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Frequently Asked Questions


Please browse our Frequently Asked Questions. Just click on the question to view the answer. If you can't find what you are looking for, you can submit a FAQ using the link below.

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General

How does a PEO arrangement work?
I
n the relationship among a PEO, a worksite employee, and a client company, there exists a co-employment relationship in which both the PEO and client company have an employment relationship with the worker. The PEO and client company contractually allocate and share traditional employer responsibilities and liabilities.

The PEO assumes responsibility and liability for the "business of employment" including risk management, human resources, labor law compliance, payroll resource, payroll, and employee taxes. The client company manages product development and production, marketing, sales, and service. The PEO assumes and establishes an employment relationship with the worksite employee and provides a complete human resource and employee benefit package.
What is the difference between temporary staffing service and a PEO arrangement?
A
temporary staffing service recruits employees and assigns them to client's workforce in special situations. A PEO arrangement involves all or a significant number of the client worksite employees in a long term, non-project-related, employment relationship, the PEO assumes the employer responsibility for employment tax, Benefit plans and other human resource purposes.
What responsibilities are typically assumed by PEOs?
P
EOs assume responsibility and liability for payment of wages and compliance with the rules and regulations governing the reporting and payment of federal and state taxes on wages paid to its employer for federal income and unemployment tax, and case law affirms the principle that PEO is responsible for payroll taxes.

As the employer form employment tax and employee benefits, PEOs assume responsibility and liability for payment of state unemployment taxes. Most states recognize the PEO as the employer for UIPEO as the employer of worksite employees for purposes of providing the PEO as the employer of worksite employees for purposes of providing workers' compensation coverage.

Additionally, PEOs provide worksite employees with coverage under the entire spectrum of employment laws and regulations, including federal, state, and local discrimination laws, Title VII of the 1964 Civil Rights Act, Age Discrimination in Employment Act, ADA, FMLA, HIPAA, Equal Pay Act, and COBRA. In some cases, these laws would not apply to workers at small businesses with out the PEO relationship, since many statutes have exemptions based upon the number of workers in a work force. Once included in, the workers are protected by these laws.
Why would a worker want a PEO as an employer?
W
orkers seek financial security, quality health benefits, a safe working environment, and opportunities for retirement savings. PEOS may provide Fortune 500 Quality employee benefits including health insurance, 401 (k) savings plans, and aggressive workplace risk management. Job security is improved as the PEO's economy of scale permits a business to lower employment costs. Job satisfaction and productivity increase when workers are provided quality human resource services.
What is the future of the PEO industry?
A
merican business is undergoing a fundamental change in human resource management. Driven by the needs of business owners seeking solutions to the increasingly complex "business of employment," the PEO industry is leading the way as the staffing solution of the future.
What pay schedule does T&T Staff Management use to pay my employees?
Y
ou may choose to stay on your current pay schedule or select a new one.
Is a co-employee arrangement accepted by my insurance certificate holders?
C
ertainly. T&T Staff Management can make certificate requests quick and easy.
What kinds of payroll deductions are taken from my employees' payroll?
D
eductions may vary by state. Most states allow the following: voluntary deductions (i.e., health insurance, dental insurance, vision insurance, 401(k), Section 125), non-voluntary deductions (i.e., Medicare, Social Security), garnishments, child support and IRS levies. For specifics on deductions in your area, contact Alamo Staff.
What do I do with my state quarterly tax information for the first quarter after I have signed on with T&T Staff Management?
W
hen you join with T&T Staff Management, you no longer have employees to report. Simply send the quarterly tax form back to the state, reference that your employees are now with T&T Staff Management, and mark "final return" on the form. If you paid employee wages for any time during the quarter, you are still responsible for reporting those wages and paying.
What should I do when I receive a request for information on an unemployment claim?
I
f you receive a state unemployment claim/request form, you should contact T&T Staff Management Unemployment Department. Promptly fax the unemployment form to ASL whether it is in T&T Staff Management name or your company's name. T&T Staff Management's will obtain information from you as to why the employee was terminated.