Archive for September, 2012

Part 3: 3 Ways PEOs Support Daycare Facilities

September 25th, 2012

Welcome back to our final week of Daycare and Preschool-specific PEO solutions!  Over the past two weeks, we have reviewed the many benefits associated with utilizing a PEO for Workers Compensation Insurance and Payroll. Our last area of PEO support that we are going to review is perhaps the most helpful to the owner of a childcare facility: Human Resources Administration.

Part 3: Human Resources Administration

We’ve been following Sandra’s Daycare Center for two weeks now (If you don’t know who Sandra is, see Part 1 and Part 2!) Sandra has engaged a PEO for better Workers Compensation rates and coverage, and more efficient Payroll Processing. But what she didn’t realize, is how compliant her center would become, and how efficient Human Resources Administration would be.

Prior to engaging a PEO, each time Sandra needed to hire a new employee, she stumbled through this tedious (and costly) process, which took a significant amount of time (up to a full week) away from her kids and employees:

  1. Post a job
  2. Screen resumes
  3. Interview qualified candidates
  4. Select the best candidate
  5. Conduct a background check utilizing an outside service provider
  6. Conduct an on-site drug test utilizing an outside service provider
  7. Complete Form I-9 Employment Verification
  8. Complete and submit even more forms: Form W-4 for Federal Income Tax Withholding, State Income Tax Withholding, Register with State Employment Notification System
  9. Distribute the Employee Handbook (which Sandra needed to write herself)
  10. Train the new employee


In today’s business environment, keeping up with hiring and firing protocol, alongside the pitfalls of employee-related laws, really requires a dedicated department, let alone one person. Sandra barely had any time to focus on the day to day operations of her business. In addition to all the steps associated with hiring a new employee, she also needed to worry about posting employment posters and notices, managing EPLI, and attempting to audit her business’s compliance with ADA, EEOC, OSHA and more.

Now, her PEO acts as her off-site HR department, offering consultation and support in virtually any area of HR (including all the steps listed above). Sandra leaves recruitment, employee screening, new hire paperwork, compliance and the bulk of her center’s employee administration up to the PEO, while she focuses on maintaining and growing her business.

Now that Sandra fully understands and has grasped the benefits associated with the co-employment relationship, she wouldn’t have it any other way. She’s back to doing what she loves and what she’s best at, and leaves the HR headaches to her valued PEO partner.

If you have any questions about Workers Compensation Insurance, Payroll, or Human Resources Administration, or would like to simply request a quote, contact PEO Advantage today!

Part 2: 3 Ways PEOs Support Daycare Facilities

September 17th, 2012

Welcome back to our 3 part series on Daycare and Preschool-specific PEO solutions!  Last week we reviewed the many benefits associated with utilizing a PEO for Workers Compensation Insurance.  This week, we’re talking Payroll.

Again, we’re making it easy to digest and so that you can go back to investing time and energy into what matters most – the children!

Part 2: Payroll

Let’s circle back to Sandra’s Daycare Center (If you don’t know who Sandra is, see Part 1!)

Sandra is a small business owner with only 7 employees, 8 including her – She manages her own organization’s payroll to save money. Sandra is responsible for the following each month:

  • Timely distribution of checks to employees on the 15th and 30th
  • Upholding precise records
  • Managing and paying payroll taxes
  • Liability in the event of a payroll error or mistake in reporting to the IRS

While Sandra may be saving money, she is losing resources and time to manage payroll administration each month. Sandra is by no means an expert in payroll, and although she’s doing a great job thus far she is spending more time than necessary reviewing documents, taxes, compliance, and payroll checks to ensure she is doing everything right.

She’s finally at the point where hiring someone seems like a much better option. She needs to spend more time overseeing her employees, interacting with parents, and helping out with the children.

Fortunately this payroll scenario has come into play at just the right time. Sandra just engaged a PEO to secure better rates on workers compensation insurance. Can they help with payroll too? For larger companies with big payrolls, the PEO solution is clear – PEOs save these companies a tremendous amount of money and will streamline the process. But will PEO payroll solutions benefit Sandra who only distributes checks to 8 people each month?

All PEOs and pricing structures vary, but in Sandra’s situation, if she decides to utilize the PEO she has selected, standard pricing for payroll with full service human resources support is as follows.  (the following prices are industry standard and do not reflect the discounts available to clients of PEO Advantage.)

  • 1-4 Employees:   $83.25 per employee per month*
  • 5-9 Employees: $58.33 per employee per month* <<< SANDRA
  • 10-14 Employees: $54.16 per employee per month*
  • 15-19 Employees: $50 per employee per month*
  • 20-49 Employees: $43 per employee per month *

*Depending on the PEO, an implementation fee may also be necessary.

For Sandra, the small business owner, the solution is also very clear. Bundling payroll services into her current PEO contract is a lot more economical than hiring a payroll and human resources professional.

