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What is ESG republic?
ESG republic is a Human Resource Management company that enables clients to cost-effectively outsource the management of human resources, employee benefits, payroll and workers' compensation. ESG republic’s clients enter into a co-employment relationship allowing them to focus on their core competencies to maintain and grow their bottom line.
Who uses ESG republic?
Any business can find value in a relationship with ESG republic. An average client company is a business with 17 worksite employees. Increasingly, larger businesses also are finding value in a co-employment relationship, because ESG republic offers robust Web-based HR technologies and expertise in HR management. Additionally, the extensive network and buying power of ESG republic’s large employee base will provide companies with the highest quality employee benefits at the lowest possible price. In consideration of our very select client list and in order to maintain necessary cost controls on certain employer expenses, ESG republic does not work with high risk or high exposure industries.
How does an ESG republic relationship work?
Once a client company contracts with ESG republic, we will then co-employ the client's worksite employees. In the arrangement among ESG republic, a worksite employee and a client company, there exists a co-employment relationship in which both ESG republic and client company have an employment relationship with the worker. ESG republic and the client company share and allocate responsibilities and liabilities. ESG republic assumes much of the responsibility and liability for the business of employment, such as risk management, human resource management, and payroll and employee tax compliance. The client company retains responsibility for and manages product development and production, business operations, marketing, sales, and service. ESG republic and the client will share certain responsibilities for employment law compliance. As a co-employer, ESG republic will provide a complete human resource and benefit package for worksite employees.
Why would a business use ESG republic?
Business owners want to focus their time and energy on the "business of their business" and not on the "business of employment." As businesses grow, most owners do not have the necessary human resource training, payroll and accounting skills, the knowledge of regulatory compliance, or the backgrounds in risk management, insurance and employee benefit programs to meet the demands of being an employer. ESG republic gives small-group markets access to many benefits and employment amenities they would not have otherwise.
Do the business owners lose control of their businesses?
No. The client retains ownership of the company and control over its operations. As co-employers, ESG republic and client will contractually share or allocate employer responsibilities and liabilities. ESG republic will assume responsibilities and liabilities associated with a "general" employer for purposes of administration, payroll, taxes and benefits. The client will continue to have responsibility for site specific items including direction and control of the workers. In general terms, ESG republic will focus on employment-related issues and the client will be responsible for the actual business operations.
What is the difference between employee leasing and a co-employment arrangement?
A co-employment arrangement involves all or a significant number of the client's existing worksite employees in a long-term, non-project related, employment relationship. ESG republic brings services to the client, including the management of human resources, employee benefits, payroll and worker's compensation. ESG republic assumes employer responsibility for employment tax, benefit plans and other human resource purposes. With an ESG republic co-employer relationship, client companies make a long-term investment in their workers, because ESG republic provides access to health insurance, retirement savings plans, and other critical employee benefits for their worksite employees. If the ESG republic relationship is terminated, the co-employees will cease to work for ESG republic but will continue as employees of the client.
By comparison, a leasing or staffing service supplies new workers on a temporary or project-specific basis. These leased employees return to the staffing service for reassignment after completion of their work with the client company. Some would define employee leasing as a supplemental, temporary employment arrangement where one or more workers are assigned to a customer for a fixed period of time, often for a specific project.
What is the difference between temporary staffing services and a co-employer arrangement with ESG republic?
Like a leasing situation, a temporary staffing service recruits employees and assigns them to clients to support or supplement the client's workforce in special work situations, such as employee absences, temporary skill shortages or seasonal workloads. These workers are traditionally only a small portion of the client's workforce. Conversely, ESG republic contractually assumes and manages employer responsibilities for all or a majority of a client's workforce. Worksite employees participate in ESG republic’s full range of employee benefits including, health, dental, and life insurance, vision care, retirement savings plans and Work Life benefits.
How many Americans are employed in a co-employment arrangement?
It is estimated that 2-3 million Americans are currently benefiting from a co-employment relationship. The average company in the industry has grown more than 20 percent per year for each of the last six years, according to a survey of the National Association of Professional Employers members. The industry generates approximately $51 billion in gross revenues annually and professional employers have an exceptionally high client retention rate due to strong client and employee satisfaction.
How does ESG republic help their clients control costs and grow their bottom line?
ESG republic has economies of scale which enable each client company to lower employment costs and increase the business's bottom line. More importantly, ESG republic provides services and benefits to clients and worksite employees that create a far more satisfying and efficient work environment. Hard dollar savings are generally present in covered areas of workers’ compensation and unemployment insurance, as well as benefit premiums and payroll processing fees. Savings are also typical when services are “bundled” versus paying out administrative fees, broker commissions, and profits to a multitude of providers. Soft dollar savings are great and yet vary significantly from company to company as staff time, reduced liabilities, reduced turnover and the ability to attract and retain better employees is sometimes difficult to quantify. Studies show that companies spend as much as 6-12% of their annual wages in administering the various business components that ESG republic handles for a fraction of that cost. This relationship enables the business owner to focus on the company's core competency and grow its bottom line.
How do employees benefit from an ESG republic relationship?
Employees seek financial security, quality health insurance and Work Life benefits, a safe working environment and opportunities for retirement savings. When a company works with ESG republic, job security is improved as efficiencies are implemented to lower employment costs. Job satisfaction and productivity increase when employees are provided with professional human resource services, training, employee manuals, safety services and improved communications. And with ESG republic, employees are provided a greatly expanded Work Life benefits package, to include a 401(k), a flexible spending plan, life insurance, disability insurance, fitness club and credit union memberships, child care discounts, “every day” shopping discounts, and more. These benefits really impact an employee’s life and the lives of their families.
Who is responsible for the employees' wages and employment taxes?
ESG republic assumes responsibility and liability for payment of wages and compliance with the rules and regulations governing the reporting and payment of federal and state taxes on wages paid to its employees. Additionally, the IRS has issued guidance confirming the ability of ESG republic (co-employer) to offer qualified retirement benefits.
Who is responsible for state unemployment taxes?
As the employer for employment tax and employee benefits, ESG republic assumes responsibility and liability for payment of state unemployment taxes.
Who is responsible for employment laws and regulations?
As employers, both the client and the ESG republic have compliance obligations. However, ESG republic provides worksite employees with coverage under many employment laws and regulations, including federal, state, and local discrimination laws, Title VII of the 1964 Civil Rights Act, Age Discrimination in Employment Act, ADA, FMLA, HIPAA, Equal Pay Act, and COBRA. In many cases, these laws would not apply to workers at small businesses without the ESG republic relationship, since many statutes have exemptions based upon the number of workers in a work force. Once included in the ESG republic workforce, the workers are protected by these laws.
Who is responsible for workers' compensation?
ESG republic is the employer of worksite employees for purposes of providing workers' compensation coverage.
Does ESG republic need to be licensed to provide insurance benefits to their workers?
Like many other employers, ESG republic will sponsor employee benefit plans for its worksite employees. Such benefits may be mandated by law, such as workers' compensation and unemployment benefits. Or they may be voluntary benefits that will help attract and retain quality employees, such as health, life, dental, disability insurance and Work Life benefits. ESG republic is an employer who will sponsor or acquire programs for their employees. As such, ESG republic is a consumer of insurance and procures these benefits from licensed insurance agents and authorized insurers.
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