FAQs

FAQs

WHAT IS CO-EMPLOYMENT?

In a co-employment relationship, dmDickasonHR PEO will act as the administrative employer (employer of record) and the client acts as the worksite employer (employer of fact). The employer maintains control of the business and is in charge of all business decision-making including financial decisions, production, employee supervision and staffing decisions. dmDickasonHR handles the time-consuming administrative tasks normally associated with the back office /employment relationship.

WILL I LOSE CONTROL OF MY BUSINESS?

No. By shifting the burden of many of your employer responsibilities to dmDickasonHR, you’ll have more control than ever over your business.

WHAT WILL MY EMPLOYEES THINK?

Most employees want the same things… financial security, quality benefits, a safe working environment, etc. – things that many small and medium sized companies struggle to provide.

At dmDickasonHR, we work closely with our client companies to enhance or improve job satisfaction and productivity by providing your employees with quality human resource services such as up-to-date employee handbooks, extended employee benefit options, unbiased grievance procedures, safety programs and improved communications. The key to winning your employees over is to inform them that dmDickason is there to help them to bridge a great working relationship with their worksite employer. It is critical that we have the same buy-in from middle management, as well. We are not there to take over to threaten any employees job, especially any HR related person currently in place. Hopefully we can enhance that person’s knowledge, training, work-life balance as well!

WHAT/HOW DOES A PEO CHARGE?

Your business is Unique, and the “One-size-Fits-All” approach for HR does not work.

We’ve got three ranges (or levels) of employee support services – from the start-up company that may only require onboarding of their initial employees into our HRIS technology to standard payroll processing and general human resource administration; or; for the more mature company, we’ve got your back on much more extensive and complex compliance issues such as filing standard and certified payroll taxes, worker safety, unemployment claims adjudication, Title VII claims investigations, labor law compliance, COBRA/ERISA/IRS/ACA compliance, FLSA, time and attendance, too.

Best of all, we tailor these services to match your specific needs and budget. And as you grow, we have the experience andcapabilities to grow along with you. When we initially meet, we will explore your needs and requirements and come backwith an HR and pricing program that will best meet your specific requirements and budget. When you are ready, we candiscuss moving your company up into our next level of support; or, perhaps you are ready for that level now. Your choice!Each is priced according to the services you specifically request.

HOW DOES AN EMPLOYEE CONTROL COSTS AND ULTIMATELY GROW MY BOTTOM LINE?

A PEO’s economy of scale enables each client company to lower employment costs and increase the business’s bottom line. The client can maintain a simple in-house HR infrastructure or none at all by relying on the PEO. The client also can reduce hiring overhead. The professionals at the PEO can provide critical assistance with employer compliance, which helps protect the client against liability. In many cases, the client can pay a small up-front cost for a significant technology and service infrastructure or platform provided by the PEO. In addition, the PEO provides time savings by handling routine and redundant tasks for its clients. This enables the business owner to focus on the company’s core competency and grow its bottom line.

WHAT IS THE DIFFERENCE BETWEEN A PEO AND A STAFFING OR TEMP COMPANY?

PEOs do not supply labor to worksites. PEOs supply services and benefits to a business client and its existing workforce. PEOs enter into a co-employment arrangement typically involving all of the client’s existing worksite employees and sponsor benefit plans for the workers and provide human resources services to the client. In most cases, the PEO provides access to health insurance, retirement savings plans, and other critical employee benefits for the worksite employees of the business client. If a PEO relationship is terminated, the worksite employees’ co-employment arrangement with the PEO ceases, but they will continue as employees of the client.

By comparison, a staffing service supplies new workers, usually on a temporary or project-specific basis. These employees return to the staffing service for reassignment after completion of their work with the client company. Some define employee leasing as a temporary employment arrangement where one or more workers selected by the leasing or staffing entity is assigned to a customer frequently for a fixed period of time or for a specific project. Upon termination of the staffing or leasing company arrangement, the worker has no continuing employment relationship with the client.

Historically, leasing terminology was used to describe what has evolved into PEO relationships. Some older state statutes governing PEOs still use the leasing terminology, contributing to the confusion about PEOs.

Like a staffing situation, a temporary staffing service recruits and hires employees and assigns them to clients to support or supplement the client’s workforce in special work situations, such as employee absences, temporary skill shortages or seasonal workloads. These workers are traditionally only a small portion of the client’s workforce.

PEOs do not supply labor to worksites. They co-employ existing permanent workforces and provide services and benefits to both the worksite employer and the employees.

DO PEOs NEED TO BE LICENSED TO PROVIDE INSURANCE BENEFITS TO EMPLOYEES?

Like other employers, a PEO may sponsor employee benefit plans for its worksite employees. Such benefits may be mandated by law, such as workers’ compensation and unemployment benefits, or they may be voluntary benefits that will help attract and retain quality employees, such as health, life, dental and disability insurance. PEOs might sponsor or acquire access to programs for worksite employees. As such, PEOs are consumers of insurance and procure access to these benefits from licensed insurance agents and authorized insurers.

WHO IS ULTIMATELY RESPONSIBLE FOR COMPLIANCE LAWS AND REGULATIONS?

One of the responsibilities of a PEO is to provide clients with guidance and education regarding employment laws and regulations. Ultimately, the responsibility for complying with most of these laws lies with the client.