Before you can understand the value that SourcePointe LLC can bring to you and your business, you must first understand what a PEO or professional employer organization truly is. As a professional employer organization, we work with our clients to provide services including payroll administration, workers’ compensation, human resources support, benefit administration and much more. We are able to do this by essentially hiring our client company’s employees, thus becoming their employer of record, but we then lease them back to our clients under contract. This practice is more commonly known as co-employment, employee leasing, or staff leasing. As of 2007, there were more than 700 PEOs operating in the United States, covering 2-3 million workers.
Industry History (WIKI)
In the early 1970’s, the employee leasing concept was popularized by a consultant named Martin Selter, who leased the employees of a doctor’s office in Southern California. The Employee Retirement Income Security Act of 1974 (ERISA) contained an exemption for multiple employer welfare arrangements (MEWA), which provided a loophole for employers with leased employees to claim they were exempt from the ERISA requirements. Passage of the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) further encouraged employee leasing by providing a tax shelter for employers who contributed a minimum amount to employee plans. More stringent guidelines in the Tax Reform Act of 1986 later eliminated most of the TEFRA incentive, however.
How We Do It…
If we were to partner with you under the professional employer organization or PEO arrangement, SourcePointe would become the employer of record for taxinsurance purposes, filing paperwork under our own identification numbers. As the client company, you continue to manage the employees’ day-to-day activities. The value proposition brought to our client companies is that SourcePointe helps you to save time and staff normally used to administer payroll, administer benefits plans, and work to reduce legal liabilities or obligations to employees that it would otherwise have. In general, we have also found that for our client companies, we are sometimes able to offer a better overall package of benefits, and thus attract more skilled employees. All in all, we are able to allow you to spend more time on the things you are passionate about and less on those that do not help grow your business.
Another option offered by SourcePointe is the option commonly known as an administrative services organization or (ASO). This allows us to provide outsourcing of human resources tasks but do not create a co-employment relationship. In this arrangement, your employees remain solely under the control of your company. Tax and insurance filings are done by SourcePointe, but under your company’s Employer Identification Number. In both scenarios, the PEO and ASO, you retain control of the day to day management of your employees.
What’s In It for You?
If we were to partner with you under the professional employer organization or PEO arrangement, SourcePointe would save you time, worry and money. On average, even if you have someone currently working on your payroll, the cost saves SourcePointe could bring you makes it more than worth it to talk with one of our professionals. We can help reduce your liabilities, increase retention, create affordable employee benefits packages, reduce stress from dealing with HR issues and payroll administration while working with you to reduce workers compensation claims and audits.
The greatest value-add we can bring to you is TIME! Time to focus more on your business and less time on administering payroll. Do you remember why you started in the business you currently own? Are you finding yourself spending less time growing your business and more time trying to run it? SourcePointe’s advantages allow you the opportunity to gain control of your time. More time to look at the big picture and less time spent worrying about every day employee liability worries. More time…. You fill in the blank. What would it be worth to you to have more- more time to focus on the tasks you are best at… running your company.
How do you find out more?
SourcePointe LLC offers both a PEO (professional employer organization) and ASO (administrative services organization). If you are interested in learning more about either option, please feel free to contact us using any of the information below:
Call us 888-868-1557.
Visit our website: www.sourcepointe.com
Email us –
Trent Cotton (Business Development Manager)
Brian Rhodes (Business Development Manager)
