Welcome to another episode of GrantTalk, hosted by Libby Hikind, the founder and CEO of GrantWatch and the author of The Queen of Grants. In this episode, Libby sits down with Matthew Berkowitz, a Business Advisor for G&A Partners, to talk about his Professional Employer Organization (PEO) insights and how they can help nonprofits and small businesses.
What is a PEO?
A Professional Employer Organization (PEO) is a firm that provides comprehensive HR solutions for small and mid-sized businesses. As Matthew explains, a PEO assumes tasks like payroll, human resources, employee benefits, and regulatory compliance. It then combines them into a single streamlined solution. This integration allows businesses to focus on their core activities while the PEO handles administrative responsibilities.
For more detailed insights and to discuss your specific needs, you can reach out to Matthew Berkowitz via LinkedIn or email at MBerkowitz@GNApartners.com or call (281) 657-4995.
Benefits of PEOs
PEOs offer numerous advantages, especially for nonprofits and small businesses that struggle with high health insurance costs and administrative burdens. By pooling smaller companies into one large group, PEOs can negotiate better rates for health insurance, potentially lowering costs significantly compared to the open market. This buying power makes PEOs an attractive option for organizations looking to provide robust employee benefits without breaking the bank.
PEO Threshold and Participation
Business owners often ask about the threshold for employing a PEO. According to Matthew, PEOs typically work with companies ranging from as few as five to as many as 600 employees, with the median being around 10 to 100 employees. It’s important to note: PEOs require at least 50% participation in the health insurance plan to ensure viability and cost-effectiveness.
Remote Work Challenges
COVID-19 transformed the workplace, leading many organizations to embrace remote or hybrid work arrangements. This shift presents unique challenges, particularly in managing compliance and payroll across different states. Matthew highlights how PEOs can assist by ensuring compliance with varying state laws, thus mitigating risks associated with remote hiring.
Legal and Compliance Support
A significant benefit of partnering with a PEO is the legal and compliance support they offer. PEOs operate on a co-employment model, meaning they share responsibilities with the client company. This arrangement ensures that businesses remain compliant with employment laws and are supported in case of legal issues, potentially saving them from costly lawsuits.
Technology and Cybersecurity
In today’s digital age, cybersecurity is paramount. PEOs provide integrated payroll and HRIS (Human Resource Information System) solutions that enhance operational efficiency. Additionally, they implement stringent cybersecurity measures to protect sensitive employee data. G&A Partners, for instance, even offers a cybersecurity insurance policy to cover potential breaches, adding an extra layer of security.
Volunteers and Part-Time Workers
Nonprofits often rely on a mix of full-time employees, part-time workers, and volunteers, complicating payroll and compliance. Matthew explains how PEOs can manage these diverse workforce segments, ensuring compliance and reducing liability risks. This comprehensive management helps nonprofits focus on their mission rather than administrative headaches.
Tips for Choosing a PEO
With hundreds of PEOs in the market, selecting the right one can be daunting. Matthew recommends looking for certifications like ESAC and CPEO, which ensure the PEO’s solvency and good standing. Additionally, checking the Net Promoter Score (NPS) can provide insights into client satisfaction and the PEO’s reputation.
Final Thoughts
This episode of GrantTalk highlights the importance of exploring all options when it comes to managing HR and employee benefits. PEOs can offer significant advantages, from cost savings to enhanced compliance and employee satisfaction. As Matthew advises, it’s crucial for businesses and nonprofits to conduct a thorough analysis, compare costs and benefits, and make informed decisions.
Stay Connected
For more informative episodes like this, make sure to subscribe to GrantTalk on YouTube, Spotify, iHeart, or Apple Podcasts. Don’t forget to check out Libby’s book, The Queen of Grants, available on the GrantWatch website.
Thank you for tuning in to GrantTalk, powered by GrantWatch. Stay informed, stay compliant, and continue making a positive impact with your nonprofit or small business!
Important Legal Disclaimer:
Nothing in this material is intended to be, nor should it be construed as legal or financial advice. All data and opinions contained herein are for informational purposes only, may contain errors, and are subject to revision. You should consult with licensed professionals in their respective areas of expertise before making decisions about the topics covered herein. This material is not intended to reflect all circumstances, ranges, or possible outcomes. Your results and experiences will vary and will depend on your specific situation. No promises, assurances, offers, or guarantees are presented herein.
About GrantWatch
With over 8,000 grants currently available, GrantWatch.com is the leading grant listing directory. Upgrade to a MemberPlus+ subscription to view the full grant details, including eligibility criteria and application information. For more information, you can also visit the GrantWatch FAQ page. To see the great value of all 20 of the top GrantWatch features, click here. To conclude, watch the latest episode of GrantTalk, powered by GrantWatch, with host Libby Hikind. You don’t want to miss this. Visit us on YouTube weekly. Don’t forget to get your copy of The Queen of Grants: From Teacher to Grant Writer to CEO, by Libby Hikind.
