- Leave “employees’ time keeping” records their responsibility
- I-9 forms must be recorded and verified before an employee can start work and a copy must be held at the physical location of the company.
- Copies of employees’ pay must be kept on physical site of company.
- Have prior knowledge of bank holidays
- It is unlawful to “hold” an employee pay – employee must be paid for time worked on pay date.
- Have up to date and current forms on file – W4s’, I9s’, etc. much for these forms are updated each year for each state.
- Keep a note and reminder for ALL mandatory reports – state and federal
- Required by Florida state law – send out termination letters for all terminated employees
- All labor law and workers compensation law posters MUST be posted in a popular area in the building.
- Have an employee handbook or guidelines with employee’s signatures
- Offer management training on workers compensation claims and the procedures when recording an incident
- Document and report WC injuries within 24 hours.
- Provide a safe environment for your employees from the start.
- When signing with a PEO your workers compensation policy is on a pay-as-you go basis; a traditional workers’ compensation policy has a final audit each year.
- Be proactive!
PEO vs ASO
Which benefits your company?
- Becomes the “employer of record” for payroll taxes and workers compensation
- Outsource payroll, tax, and human resources administration functions
- Ability to fall under the PEO’s SUTA (State Unemployment Tax Authority) rate
- Outsourcing and maintenance of Workers Compensation policy.
- Outsource payroll, tax and human resources
- Retain your own SUTA rate
- Retain your own workers’ compensation policy
While both business models offer more time to focus on business and growth, there are still major differences.
The main differences would be the “employer of record” option you get from a PEO that you do not get from an ASO. This difference allows the PEO to be the “co-employer” which in turn reduces your employee liability.
Due to the fact an ASO does not become the “employer of record” the liability and State Unemployment Rate will stay your own. This could be good, depending on your rate and business history; however, this opens the door for annual audits, down payments and more willing raising SUTA rate.
To make an informed decision you must state with information.