New Regulations, New Laws, and More- Outsourcing Your Human Resources in 2019

Outsourcing Human Resources

We get asked all the time “What is a PEO?”

We simply answer with “A PEO is a professional employer organization and we do all the back-office functions for small to midsize businesses.”

Without hesitation the first reply is usually “Oh, you’re a payroll company.”

Yes, we do payroll services.  Yet we do so much more that most business owners, sadly, don’t know about.  To borrow a line from Clay Kelley, “We solve problems in human resources, workers’ compensation, risk management, employee benefits and payroll administration…our goal is to increase your profitability, maximize employee productivity, reduce time spent on transactional HR activities, reduce employment related liability and ultimately lower labor cost…Does that make sense?”

After hearing this is when the light bulb goes on and that’s when business owners become more engaged in talking about issues they may face in their industry.

The Top 5 HR Issues Facing Business Owners Today

The top 5 Human Resources issues we have encountered when speaking and working with business owners are as follows:  controlling workers’ compensation costs, controlling rising healthcare costs, retaining key talent, human resource compliance, and payroll and tax compliance.   Each of these topics is explored more in-depth below:

1.  Workers’ Compensation.  One of THE largest drivers of rising labor costs, especially in industries where physical labor is done. If one cannot control claims and losses, the true cost of labor can escalate rapidly, making the company unable to compete in its own industry. When poorly managed, workers’ compensation cost can easily rise to 30-40% above that of the competition. America’s Back Office has saved one of our valued clients over $1.2 million in workers’ compensation in the past 3 years.  How is that possible?  Learn more here.

2.  Employee Benefits.  Since the advent of the Affordable Care Act (ACA), otherwise known as Obamacare, business owners have been facing annual, double-digit cost increases for health care benefits. These escalated costs are a top concern for business owners who are constantly trying to find the best solution to this growing issue. PEO’s have economies of scale working in their favor when purchasing insurance.  The law of large numbers dictates the ability to buy group plans at a discounted rate that offers the opportunity for companies to save thousands of dollars annually in reduced costs. However, the cost of health care benefits is simply one aspect.  Administering a healthcare plan can be very cumbersome and time consuming for most business owners.

3.  Retaining Key Talent.  Studies have shown that monetary compensation is only one part of the equation for creating happy employees. In this day and age of rising benefit costs, health care plans, ancillary benefits, and retirement plans are highly sought after by the American worker. Companies that cannot offer these types of benefits are at a big disadvantage as the labor market tightens. For example, a 401K is cost prohibitive for many small to midsize businesses because it can cost several thousand to start a plan.  In addition, if there are more than 100 employees, a 5500 audit is necessary at the end of the year at a minimum cost of $10,000. America’s Back Office offers our valued clients a free 401K as a part of its employee benefits packages.

4.  Human Resource Compliance.  The business of employing people is laden with many pitfalls and expensive learning experiences.  We have spoken at length with business owners about the stress incurred and monetary losses suffered due to poorly managed human resources. From lawsuits ranging from wrongful termination to sexual harassment, the attorney’s fees and settlements are astronomical. At America’s Back Office, we manage these issues and lift much of the liability off the owners back by diligently managing all the processes regarding employment and advising our valued clients of the best business practices in any given situation.

5.  Payroll and Tax Compliance.  Getting paychecks to employees is not complex, but it is a very important process. Most companies in the United States outsource their payroll because it makes fiscal sense to do so. Paying taxes in a timely fashion and paying them correctly can be both costly and time consuming.  No business owner or manager likes the stress of tax time or the fear of making mistakes. When a business engages with a PEO, the financial burden rests with the FEIN of the company that files the taxes which is the PEO.  America’s Back Office has an outstanding record of keeping all our valued clients in good standing with all the relevant state, local, and Federal agencies.

Why Choose A PEO Like America’s Back Office?

For 20 years, America’s Back Office has been a leading Professional Employer Organization that has grown from a start up to a large PEO servicing business throughout United States including Guam, Puerto Rico, and the Virgin Islands.

Why Business Decision Makers Turn To Us For Their HR

Our expansive footprint throughout the United States has made us essentially a Fortune 500 level HR Department for hire!  Below are some very key reasons why business owners turn to us as to provide turn-key human resources services:

  • We are privately owned, so we aren’t beholding to shareholders, private equity groups, or silent partners.  Because we are closely held business, we are on average 20-40% lower in cost than our larger, publicly held competitors.
  • Our service model is flexible and allows us to provide an unparalleled level of service.
  • We find the best way to seamlessly integrate our platform into our valued client’s current operating system, so it minimizes disruptions to their day-to-day processes. Our competitors offer services in a box and require that clients fit inside their service platform.  We do the exact opposite.  We believe that your company should be run your way.  This means that we become your Fortune 500 HR Department, your way.
  • Cost savings for our clients is noticeable when they use the services of America’s Back Office.  However, what really catches business owners’ attention is the speed, agility, accuracy, and customization applied to the implementation and management of their HR functions.
  • Most importantly, we never ever lose the human element of Human Resources outsourcing.

Take The Next Step

Our team of HR experts is here to help you from the very start.  Give us a call today at (586) 997-3377, contact us through our website, or feel free to email us directly at

To learn more, see our page “The Definitive Guide to Workers Compensation”.