5 Qualifications Reveal Whether Your PEO is Among the Industry's Best

By Jenny Barnes on Jul 20, 2023
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When a small business owner decides to outsource HR to a professional employer organization (PEO), multiple options are available, from large nationals to locally focused companies. Size is a consideration, of course, but what’s especially important is connecting with an industry best PEO. This will be the PEO you can count on to provide the highest level of service and expertise. 

To know if a PEO your small firm is considering working with is an industry best PEO, look for these five qualifications: 

Certified PEO 

First and foremost, look for a PEO certified by the IRS. This certification demonstrates that a PEO meets rigorous IRS requirements, ensuring compliance with tax and regulatory obligations.

It also means that the IRS recognizes the certified PEO (CPEO) as the party responsible for paying federal employment taxes on its clients’ employee wages. The CPEO personnel who make those payments undergo comprehensive background checks. 

Another small business benefit of IRS certification is that CPEO clients cannot be held liable for unpaid federal employment taxes. In the highly unlikely situation that a CPEO would fail to pay those taxes on a client’s behalf, the CPEO is the liable party. 

A CPEO fully vetted by the IRS, like Axcet HR Solutions, demonstrates a commitment to operating at the highest standards and provides assurance that your payroll taxes and reporting will be handled accurately, efficiently and securely. It is a must-have when looking for an industry best PEO.

Fewer than 10% of all PEOs nationwide are certified, a designation Axcet has held since 2017. We are proud to have been among the first 10% of PEOs across the country – and the first PEO in Kansas City – to ever receive IRS certification. 

the ultimate guide to certified PEOs

HR Certifications  

Industry best PEOs hire qualified and experienced HR specialists whose professional certifications demonstrate a deep understanding of employment regulations and HR management. These professionals are uniquely qualified to provide expert guidance and support in areas such as employee benefits administration, compliance, risk management and employee relations.

By partnering with a PEO that has certified HR professionals, you can access invaluable expertise and ensure your HR practices are in line with the industry standards and trends. 

HR specialists like ours, who take the time to study for and maintain professional certifications from the Society for Human Resources Management, the HR Certification Institute and the American Payroll Association, are committed to broadening their knowledge and helping clients achieve a healthy, engaged, efficient and regulation-compliant workplace. These certifications help ensure you have partnered with an industry best PEO. 

RELATED: 7 Reasons to Choose a PEO for Workers' Comp Insurance >>

Personal Service 

An industry best PEO provides each client with dedicated consultants who ensure consistent, personalized service. Local PEOs can be particularly helpful in providing quick, tailored, hands-on service when an urgent HR matter or question arises and when you need help with onboarding, manager training, safety workshops or benefits enrollment

Being able to meet with your PEO representative in person allows for effective communication, faster problem-solving and stronger relationships. Face-to-face service also helps the PEO better understand and promptly address your company’s unique HR needs, leading to a more personalized and satisfactory experience. 

RELATED: PEOs and Management Training - The Smarter Solution >>

Advanced Data Protection 

Data security is of utmost importance when outsourcing HR functions. An industry best PEO will have robust security measures in place to safeguard your sensitive employee and payroll data. The PEO will employ best practices, such as encryption, staff security training, secure data storage and regular data backups. 

Prioritizing data security ensures the confidentiality, integrity and availability of your HR data, instilling trust and peace of mind. Axcet stakes its reputation on securing your sensitive data every day.

We maintain our own cloud so that we have complete control over the physical hardware. Multiple security layers that include firewalls, network security, access control and a locked room that houses our servers create a solid shield around client data. 

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Business Longevity 

Operations spanning decades, coupled with long-term client relationships, demonstrate a PEO’s stability, proven expertise and a track record of client satisfaction. It also signifies that the PEO has successfully navigated challenges and adapted to changing business landscapes.  

Clients who experience good service and high value tend to maintain partnerships with their PEOs for many years. If you’re evaluating potential PEO relationships, ask to speak to several of your prospects’ clients, both long-term and recent, to learn whether they have been pleased with the PEO’s ability to consistently deliver value. 

A net promoter score (NPS) also illustrates how satisfied a PEO’s clients are. Healthier and more successful businesses generally achieve higher NPS, because a higher score represents customers’ willingness to recommend a company’s products or services.

Axcet recently scored an impressive NPS of 85.8 on a scale of -100 to +100 – much higher than the average nationwide PEO score of 49, the average score of 37 for all HR service firms and the overall average score for all businesses of 32

RELATED: Axcet HR Solutions Expands Office to Accommodate Growth >>

Axcet HR Solutions: An Industry Best PEO for Small Business

When you choose an industry best PEO, you can confidently outsource HR, including secure payroll services. Your business will be in capable hands, and you’ll have more time to focus on driving growth and success. 

Kansas City small and medium-sized businesses have trusted Axcet with their most important HR tasks since 1988, because we excel at every criterion that defines an industry-best PEO. Our company is IRS-certified, and HR personnel are certified by reputable industry organizations. We take a personalized approach to service and budget any resources necessary for the most advanced data protection measures. 

Contact Axcet to schedule a quick consultation to learn how you can take advantage of HR services provided by an industry best PEO.

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Written by Jenny Barnes

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