A professional employer organization (PEO) provides integrated services which enable business owners to cost-effectively outsource the management of human resources, employee benefits, payroll and workers' compensation, and workplace safety and risk management for covered employees. Services of a licensed PEO are regulated under Hawaii Revised Statutes Section 373-L and qualify for the Hawaii State general excise tax exemption for PEOs.
HRAH relieves its client companies of certain employer responsibilities and risks for Covered Employees. Under a professional employer agreement, HRAH:
In an employee leasing model, the client company continues to direct covered employees' day-to-day duties and activities and is only responsible for compliance with jobsite or worksite laws and regulations. The PEO takes on the administrative HR chores and the client company is freed to focus on the production and delivery of its products and/or services.
Employees Will Benefit From:
Businesses Use HRAH to:
One of the best features of using HRAH is the single payment made. One payment (made with each payroll cycle) is all that is required. The client company reports the amounts to be paid to each employee and HRAH does the rest. HRAH offers the ability to report detailed labor related costs to the client company in a form that provides easy integration with internal accounting software.
HRAH is responsible for maintaining compliance with all regulations regarding the reporting and payment of federal, state and local taxes on wages paid to the workers. HRAH is recognized by the Internal Revenue Service as the "employer of record" for liability for federal income and unemployment taxes and is responsible for these payments. HRAH is also responsible for compliance with the broad range of employment laws and regulations including: Fair Labor Standards Act, Hawaii Wage and Hour Law, COBRA, Title VII, ADA, FMLA, HIPAA, Equal Pay Act, and Age Discrimination in Employment Act.