Part 3: 3 Ways PEOs Support Daycare Facilities

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!

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