New to PEO? Here's What to Know

Beth Dean 11.10.22
Nextep PEO Certifications Include

The Ins and Outs of a PEO Relationship

Are you thinking of moving your in-house HR tasks to a PEO? That’s great! Here’s what to expect.

Professional Employer Organizations (PEOs) are a tried and true way for companies like yours to take advantage of some powerful perks:

  • Access better benefits than you might be able to get on your own
  • Tap into our technology platform for your employees
  • Approve payroll on your custom timekeeping system
  • Turn over your workers’ compensation claims to our risk specialists
  • Run on-demand, customizable reports in your account
  • Transfer unemployment claims management to our experts
  • Get one-on-one HR advisement

In order for us to do all of these things for you, there are a few nuances to the PEO relationship. Here are some things to keep in mind.

Employer of Record

For liability and tax purposes, Nextep serves as the employer of record. Don’t worry! You will maintain 100% of the worksite direction and control. But we’ll take on the responsibilities for payroll tax and more under our Employer ID.

Worksite Control

Speaking of worksite control, you will still be in charge of enforcing compliance within the walls of your company with the various employment regulations. However, you don’t have to figure it out alone. Our HR experts will provide guidance to keep you informed and resources unique to your company.

New Hire Onboarding

New hire onboarding will be easier with our streamlined online process. Once you hire your new employee, we’ll take care of the paperwork, multi-state reporting, EPLI coverage, garnishments (if applicable), tax reporting, and W-2. We’ll even maintain online files of your employees’ paperwork. 

All in One Place

You may be used to keeping up with multiple vendors, addresses, and website logins. With Nextep, we put everything in one place behind one secure login! With simple sign-in, your employees can access all of their apps for benefits, online training, and more right from their accounts. 

You’ll want to consider several criteria when shopping for the right PEO partner. Check out these 5 questions you should ask during your PEO search! 

 

We hope this information helps you prepare for those initial conversations! Of course, we’re happy to discuss all of this and more. Connect with us and see how Nextep can elevate and enrich your business!

Schedule a Meeting

Also on Nextep

A new program impacting Minnesota employers called Paid Leave launches in January 2026. The program offers financial benefits to employees facing qualifying life events, requiring contributions from both employers and workers. This initiative aims to provide stability for employees during challenging times, potentially leading to a more engaged and productive workforce. What Does Paid Leave […]
Read more
Implementation Date: August 1, 2024 Summary Effective August 1, 2024, commissions, incentive pay, and bonuses are considered due in final wages in the state of Louisiana if they have been earned at the time of separation and have not been modified in accordance with a written policy addressing such payments. The amended law also specifies […]
Read more
Effective July 19, 2024, the Occupational Safety and Health Administration (OSHA) updated its Hazard Communication (HazCom) Standard. This change improves the amount and quality of information on labels and safety data sheets (SDSs). The final rule aims to better inform employees about the chemicals they work with and improve workplace safety. Here’s a summary of […]
Read more
Several states and local jurisdictions will increase their minimum wage rates on July 1, 2024. Below is a summary of these changes and guidelines to help you comply with your minimum wage requirements.  As a reminder, when federal and state or local payroll laws differ, the employer must adhere to the law that benefits the […]
Read more
Get ready for changes! As of July 1, 2024, a new wave of state laws are set to go into effect across the country. These updates impact everything from worker protections and minimum wage to important regulations for businesses. Whether you’re an employer, employee, or simply a resident staying informed, this article will guide you […]
Read more
Exemptions from Overtime Pay: A Guide for Employers The Department of Labor (DOL) has announced significant changes to overtime regulations for salaried employees exempt from overtime pay. Here’s a breakdown of what you need to know and how to prepare: Key Changes: Increased Salary Thresholds: Currently, salaried workers earning more than $35,568 annually are exempt […]
Read more
A Game Changer for Employers The Federal Trade Commission (FTC) recently made a significant change regarding employers’ use of non-compete agreements. The final rule issued by the FTC prohibits the use of non-compete agreements for many workers, which is a departure from the longstanding practices of many companies. This decision is already facing legal challenges, […]
Read more
Key Points for Employers About the Latest Harassment Guidance The Equal Employment Opportunity Commission (EEOC) has recently updated its guidelines on workplace harassment enforcement. This was the EEOC’s first update in more than 30 years. The updates are intended to clarify and modernize existing standards. These changes take into account recent legal developments and the […]
Read more
What You Need to Know About PWFA The Equal Employment Opportunity Commission (EEOC) recently released the final regulations for the Pregnant Workers Fairness Act (PWFA). These regulations, taking effect on June 18, 2024, update the PWFA rules put into place in 2023 and significantly impact how employers with at least 15 employees accommodate workers with […]
Read more
When Addiction Strikes at Work The issue of addiction in the workplace presents a complex challenge for both employers and employees. The Americans with Disabilities Act (ADA) protects qualified individuals with disabilities, but active addiction itself isn’t necessarily covered. Here’s a breakdown of rights and responsibilities: Employee Rights Under the ADA Generally Not Covered: The […]
Read more
What is Considered “Reasonable”? What happens when an employee with a disability needs an adjustment to perform their job effectively? This is where reasonable accommodations come in. However, the question often arises: what exactly is considered “reasonable” under the Americans with Disabilities Act (ADA)? Striking a Balance The key is to find a balance between […]
Read more
It’s time for an ADA refresher! The Americans with Disabilities Act (ADA) is a cornerstone of civil rights legislation, ensuring equal employment opportunities for people with disabilities. As an employer, understanding your obligations under the ADA is crucial. Here’s a breakdown of the key points: What qualifies as a disability? The ADA defines a person […]
Read more

Download Our App


Download the Nextep Mobile App in Apple iOS or Google Play