Page 8 - People Group - Joint Employment Features, Advantages & Benefits

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Our PEO payroll model is just one of the products that offers you an innovative, yet compliant solution that will drive productivity and enhance your business.
What is a PEO?
A PEO stands for Professional Employment Organisation.
The model originated in the USA to offer affordable private healthcare cover for smaller employers. Small companies found it hard to get cheap life and medical cover for their employees, so a PEO combined all the small companies together to form a large group organisation and hence gain life and medical cover at corporate rates.
People Group has led the way in the sector, bringing the model over to the UK and innovating and modifying it to create a solution that is perfect for the UK market.
In the last 4 years, this has become our fastest growing pay solution offering unique benefits to agencies and unrivalled advantages to thousands of contractors.
How does it work?
Simply put, PEO is a PAYE service where workers are put on full PAYE and given an exclusive range of benefits.
Step 1
PEO starts with the True Gross pay (inclusive of holiday pay) of the contractor, which is set at a level that supports AWR and NMW before any employee deductions.
Step 2
People Group charges an uplift to the agency, which covers our margin (typically less than an umbrella product), employer’s National Insurance, employer’s pension, the apprenticeship levy, and a small provision for any statutory pay. Unlike an Umbrella product, the employer deductions are not visible to the contractor and the uplift is a business-to-business arrangement.
Therefore, from a contractor’s perspective, the payslip is much easier to understand. All that is displayed are the deductions that the contractor is familiar with, which results in far fewer questions to either the agency or the payroll provider, greater transparency, and enhanced trust.
Plus, even better, the contractor will receive the same (or possibly more) net pay versus an umbrella solution.
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