Prime Source Management, a Professional Employer Organization (PEO) establishes a co-employment relationship with you. We take over the liability and responsibility for most of your employee administration duties, such as payroll, human resources, labor law compliance, and workers ' compensation, safety and employee benefits. You hire, train and supervise your staff, we do the rest! When we assume these duties, you can rest assured that your company is in compliance and experts are working around the clock for you! By using our services, you have more time to do what you do best, run-your-business!

Here are some facts that you may not be aware of that directly impact your company's profitability.

Fact 1: Record keeping, regulatory compliance and budgeting take an average 22 hours a week of a small business owner's time, according to a Master Card survey of 300 entrepreneurs (11-21-2004 Denver Post).
Fact 2: According to Bureau of Labor Statistics the cost of employee turn-over to employers is more than $1,185 per occasion. 50% of new hires quit within 6 months. ( DOL)
Fact 3: Most businesses do not have specially trained employees handling major company issues that could be costly.
Fact 4: Most small to mid-sized companies can't afford to offer their employees ‘top-shelf' benefits. (This is a major reason for turn over.)
Fact 5: When businesses use a PEO service, they eliminate a major cause of the reasons businesses close their doors permanently.

Its time you discovered what more than 80,000 business owners across America already have, the value of a PEO service!

Prime Source Management will:
Help you be more competitive in your market.
Help you attract and retain quality employees.
Keep you in compliance with all labor laws.
Free up your valuable time so you can run your business.
Keep your labor costs in check.

10 Problems a PEO Can Help You Solve

1. Time
PEO's remove non-productive tasks that take away time and resources so you can focus on bottom line activities such as strategic planning, marketing, and customer service.  Could you make more money if you had time to work your business?  Time is money in business. 

2. Cash Flow
PEO's improve your cash flow by integrating most of your employee cost-centers into a single cost factor per $100 of payroll; including employer matching FICA, FUTA, SUTA, Work Comp, Administrative Overhead, and employee benefits.  Your cash flows in “real-time” right along with your business income.

3. Workers' Compensation
PEO's make buying and maintaining work comp easier than ever.  No more BIG down payments.  No more year-end premium audits.  Because your work comp is built into your PEO factor, you only pay for the insurance you need as its utilized.  And best of all, PEO's have BIG buying power that can save you money by using their insurance policies.

4. Employee Benefits
PEO's have many “turnkey” benefit plans in place for your employees.  Imagine instantly adding a 401(k) plan, a Section 125, Group Dental, Life, and other valuable benefits to your business without spending a fortune.  And best of all, the PEO's manage the programs, payroll deductions, and benefit records- making employee benefits easier than ever to provide and manage.

5. Government Compliance
PEO's simplify all the rules and regulations associated with employing people.  They can assist you in complying with all federal, state, and local laws and statutes.  PEO's provide you with legally required employee forms and paperwork.  They even maintain and store your employee files.

6. Human Resources
PEO's act as your own personal HR Department, assisting with employee handbooks, job descriptions, record management, supervisory training and conflict resolution.  Do your business practices and policies protect you from employee lawsuits?  PEO's provide a reliable source to get your employee-related questions answered by HR professionals?

7. Operating Leverage
PEO's create operating leverage for businesses by creating a fixed cost for employing people.  Rather than having to increase your internal investment in human capital and equipment to keep up with external growth, the PEO provides a predictable mechanism that allows you to increase profits at a greater rate than internal costs.  This is achieved through outsourcing to a PEO.

8. Employee Turnover
PEO's reduce turnover be establishing better systems, policies and benefit packages.  Turnover can cost your business thousands of dollars a year in lost production and employee re-training.  A good PEO will help keep your employees loyal and motivated.  And you spend less on training.

9. Risk Management
PEO's can really benefit businesses with work comp experience modifiers above 1.00.  They can offer sound advice for improving workplace safety and preventing claims from occurring.  They will proactively manage your comp claims and work with you to reduce claim costs and investigate potential fraudulence.

10. Payroll & Taxes
PEO's solve each of these problems by becoming a co-employer with you. The PEO issues paychecks, W-2's, direct deposits and tax deposits. They assume your tax liabilities and responsibilities as the IRS employer of record. This co-employment agreement and payroll administration make everything possible for employers.     

Who's in Charge?  The Issue of Control

A common question regarding the utilization of PEO services is: who's in charge?

Many business owners and managers wonder if employee-related decisions will be affected by the presence of the PEO as the employer of the record.

In a PEO relationship, a PEO and the business owner share certain responsibilities in the co-employment relationship. The customer continues to manage the day-to-day activities of the employees.  And the PEO assumes other agreed upon responsibilities and liabilities.

In short, the customer is always in charge and retains the right to exit the PEO relationship with 30 days notice. 

However, the PEO's contractual relationship must include language giving it sufficient scope of control in order to be considered the employer of record.

Examples of language within many PEO agreements:
assigns workers to client locations, and thereby assumes responsibility as an employer for specified purposes of the workers assigned to the client locations;
reserves a right of direction and control of the employees and may share such responsibility with the client, consistent with the client's responsibility for its product or service;
pays wages and employment taxes of the employee out of its own accounts;
reports, collects, and deposits employment taxes with state and federal authorities;
establishes and maintains an employment relationship with its employees which is intended to be long-term and not temporary; and
retains a right to hire, reassign, and fire the employees.
Each of these tasks will continue to be accomplished by your existing management staff because the staff will become designated worksite supervisors for the PEO.

Choosing A PEO - Some Free Advice

PSM offers the following guidelines for selecting a PEO on your own:
Assess your workplace to determine your human resource and risk management needs.
Make sure the PEO is capable of meeting your goals. Meet or speak with the people who will be serving you.
Ask for client and professional references.
Check the firm's financial background, and ask for banking and credit references. Ask the PEO to demonstrate that payroll taxes and insurance premiums have been paid.
Investigate the company's administrative and risk management service competence. What experience and depth does their internal staff have? Do any of the senior staff have professional training or designations?
Understand how the employee benefits are funded. Is the PEO fully insured or partially self-funded? Who is the third-party administrator (TPA) or carrier? Is their TPA or carrier authorized to do business in your state?
Understand how the employee benefits are tailored. Determine if they fit the needs of your employees.
Review the service agreement carefully. Are the respective parties' responsibilities and liabilities clearly laid out? What guarantees are provided? What provisions permit you or the PEO to cancel the terms of the contract?
Make sure that the company you are considering meets all state requirements.

Of course, you could just let us do all this for you....

Prime Source Management
210.479.9400 ext 223
210.479.9403 Fax
info@primesourcemgt.com