Ready! Set! Outsource It!
(pART 1)


Think about all the things you outsource in your daily life. Maybe it’s your lawn care or the housekeeping, auto detailing, or dry cleaning. After all, who can fit those giant clothing spinners into their homes? Perhaps you are just on the too busy or lazy side to walk your own dog! So you contact a dog walking service. Whatever it may be, there are all sorts of things you are “outsourcing” and just do not realize it.


Busy bearded male programmer ponders on task, concentrated into smartphone, wears optical glasses, p

All kidding aside, though, if you’re already outsourcing many of your personal tasks, why wouldn’t you do the same with tasks related to your business? And considering the fact every hour you are spending on payroll, human resources and other administrative functions takes time away from your revenue-producing activities, outsourcing seems like a no-brainer, right? Sure does!


Wait a second though, that sounds great but how exactly do you go about moving these important but time-consuming tasks off your plate so you can increase your cash flow and focus on growing your business? A quick google will bombard you with answers, however it doesn’t have to be that difficult.  There is a single source solution that could help you with all of the tasks mentioned.  What’s the answer? Simply hiring a PEO.


A PEO, also known as a Professional Employer Organization, allows owners to responsibly and cost effectively offload the management of human resources and employment-related tasks including risk management, tax compliance, workers’ compensation and much more. Through this co-employment arrangement, the business owner and the PEO contractually share employer responsibilities and liabilities.


Now that you know what a PEO can do to make your life easier, the next step is to find one that’s right for you. However, that’s often easier said than done. Why? Because just like auto detailers, housekeepers and dry cleaners, there are tons of PEOs out there, many of which may look almost identical on paper. While there are brokerage agencies that specialize in helping connect business owners with PEOs (and will do so free of charge), some business owners would prefer to make the selection themselves.


“That’s certainly a valid option and I understand why people choose it,” said Patrick Moraites, a VP and partner at Tampa-based Axis Group. “But whether you hire us, another agency or you do it yourself, all that really matters is that you find the best solution for you and your company.”


If you fall into the DIY category, here are some of the questions you’ll want to make sure your prospective PEO can answer to your satisfaction. If they can’t, keep on searching – the last thing you want is to hire a PEO that doesn’t live up to your expectations:


  • How many certified HR professionals work internally at your PEO?
  • Do you employ any labor attorneys?
  • Are you a certified PEO?
  • In which states are you a licensed PEO?
  • Are you a member of NAPEO or EXAC?
  • How long have you been in business?
  • How many worksite employees do you manage?
  • What is your gross annual payroll?
  • When are we required to report payroll?
  • How is payroll collected?
  • Are all costs and fees itemized on the invoice or is it billed by total burden rate?
  • What HRIS technology do you utilize?
  • How long have you been using this software?
  • Do you anticipate any conversions or upgrades in the next 12-24 months?
  • Are we able to do electronic onboarding?
  • What is your SUTA rate? Am I in a client SUTA state?


If that sounds like a lot to ask, well, this is only the tip of the iceberg. In our next blog, we’ll dive into the insurance-related questions that every business owner needs to ask when hiring a PEO.


Since our founding in 2002, Axis Group has helped hundreds of business owners find the perfect PEO to fit their needs and with the largest PEO vendor network in the nation, we’re confident we can make the right connection for you. Contact us today for a no-obligation consultation and experience the Axis Group advantage.



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