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Frequently Asked Questions about a PEO

Here are typical questions and concerns:

What kinds of businesses use Axis?
Why would a small to medium-sized business use a PEO?
How does a relationship with Axis work?
Will I lose control of my business?
Why should I use Axis when I could do everything myself?
Is working with Axis really going to save me money?
How is this going to benefit my employees?
Who is responsible for the employee’s wages and employment taxes?
What is the difference between temporary staffing services and a PEO arrangement?

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What kinds of businesses use Axis’ services?
We cater to businesses that range in size from 1 to 2000 employees; their fields are as varied as roofing, framing, technology, hospitality, medical staffing, manufacturing, processing, professional services, automobile repair, and distribution.  The results are consistently successful.

Why would a small to medium-sized business use Axis?
Small business owners want to focus their time and energy on growing their business.  Yet, as their business grows, owners find they lack the necessary human resource training; payroll and accounting skills; knowledge of regulatory compliance; or backgrounds in risk management, insurance and employee benefit programs to meet the demands of being an employer.Increasing regulations will continue to drive clients to use comprehensive HR services on an outsourced basis.  The opportunity to offload the price and loss risk of health and employment insurance will continue to drive more companies to the full PEO end of the service spectrum.  In the past provider firms have competed by adding more comprehensive services to their clients.  Now, the competition is moving into the area of more sophisticated management systems.  The most aggressive competitors are offering web-based 24/7 service to their clients’ employees for a competitive advantage.

How does a relationship with Axis work?
Axis partners with the client to share the responsibility and liability involved in the “business of employment”, including risk management, human resources, labor law compliance, payroll, and employee taxes.  Axis shares or assumes liability for payroll taxes, payroll, benefits administration, and workers’ compensation.  Axis shares an employment relationship with the worksite employee, providing complete human resource management and administration, and employee benefits packages.

Will I lose control of my business?
No, with a PEO as a co-employer, they become partners in the employment of your workers.  You retain ownership of your company and continue to make key business decisions.  The PEO either shares or assumes employer responsibilities and liabilities.  Those responsibilities include payroll and employment taxes, maintaining employee records, risk management, human resource compliance, and personnel management.  By partnering with Axis, you gain more control of the moneymaking aspects of your business – which is why you went into business in the first place.

Why should I use Axis when I could do everything myself?
Positioning:
Axis is a funnel of knowledge and networking.  We match your specific business needs to the one single PEO who can fulfill those needs, while providing the best service and value.
Perspective:
Because Axis works with PEO owners and principals throughout the industry, we garner a diverse knowledge of the best resources to fit your market and to negotiate pricing.  Axis bypasses the “salespeople” who drive the traditional sales process, those who are trained to force a match with their PEO, instead working side by side with you to discern your unique requirements.
Most importantly, we do it all for less than you could on your own.
Persistence:
Finding the right PEO is a matter of “getting approved” by the right PEO.  This means that we gather all of the information necessary for the often very delicate presentation of underwriting.  We are dedicated to researching all your available options and executing all the appropriate maneuvers to get the job done, done well, and done on time.

Is working with Axis really going to save me money?
Many growing businesses are currently outsourcing to multiple vendors for their insurance, payroll, tax administration, workers’ compensation, etc.  Aside from the extra time it takes to coordinated with all of the different vendors, you still have to pay the higher rates for being a small or mid-sized business.  With Axis, you have group buying power since you and your employees count as part of our much larger labor pool.  This makes you eligible for lower rates, which are usually reserved for large corporations. 
If time is really money, then we also save you the time that you would otherwise spend researching health insurance plans, educating yourself on the latest labor and tax laws, implementing a loss control program, hiring an HR expert, or choosing the right payroll service.  You also save the time involved in hiring and training new employees because our expanded benefits and human resource services help you retain your quality employees.

How is this going to benefit my employees?
Workers seek financial security, quality health insurance, a safe working environment, and opportunities for retirement savings.  We provide your employees the benefits of a much larger business, under the Axis umbrella, than you would be able to provide on your own, such as a variety of health insurance plans, workers’ compensation, 401(k) savings plans, grievance procedures, and specialists to answer and address their every question on these topics.

Who is responsible for employee’s wages and employment taxes?
The PEO provider assumes responsibility and liability for payment of wages and compliance with all rules and regulations governing the reporting and payment of federal and state taxes on wages paid to its employees.  The Internal Revenue service recognizes the PEO as the employer for federal income tax purposes.

What is the difference between temporary staffing services and a PEO arrangement?
A PEO contractually shares and manages employer responsibilities for all or a majority of a client’s workforce.  Industry ratios identify the PEO arrangement as a long-term relationship with nearly 90% of our clients and worksite employees remaining with the PEO for a year or longer.  Worksite employees participate in the PEO’s full range of employee benefits including, health, dental, and life insurance, vision care, and retirement savings plans.

 

 
 
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