What is a PEO?

Professional Employer Organizations function as an "outsourced" Human Resource Department allowing client companies to obtain bundled services at significant cost reductions.  Services include payroll preparation and tax compliance, Workers Compensation coverage and claims administration and outstanding benefit packages. cost savings are often substantial and allow client companies to enjoy significant savings while at the same time providing benefit programs that are often difficult for smaller employers to obtain on their own.

These services are produced through the concept of employee leasing.  MAXstaf, Inc. becomes the "employer of record" for purposes of payroll, taxes and related accounting, worker's comp. claims, unemployment issues, government audits, surveys and inquiries, employee issues and administration of employee benefits.  The client company remains the "site employer" and has the responsibility for all management of work performed and regulation of the worksite.

MAXstaf allows its' client companies to spend their time focusing on their product and bottom line profitability.

Before MAXstaf After MAXstaf
Compute hours

Compute taxes

Enter tax changes

Compute deductions

Enter deduction changes

Process payroll

Breakdown/separate checks

Sign checks

Put checks in envelopes

Transfer money to payroll account

Make entries for payroll transfer

Complete tax deposits

Take tax deposit inquiries

Research penalty or interest assessments

Reconcile payroll account

Order payroll check stock

Complete unemployment tax payment

Complete quarterly IRS form 941

Complete quarterly state SUI tax report

Complete annual IRS form 940

Complete IRS W-3

Compute, complete and distribute annual W-2's

Verify W-4's on all new employees

Verify INS I-9's on all new employees

Verify state forms on all new employees

Update FICA changes

Update unemployment tax changes

Set up garnishment amounts

Process garnishment checks to court

Verify Workers Compensation rate

Complete monthly/annual Workers Compensation audit

Set up and administer employee insurance program

Set up and administer Section125 plan

Set up and administer child care accounts under 125 plan

Set up and administer un-reimbursed medical account under 125 plan

Set up and administer 401(k) retirement plan

Add employees to payroll process

Terminate employees from payroll process

Compute hours

Report hours to MAXstaf

Pay MAXstaf invoice