The document discusses co-employment arrangements where a Professional Employer Organization (PEO) contracts to assume responsibilities as an employer for a client's employees. It outlines the 7 contractual relationships that business owners must understand when committing to a co-employment agreement, including that the PEO co-employs workers, reserves direction and control, shares employer responsibilities, pays wages and taxes, and can hire, reassign, or fire employees. iPEO Solutions is an independent broker that works with PEOs to provide co-employment solutions for businesses.

1. HEADLINE:
iPEO Solutions Spotlights the 7 Contractual Relationships Business Owners
Must Understand Before Committing to a Co-Employment Arrangement
SUMMARY:
Maintaining a quality workforce without having to endure administrative
headaches may seem a dream to many business owners. Co-employment is a
viable option, but iPEO Solutions (http://www.ipeosolutions.com) points out what
business owners need to recognize when they commit to such an agreement.
TEXT:
TAMPA, FL—Entrepreneurs are often inspired by big dreams and the possibility
of making them come true, but they don’t always relish the administrative
headaches that accompany such transformational enterprises. iPEO Solutions
(http://www.ipeosolutions.com) helps minimize organizational pain so innovators
can concentrate on the vision that motivated them in the first place.
“In business process outsourcing, a Professional Employer Organization (PEO)
provides a diverse range of employment-related products, services and functions
including integrated payroll, benefits, risk and human resource management,”
explains Michael A. Ortoll, CEO and founder of iPEO Solutions.
Ortoll, a Florida State University graduate and Miami native with strong ties to the
Cuban/Hispanic community, is a seasoned insurance specialist with 25-plus
years as an industry executive. His experience, technical knowledge and
professional relationships make him one of the PEO industry’s leading
dealmakers.
“Most people invest in the services of a PEO to thwart some level of pain,” Ortoll
said. That pain results from a variety of reasons, including issues like Workers
Comp/Risk Management, Employee Benefits, HR and Payroll.
“iPEO Solutions tailors PEO solutions producing the greatest value for its clients,”
said Ortoll. “For example, the best fit may be workers comp accompanied by
improved risk management services, payroll processing and a tax-reporting
solution reducing the administrative burden on staff.”
Ortoll’s company specializes in delivering co-employment alternatives for a
variety of industries, including: Private Equity portfolio firms, Associations,
Franchises, Real Estate/Property Management, Healthcare (Senior Housing),
Construction, Hospitality and Transportation.

2. “We can deliver lower Workers Comp costs, including better service aimed at
keeping costs lower, as well as provide improved HR compliance and Payroll
Administration via higher-end technology and resources.”
In addition, iPEO can help manage implementation of the Affordable Health Care
Act and improve cash flow through “pay-as-you-go insurance and taxes,” thus
spreading out a company’s cash a bit.
According to the National Association of Professional Employer Organizations
(NAPEO)—which dubs itself “The Voice of the PEO Industry”—PEO
relationships involve “a contractual allocation and sharing of employer
responsibilities between the PEO and the client. This shared employment
relationship is called co-employment.”
In co-employment arrangements, the NAPEO stipulates that Professional
Employer Organizations contractually assume substantial employer rights,
responsibilities, and risk through the establishment and maintenance of an
employer relationship with the workers assigned to its clients.
NAPEO spotlights seven key points regarding co-employment, emphasizing that
a Professional Employer Organization “establishes a contractual relationship with
its clients whereby the PEO”:
ONE: “Co-employs workers at client locations, and thereby assumes
responsibility as an employer for specified purposes of the workers assigned to
the client locations.”
TWO: “Reserves a right of direction and control of the employees.”
THREE: “Shares or allocates with the client employer responsibilities in a manner
consistent with maintaining the client's responsibility for its product or service.”
FOUR: “Pays wages and employment taxes of the employee out of its own
accounts.”
FIVE: “Reports, collects and deposits employment taxes with state and federal
authorities.”
SIX: “Establishes and maintains an employment relationship with its employees
that is intended to be long term and not temporary.”
SEVEN: “Retains a right to hire, reassign and fire the employees.”
An extensive elaboration about co-employment by industry experts can be found
at http://www.napeo.org/peoindustry/coemployers.cfm.

3. It should be noted, however, that analysts agree that PEOs neither provide daily
supervision nor get involved with the recruiting process—except when
necessary, such as in background checks and drug testing.
In fact, some people confuse PEOs with temporary help companies. Here’s how
a spokesperson at the American Staffing Association (ASA) explained the
difference to Entrepreneur.com: "Generally speaking, temporary help companies
recruit employees and assign them to client businesses to help with short-term
work overload or special projects on an as-needed basis."
Conversely, Entrepreneur.com defines a PEO as, “A company that technically
‘employs’ the workers of several other companies and oversees all HR-related
functions”
For more information about co-employment as well as insight into selecting a
Professional Employer Organization, call 1 (813) 220-3132 or visit the iPEO
Solutions website at http://iPEOsolutions.com — also on Facebook at
https://www.facebook.com/iPEOsolutions.
ABOUT: iPEO Solutions is an independent broker and single-source co-
employment solution that works with the industry’s best Professional Employer
Organizations, ensuring that each meets the following requirements: A-rated
insurance carriers, leading technology, experienced and stable management
teams, strong financials, a history of success and qualified internal personnel in
all service areas