Dinsmore Steele Business Blog
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Dinsmore/Steele Joins NAPEO
Dinsmore/Steele, the Human Capital Authority, announced this week that it has joined the National Association of Professional Employer Organizations (NAPEO). According to NAPEO’s website, it is America’s largest trade association for professional employer organizations (PEOs).
What’s your Administrative Percentage for your PEO?
Often times we find that very intelligent CFOs and CEOs are still challenged to figure out exactly what they are paying. While the Payroll and big-box PEOs show the client the administrative percentage, it’s still very difficult to decipher what you are paying because your State Unemployment Rate Assessment (SUTA, SUI), Workers’ Compensation, Health Insurance, as well as your State and Federal taxes are included in that percentage. So in order to accurately identify what you are paying you to have to mathematically back out the numbers.
Professional Employer Organization Enrollment Fees
Most Professional Employer Organizations (PEO) charge an enrollment fee for joining them. First let's examine what an enrollment fee is and why PEOs charge one, when you join a PEO they do an immense amount of work and require a significant amount of resources to ensure a smooth transition to their platform. Therefore they charge an enrollment fee to offset the expense of the resources utilized.
The Value of Wasted Time
Some time ago, I read a book about how to build and operate a lean startup. The book, aptly titled The Lean Startup by Eric Ries, is a great read and more importantly, vital in my opinion to operating a company in today’s environment. Many of the ideas outlined in the book were things we have already been doing without knowing, simply because necessity breeds innovation.