEO
    1. Assess your workplace to determine your human resource and risk management needs.

    2. Make sure the PEO is capable of meeting your goals. Meet the people who will be serving you.

    3. Check the firm's financial background. Ask for banking and credit references. Ask the PEO to demostrate that payroll taxes and insurance premiums have been paid.

    4. Ask for client and professional references.

    5. Check to see if the company is a member of NAPEO, the national trade association of the PEO industry. NAPEO members share a commitment to continuing education, professional development, and the Association's Code of Ethics.

    6. Investigate the company's administrative and risk management service competence. Evaluate the depth and level of experience of their internal staff.

    7. Understand how the employee benefits are funded. Are they fully insured or partially self-funded? Who is the third party administrator or carrier? If required in your state, is their TPA or carrier licensed?

    8. Understand how the employee benefits are tailored. Determine if they fit the needs of your employees.

    9. Review the service agreement carefully. Are the respective parties' responsibilities and liabilities clearly laid out? What guarantees are provided? What provisions permit you or the PEO to cancel the terms of the contract?

    10. If your state requires a PEO to be licensed or registered, make sure the company you are considering meets all such requirements. For a current list of states requiring licensing, please contact NAPEO at (703) 836-0466.

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    Background Checks & Drug Screens

    Background Checks
    Pre-employment background reports are designed to help develop a quality workforce. Quality employees mean increased productivity, reduced shrinkage, lowered turnover, less absenteeism, and reduced exposure to negligent hiring claims. Best of all, quality employees really improve the bottom line.

    Drug-Free Workplace
    While the vast majority of your employees are wonderful, productive, drug-free people, you know what they say about the bad apple. The sad truth is that one drug user threatens the health, safety, and morale of everyone else. We can help you establish your company as a drug-free workplace with pre-employment, post-accident, and reasonable suspicion drug testing. Our customized programs are cost-effective ways to increase employee productivity, decrease turnover, and reduce worksite accidents.

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    Employee Assistance Program (EAP)
    Our Employee Assistance Program (EAP), LifeBalance®, helps your workforce identify and cope with many personal, non-work issues that may affect their on the job performance. It provides them a place to turn to when these problems arise and a way to resolve them before they impact not only their on the job performance but that of their co-workers too.

  • Early Intervention is the Key

  • More than a Mental Program

  • EAP Frequently Asked Questions


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    Frequently Asked Questions about PEOs

    What is a PEO?
    Professional Employer Organizations are essentially off-site Human Resource departments for small and medium sized companies.

    What can a PEO do for the average employer with 1-250 employees?
    PEOs can save their client companies substantial sums of money and time because of the buying power a PEO has with insurance carriers and various cost reduction methods.

    How does the process work? Will we still control and manage our employees?
    Very little changes from an operations standpoint. Select Focus hosts an employee orientation, during which we explain the fact that you wanted to provide them with enhanced benefits not previously available or affordable. We emphasize that their relationship with the company does not really change. They will still report to you, be managed by you, and be hired and disciplined by you.

    What will my employees think about the arrangement?
    Our experience demonstrates that employees are excited by the arrangement. Our experienced Select Focus personnel will conduct orientations to communicate both company benefits and your commitment to employees. With better benefits and quick response to a wide range of issues, your employees will embrace the concept.

    What about the cost?
    Select Focus will conduct an employee census and prepare a detailed assessment of cost advantages. In most cases, the reduction in benefit premiums, and in-house administrative costs will offset any administrative fees.

    What kind of services does a PEO provide?
    Enhanced empoyee benefits, improved risk management, regulatory compliance, human resource expertise, reduced costs, employee perks, time savings, and employee satisfaction.

    What is the difference between temporary staffing services and a PEO arrangement?
    A temporary staffing service recruits employees and assigns them to clients to support or supplement the client's workforce in special situations. A PEO arrangement involves all or a significant number of the client workplace employees in a long-term, non-project-related employment relationship. The PEO assumes the employer responsibility for employment tax, benefit plans, and other human resource purposes.

    What responsibilities are tyically assumed by a PEO?
    PEOs assume responsibility and liability for payment of wages and compliance with all rules and regulations governing the reporting and payment of federal and state taxes on wages paid to its employees. PEOs assume responsibility and liability for payment of state unemployment taxes. Many states also recognize the PEO as the employer of worksite employees for purposes of providing workers' compensation coverage. Additionally, PEOs provide worksite employees with coverage under the entire spectrum of employment laws and regulations, including federal, state, and local discrimination laws, Title VII of the 1964 Civil Rights Act, Age Discrimination in Employment Act, ADA, FMLA, HIPAA, Equal Pay Act, and COBRA.

    Why would a worker want a PEO as an employer?
    Workers seek financial security, quality health insurance, a safe working environment, and opportunities for retirement savings. PEOs may provide Fortune 500-quality employee benefits, including health insurance, 401(k) savings plan, and aggressive workplace risk management. Job security is improved as the PEO's economy of scale permits a business to lower employment costs. Job satisfaction and productivity increase when workers are provided quality human resource services.

    What is the future of the PEO industry?
    American business is undergoing a fundamental change in human resource management. Driven by the needs of business owners seeking solutions to the increasingly complex "business of employment," the PEO industry is leading the way as the staffing solution of the future.

    More Questions?
    Contact us now

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