Why does a business hire a PEO?
Most business owners start a company because they have a passion for something. As the business grows, they become busy with a growing list of administrative demands and employee-related issues like benefits, recruiting, training and orientation. They grow more and more distant from the work that fueled their passion in the beginning.

By taking over administration and employee-related issues, Tandem gives the business owner the time to focus on the ideas and passions that led to starting the business.

What is "co-employment"?
The client and the PEO share the right to direct and control employees:

Will I lose control of my business?
No. The PEO and the client become partners in the employment of the workers. The client retains ownership of the company. The PEO and client contractually share employer responsibilities and liabilities.

The PEO concept is designed to give business owners more time and energy to focus on planning, strategy, revenue and profits, while leaving employee administration to an outside expert.

Are you going to tell me who can and can't work for me?
No. All hiring decisions are left to the client. Because liability is shared, the PEO assists with termination guidelines to reduce the potential for lawsuits. This shared liability also serves the client in having a PEO partner that is proactive rather than reactive, since both companies have responsibility.  We do, however, offer recruiting services to assist clients with the hiring process.

Do I have to put every employee on the payroll?
Yes-there is absolutely no gray area on this question. If employees are not on payroll, the client does not have the full benefit of Workers' Compensation coverage and other protections. Tandem does not handle 1099 employees.

Can I leave everyone on salary? I don't pay overtime.
It is important for the client to understand proper classification of employees as hourly or salaried workers. Wage and hour liability is fast becoming employers' biggest exposure.

Employers must recognize that exempt status is a law, not an employer's choice.
Since the PEO is also liable, wage law compliance is mandatory.

Why do you need a security deposit?
A security deposit is escrowed to cover one month's payroll in the event of non-payment or bankruptcy. The security deposit provides mutual protection and stability for Tandem and each of its clients.

What happens if I can't pay the security deposit all at once?
Tandem will make arrangements that suit the clients' needs. Alternatives that may be available include:

• Short-term multiple payments
• Bonds, insurance, or personal guarantees
• Loans or letters of credit

If your question is not covered here, please contact us. We will respond within 2-3 business days. If your need is more urgent, please call us at 630.928.0510.