PEO Services

FAQs for PEO

1. What are the key benefits of using PEO services?

The main benefits of hiring PEO services provider include:

• Ensure local compliances on employment law and tax obligations

There are many rules and regulations involved with HR duties and the employment process, which may frequently change, hence this may cause new and small or growing businesses to be frustrated or unsure about how to proceed with the changes. PEO services are updated with the regulations the employer may not understand and ensure that the company meets the country’s compliances for HR rules and regulations.

• Save your time on HR and admin tasks

Rather than focusing time on HR and admin tasks and HR strategies for the company, PEO services can help do that for the employer and support them so they stay focused on the essential stuff such as the business growth, revenue making opportunities and business activities.

• Provide smoother HR experience

Not only does HR PEO services provider help the employer out with HR tasks and needs, it allows them to set up in a new industry or oversea market in a few days. Entering a new market abroad can be very risky due to various reasons, such as time, local laws, language barriers, staff or resources. PEO services can help the employer test out the specific market without setting up a company hence helping them hire staff and starting operating activities much faster.

• Offer Competitive Global Employee Options

Since PEO services are able to help the employer set up in another country whether they have a presence there or not, they are able to offer the employer a wider range of scope on candidates and recruit and onboard the best talent the market has available both locally and internationally, which will help make their business more globally competitive.

2. Who is the employer in a PEO scenario?

The PEO service provider would be the employer legally however the company will have the full discretionary of the employee’s job duty.

3. Who needs a PEO?

• Employers in need of specialised HR workers — If your company or organisation has employees outside the human resources sector working on HR and compliance issues rather than the responsibilities you hired them for, consider hiring a PEO.
• Small and medium-sized enterprises (SMEs) that desire to be more competitive — Many small businesses collaborate with PEOs in order to expand their benefits packages, such as healthcare and retirement plans, giving them a competitive advantage over bigger competitors. Small businesses can join a PEO hong kong and gain access to retirement plans, insurance, and other perks that can help them compete against larger corporations.

4. How will the employee know that they are working for me if Fastlane’s name is used as the employer legally?

The employer and the PEO become co-employers of the employee so the owner would be known as the Executive and the PEO is known as the Employer of Record.

5. What is the difference between PEO and HR outsourcing companies?

The services are similar since they all focus on HR however there are differences as well.

The main difference between PEO services and HR outsourcing is that HR outsourcing companies handle specific HR functions but don’t assume co-employer responsibilities or offer any additional HR support whereas PEO offers the employer both of the services. Explore more on our blog: What is a PEO? How can it help your business?

6. How long does it take to get started once I choose a PEO?

It takes about 5-30 days to implement the PEO service due to the multiple steps required that need to be completed such as collecting and verifying forms for each employee, onboarding and enrollment meetings and finally selecting the benefits for each employee.

7. How to choose a PEO provider?

A PEO provider is important for your organisation therefore it’s first important to figure out your needs so that you know exactly what qualities and services you require. You should carefully figure out your needs so that you know exactly what qualities and services you require before you look into multiple companies to see which one best fits your company’s needs. 

8. What happens if I fire an employee or if they quit?

Both scenarios will depend on what the employment contract consists of so if an employee quits then typically there is an agreed-upon notice period whereas if an employee is fired then the PEO will handle the termination and compliances.

9. How do I know that I will have authority over the worksite, brand, quality, etc if Fastlane’s name is used as the employer’s name legally?

The employer will still retain ownership of the company and control over its operations hence the PEO and the employer will share or allocate employer responsibilities and liabilities. 

The employer will be responsible for the business, such as the worksite, brand and quality, etc, aka actual business operations whereas the PEO will be responsible for purposes of administration, payroll, taxes, benefits, and improving safety and compliance at the worksite since they offer workers’ compensation coverage aka employment-related issues. 

The PEO can help the employer make more informed decisions and come up with strategies to help share the business.

10. Why do I need a PEO if I already have an HR manager?

The aim of the PEO HR services isn’t to replace your HR team but it is to work hand in hand with them. PEOs can focus on nuanced aspects of the HR function and free up your internal team for matters related to their specialized skills. PEOs can handle payroll, taxes and compliance while leaving your people with the time and space they need to develop your company. 

Your HR team will still be in charge and have the ultimate control while the PEO can be there just like an assistant to provide your team with the support they need, help assist you in making a benefits package for your employees and make sure that your outsourced HR functions meet full regulatory compliance.

PEOs can also help your company reduce costs through their competitive packages of employee benefits, especially on healthcare and workers’ compensation so this helps attract better talent and growth for the business and minimize employee turnover.

11. Why use PEO instead of paying a worker as a contractor?

PEO employment services helps the company to make sure they are following legal compliances properly and not fall into legal risks. PEO is especially attractive for your case if you are looking to hire foreign talent in another country but have no business set up there or only looking to hire a foreign employee for a specific project-based work where the worker controls when, where, and how the work is done.  PEO arrangement can promote better staff loyalty as it means a longer-term employment arrangement than a contractor which is usually a one-off or temporary setup.