Frequently Asked Questions
Here are some common questions our team at Servant HR receives from clients and businesses considering our services. If you don’t see the answers you need here, please don’t hesitate to call us at 317-585-1688.
What is a PEO?
When a company enters into an agreement with a professional employer organization (PEO), it establishes a three-way relationship between the company, its employees and the PEO. The company and the PEO become co-employers, instead of the traditional employer company/employee relationship.
How does a Servant HR PEO arrangement work?
When a company engages Servant HR, a co-employment or administrative employment relationship is created between the company, Servant HR and the workers of the company. Co-employment is a contractual arrangement in which Servant HR becomes the co-employer of all or part of a company’s working staff. Under this arrangement, employment responsibilities are shared between Servant HR and the client, while allowing the client to retain essential management control over the work performed by the assigned employees.
Is this the same as temporary staffing?
No. Servant HR does not recruit or provide staff to its clients like temporary staffing firms do. Servant HR involves all or most of the employees of the client company in a long-term employment relationship.
What are the benefits of co-employment?
Through co-employment, Servant HR assumes responsibility for a wide range of responsibilities and risks that an employer typically carries. Servant HR also pays and reports wages and employment taxes out of its own accounts, and administers clients’ benefits to employees. Servant HR eliminates your administrative hassles while offering you superior benefits administration.
In a Servant HR PEO arrangement, do I lose control of my employees?
No. Servant HR clients and Servant HR become partners in the co-employment relationship of the workers. The client retains responsibility for the day-to-day management of the workers. Clients maintain all “hire and fire” authority, handle promotions and provide workplace supervision as required.
What other services are offered by Servant HR?
Servant HR has expanded its service offerings to include capabilities needed by more sophisticated companies. These may include full HR consulting services, background checking, applicant drug testing, supplemental employee benefits, etc. These services may be priced individually or offered as part of the overall services plan.
What about Servant HR billing and accounting?
One of the best features of using Servant HR is the single payment made to the PEO. One payment, made with each payroll cycle, is all that is required. The client company reports the amounts to be paid to each employee and Servant HR does the rest. Servant HR offers the ability to report detailed labor related costs to clients in a form that provides easy integration with internal accounting software.
What if a company already has an attractive health plan or workers’ compensation plan?
Servant HR can “unbundle” services and benefits for clients that already have these capabilities. The advantages of using Servant HR remain an attractive solution for many of these companies.
Where do I find answers to other questions?
Just contact us. We are here to help. Better yet, sit down with us for a no-obligation review of your situation and an explanation of how we can serve you.