Starting in the late 1960s, employee leasing firms were established to help companies with the rising cost of workers’ compensation coverage. While laws varied widely by state, most required employers to purchase workers compensation insurance with the first employee hired. Employee leasing firms were an alternative for companies previously forced to secure workers comp through expensive state sponsored markets. Clients’ employees could all be processed on the same payroll under one FEIN, giving leasing firms more leverage to negotiate better workers’ comp rates and pass along the savings.
With new government regulations over the years, the landscape for the firms changed. They had to evolve to remain a valuable resource. That’s when Professional Employer Organizations (PEOs) were created to support all human resource functions. Whereas employee leasing firms focus only on payroll and workers comp, PEOs offer a broader array of services including payroll and tax processing; administration of benefits, retirement and workers compensation; and HR guidance. PEOs are a complete HR solution.
In an effort to always remain relevant, Chicago PEO MidwestHR evolved with the industry. We updated our name in 2004 from Midwest Employee Leasing to MidwestHR to be more reflective of our broader offering. Then in 2017, we became one of the first Certified Professional Employer Organizations (CPEOs) in the country.* This IRS certification offers additional protections that are valued by our clients. It also reinforces one of our core values: commitment to constant improvement.
Many employers don’t realize the increasing amount of time and energy they dedicate to running HR functions in-house. Conversely, there are leaders who recognize how much time it takes but don’t trust an outside resource. Partnering with a CPEO is an ideal solution. Employers are relieved of daily HR administrative burdens and reap immediate time savings. Knowing rigorous IRS requirements have been met, they can focus on the most important priorities and rest easy knowing HR experts are handling the rest. Many clients cite time savings and peace of mind as key drivers for continued use.
We treat each clients’ business with respect, expertise and dedication, so retaining clients year after year is one of our most valued accomplishments. If you need a long-term partner to support your company’s growth, give us a call at 630-836-3000.