FAQs

What is a PEO?

 

Essentially, a PEO is your company’s outsourced Human Resources department handling many of the HR, payroll, compliance, and insurance needs as related to your employees. In doing so, a PEO helps increase your company’s productivity by freeing up time essential to focusing on your product. On top of increasing your productivity, a PEO helps reduce your liability by placing your employees into a legal arrangement called co-employment; this allows you to maintain direction and control over your employees while shifting much of the employee related compliance liabilities to the PEO.

What is an ASO?

An ASO can provide many employee related services in more of menu format than a PEO. With an ASO service arrangement you can pick and choose what services you’d like to outsource and which you’d prefer to keep in-house. This also is a great way to outsource human resource items to help increase productivity. However, there is no legal co-employment arrangement and you thereby retain all direction, control, and liability associated with employee related compliance. This acronym ASO stands for Administrative Services Outsourcing; this, in many instances, can be interchanged with the term HRO or Human Resources Outsourcing.

What is Co-Employment?

 

According to NAPEO, Co-Employment is “The PEO relationship involves a contractual allocation and sharing of certain employer responsibilities between the PEO and the client, as delineated in a contract typically called a client service agreement (CSA). Read More

 

Third Party Workers Comp?

 

This is simply purchasing Worker’s Compensation from an insurance agent or agency outside of a PEO. This would be your policy in your companies name. You can still be in a PEO relationship and carry your own/third party worker’s compensation insurance. DES has partnerships with a select few PEO’s and Insurance Agencies. We will utilize those partnerships along with your specific needs to help you determine which insurance arrangement best serves your organization as there are distinct benefits in either situation (3rd party vs. PEO provided insurance).

Workers' Compensation

Workers’ Compensation Insurance coverage encompasses a large part of business expenses for any company. Workers’ Compensation Insurance covers an employer if an employee is injured on the job. A PEO ensures an effective and well-managed system, where workers’ compensation is handled most efficiently. A PEO can also improve business cash inflow by eliminating expensive down-payments and final audits associated with workers’ compensation policies.

What is Factoring?
  1. Factoring is the purchase of accounts receivable (i.e. your invoices) for immediate cash.
  2. Factoring is a time-honored financial tool companies use to help meet their cash flow needs.
  3. Factoring is not a loan. It is immediate cash for the sale of an invoice that you own and you are not limited in how you use the funds that you receive.
How does factoring work?
  1. You submit an application.
  2. We review the application.
  3. When approved, you send us the invoices (accounts receivable) for which you want cash.
  4. Once certain requirements are met, we write you a check within 24 hours.
  5. When the invoices are paid, we pay you the balance of the invoices minus our nominal fee.
  6. When you factor, you are not increasing your debt and there are no monthly payments. You gain more control over your cash flow by determining which invoices to sell and when to sell them.
There are many benefits to factoring with DES Business Solutions
  1. Cash Flow: Instead of waiting for your customers to pay their invoices, factoring provides immediate cash you can use to achieve your business objectives.
  2. Opportunities: With cash flow tied to your sales (invoices), you can take advantage of growth opportunities including new sales and marketing initiatives, equipment for expansion, securing new accounts, and additional inventory.
  3. Loans or Borrowing – Many lenders avoid small and medium-sized businesses, especially young companies. Factoring offers you the working capital your business needs without the limitations that usually accompany other forms of financing.
  4. Operating Expenses – Use the cash from factoring to qualify for cash discounts from suppliers and eliminate the overhead of the collection process.
  5. Tax Reduction- In most cases our fees are tax deductible.
  6. Liquidity- With cash on hand, you can quickly pay your bills (and take advantage of your supplier’s discounts), pay your payroll and even pay your taxes.
  7. A Better Balance Sheet- Because factoring is not a loan, there is no need to make payments or create debt for your business and most important, you aren’t limited in how you use the funds.
What is Risk/Loss Reduction?

DES Enterprise believes in responsible participation by all three parties: the PEO, the client, and the employee. It is a hand-in-hand approach to risk management and loss control. Responsible participation by everyone leads to a safer work environment and better loss control.