Find answers to commonly asked questions

What is a PEO?

A Professional Employer Organization (PEO) is one that offers services to other businesses on an outsourcing basis. Some of these services are administration of payroll, payroll tax filing, providing Workers’ Compensation and WC claim management, unemployment claim management and Human Resource consultation along with interfacing with government agencies on employee related regulatory issues.

What types of businesses use PEOs?

Many business organizations use PEO services. Because of the many economies of scale in a PEO arrangement most PEO clients are small to mid-sized businesses. These companies find it much more cost effective to outsource certain “non-core” employer obligations rather than financing their own specialized internal departments to satisfy these obligations.

Who controls my employees in a PEO arrangement?

The “Client” retains ownership of the company and control of its operations and employment decisions.

As the PEO becomes a “co-employer” with its client, the PEO takes the responsibility for payroll administration, taxes and Workers’ Compensation. The purpose is to have the PEO focus on employment-related issues while the client is able to use its resources on its core business operations.

Why are PEO services cost effective for businesses?

Production of payroll, managing Workers’ Comp risks, working with government agencies, and other time and energy consuming (non-revenue producing) tasks use precious production hours that could be better used expanding business and increasing profits.

How can ERA offer more efficient administration of these “non-revenue producing” tasks?

ERA offers its clients a professional team who is specifically trained to perform these payroll and employee related duties. ERA also uses its buying power to be able to provide more cost-effective insurance products to its clients. The result is the client can become a more profitable company by directing its resources to revenue producing tasks, while ERA takes care of the non-revenue producing obligations.


Employee Resource Administration LP (ERA)