What Services Does a PEO Offer?

When owners shop for a PEO, one of the first questions is what it will actually do. Here is the list we've long used, grouped by area. Not every PEO offers every item, and some items carry their own fees.

Payroll and tax administration

• Payroll processing (pay and tax calculations, checks), including online payroll
• Time clock systems and time-and-attendance interfaces
• Direct deposit and pay cards
• Form 941 quarterly filings and state withholding filings and deposits
• State unemployment insurance (SUI) quarterly filings, account and rate, and experience rate checks
• W-2 and W-3 preparation and distribution
• Federal unemployment (Form 940) filing
• Certified payroll
• IRS employment-related correspondence
• Consumer Credit Protection Act compliance and garnishment processing
• Lost checks, stop payments and reissues
• Employment and wage verification requests

Employee benefits

• Group health and prescription, dental, vision and life coverage
• Group short- and long-term disability
• Voluntary dental, life and disability
• Retirement plans (standard 401(k), Safe Harbor, Roth), fiduciary risk management and annual discrimination testing
• Section 125 FSA, HSA and HRA plans, and profit sharing plans
• Employee Assistance Plan (EAP)
• PTO and leave policy development and administration
• FMLA and ACA compliance guidance
• ERISA reporting and disclosure (Form 5500, SARs)
• Open enrollment, eligibility changes and benefits questions from employees
• Annual rate negotiation and premium reconciliation

Workplace safety and workers' comp

• Workers' comp coverage, including pay-as-you-go billing
• Upfront deposit management and negotiation
• Annual wage and premium audit administration
• Experience modifier verification and correction
• Claims administration and first reports of injury
• Return-to-work programs
• Safety audits, inspections, safety manuals and safety training
• OSHA compliance and OSHA 300 log maintenance
• Certificates of insurance
• Post-accident drug testing

Workplace liability management

• Employment practices liability insurance (EPLI)
• Employee litigation response
• Training on sexual harassment, workplace violence, substance abuse and discrimination

Other employment compliance

• Employment rights posters
• GINA compliance
• Wage and hour claims response
• Department of Labor communication
• EEO and Title VII compliance

Hiring and onboarding

• Confidentiality, non-compete, non-solicitation and arbitration agreements
• New-employee orientation and onboarding
• Drug-Free Workplace Act compliance
• W-4 and state withholding forms
• Insurance and retirement plan enrollments and waivers
• Handbook receipt documentation
• Post-offer drug testing

Before you hire

• HR forecasting and recruiting strategy
• Employment applications and job descriptions
• ADA, ADEA and EEO guidance
• Help working with staffing agencies and recruiters
• Work Opportunity Tax Credit (WOTC) planning
• Interview training for supervisors
• Employment verifications, motor vehicle record checks and criminal background checks

Performance management

• Skills training and organizational development
• Supervisor training on team building and employee counseling
• Goal setting
• Disciplinary policies, documentation and action
• Complaint procedures
• Employee handbook development
• Drug testing (reasonable cause, random, periodic)

Compensation

• Compensation plans and strategy
• Wage and salary administration and research
• FLSA compliance
• Incentive pay plans

Separation

• Supervisor training on separation procedures
• State unemployment claims administration
• COBRA administration
• HIPAA administration

Records and HR technology

• Compliant HR forms
• Employee file management, HIPAA compliance and retention tracking
• Anniversary dates, skills, licenses and certifications tracking
• HR software access, training, employee self-service and reports
• Job costing

What should you check before you sign?

Which of these services are in the base fee, which cost extra, and which you'll still handle yourself. Two PEOs can quote similar admin fees and include very different services, so compare the full service list and the full invoice side by side.