Frequently Asked Questions
What is a PEO?
Professional employer organizations provide human resource services to businesses and their employees as part of a shared employment relationship. These services generally include:
- Payroll administration
- Benefit administration
- State and federal compliance assistance
- Workers’ compensation coverage
- Human Resource administrative and regulatory support
What is co-employment?
Co-employment is a partnership among a PEO, an employer and its employees. The PEO becomes the employer of record for tax and insurance purposes. Your company retains control of business operations and worksite employees. Millions of Americans are currently part of a co-employment relationship, benefiting from cost-effective insurance options, expert HR guidance and skill development opportunities.
How does a co-employment relationship work?
A PEO like CoAdvantage handles the administration of payroll, payroll taxes and employee benefits. It becomes the employer of record, assumes certain legal and liability responsibility for risk management, workers’ compensation, unemployment claims and state and federal compliance. It deals with the IRS and Social Security Administration. CoAdvantage offers expert advice and on demand consulting for virtually every facet of human resource management, including those things for which the customer keeps ultimate responsibility, such as hiring and firing.
You maintain control of your business and day-today operations, including employee oversight, hiring and firing, product development, distribution, marketing and sales.
What are the benefits of partnering with a PEO?
A PEO partnership allows you to preserve your time and focus on business growth. Job satisfaction and productivity increase when employees are provided professional human resource services, training, employee manuals, safety and risk management services and improved communications. And in many cases, a PEO provides expanded benefit offerings on par with Fortune 500 companies that include 401(k) options, life insurance, disability insurance, and employee assistance programs. According to the National Association of Professional Employer Organizations, employment growth among PEO customers since 2010 has been four percent higher than employment growth in the U.S. economy overall.
What if I already have an HR person or department?
CoAdvantage works with your existing HR team to enhance its effectiveness for your employees and your business. Many of our customers seek additional consultative support on opportunities to maximize employee engagement and optimize human resource administration.
Where is CoAdvantage located?