What is Co-Employment?
Co-Employment is simply dividing up responsibility between the onsite employer and a professional employment services provider like Sequoia Personnel. As your “co-employer,” we pay the employee taxes and process employee paychecks which include tracking PTO, sick leave, and other information to keep you compliant with labor regulations.
But if I co-employ with you, am I still the boss? Am I still the one making decisions about my employees?
According to employment law, when you co-employ with a professional employer service provider like Sequoia Personnel, we then become the “employer of record.” But you are in charge of your operations and your business, and for supervising the employee. You are still the boss making the final call. While you will still make decisions around hiring, performance, and firing, you will have Sequoia Personnel’s help on the HR side. This may include help with recruiting and screening employees, dealing with discipline issues, and developing and implementing workplace policies.
Do I pay any additional taxes because I co-employ with Sequoia Personnel?
No, but with one important caveat. A recent study has shown that employers who co-employ with a service like Sequoia Personnel grow 7-9% faster. This faster growth is achieved by being able to focus on your core competencies while outsourcing the rest of those time-consuming, labor-intensive HR services. This growth often leads to more revenue, which leads to more taxes! So there could be more taxes… and that might be a good thing!
Can I co-employ and still have my own group health insurance plan?
Yes, both federal and state law allows you, as the employer, to choose which benefits you offer to your employees. One of the advantages of Co-Employment with a professional provider is that you will have access to an expanded marketplace – an option to select from a wider array of employee benefits at prices that are often only available to large employers. This allows you to compete for the best talent when recruiting new employees.