Professional Employer Organization, or PEO, is an effective approach to the management of certain human resources functions which would otherwise detract from the core business of small businesses. By establishing a contractual relationship, particular with LCR Resource, Inc. allows for our clients to transfer the burden and thereby eliminate the time and cost of non-productive, but essential processes.
The PEO industry came into being in response to the human resources challenges posed by the changes in the work place environment. Under the PEO contractual arrangement, clients transfer their payroll, benefits, worker’s compensation and human resources administration responsibilities to the PEO for the benefit of both organizations due to increased efficiencies.
Successful organizations have discovered that they must focus on their own core competencies-doing what they know-and outsourcing the time consuming, non-revenue producing responsibilities. They seek strategic partners to achieve higher degrees of efficiency for their companies by letting a professional employer organization handle the non-revenue producing functions associated with being an employer.
LCR “bundles together” and handles many back office functions which cost the clients valuable time and money. LCR administrates for its clients, among others, the following essential services:
Payroll Processing, Payroll Tax Filing, Workers’ Compensation Insurance, Health Benefits (Group Medical and Dental Insurance), Employee Benefits Package (e.g. 401k, Retirement Plans, and Section 125 Cafeteria Plans), Human Resources issues, Employee Handbooks, E-Verify and Immigration I-9 requirements, Forms maintenance, Direct Deposit services, W-2 Preparation and Reporting, Unemployment Claims and Hearings, Worker Compensation Policy procurement, Premium payments, Claims and Audits, Wage Garnishments, compliance with government reporting and other specialized functions of a human resources Department.
LCR will cut operating costs by being more efficient in managing the expenses related to the non-core functions that small and mid-size companies find prohibitive in operating their businesses. These savings will be shared with the clients to the benefit of both organizations. Often times can also obtain superior employee insurance or Workers Compensation coverage for less cost to the employer and employees.
The only impact on the existing employer-employee relationship is that the employer may now be able to offer benefits that were not previously available to employees. We do not participate in the running of the client’s business or decision-making in any way. The client maintains the status as the “Employer of Fact” and the client retains responsibility for hiring, firing, supervision, compensation, etc.. LCR assumes the role as the “Administrative Employer” and reports client employees under LCR tax ID numbers. This is what allows us to offer certain benefits and act on your behalf with government agencies in employment matters.
No, LCR Resource gives you MORE control! LCR Resource remains behind the scenes unless you call upon us, which frees you from compliance and HR related tasks so you may focus on the revenue-generated part of your business.
This is not the case at all. You are still THE employer and LCR Resource is the administrative services provided on your behalf for YOUR employees. Your employees remain full time with their benefits intact.
There have been thousands of pages of modifications, and no one knows the full impact of the ACA and its rules regarding small businesses. However, a relationship with LCR Resource, has you covered in this area!
No, In fact you will actually be adding HR support to your existing team because your will now have LCR Resource’s administrative team to assist YOUR team. This allows your in-house team to focus on internal items that may have been back-burned.
Unless your Office Manager is devoted to ensuring compliance with HR regulations fulltime, you may be opening your business up to risk. Even the best of Office Managers wear multiple hats.
Payroll is just ONE component of LCR Resource services. There are many services that PEOs offer, and payroll companies don’t offer HR admin support or employment liability protection outside of payroll services.
PEOs don’t have to be expensive. In fact, with the economies of scale and liability protection offered by a PEO like LCR Resource, in most cases, the fees are cost neutral or less expensive for the business owner.