01
ScalePEO co-employment model and ESAC accreditation standards
Under co-employment, ScalePEO takes on the employer role for payroll taxes, benefit plans and workers' comp coverage while your managers keep day-to-day control. ESAC accreditation layers annual independent financial audits, surety bonds and operational standards from the Employer Services Assurance Corporation on top.
The accreditation is renewed through ongoing financial and operational checks rather than awarded once, so clients get continuing evidence that ScalePEO is operating within verified limits.
What ESAC accreditation requires and why it matters for PEO clients
ESAC accreditation requires annual independent financial audits, proof of surety bonding, regulatory compliance checks across operating states and adherence to operating standards. For clients, it means a third party has checked that the PEO can meet payroll, tax remittance and premium payments.
ScalePEO co-employment structure and employer responsibilities
Under co-employment, ScalePEO handles administrative employer functions while your company manages day-to-day employment decisions. Employees see ScalePEO on tax documents but interact with your company for all work purposes. The arrangement is transparent for practical purposes but creates a legal relationship that requires understanding.
02
ScalePEO payroll processing and tax filing compliance
ScalePEO payroll pays by direct deposit and withholds and files federal, state and local taxes. It also produces W-2s and 1099s, takes garnishment deductions and calculates overtime, for salaried and hourly staff on multiple pay schedules.
Multi-state compliance is a core capability, with ScalePEO managing state registrations, withholding calculations, and filings for each jurisdiction. The ESAC accreditation provides assurance that payroll tax remittances are being handled according to audited standards.
ScalePEO payroll accuracy and tax remittance under ESAC standards
ESAC accreditation includes checks on tax remittance, meaning payroll taxes withheld from employees are deposited with tax authorities on schedule. That matters because PEO failures most often show up first as missed tax deposits, which leave liability with the client company.
ScalePEO year-end processing and W-2 distribution
At year end, ScalePEO prepares and distributes W-2s to employees and 1099s to contractors, and handles tax reconciliation and annual filings within the PEO fee.
03
ScalePEO benefits administration and group purchasing
ScalePEO's benefits menu covers health insurance with dental and vision through carriers such as Aetna and MetLife, 401(k) plans through Slavic401k, and HSA and FSA accounts. Pooling clients under co-employment gives small employers access to group plans.
Benefits enrollment is managed through the ScalePEO platform, with employees selecting plans during onboarding and open enrollment. The ScalePEO team handles carrier communication, premium payments, qualifying life event changes, and COBRA administration.
ScalePEO medical plan options and carrier access
Medical plan availability depends on carrier partnerships and employee locations. ScalePEO works with insurance carriers to offer HMO, PPO, and high-deductible plan options where available. The specific carriers and plans should be verified during the proposal process for your team's locations.
ScalePEO benefits enrollment and employee self-service
Employees enroll in benefits through the ScalePEO platform during onboarding or open enrollment. The self-service interface allows employees to compare plan options, view costs, and complete enrollment without HR assistance for routine selections.
04
ScalePEO compliance support and employment law monitoring
Compliance through ScalePEO covers employment law guidance, ACA reporting, workers' compensation administration, and state-specific regulatory monitoring. The compliance team tracks changes to paid leave laws, minimum wage requirements, and workplace safety regulations across states where your employees are located.
For small businesses without in-house HR or legal counsel, the compliance layer addresses regulatory risks that grow with headcount and geographic distribution. The ESAC accreditation adds a layer of assurance that ScalePEO's compliance practices meet audited standards.
ScalePEO ACA compliance and reporting for applicable employers
For companies that meet ACA applicable large employer thresholds, ScalePEO handles Forms 1094-C and 1095-C preparation and filing. ACA compliance monitoring ensures benefits offerings meet affordability and minimum value requirements.
ScalePEO state regulatory tracking and alerts
The compliance team monitors employment law changes across all states where your employees work and provides alerts when new requirements take effect. This includes paid sick leave mandates, minimum wage updates, and harassment training obligations.
05
ScalePEO workers' compensation insurance and risk management
Workers' compensation is included in the ScalePEO PEO relationship, covering policy procurement, premium management, claims processing, and rate optimization. The bundled approach simplifies workers' comp administration for small businesses that would otherwise need to shop for policies, manage audits, and handle claims independently.
The pooled risk model through an ESAC-accredited PEO can provide more favorable rates than individual policies, particularly for small companies with limited claims histories.
ScalePEO workers' comp claims management process
When a workplace injury occurs, ScalePEO manages the claims filing, carrier communication, documentation, and return-to-work coordination. The claims process is handled by the PEO team, reducing the administrative burden on the employer and ensuring compliance with state-specific workers' comp requirements.
ScalePEO risk management and workplace safety support
ScalePEO provides guidance on workplace safety programs, OSHA compliance, and risk mitigation. Proactive risk management can reduce claims frequency, which over time may contribute to lower workers' compensation premiums.
06
ScalePEO HR technology platform and administrative tools
ScalePEO provides a web-based technology platform for payroll management, benefits enrollment, employee self-service, document management, and basic reporting. The platform covers the core administrative functions that PEO clients need for day-to-day HR operations.
The software exists to serve the PEO service: payroll runs, benefits enrollment, employee records and compliance documents. Companies that care more about the service than the app will find it meets the requirements.
ScalePEO employee onboarding workflow
New employee onboarding is handled electronically through the platform. New hires complete tax forms, benefits enrollment, direct deposit setup, and policy acknowledgments in a guided workflow. The electronic onboarding reduces paperwork and ensures compliance with documentation requirements.
ScalePEO reporting and analytics capabilities
The platform includes standard reports for payroll, headcount, benefits enrollment, and workers' compensation. Reporting covers operational needs for small businesses but does not include the advanced analytics and custom report builders found in enterprise HRIS platforms.