Frequently Asked Questions:

• What is a PEO?
• Who uses a PEO?
• How does a PEO arrangement work?
• Why would a business use a PEO?
• Do the business owners lose control of their businesses?
• How do PEOs help their clients control costs and grow their bottom line?
• How do employees benefit from a PEO relationship?
• Who is responsible for the employees' wages and employment taxes?
• Who is responsible for state unemployment taxes?
• Will I be locked into a contract?
• How will the transition from a current arrangement to a PEO arrangement happen?
• What day do employees receive payroll?
• Can I report my payroll and receive reports online payroll?
• How can I submit my payroll information?
• What states is AES licensed to do business?
• I currently do payroll on my own computer, is that better than having a payroll service?
• Do I have to provide health insurance for my employees?
• What type of Insurance does AES offer?
• How can AES negotiate better rates than I can get on benefits?
• Will AES administer my group policy for me?
• What can AES do to improve the safety and health for my employees and me?
• What are some of the training programs required by OSHA?
• Why is safety training important?
• Does AES offer Food Safety Training courses?
• Does AES offer CPR/First Aid Training?
• How will I save on workers’ comp premiums with AES?
• Will I have to be involved in a workers’ comp claim?
• How can I verify I have workers’ comp. coverage through AES?
• As a contractor, getting a job sometimes depends on providing proof of coverage to the person awarding the job. How does AES help me?
• What if an employee lost or never received his or her payroll check?
• How can an employee change his or her exemptions?
• Does overtime need to be paid for exempt employees?
• What is Payroll Tax?
• What is SUTA?
• What is a Payroll Register?

What is a PEO?

As a Professional Employer Organization (PEO/AES) provides services that cost-effectively outsource the management of human resources, workers' compensation / risk, employee benefits, payroll and compliance required for these functions. AES allows business owners to focus resources on growing their company through increased productivity and profitability and decreased liability.

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Who uses a PEO?

Any business can find value in a PEO relationship. An average client of a NAPEO (National Association of Professional Employer Organizations) member PEO has 17 worksite employees. Increasingly, larger companies are finding value in a PEO arrangement, because PEOs offer robust Web-based HR solutions and expertise in HR management. AES can easily partner with large companies and work in conjunction with their existing human resources department.

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How does a PEO arrangement work?

Upon signing a service agreement, the co-employment relationship between the worksite employer (the client) and AES begins. The client company retains direction and control over the worksite employees. AES assumes much of the responsibility and liability in the areas of human resources, workers' compensation / risk management, benefits and payroll / tax compliance.

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Why would a business use a PEO?

Business owners want to focus their time and energy on the "business of business" and not on the "business of employment." As businesses grow, most owners find they lack the expertise necessary in human resources, payroll and accounting, regulatory compliance, risk management and employee benefit programs. AES provides access to expertise, benefits programs and other amenities while decreasing liability.

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Do the business owners lose control of their businesses?

No. The client retains ownership of their company and control over its operations. As co-employers, AES and the client will contractually share employer responsibilities and liabilities. AES typically only assumes responsibilities and liabilities associated with general employment for purposes of human resources, workers' compensation, benefits and payroll administration and compliance. The client has the responsibility of direction and control over the worksite employees. AES maintains employee records and promotes improved safety programs. AES focuses on employment-related issues and the client is responsible for the actual business operations.

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How do PEOs help their clients control costs and grow their bottom line?

The PEO's economies of scale enable each client company to save in areas of benefit plans, worker's compensation, tax rates and administration therefore increasing their bottom line. The client can maintain a basic in-house HR infrastructure or none at all by relying solely on AES. The client can also reduce costs associated with employee turnover by attracting and retaining quality employees. The professionals at AES help protect their clients against liability. The client can pay a small amount for significant technology and service infrastructure platforms provided by AES. This enables the business owner time to focus on the company's core competency and grow its bottom line.

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How do employees benefit from a PEO relationship?

Employees gain access to affordable Fortune 500 benefits including insurance, retirement savings plans, employee assistance programs and discount programs to name a few. They will enjoy a safer working environment and access to training programs. Employee morale and productivity increase as a result. AES' buying power allows business owners to lower costs and for worksite employees this means job security. Overall, job satisfaction will increases when employees have access to these services.

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Who is responsible for the employees' wages and employment taxes?

AES assumes responsibility and liability for compliance with the rules and regulations governing the reporting and remittance of federal and state taxes on worksite employee wages. The client is responsible for sales tax, property tax, and any other applicable taxes not related to employees.

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Who is responsible for state unemployment taxes?

AES assumes responsibility and liability for payment of state unemployment taxes. Most states recognize the PEO as the responsible entity. In states that require the PEO to report unemployment tax liability under its clients' account number, AES can still manage that responsibility.

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Will I be locked into a contract?

Client Service Agreements typically provide for a mutually beneficial working relationship and include an out clause allowing the contract to be terminated by either party at any time with advance written notification and a set period of time allotted after notification and before termination.

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How will the transition from a current arrangement to a PEO arrangement happen?

