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Finding Your Groove

PEOs operate on thin margins. There is no mystery about that. Mix in the fact that PEOs need to grow to sustain themselves more so than most other businesses, and it’s obvious why maintaining those margins as other operational resources are adjusted to facilitate growth is so important. There are so many different levels, and so many elements to balance, for example: customer service capacity, growth plateaus, flexible technology, profit and loss, cost controls, overhead, staffing levels, service model adjustments, and cash flow, just to name a few. Adjusting something in one area affects the levels in other areas. It requires many micro and macro adjustments, constantly.

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ACA Reporting Requirements

It’s 2015, and that means the Affordable Care Act (ACA) employer mandate is now in full swing for employers with 100 or more full-time equivalent employees. Along with the mandate also comes the ACA’s new reporting requirement. PEOs and their clients need to keep a close eye on these rules and make sure they are collecting the right data in the right way to fulfill them.

Risk Management

Underwriting for Workers’ Compensation Profitability

Many workers’ compensation carriers in today’s marketplace continue to revisit their underwriting appetites. A concern remains among carriers that in at least certain states, workers’ compensation premium rates may not be sufficient to support claims expenses. The result is that some carriers no longer offer stand-alone workers’ compensation policies to their clients, but rather require the clients to place other premium-producing coverages, such as property, general liability, and/or auto liability, with the carrier to obtain a workers’ compensation policy.


30 Lessons Learned in 30 Years of Selling HRO

As of April 15, this author is blessed to have been in the PEO business for 30 years. In this article, I wish to impart to you 30 lessons experienced in the last 30 years to help you in your pursuit of success in your selling. Some of these lessons are no-brainers—take them as a reminder and apply them anyway.


Dismissive Injustice and the PEO industry

No doubt you have seen—perhaps too late—those automated cameras at intersections that record any driver rash enough to run a red light.

Start-up Guide

Setting Up Payroll and General Ledger

Starting a PEO? Worried about signing up new customers and growing your business? Yes, that is important, but many times a start-up PEO fails to recognize the importance of setting up its payroll/general ledger system. A PEO just starting out should really sit down with its accountant and IT staff or vendor to get this set up correctly right from the start.


The Inside Word

Growing the Industry Brent R. Tilson

In the most recent NAPEO membership survey, when asked “What should NAPEO be primarily focused on?” the overwhelming choice was: Growing the Industry/Industry Promotion, which received more than 46 percent of the votes, with second place going to Federal Government Affairs, at 32 percent.

NAPEO Notebook

Highlights from Around the Country Patrick J. Cleary

Last month in this space, I talked about my trip to Florida in January and visiting members with Robert Skrob of FAPEO. This first quarter seems like the heavy travel season for me, as I’ve been on the road for most of February and early March. Given our concentration of NAPEO members in Florida and Texas, I’ve spent time in both places.


NAPEO Begins Discussions with the IRS on SBEA Implementation Thom Stohler

On February 12, NAPEO SBEA Working Group Chair Greg Packer, along with Randy Hardock and Courtney Zinter of Davis & Harman, William Sweetnam of the Groom Law Firm (on behalf of ADP), and Thom Stohler of NAPEO, met with representatives from the Department of Treasury and the Internal Revenue Service (IRS) to begin discussions about the implementation of the SBEA.

Capitol Comment

SBEA Working Group Update Thom Stohler

NAPEO’s Small Business Efficiency Act (SBEA) Working Group has only been in existence for two months, but it has already been quite busy. The reason for the activity: The SBEA has tight statutory deadlines for creating a PEO certification program. The PEO certification program must be established by July 1 and the requirements of the SBEA are effective as of January 1, 2016.

NAPEO Advisor

Immigration Enforcement, Old and New Laws Brendan W. Williams, Esq.

The partisan fight over President Obama’s executive order on immigration may obscure the fact that the Obama administration is actively enforcing immigration laws.

PEOs in the Community

Training and Workforce Development Activity a Perfect fit for Lyons HR Bruce Cornutt

This new column, “PEOs in the Community,” explores how PEOs are developing and nurturing relationships in their communities. Being embedded in the small business world, PEOs are uniquely positioned to lend their time and expertise to serving their communities, while at the same time enhancing industry visibility. This month, Bruce Cornutt of Lyons HR outlines how his company participates in workforce development initiatives.

PEO Spotlight

High-Touch Synergy: Greater than the Sum of its Parts Stephanie Oetjen

Dawn Drantch’s employment law career began in 1990. While in law school at the Washington College of Law at American University, in Washington, D.C, she started working at the Department of Labor (DOL), Civil Rights Division. Although her focus in law school was foreign relations and international law, she needed a job, and a school friend who worked there let her know the agency was looking for part-time help.

Guest Column

SBEA-ESAC: A New Era in PEO Credibility John Slavic

There are only a few times in most of our lives when we can accurately predict the future, but this is one of those times. The Small Business Efficiency Act (SBEA) passed in December, much to the surprise of most. Now, everyone is speculating about its effect on the PEO industry. Further, many ask why they should go to the expense and effort to be Employer Services Assurance Corporation (ESAC) accredited. The answer, of course, is in the data.

Global Insights

Trade: America's Next Big Success Story Thomas J. Donohue

Dramatically increasing American exports is one of the best opportunities we have to create jobs, spur growth, and reassert American leadership. Exports have been one of the rare bright spots in the American economy, and they have risen by more than 50 percent over the past five years. More than 38 million American jobs depend on trade.


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