Q. Why would a business use TLC Companies?
A. Profitability is your first concern. Having employees is a necessary part of that for any thriving business. Unfortunately, administrative employment tasks can take away your focus. Let TLC handle all those employment hassles while you concentrate on growing your business.
Q. I run a large operation in four states. Can I use TLC at all of my locations?
A. You bet. You can even put most of your headquarters staff under the plan, too.
Q. In a PEO arrangement, with TLC Companies, does the business owner lose control of his or her business/employees?
A. Absolutely not. As co-employers, TLC and client/business owner become partners in the employment of their workers. The client retains the direction and control of the employees and manages the day-to-day activities of the employees. As co-employers, TLC and the client contractually share or assume employer responsibilities and liabilities.
Q. The co-employment arrangement sounds too good to be true, is it legal?
A. Not only is it legal in all 50 states and accepted by the IRS, but according to many business publications, a PEO is the single best way for companies, no matter what size, to lighten the burden of personnel administration costs AND to improve their bottom line.
Q. What is the difference between temporary staffing services and a PEO arrangement?
A. A temporary staffing service recruits employees and assigns them to clients to support or supplement the client's workforce in special situations. A PEO arrangement involves all or a significant number of the client workplace employees in a long-term, non-project-related, co-employment relationship. The PEO assumes the employer responsibility for employment tax, benefit plans, and other human resource purposes.
Q. Many of the people who do work for me are independent contractors and I'm getting a lot of questions from my state's department of labor and the IRS. How can employee leasing help?
A. Most often, co-employment is the perfect solution for the employer and the independent contractor. Here's why: When TLC leases workers to you, those workers are legally our employees. Most regulatory and taxing authorities accept this arrangement.
Q. But what about the independent contractors?
A. They'll probably welcome the arrangement. As you know, independent contractors must pay all their own withholding AND they pay the employer's and employee's share of Social Security and Medicare taxes. With a PEO, the individual working for you takes home nearly 10 percent more because he or she no longer must pay the employer share of Social Security and Medicare. Besides, they get great benefits, like health insurance and 401(k) retirement plan, something they may not have had. So in the case of converting independent contractors to employees, like in most every other case, everyone wins.
Q. Let's say I'm having trouble with one of my employees, he's always late and sometimes I suspect drug use. How much trouble is it to end his employment with my company?
A. No trouble at all. As a co-employer you maintain your ability to hire and fire.
Q. Okay, but we need to do some pretty heavy lifting from time to time. I need to ensure that any new employees can handle the work.
A. We screen applicants and can do background checks to see if the individuals will meet the physical demands of the positions.
Q. How would a PEO arrangement affect my office employees?
A. For the most part, a PEO arrangement makes life easier and better for support staffers. It removes most of the burden of employee and payroll administration and allows them to take on operations and new business-generating tasks.
Q. My turnover rate generally runs at about 25 percent, which means I spend a lot of time and money training new staff. Most who leave do so because they get benefits someplace else. How will a PEO help me?
A. High turnover is one of the most troublesome aspects of owning a business. Our benefits, which include access to health insurance, a 401(k) retirement plan, direct paycheck deposit, free credit union membership, and a host of other employee benefits help keep good employees working for you.
