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Posted @ 2/15/2010 12:03 PM By MBAHRO
Get upfront PEO-contract clarity on HR and Payroll Outsourcing fee structures from a professional employer organization, to prevent hassles down the road.
With the changing business environment and the need to focus on generating revenues, many business owners are considering outsourcing the payroll, tax, insurance and employee benefits support tasks for their businesses. Professional Employer Organizations (PEOs) are designed to take on these duties for you. It is not uncommon for one PEO company to structure its fees differently from others. Building trust with your HR outsourcing company is critical to the relationship’s long term success.
When looking at a PEO contract, here’s a list of things to ask upfront, to prevent misunderstandings down the road.
“Do you bundle your fees?”
Traditionally, PEOs bill their service package in either a bundled or unbundled format.
PEOs opting for the unbundled invoice method list the services individually on the invoice.