|
Who is SCI?
|
|
|
Established in 1985, SCI is a "Best in Class" provider of HR outsourcing,
specializing in payroll, human resources, employee benefits, and workers
compensation administration. SCI has more than 1,000 client companies servicing
45,000 worksite employees (aka co-employees) nationwide. SCI is ranked among
the top five Professional Employer Organization (PEO) in Tampa (Tampa Bay
Business Journal) and top ten PEOs in Florida (Source: Florida Trend). SCI is a
longstanding member of the National Association of Professional Employer
Organization (NAPEO) and the Florida
Association of Professional Employer Organization (FAPEO). For more information,
visit SCI's website at www.scicompanies.com.
|
|
|
TOP
|
|
|
What is a PEO?
|
|
|
A professional employer organization (PEO) is a company which contractually
assumes and manages critical human resource and personnel responsibilities and
employer risks for its small to mid-sized businesses by establishing and
maintaining an employer relationship with worksite employees.
|
|
|
TOP
|
|
|
Who uses a PEO?
|
|
|
The average client customer of a PEO is a small business with 16 worksite employees, though larger businesses also find value in a PEO arrangement. These small business customers include every single type of business from accountants to small manufacturers and every profession in between including doctors, retailers, mechanics and more.
|
|
|
TOP
|
|
|
How many Americans are employed in a co-employment PEO arrangement?
|
|
|
PEOs are operating in all 50 states and the average PEO continues to grow more than 20% each year. Today, it is estimated there are 700 PEOs responsible for generating more than $43 billion in gross revenues.
|
|
|
TOP
|
|
|
How does a PEO arrangement work?
|
|
|
Once a client company contracts with a PEO, the PEO will then co-employ the client's worksite employees. In the relationship among a PEO, a worksite employee, and a client company, there exists a co-employment relationship in which both the PEO and client company have an employment relationship with the worker. The PEO and client company responsibilities and liabilities. The PEO assumes responsibility and liability for the "business of employment" such as risk management, personnel management, human resource compliance, and payroll & employee tax compliance. The client company retains responsibility for and manages product development and production, business operations, marketing, sales, and service. The PEO and the client will share certain responsibilities for employment law compliance. As a co-employer, the PEO will often provide a complete human resource and benefit package for the worksite employees.
|
|
|
TOP
|
|
|
Will I lose control of my business?
|
|
|
No. SCI and the client become partners in the employment of the workers. The client retains ownership and management of the company.
|
|
| Employer Responsibilities |
SCI Responsibilities |
Run the business
Develop new business
Focus on profits
Manage employees
Worksite safety
|
Workers’ Compensation
Payroll
Assistance with Human Resources
Benefits
New Hire Reporting
W-2s
|
|
|
|
TOP
|
|
|
Are you going to tell me who can and cannot work for me?
|
|
|
No. All hiring decisions are left to the client. However, the PEO assists with termination guidelines to help reduce the potential for lawsuits. The assistance provided by the PEO allows the client to proactively assess and manage its potential liabilities.
|
|
|
TOP
|
|
|
Do I have to put every employee on the payroll?
|
|
|
Yes. If employees are not on payroll, the client does not have the benefit of Workers’ Comp coverage and other protections for those employees.
|
|
|
TOP
|
|
|
May I leave everyone on salary? I do not 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 one of the employers’ biggest exposures. Employers must recognize that exempt status is a law, not an employer’s choice. Wage law compliance is mandatory.
|
|
|
TOP
|
|
|
How will the human resources function be administered?
|
|
|
Through the establishment of a co-employment relationship, whereby the employer and their employees assume benefits and workers’ compensation coverage through SCI Companies’ plans. SCI will also process payroll, administer any possible 401(k) participation as well as safety and loss control services and HR administration.
|
|
|
TOP
|
|
|
How will services be delivered?
|
|
A Client Service Professional (CSP) is assigned to each client account to answer employee’s HR-related questions via a toll-free phone number. CSPs have achieved the designation of Professional in Human Resources (PHR) or Senior Professional in Human Resources (SHRM).
SCI’s robust web-based HR technology is an important component of our high-touch, high-tech service delivery model. The SCI HR Portal is a one-stop-shop for HR and wage reporting. Our approach takes the guesswork out of handling human resources transactions and reduces employer liability for both our client and SCI.
|
|
|
TOP
|
|
|
Do I have to offer health benefits to my employees?
|
|
|
No. However, offering health benefits to your employees is a powerful recruiting and retention tool. Seventy-six percent of employees rank health insurance as the most important benefit for overall employee job satisfaction, according to a national survey. Additionally, insured workers are less likely to file workers compensation claims. If you choose to provide health benefits to your employees, there are provisions for employer contribution.
|
|
|
TOP
|
|
|
What is the value of benefits?
|
|
|
Shift the administrative burden of HR to experts in the field
Free up time to focus on core business issues
Increase profitability through reduced turnover and greater productivity
Better align your business strategy with your people strategy
|
|
|
TOP
|
|
|
Can I keep my existing health insurance?
|
|
|
Yes. Although we can take the necessary payroll deductions for the premiums, we can neither administer your plan nor could our HR professionals at our Call Center assist with any inquiries.
|
|
|
TOP
|
|
|
Do I have to participate in the Drug-Free Workplace Program?
|
|
|
No. Unfortunately we cannot pass on a discount that our Workers’ Compensation Insurance underwriter awards us for participation.
|
|
|
TOP
|
|
|
What forms of payment do you accept?
|
|
|
COD – Cashier’s Check, Wire Transfer (required for Direct Deposit of payroll), ACH Debit (subject to credit approval).
|
|
|
TOP
|
|
|
How would this relationship affect my Business Liability Insurance?
|
|
|
The only effect will be that you must have SCI added as an additionally insured to your General Liability and/or Automobile Liability Insurance.
|
|
|
TOP
|
|
|
Who is responsible for withholding taxes deposits and filing tax reports?
|
|
|
As the employer of record, SCI will manage those aspects of running the business as well as preparing year end W-2s and W-3s (See Scope of Services).
|
|
|
TOP
|
|
|
Contact SCI today to discover how we can customize a package to meet your human resource needs and help your company reach its full potential.
|