Sandra’s new payroll benefits include the following when working with a PEO:

  • On-time and accurate payroll each payroll period
  • Specialized technology to streamline payroll
  • Reporting options: Web-based access on any device with internet access, Direct information feeds from your existing time and attendance system or more simply you may choose to call-in or fax-in your timesheets.
  • Better communication with employees: Improved access to payroll information, benefits, personnel data, vacation and sick time accrual
  • Peace of mind surrounding compliance: All liability falls on the PEO in the event of a mistake in payroll or reporting to IRS
  • More time to focus on her business: With payroll taken care of, Sandra can go back to doing what she loves, and what she does best: working with the children, parents, and employees each and every day.

Sandra’s new PEO won’t stop at payroll though. PEOs handle workers compensation insurance and payroll administration services amongst many other management services of HR in order to form a complete package. Join us next week as we review Part 3: Human Resources Administration.

In the meantime, if you have any questions about Payroll, and would like to request a quote, contact PEO Advantage today!

Part 1: 3 Ways PEOs Support Daycare Facilities

September 12th, 2012

Workers Compensation Rates, Payroll and Human Resources … Three areas that will often make the small business owner cry out for help. Are you the owner of a Daycare Facility or Preschool? Finding a solution for all three of these can be challenging, but chin up, it’s not impossible.

PEO Advantage invites you to join us for our 3 part series on Daycare and Preschool-specific PEO solutions!  We’re making it easy to digest and so that you can go back to investing time and energy into what matters most – the children!

Part 1: Workers Compensation

Meet Sandra. Sandra is the owner of a Daycare Facility that has been in business for ten years with no hiccups aside from the kids. Yet, she pays extremely high workers compensation insurance due to the “high risk” labels stamped on her industry.

Why is she considered “high risk?” Employees of Daycare Facilities, Childcare, and Preschools are constantly bending over to pick up children or reach into cribs and playpens, which results in a high propensity for back injuries.

Workers Compensation rates vary from state to state and in Florida where Sandra and her business reside, there is a manual rate of 1.28% per $100 of wages. Sandra has numerous employees making $12/hour which is an annual salary of about $25,000. As a result, one employee only generates $320.00 per year in insurance premiums. One sprained back can cost the insurance company more than $5,000!

Realistically, Sandra is very fortunate she even has Workers Compensation Insurance right now. This common scenario within the industry creates extremely high loss ratios for the insurance companies, and daycare facilities with claims often become uninsurable!

Solution? Go PEO! A PEO (Professional Employer Organization) enables clients to responsibly and cost-effectively offload the management of human resources and other employment-related tasks including employee administration, workplace safety, compliance, unemployment and workers compensation claims, risk management, benefits, payroll, payroll tax compliance and more (Read more here: “What is a PEO?”)

For the owners of Daycare Facilities and Preschools specifically, PEOs play an extremely important role in risk management, purchasing power and claims management. Through the co-employment relationship, a PEO inherits the risk by placing your employees on their deductible – This also allows them to buy coverage at much cheaper rates since they are pooling thousands of employees.

While prevention is limited to “safe lifting practices” and may not actually prevent the next injury in the workplace due to an employer’s inability to monitor every single lift of the day, a PEO’s claims management team will help keep a $5,000 claim to $5,000 before it spirals out of control into a $20,000 claim.

What about Sandra who already has Workers Compensation Insurance? Through a PEO, she gains more purchasing power. If she tries to secure a new policy on her own, insurance companies see her as a group of 7 employees – the risk is high! With a PEO, the risk is spread out across the whole policy, which includes many other companies and employees.  A PEO can help secure much better rates because they are spending millions of premium dollars.

So, Sandra saves money, and Sandra can now invest that money into bettering her business. More learning materials, more toys, more field trips … All areas that make her facility more attractive than her competitors.  What will you decide to do with your savings?

Join us next week as we review Payroll and Human Resources. In the meantime, if you have any questions about Workers Compensation Insurance, and would like to request a quote, contact PEO Advantage today!

Tools & Equipment – You’re Responsible

September 4th, 2012

Does your company provide employees with the tools and equipment necessary to perform their job function(s), or do employees bring their own from home?  Under OSHA, you, the employer, are responsible in all circumstances should there be an accident on the job. Even if you are leasing equipment, you are still responsible for the safety of your employees when utilizing this equipment.

According to Section 5 duties found in OSHA, each employer shall furnish to each of his employees a place of employment which is free from recognized hazards that are causing or are likely to cause death or serious physical harm to his employees; and each employer shall comply with occupational safety and health standards promulgated under this Act.

Let’s say that an OSHA compliance inspector stops by today and notices that a ladder within your workplace is not sturdy. Unfortunately, you are the one that will get cited, whether it’s your ladder, a leased ladder, or an employee’s ladder. How do you prevent worksite accidents and protect yourself from the financial burdens of violating OSHA compliance?

Partner with a PEO. PEOs provide expert support services with risk management and compliance surrounding OSHA, which will further protect you from costly fines and lawsuits. More importantly, through the co-employment relationship, the PEO inherits half of the risk and responsibility.

Your PEO will also file and track claims, makes sure all claims are legitimate, manage safety reviews, and offload time-consuming documentation and reporting activities. Best of all, the cost of workers’ compensation insurance will probably decrease.

Call 877-636-9525 or contact us today for smart solutions that’ll put your business on a safer road to success.