PEO Risk Management: PrismHR Has You Covered
PEO Risk Management is an important consideration for your business. Consider an employer who has two separate facilities operating under separate business names but reporting taxes to a single Employer Identification Number (EIN). What if one person works 30 hours for each of the two businesses in one week? If not flagged and handled properly by the payroll system, the main company could be violating fair labor (FLSA) laws by paying someone to work 60 hours in a week, without paying overtime.
PEOs and other HR Service Providers have to deal with problems like these daily. Now multiply these stories by the number of clients you have – and their employees – and we’re talking about PEO risk management complexity that simply can’t be managed properly with spreadsheets or with programs not designed to accommodate all of these different variables.
In today’s complex world of HR compliance, it’s imperative to use software designed to limit your risk. Let’s look at some of the ways PrismHR has your back when it comes to managing risk for PEOs.
PEO Risk Management Challenges with Regulations and Client Customization
Sometimes it seems like there are more government regulations than stars in the night sky. There are approximately 38 million American workers who live and/or work across state boundaries and municipalities. About 4 million are currently serviced by PEOs and ASOs today, but all 38 million of them create the same compliance challenges for their employers. Staying compliant with all the regulations governing today’s highly mobile workforce requires software that is just as agile.
Here are some more of the PEO risk management scenarios that PrismHR’s human resource software for PEOs, ASOs and HR service providers handles routinely:
- Affordable Care Act (ACA) compliance. PrismHR helps you takes care of ACA forms 1094 and 1095, the large employer test, FTE employee identification, the 9.5% test, and more with our ACA compliance software.
- PrismHR accurately automates the calculation of taxes for employees who live in one state but work in another. You can actually pay an employee in multiple tax jurisdictions within a single pay period on the same check – automatically.
- PrismHR stops payroll management mistakes before they happen. For example, if you terminate an employee mid-month, the system will automatically collect the correct deductions so you don’t miss it.
- Certified payrolls, minimum wage compliance, and calculations for trucking firms and unions: PrismHR is agile enough to handle all the ins and outs of these complicated industry rules, using drop-down menus and intelligent, flexible choices so you can customize for clients, situations, and special employee considerations.
- PrismHR payroll software automatically “red flags” irregularities in timesheets or other issues affecting payroll, reducing risk and helping to create a reliable audit trail.
- If a client is marked as a wire transfer, PrismHR keeps you from finishing payroll until you have received the wire.
- PrismHR can be set to check max salaries. For instance, it will automatically alert you if someone who was supposed to be receiving a thousand dollars a week is accidentally set to receive a thousand dollars an hour.
- PrismHR can retroactively enroll employees in benefits, automatically calculating what the client and employee owe and billing accordingly so benefits enrollment is a snap.
- PrismHR stores all EINs for PEO clients in one database. A single client could have EE’s in multiple EINs for employees with different work comp amounts and different bank accounts. PrismHR makes it simple.
- PrismHR can run reporting across multiple calendar years and EINs. All data is marked with a date, allowing information from years past to be easily incorporated into a single flexible system.
- With an integrated solution, you have one login to access multiple client dashboards.
- You can drill down to the individual employee pay level if you need to, or deductions and garnishments, and much more.
- Your clients can use the employee self service portal to access the information they need at any time, all through a user-friendly dashboard.
These are just some of the ways PrismHR watches your back every day with PEO risk management that helps you serve clients in the most professional manner possible.