A Professional Employer Organization (PEO), also known as an employee leasing company, is an organization that provides an integrated and cost-effective approach to the coordination of the human resources, and employer risk of its clients, by contractually assuming certain employer rights, responsibilities, and risks and by establishing and maintaining an employer relationship with the workers assigned to its clients. Businesses today need help managing increasingly complex employee-related matters such as personnel management, health benefits, workers’ compensation claims, payroll, payroll tax compliance, and unemployment insurance claims. Businesses contract with a PEO to manage these responsibilities, which then allows the client to concentrate on the revenue producing side of its operations.
Businesses that use the services of a PEO are interested in the aspects of their company that generate revenue.
Some business examples are: restaurants, roofers, mechanics,retailers, plumbers, and many more.
As a potential client investigating a leasing company (PEO) you want the comfort of knowing that the
relationship between the PEO and the carrier is strong. In addition, the financial strength of the workers compensation carrier is an indicator as to the ability of the carrier to handle the claim. SouthEast Personnel and its’ clients are not held hostage by a third party carrier. The owners of SouthEast Personnel own Lion
Insurance Company. Lion Insurance Company, an admitted “A-” Excellent (VII) rated carrier by A.M. Best and State National Insurance Company, Inc. an admitted “A” Excellent (VIII) rated carrier by A.M. Best writes SouthEast Personnel’s workers compensation policy. In short, the relationship between a PEO, its workers compensation carrier, and its rating can be critical.
A temporary staffing service recruits and hires employees and assigns them to clients to support or supplement the client’s workforce in special work situations, such as employee absences, temporary skill shortages or seasonal workloads. These workers are traditionally only a small portion of the client’s workforce. A PEO hires the clients existing employees and assigns them back. These employees can be full time, part time or seasonal workers. These workers make up the bulk of the clients workforce.