Frequently Asked Questions
What does a PEO do?
A professional employer organization provides a way for businesses to outsource the management of HR, benefits and workers’ compensation, etc.
What kinds of businesses use PEOs?
Almost any business can benefit from a PEO relationship. Our clients range in size from five to 500 employees with 36 being the average.
What kinds of companies can PEOs help?
PEOs can help a wide range of businesses–from contractors and manufacturing companies to high-technology companies and service organizations.
How does a PEO work?
When a client establishes a relationship with a PEO, the PEO co-employs the client’s worksite employees. The PEO handles most of the issues regarding risk management, human resource outsourcing, HR management, payroll and employee tax compliance and employee benefits. The client company is responsible for its core business functions, like product development and production, business operations, marketing, sales and service. The PEO and the client company share some responsibilities for complying with employment statutes.
How many Americans do PEOs employ?
Between 2 and 3 million Americans are currently co-employed in a PEO arrangement. There are about 700 PEOs operating in the U.S. today. PEOs retain 86 percent of their clients because the majority of client companies are very satisfied with these arrangements.
What is the growth rate in the PEO industry?
The average PEO has grown at a rate of more than 20 percent per annum for each of the past six years. Why? Because the service helps their clients grow.
How do PEOs help clients control costs and have more time to grow their businesses?
A PEO’s economy of scale allow client companies to reduce employment costs and increase their bottom line. The PEO saves the client company time by handling routine HR and administrative tasks. The PEO can also provide assistance with key compliance issues, mitigating the client’s vulnerability to many liabilities.
How does a PEO benefit employees?
Employees experience greater job satisfaction and increased productivity when organizations provide them with professional HR services, training and safety services. Often, a co-employment relationship allows employees to take advantage of an expanded employee benefits package—including group medical, 401(k) and life and disability insurance.
Who is responsible for employee wages and employment taxes?
PEOs assume responsibility and liability for paying wages and for federal and state taxes on wages paid to employees.
Who provides workers’ compensation insurance and claims administration?
The PEO provides both of these services.
How long has G&A Partners been in business?
G&A was founded in 1995.
Where are G&A’s offices?
G&A Partners is headquartered in Houston, Texas, and has offices in Austin, Dallas, San Antonio, College Station and Corpus Christi.
How many employees does G&A currently co-employ in PEO relationships?
G&A currently co-employs some 7,000 employees in more than 20 states.
Is G&A growing?
Yes! We have been recognized as one of the fastest growing, privately held companies in the United States, one of the top 10 emerging firms in southeast Texas and one of the largest Hispanic firms in the country.
Does G&A have any special certifications?
G&A is certified as an SDBE, HUB and MBE by the U.S. Small Business Administration, National Minority Purchasing Council and various state and local governments.
