About Us: Frequently Asked Questions
Are PEOS recognized as employers at the state and federal levels?
Yes. PEOs operate in all 50 states. Many states provide some form of specific licensing, registration, or regulation for PEOs. These states statutorily recognize PEOs as the employer or co-employer of worksite employees for many purposes, including workers' compensation and state unemployment insurance taxes. The IRS has accepted the right of a PEO to withhold and remit federal income and unemployment taxes for worksite employees. The IRS has promulgated specific guidance confirming the authority of PEOs to provide retirement benefits to workers.
Why would we use a PEO?
Our clients come with us, and stay with us because they want to focus their time and energy on the "business of their business" and not on the "business of employment." As businesses grow, most owners do not have the necessary human resource training; payroll and accounting skills, the knowledge of regulatory compliance, or the backgrounds in risk management, insurance and employee benefit programs to meet the demands of being an employer. TLC gives you access to many benefits and employment amenities you may not have otherwise.
Won't we lose control of our company?
No. In fact, our purpose is to help you gain MORE control of your company. You retain ownership of the company and control over its operations. As co-employers, TLC will contractually share or allocate employer responsibilities and liabilities with you. TLC assumes responsibilities and liabilities associated with a "general" employer for purposes of administration, payroll, taxes and benefits. You will continue to have responsibility for worksite safety and compliance. In general terms, TLC will focus on employment-related issues and you will be responsible for the actual business operations.
Won't I lose control of hiring my drivers?
You don't lose control over your drivers. TLC does a complete DOT screening of all drivers, including MVRs, DAC reports, physical reports, and drug screening. We have a lower "washout rate" than most trucking companies.
Is this employee staffing?
No. TLC does not supply employees to worksites. We supply services and benefits to your existing workforce. TLC enters into a co-employment arrangement typically involving all your existing worksite employees in a long-term relationship, and sponsor benefit plans for the workers and provide human resources services to you. If our relationship is terminated, your employees co-employment arrangement with us ceases, but they will continue to be your employees.
By comparison, a leasing or staffing service supplies new workers. These leased employees return to the staffing service for reassignment after completion of their work with the client company. Upon termination of the staffing or leasing company arrangement, the worker has no continuing employment relationship with you.
Historically, leasing terminology was used to describe what has evolved into PEO relationships. Some older state statutes governing PEOs still use the leasing terminology, contributing to the confusion about PEOs.
My drivers will not like the fact we are using a PEO.
Actually, by offering direct deposit and several other employee friendly services, we find drivers are especially excited to have TLC. Your drivers will have their own user name and password so they can view their own payroll information and keep track of their vacation time and other benefits.
I am getting a lot of scrutiny on my independent contractors, can you help?
We have a lot of experience working with companies that have owner operators as well as company drivers. We can look at how you are doing things now and make suggestions on improvements. TLC will make sure that your employees are classified correctly with IRS Guidelines.
Is this a new concept/program?
No. In fact, we have been in business for over 25 years. It is estimated that 2-3 million Americans are currently co-employed in a PEO arrangement. The average PEO has grown more than 20 percent per year for each of the last six years, according to a survey of NAPEO members. About 700 PEOs that offer a wide array of employment services and benefits are operating today in 50 states. The PEO industry generates approximately $68 billion in gross revenues annually.
Does a PEO arrangement impact a collective bargaining agreement?
No. PEOs work equally well in union and non-union worksites. The National Labor Relations Board (NLRB) recognizes that in co-employment relationships, worksite employees are appropriately included in the client employer's collective bargaining unit. Where a collective bargaining agreement exists, PEOs fully abide by the agreement's terms. PEOs endorse the rights of employees to organize, or not organize, under state and federal laws.
We have always done our own payroll. We're just not comfortable giving that up.
We understand. Good news, you can continue to manage the entire payroll process from beginning to end, including printing the checks right in your office. Our role is to process the payroll amounts you give us, handle tax payments, and wage garnishments. We haven't yet found a payroll we couldn't work with.
We already have very good people that handle all of this.
Our clients feel the same way. They, like you, have very capable people who manage payroll, driver screening, safety, and HR. Our role is NOT to replace anyone. The goal is to help free up some of their time, so they can devote that time to more productive activities. We are not in the business to eliminate jobs.
We have shippers that require "A" rated coverage for WorkersComp.
TLC can produce certificates for you, verifying our A+ rated coverage.
You will use offshore people to work on our account.
We don't use any offshore services or companies
Isn't this just for small companies?
TLC serves companies of all sizes from 1 to over 900. Any company that is looking for ways to "do more with less" find tremendous value in our services.
Isn't this just for companies that can't get Workers Comp coverage in the standard market?
This is a common belief. Truth is, most of the new clients that start with us had very competitive offers in the standard market
I have lots of "horror" stories about companies that have used PEO's - like not paying taxes.
Like any other industry, there have been some bad PEO's, but based on longevity, and lots of satisfied customers, you should check us out. We have many internal checks and balances to ensure things are done right.
How are you any different than other PEOs out there?
First, we have been in business for 25 years, with an outstanding reputation in the trucking community. We specialize in trucking, and as a result all our employees are very familiar with the industry. That also allows us to tailor specific products and services unique to the trucking industry. Finally, in general, we are highly automated. We continue to enhance our IT services to meet the needs of ever-changing technology.
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