PEO - Employee Leasing

By Dylan Mazeika

XcelHR gives employers a choice in which way they want to go with their HR outsourcing. One of the more traditional roles is that of a PEO. A PEO enables clients to cost-effectively outsource the management of human resources, employee benefits, payroll and workman's compensation. When you select a PEO, you are allowing the PEO partner to administer all HR functions, leaving you to concentrate on growing the business.

ASO Services

"Administrative Service Organization" (ASO) is an alternative to the PEO employee management structure that does not involve co-employment. With XcelHR's ASO services, a business owner is allowed to select one of two options:

• ASO Full Service will provide all the HR and benefits administration. However, all of the employees are hired and fired by the client. A business owner will continue to operate under his own FEIN (tax ID number). There is no leasing of employees.
• ASO Benefits Module enables a business owner to select payroll, HRIS and benefits administration and premium remittance. Worker's compensation is compiled on an "as needed" basis. The fewer the services the lower the cost per employee.

XcelHR has an even more streamlined bundle for those employers who do not need or cannot afford a more complete program. This bundle is called ASO-HR Module.

With ASO-HR Module, payroll, HRIS, and comprehensive HR Support are packaged together into a low cost program. An employer will receive employee payroll only. There is no benefits administration, corporate insurance options or human resources administration.

XcelHR strives to help a broad range of employers and also offers a bundled program called HR Flex. With this plan, the employer selects only those services that are meaningful to his/her particular small business. Each can be contracted singularly or they can be bundled.

For instance, if a small business owner already has contracted a payroll processing firm for his organization, he can still select Benefits (which can cover insurance carriers) and/or Benefits Administration where HR Consulting experts can handle COBRA, FSA, Transit Plans, Premium Reconciliation, Premium Remittance and track eligibility.

Another choice is for Workman's Compensation. This is a pay-as-you-go program. It will end the need for a 25% deposit and premiums are usually collected with each payroll run and remitted to your carrier.

Costs:

The more services a business owner selects and the more employees there are, the higher the cost. For example, fees can range from $75 to $250 per employee per month ($900 to $3,000 per employee per year). This does not necessarily mean that one PEO offers three times more service than the next. This is why it is paramount that you determine exactly what services you need.

Small business owners appreciate the variety of bundles XcelHR offers. A CEO who wants to give his employees the same level of benefits that an employee in a Fortune 500 company would can. Employers are able to select the services that they need to grow their companies, attract and retain quality talent, and add to the bottom line.