A Client Service Agreement is signed. A representative will conduct an orientation at the client location or at AES. This is the time for employees to ask questions and understand the benefits of the outsourcing model. Employees always feel more comfortable when they know the who, what, when, where and why. Employees complete new employee packets and it is as easy as that.

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What day do employees receive payroll?

AES works with clients to maintain a payroll schedule that most benefits clients and their employees.

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Can I report my payroll and receive reports online payroll?

Yes, all you need to do is login with a username and password.

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How can I submit my payroll information?

Phone, Fax, E-mail or Online.

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What states is AES licensed to do business?

Alabama, Arkansas, Florida, Colorado, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, North Carolina, Nebraska, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Virginia, Wisconsin. If you do not see your state, contact us.

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I currently do payroll on my own computer, is that better than having a payroll service?

Many clients find that outsourcing with a AES far less expensive than doing it on their own, especially when you consider the cost of buying supplies, employing a staff of experts and purchasing software that requires updates to keep current on changing tax laws and rates and the opportunity cost of the time spent on these administrative functions.

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Do I have to provide health insurance for my employees?

Employers are not required to provide employees with health insurance, but most employers make this a common practice in order to attract and retain quality employees. An employee is likely to stay with a job longer if an attractive benefits package comes with it.

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What type of Insurance does AES offer?

Major Medical to groups, individuals and families. Dental, Vision, Life, STD, LTD and other supplemental policies. AES also offers Auto, Homeowners and General Liability Insurance policies at a discounted price. With many different plans and options to choose from, AES has the right plan to cover your employees!

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How can AES negotiate better rates than I can get on benefits?

As an employer of thousands, AES enjoys greater buying power when purchasing employee benefits. This not only applies to employee medical benefits (i.e. health and dental insurances) and financial benefits (i.e. 401(k) and Section 125) but also to workers’ compensation rates. AES offers better workers’ compensation rates because its claim experience is spread over a much larger number of employers.

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Will AES administer my group policy for me?

AES will administer all of your insurance needs from enrollment to additions, terms and changes to Cobra (on certain policies). This is done as a service for our clients based on your business' unique needs and wants.

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What can AES do to improve the safety and health for my employees and me?

Our safety team will help you establish a safety program to prevent accidents. We provide safety manuals, OSHA required written programs, training, accident investigations, consultations, inspections, affordable health plans and much more.

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What are some of the training programs required by OSHA?

Training requirements are based on the specific operations at your worksite. Some examples of OSHA required training are: Personal Protective Equipment, Hazard Communications, Forklift, Fall Protection, Scaffolding, Lockout/Tagout, Respiratory Protection, and Bloodborne Pathogens.

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Why is safety training important?

Training provides your employees with critical information that is necessary to perform their jobs safely. Many accidents occur because workers did not have the necessary training and experience to work safely.

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Does AES offer Food Safety Training courses?

Yes, we provide ServSafe Food Protection Manager and Food Handler Certifications.

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Does AES offer CPR/First Aid Training?

Yes, we provide Red Cross First Aid, CPR, and AED classes at our location, or at your worksite, if a training area is available.

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How will I save on workers’ comp premiums with AES?

Through its safety and claims management programs, AES is able to minimize workers’ compensation claims and the costs of claims. By helping you reduce your claims and by managing a claim to keep costs at a minimum, you save on premium. The most significant thing that you and AES can do to keep costs down is work together to prevent injuries

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Will I have to be involved in a workers’ comp claim?

You will need to provide the injury report and any information regarding how an injury occurred. If an injury results in an employee having temporary restrictions, AES will help you identify how you can accommodate those restrictions. If the nature of the job is such that it is truly impossible to accommodate the restrictions, AES routinely places injured workers in volunteer jobs, which are paid by AES.

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How can I verify I have workers’ comp. coverage through AES?

You will receive a Certificate of Insurance.

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As a contractor, getting a job sometimes depends on providing proof of coverage to the person awarding the job. How does AES help me?

At any time, any client of AES can fax a request to provide a Certificate of Insurance to a specific company or government agency. The certificate is normally faxed or emailed to the “cert holder” within 1 business day.

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What if an employee lost or never received his or her payroll check?

AES should be notified and will then verify if the check has been cashed. Once it’s verified that the check has not been cashed, we will place a stop payment and reissue a new check.

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How can an employee change his or her exemptions?

A new W-4 must be submitted to AES.

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Does overtime need to be paid for exempt employees?

The law does not require any overtime pay for exempt employees. It is up to the company if they want to pay the employee for working extra hours. AES can help you determine which employees are exempt under FLSA.

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What is Payroll Tax?

Payroll tax generally refers to a tax which employers are required to withhold from employees paychecks. In the United States, employers are required to withhold federal income tax, social security tax and Medicare tax. Together, social security and Medicare are known as FICA (Federal Insurance Contributions Act). In some states employers may be required to withhold a state income tax and or local income tax.

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What is SUTA?

SUTA is the acronym for State Unemployment Tax Account. It is a required tax paid by employers. It is not a payroll deduction for employers.

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What is a Payroll Register?

A summary of payroll information for a pay period. It lists every employee earning wages during that pay period, along with deductions and the net pay amounts.

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