First of all, what is a PEO? A Professional Employer Organization (PEO) is a company that manages all of the moving parts of your firm associated with employee management. These include: payroll, benefits administration, human resources, workers’ compensation, regulatory compliance, and 401k administration. Sometimes known as HR-outsourcing, a PEO essentially manages 100% of your employee administration—making you better able to focus on the business of architecture.
How Does a PEO Relationship Work?
A PEO and an architecture firm owner share responsibility and liability for the firm’s employees. This is called co-employment or employee leasing. The PEO technically becomes the employer of record, allowing it to file payroll taxes on behalf of the business owner. An experienced professional will be assigned to your firm to be available for both the firm owner as well as the employees.
How Will Your Firm Benefit from Using a PEO?
- The PEO will manage your HR administrative tasks and minimize your HR risk. This is accomplished by providing an experienced professional with a comprehensive understanding of state and federal regulations impacting your firm. You and your employees may consult your contact about any questions or issues that arise.
- With access to employment lawyers, your firm will have greater protection from the risks associated with employment law requirements and be better able to comply with complex workplace regulations.
- Your firm will be relieved from running routine payroll, dealing with payroll tax administration, and other employee matters- allowing you more time to concentrate on your practice.
Should You Consider Using a PEO?
The AIA Trust recently partnered with XcelHR to provide architects with a PEO, or HR-outsourcing option. As your partner in HR management, XcelHR will not tell you or your employees how to design blueprints or construct buildings. You, as the firm owner and/or manager, remain in full control of your firm’s day-to-day operations. A PEO is only there to provide you with administrative relief, so you can spend your time on the business functions that make you money—architecture.
For more information, view the short informational video: