- What is a PEO?
- What are the benefits
of using a PEO?
- Who is responsible
for paying the taxes (payroll and federal)?
- Am I protected
from workers’ compensation claims?
- How do I know
that workers’ compensation premiums and payroll
taxes are being paid on my leased employees?
- Will I lose control
of my business?
- Can we really
save money outsourcing?
A Professional Employer Organization (PEO), such as
Matrix Employee Leasing, Inc., provides payroll processing,
workers’ compensation administration, claims administration
and human resource assistance. Our clients enter into
a co-employer relationship and Matrix becomes the administrative
employer and the client becomes the onsite employer
(determines work schedule, rate of pay, hiring of employees
and direction on the jobsite).
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| What
are the benefits of using a PEO? |
Economies of scale. Matrix handles payroll for thousands
of companies and the cost to process is reduced substantially.
In addition, we purchase workers’ compensation
for thousands of employees which reduces the overall
cost. Finally, we handle the claims administration and
unemployment hearings. The client company can concentrate
on their business and leave the non-revenue producing
aspect of their business to Matrix.
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| Who
is responsible for paying the taxes (payroll and
federal)? |
The PEO has the responsibility for paying the taxes
as the employer of record. IRS code 3401(d) “the
person that has control of the actual payment of wages
and taxes is liable for unpaid payroll taxes, and for
all 940 & 941 payroll withholding reports”.
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| Am
I protected from workers’ compensation claims? |
Yes! The PEO is the employer of record and secures the
workers’ compensation policy. The state of Florida
requires all PEO’s to maintain a current policy.
Workers’ Compensation is the exclusive remedy
for injuries in the workplace. Claims are then limited
per state guidelines.
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| How
do I know that workers’ compensation premiums
and payroll taxes are being paid on my leased employees? |
 The
PEO industry is one of the more heavily regulated industries
in the state. To meet these regulations, Matrix is audited
by its insurance carrier on a weekly basis and pays
its premium weekly. We are required to supply the Department
of Business & Professional Regulation with quarterly
financial reports and yearly audited financial statements.
In addition, the financials must state that we are maintaining
a positive net worth. Finally, we pay our payroll taxes
daily as directed by IRS regulations.
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| Will
I lose control of my business? |
No! You maintain control of the day-to-day operation
of your company while the PEO becomes your administrative
partner handling all those aspects of your business
that take up your time. You actually gain more control
as you are freed to focus on running your business instead
of it running you.
“Focus on what you do best, and let us
do the rest!”
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| Can
we really save money outsourcing? |
Yes! There is no doubt that a PEO can save a client
company time and money. The PEO will allow you to concentrate
on building and expanding your business while controlling
your administrative costs. How much your company SAVES
depends on your current situation.
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