PEO DEPOT, INC.
DUNEDIN, FLORIDA

Let Us Help! Businesses today need help managing increasingly complex employee related matters such as health benefits, workers' compensation claims, payroll, payroll tax compliance, and unemployment insurance claims. They contract with a PEO to assume these responsibilities and provide expertise in human resources management. This allows the PEO client to concentrate on the operational and revenue-producing side of its operations. A PEO provides integrated services to effectively manage critical human resource responsibilities and employer risks for clients. A PEO delivers these services by establishing and maintaining an employer relationship with the employees at the client's worksite and by contractually assuming certain employer rights, responsibilities, and risk. Businesses across America have discovered the incredible value of PEOs because they provide: Assistance to improve productivity and profitability. PEOs can help their client companies manage the growing burden of employment law and regulation: Shares or allocates with the client employer responsibilities in a manner consistent with maintaining the client's responsibility for its product or service. Businesses today need help managing increasingly complex employee related matters, including employee relations, health benefits, workers' compensation claims, payroll, payroll tax compliance, and unemployment insurance claims. They contract with a PEO to assume these responsibilities and provide expertise in human resources management. This allows the PEO client to concentrate on the operational and revenue-producing side of its operations. A PEO provides integrated services to effectively manage critical human resource responsibilities and employer risks for clients. A PEO delivers these services by establishing and maintaining an employer relationship with the employees at the client's worksite and by contractually assuming certain employer rights, responsibilities, and risk. Both the PEO and the client company establish employment relationships with worksite employees. Each entity has a right to independently decide whether to hire or discharge an employee. Each entity has a right to direct and control worksite employees. The PEO directs and controls worksite employees in matters involving human resource management and compliance with employment laws, and the client company directs and controls worksite employees in manufacturing, production, and delivery of its products and services. The client company provides worksite employees with the tools, instruments, and place of work. A PEO can assist in ensuring that worksite employees are provided with a worksite that is safe, conducive to productivity and operated in compliance with employment laws and regulations. In addition, the PEO provides worksite employees with workers' compensation insurance, unemployment insurance and a broad range of employee benefits programs. NAPEO estimates the PEO industry grew by $8 billion to $92 billion in gross revenues in 2012. (The industry defines gross revenues as the total of its clients' payrolls and the fees PEOs charge them for taking on their human-resource activities.) Small- and medium-sized businesses outsource to PEOs everything from administering the payroll and paying employment related taxes, to risk management, recruiting, providing health benefits, and securing workers' compensation coverage. Approximately 700-900 PEOs are operating in 50 states. The industry's gross revenue has grown as PEOs attract more diverse, fast-growth clients and the typical salary of the worksite employees increases. PEOs' expanded human resources services and employee benefits provide a high value and efficient outsourcing option for businesses from many different industries. The average client of NAPEO members is a small business with an average of 20 employees.* Increasingly, larger businesses are signing up, too. Clients range from accounting firms to high-tech companies to manufacturers to government agencies. PEOs provide enhanced access to employee benefits for about 2.5 million working Americans. This number is growing at a phenomenal rate every year because of the savings and benefits that a PEO can provide to small businesses. PEO expertise improves the work environment and increases safety. The average gross pay of a PEO worksite employee is about $34,000 annually.* Because the average client of NAPEO's member PEOs has only 19 worksite employees, without the PEO relationship these workers would not have protections under Consolidated Omnibus Budget Reconciliation Act (COBRA) or the Age Discrimination in Employment Act (ADA). PEOs help tens of thousands of companies provide benefits such as healthcare plans, 401(k) tax-free savings accounts and other perks to working Americans. Forty percent of businesses that use PEOs upgrade their benefit packages as a result. PEO sponsored benefit programs can include major and supplemental healthcare choices, including vision and dental care, employee assistance programs and even adoption assistance. While only 27 percent of small businesses offer employee retirement plans (according to the NFIB), approximately 95 percent of NAPEO's members offer retirement benefits to their small business worksite employees.