FAQ

What is a PEO?

A Professional Employer Organization (PEO) provides administration services as they relate to an employer's responsibilities regarding its employees. PEO's handle:

• Payroll
• Taxes
• Workers' compensation insurance
• Employee benefits management
• All aspects of human resources

Why outsource?

Outsourcing to a PEO provides a variety of benefits, from cost savings to access to specialized expertise on taxes, payroll, workers' compensation and more. Outsourcing can enable you to focus on your business and free up your time and resources. We do what we do best. You do what you do best. It's partnership at its finest.

What is co-employment?

Co-employment is a relationship between Optimum Outsourcing and a client, in which Optimum Outsourcing is responsible for handling the requirements of the IRS, Social Security, Unemployment, and more. Optimum Outsourcing becomes the employer of record as it relates to W-2's, issuing payroll checks, and working with compliance and regulatory matters.

In co-employment, who controls my employees?

Each client company maintains control of the employees. It is still the responsibility of the client to hire, direct and guide employees on a daily basis.

Can Optimum Outsourcing hire or terminate my employees?

Optimum Outsourcing does not have the desire or background to make the hiring decisions for your company. You obviously understand the needs of your business better than Optimum. So, you will decide who you are interested in hiring, promoting or terminating…sometimes with our assistance. For example, if you think you are on solid ground to terminate someone, but would like to discuss the circumstances with a knowledgeable human resources professional, that’s where we come in. We can help you decide the best course of action.

How can Optimum Outsourcing help me keep up with the growing regulatory burdens from tax changes to benefit requirements?

Our #1 goal at Optimum Outsourcing is service. We provide a human resource professional who will serve as your one point of contact for all of the services provided by Optimum Outsourcing. These professionals are supported by benefit specialists, 401k experts, payroll and tax specialists and legal experts.

How many Americans are employed in a co-employment PEO arrangement?

It is estimated that 2-3 million Americans are currently co-employed in a PEO arrangement. PEOs are operating in every state and the industry continues to grow more at an average of 20% each year. Today, it is estimated there are around 800 PEO companies who are responsible for generating more than $43 billion in gross revenues. (Source: NAPEO )