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Investments are withdrawn at a future point in time, typically when the owner or employee is in a lower tax bracket. While a deferred compensation plan can be implemented in addition to a 401(k) selective in regard to who participates in the plan.
• Group Employee Benefits: A PEO usually has an established PEO, reducing the administrative burden related to managing a suite
IS A PEO SOLUTION RIGHT FOR YOUR PRACTICE?
Like any good business decision, the key is doing your research to identify the best solution for your particular needs. A quality PEO will meet with you to discuss your needs, concerns, and objectives. You should expect to provide the following information to potential service providers that will be used to underwrite and develop a proposal for
> Company Information
> Employee Census
> Current Benefit Plan Summaries
> Workers’ Compensation Declaration Page > Workers’ Compensation Loss History
> State Unemployment Tax Information
The proposal should clearly identify how your objectives will be met and clearly state the services that are included in the service fee, as well as any additional costs for optional services. Service fees and all associated costs should be transparent and easy to understand.
CONCLUSION
According to a study by noted economists Laurie Bassi and Dan McMurrer, businesses that use PEOs grow 7% to 9% faster, have 10% to 14% lower employee turnover, and are 50% less likely to go out of business.1
The decision to outsource the HR function is a growing trend as employment liability and the administrative burden of employment continue to tax internal resources of small businesses and medical practices to their limits at a rate that is not sustainable without hiring trained HR staff in house or outsourcing this critical function.
CONTRIBUTING AUTHOR
■ TIMOTHY O’BRIEN is a Human Resource Business Consultant with Resource Management, Inc. (RMI). For the past 17 years, he has consulted with small and mid-sized businesses and medical practices to identify, design, and implement HR solutions.
REFERENCES
1. The State of the PEO Industry 2016: Markets, Value, and Trends. By Laurie Bassi and Dan McMurrer, McBassi & Company, September 2016
“My goal was always to have a small group private practice. However, it was important to me to attract quality clinicians and to do my best to provide for and adequately compensate those clinicians. Developing a relationship with a PEO has allowed
me to offer benefits, compensation, and other supports that I would not otherwise be able to. My clinicians have access to the same comprehensive package as their peers working for large institutions, while also enjoying the perks of working for a small, intimate practice.
From an administrative perspective, outsourcing my HR has given me more freedom to focus on my own clinical work, while feeling confident that I am complying with all HR regulations and implementing best practices for my staff, as well as my clients. I am incredibly grateful for my HR support, and strongly encourage all small business owners to consider similar support.”
Medical Practice Owner Worcester, MA
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Helping to supplement your care while improving quality of life.
Our care helps alleviate symptoms, relieve anxiety and gives families confidence. We work around the clock to support patients coping with serious illness in the home and reduce hospital readmissions.
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Del Med J | March/April 2019 | Vol. 91 | No. 2
