Professional Employer Organization Overview
ADP's Professional Employer Organization (PEO),TotalSource®, provide employers with a comprehensive Human Resources outsourcing solution that helps reduce the costs and complexities related to employment and human resources management. ADP integrated PEO services enable employers to deal with the costs, complexities, and administrative burdens of human resources and employment management.
What is a PEO?
A professional employer organization (PEO) provides integrated services which enable business owners to cost-effectively outsource the management of human resources, employee benefits, payroll and workers’ compensation. PEOs deliver these services through a co-employment model. To learn more about TotalSource, click here.
What is Co-Employment?
In a co-employment relationship, the client company continues to direct employees’ day-to-day duties and activities. Because the PEO takes on the majority of HR management chores, the client company is freed to focus on the production and delivery of its products and/or services.
At the same time, ADP TotalSource, as the PEO, contractually assumes certain rights, responsibilities, and risks. We are the “employer of record” on an employee’s W-2. As such we deliver and manage employee benefits, payroll processing and tax administration, workers’ compensation, state unemployment insurance, EEOC claims, and much more.
What is Employee Leasing?
Contrary to what you might read or hear elsewhere, a Professional Employer Organization (PEO) is not the same thing as an employee leasing company. The basic function of the latter is to achieve economies of scale through volume purchasing of employee health benefits and other “big-ticket” items. What employee leasing companies don’t generally deliver are the value-added services that ADP TotalSource provides:
Most of these services are minimal or absent from an employee leasing company’s offerings. ADP TotalSource, on the other hand, takes the basic employee leasing concept to a much higher level, transforming it into a true outsourced HR management solution.
What is HR Outsourcing?
The advantages of outsourcing HR management to a PEO are clear and compelling:
- More productive use of time and resources – companies can devote internal resources and capital funds to revenue-generating activities
- Improved business focus on producing and delivering goods and services – not HR paperwork and compliance issues
- Guidance from experts from across the business spectrum
- Access to state-of-the-art HRMS technology, training and development, Fortune 500®-level benefits, and much more
When business owners outsource HR management to ADP TotalSource, they get expert support and guidance in all areas of HR, including employee relations, health benefits and 401(k), payroll and taxes, risk management, workplace safety, compliance, and more.
Our clients also get the advantage of our affiliation with ADP, the worldwide leader in business outsourcing. More than 570,000 companies around the world rely on ADP for:
- Progressive HR solutions
- Fully integrated services
- Effective systems for greater functionality, flexibility, and control
- Cutting edge technology
- Proven methodologies and best practices
- World Class client service and support
Why choose ADP TotalSource?
Deciding to go ahead with HR outsourcing and choosing a PEO takes careful thought. You need to do your homework, and the best place to start is by considering the guidelines set forth by the National Association of Professional Employer Organizations (NAPEO):
- Determine your HR and risk management needs.
- Make sure the PEO is capable of meeting your strategic goals.
- Ask for complete references – service, professional, banking, financial – and meet the people who will serve your company.
- Carefully check the PEO’s financial background and prior record of paying payroll taxes and insurance premiums.
- Understand the PEO’s benefits offerings. How are they funded? Do the specific benefits being offered fit your employees’ needs?
- Understand how the various PEO services are delivered and the experience/qualifications of key staff, particularly in areas such as risk management.
- Review the service agreement carefully and make sure you understand its provisions.
As one of the companies that pioneered the PEO industry in the early 1980s, ADP TotalSource sets the standard for experience, integrity, and financial strength. Our management team includes experienced HR professionals with backgrounds in employee relations, benefits, risk management, regulatory compliance, and related areas. Currently we serve more than 5,800 client companies, with a total of more than 140,000 client employees. Out of hundreds of PEOs, we are one among a handful to be members of the Employer Services Assurance Corporation (ESAC), the industry’s custodian of ethical business practices.
As a PEO, ADP TotalSource acts as your human resources department. We assemble a team of experts skilled in different areas of HR, who report directly to you:
Your company has a designated ADP TotalSource contact for each functional area. Corporate managers and staff work behind the scenes to deliver services, answer questions, and solve problems.
How it Works
ADP's Professional Employer Organization (PEO),TotalSource®, provide employers with 10 – 250 employees a comprehensive Human Resources outsourcing solution that helps reduce the costs and complexities related to employment and human resources management. ADP integrated PEO services enable employers to deal with the costs, complexities, and administrative burdens of human resources and employment management.
Benefits
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Effectively manages critical human resource responsibilities and employer risks for clients.
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Allows you to offer a better overall package of benefits and attract and retain employees.
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Outsourcing frees up your time, so you can focus on the operational and revenue-producing side of the business.
Features
Assigned HR Professional who acts as the client’s primary point of contact and guides client through day-to-day HR issues and challenges as well as access to HR experts on benefits, payroll, 401(k), HRMS, and more. Professionals also help with ongoing employee relations, such as leave administration, SUI management, employee grievances and discipline.
Professional Development Training from TotalSource University, which provides both online and instructor-led seminars that cover a range of HR issues.
Regulatory Compliance Management, including a comprehensive program of HR compliance training, complaint handling, employment practices liability coverage, and a legal defense benefit.
Human Resource Management System (HRMS) through a secure web site, which gives clients and employees access to a wide range of online employment-related tools and resources.
Payroll and Tax Services are anchored by My TotalSource Payroll, a leading edge online pay data management application.
Recruiting and Selection is easy with TotalSource and includes an array of recruiting and selection tools, such as online candidate searches, job descriptions and background checks.
401(k) Retirement Savings Plans and Administration deliver Fortune 500®-caliber benefits plans and administration that maximize quality, affordability and choice for employees, and give employers an edge in attracting and retaining talented people.
Employee Benefits and Management offers a professionally managed and cost-effective employee benefits plan with enough choices to meet your needs.
Safety and Risk Management is provided through a complete Workers’ Compensation coverage and claims administration program that includes safety and loss prevention solutions, OSHA compliance assistance, and a drug-free workplace program.
Interesting in learning more? Contact us or call or call 1.800.447.3237.