FAQ

Professional employer organizations (PEOs) provide human resource services for their small business clients—paying wages and taxes and often assisting with compliance with myriad state and federal rules and regulations.  In addition, many PEOs also provide workers with access to 401(k) plans, health, dental and life insurance, dependent care, and other benefits not typically provided by small businesses. In doing so, they enable clients to cost-effectively outsource the management of human resources, employee benefits, payroll and workers' compensation. PEO clients can thus focus on their core competencies to maintain and grow their bottom line. 
Once a client company contracts with a PEO, the PEO will then co-employ the client's worksite employees. In the arrangement among a PEO, a worksite employee and a client company, there exists a co-employment relationship, which involves a contractual allocation and sharing of employer responsibilities between the PEO and the client pursuant to a client service agreement (CSA). The PEO typically remits wages and withholdings of the worksite employees and reports, collects and deposits employment taxes with local, state and federal authorities.  The PEO also issues the Form W-2 for the compensation paid by it under its EIN.  The client company retains responsibility for and manages product development and production, business operations, marketing, sales, and service. The PEO and the client will share certain responsibilities, as determined in the CSA.  As a co-employer, the PEO will often provide a complete human resource and benefit package for worksite employees. 
Yes. PEOs operate in all 50 states. Many states provide some form of specific licensing, registration, or regulation for PEOs. These states statutorily recognize PEOs as the employer or co-employer of worksite employees for many purposes, including workers' compensation and state unemployment insurance taxes. The IRS has recognized the right of a PEO to withhold and remit federal income and unemployment taxes for worksite employees per section 3511 of the IRS Code. The IRS has promulgated specific guidance confirming the authority of PEOs to provide retirement benefits to workers.
Business owners want to focus their time and energy on the "business of their business" and not on the "business of employment." As businesses grow, most owners do not have the necessary human resource training, payroll and accounting skills, the knowledge of regulatory compliance, or the backgrounds in risk management, insurance and employee benefit programs to meet the demands of being an employer. PEOs give small-group markets access to many benefits and employment amenities they would not have otherwise.
Through a PEO, the employees of small businesses gain access to big-business employee benefits such as: 401(k) plans; health, dental, life, and other insurance; dependent care; and other benefits they might not typically receive as employees of a small company. And, when a company works with a PEO, job security is improved as the PEO implements efficiencies to lower employment costs. Job satisfaction and productivity increase when employees are provided with professional human resource services, enhanced benefits, training, employee manuals, safety services and improved communications.
Frequently, a PEO arrangement is the only opportunity for a worker in a small businesses to receive Fortune 500-quality employee benefits like health insurance, dental and vision care, life insurance, retirement saving plans, job counseling, adoption assistance, and educational benefits. Absent the PEO, a small business can neither afford nor manage these benefits.

If you have received a notice in the mail from the Florida Dept. of Revenue in regards to a fine or delinquency, please click on the following link to contact them first.

http://floridarevenue.com/taxes/Pages/gta_contact.aspx

If you have received a notice for a 940 or 941 delinquency, please click on the following link and contact them first.

https://www.irs.gov/help/telephone-assistance

Also, some are some helpful tips and information we feel may help.


When companies transition into an employee leasing environment, there are a few tax filing variables and program details that may have been overlooked.

The leasing company is responsible for:

  • State Unemployment Tax and filing
  • Federal tax collection and filing
  • Child support collection and filing
  • Court Ordered Garnishment collection and filing
  • Unemployment liabilities
  • Claims management

You are responsible for continued:

  • Compliance
  • Onboarding
  • Separation Notices
  • Job Site Satefy
  • Labor Law Compliance
  • Training
  • Wage Reporting

PEOPayGo files the utilized individuals’ taxes and the employer taxes with the leasing company’s FEIN to pay for the RT-6 and IRS 940/941 payments.

The RTS-3 form you initially executed is how the carrier informs the state and maintains the utilized individuals’ unemployment history ongoing. The carrier will not report or process payment for tax obligation for wages processed outside of the scope of the service agreement.

The utilized individuals will receive a W2 from PEOPayGo ONLY for all wages processed through the service agreement.

  • If you have had W2 wages in the same calendar year as wages processed under our service agreement, and are not processing W2 wages outside of your leasing program, you must declare final or last returns to state and government payroll tax agencies for those wages excluding the wages processed through the service agreement.
  • If you are continuing to process W2 wages outside of your leasing program, you must continue to process your state and federal taxes independently excluding wages processed through the service agreement.

IMPORTANT: You should notify your accountant, tax professional or inquiring agency that you have enrolled in an employee leasing program.

Your invoice totals become included in your general labor cost line item for company expenses and your accountant should file your expense according to your company tax structure. You can request a YTD (Year to Date) invoice total report at any time.

Remember, you are no longer responsible for reporting & paying W2 wages processed through your current program.


STATE UNEMPLOYMENT RT-6

  • The state maybe delayed in processing the RT-3 state unemployment change form that you executed and was submitted to the carrier at the time of your enrollment.
    • Solution: We have requested the resubmitted the RT-3 change form to the state.
  • You may have processed W-2 wages in the SAME QUARTER you joined the program with a payroll processing company like ADP for example.
    • Solution A: Simply re-submit the forms WITHOUT the wages processed through the leasing program. If you have no wages outside the program, then you must file a ZERO wages or FINAL report.
    • Solution B: If you have W2 wages being processed outside of the program then continue to file and pay those taxes excluding wages processed through the program.

IRS FORMS 940/941

  • You may have had wages outside of the program or your accountant declared wages processed through the system on your reports.
    • Solution A: Simply re-submit the forms WITHOUT the wages processed through the leasing program. If you have no wages outside the program, then you must file a ZERO wages or FINAL report.
    • Solution B: If you have W2 wages being processed outside of the program then continue to file and pay those taxes excluding wages processed through the program.

Why was your account flagged? The reason is because Workers Comp carriers calculate PREMIUMS against employee WAGES. When wages are too low, they do not generate enough premium to maintain a $1,000,000 workman’s compensation policy.

You were approved for a PAY-AS-YOU-GO program. However, even fluctuations in workload have program policy limits. Consistently reporting low wages and inactive weeks will push your account outside of the program guidelines. The carrier will normally flag a policy for underwriting review because they are not generating enough premium to maintain the policy.

Although your account has been flagged, it is still ACTIVE, but ACTION is required! We are here to guide and assist you in maintaining an active and compliant program. You have OPTIONS and resources available to you.

Here are your current program requirements:

  • There is a $500.00 weekly wage minimum on one employee
  • Your program only covers full time employees (30 hours per week)
  • The Florida minimum wage is $8.46 per hour

The system processed an inactivity fee of $150 as per your service agreement. Inactivity fees are billed to maintain your program ACTIVE when there are no wages to report. Your program has an inactivity limit of two (2) inactive weeks per year. No additional action is required.

A Certificate of Insurance (COI) is an informational document that provides details about insurance coverage to someone who has asked for that information to be provided.

Certificates are provided either by the insurance company who issued the policy or by an insurance agency who represents the insurance company and issues the document on behalf of the insurance company. 

Filling out a certificate request is easy.

  • You are the" Insured". This means, your business name goes here.
  • Your client or contractor requesting it is the "Certificate Holder. Their business name and address goes here.

Please fill out the following contact form, explain your need and we will get back to you as soon as possible.