Frequently Asked Questions
How Do PEOs Work?
The client and PEO agree to enter into a co-employment relationship in which both the PEO and client company have an employment relationship with the employee(s). While the client controls the direction of the company through its daily course of business and oversight / management of its employees, the PEO assumes liability and responsibility for human resource functions, payroll administration, tax liability, benefit administration, and helps with risk management.
You have one point of contact who has complete focus on your company and your specific needs. M2 understands the construction industry! Our expertise is in assisting blue collar business owners with solving employment problems. While partnering with the right PEO offers a tremendous advantage, the “wrong” PEO can cause unnecessary complications. After learning about your individual situation, we will make recommendations as to which PEO can provide the best fit for your business.
There are approximately 1,000 PEOs across the country, most of which focus on white collar industries. We have partnerships with PEOs that focus solely in the construction and blue collar arena. Therefore, you do not have to take time out of your busy day to try to locate multiple PEOs. We provide you with the freedom to run your business while we do all of the “leg work” to find a PEO provider who meets your individual requirements. We are an independent consulting firm that works directly for you, we do not work for the PEO.
No, you do not lose control of your business. You actually gain control of your business because now you can focus on things that add to your bottom line. The PEO assumes the responsibility for payroll administration and human resources related tasks while you control your daily operation as usual. Therefore, tasks that do not generate profit are eliminated, allowing you to focus on growing your business.
By law, the PEO is required to assume the responsibility for paying all state and federal taxes on the wages that are paid to the employees.
Keeping up on the all the duties required by law is time consuming, and requires a lot of expertise. Most businesses who attempt to do everything by themselves end up missing details, getting fined, and exposing themselves to higher risk for issues later on. Even if you could do everything yourself, you would be at a huge disadvantage to any of your competitors using a PEO. Groups that partner with PEOs do not have to worry about focusing on tasks that do not make them money, such as payroll administration, human resource functions, risk management, and workers comp insurance. Instead, they can focus on finding more jobs and growing their business.
We focus solely on the construction and construction trade industries. Most of our clients are roofers, concrete companies, steel erectors, sheet metal workers, construction staffing companies, welders, excavators, or similar professionals. Our average client has about 30 employees, but we assist companies that range in size from 2 employees up to 400.
There are several reasons. With a traditional workers’ comp policy, you have just that – a basic policy with all of the hassles that go along with it such as large down payments, time consuming audits, and yearly shopping. However, in a PEO arrangement, you have the “pay as you go” workers’ comp policy along with payroll administration, human resource assistance, risk management, shared liability, etc. Therefore, if you are tired of having to worry about down payments, audits, and the added exposure of “going it alone” in the legal society we work in, then contact us to learn how a construction PEO can benefit your company.
We have developed our expertise in the construction arena and want to pass this knowledge along to our clients. We have chosen to specialize in this area because we can provide better service by focusing on just one industry. Our clients appreciate our expertise and the fact that we don’t try to be “all things to all people”.