What is Co-Employment?
Co-Employment is simply dividing up responsibility between the onsite employer and a professional employment services provider like Cardinal. 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 Cardinal, 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 Cardinal’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.
Is co-employment licensed and regulated?
In Oregon, co-employers are licensed as a “worker leasing company” – an antiquated term for Co-Employment. Oregon has some pretty strict regulations on this type of employment system and requires reviews of financial records to help ensure that professional “Co-Employment services” are operating properly. Cardinal Services was one of the first to qualify for a license in the state when the law first took effect!
Do I pay any additional taxes because I co-employ with Cardinal?
No, but with one important caveat. A recent study has shown that employers who co-employ with a service like Cardinal grow 7-9{0c2d428c3cefef4a77c472786cabf3d957ca1c1fde265c02f19cd1ec2d7db907} 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.
I have heard something about OregonSaves. Something to the effect that everyone has to offer a retirement plan. Can I still co-employ?
Absolutely, as an alternative to you administrating the OregonSaves Roth IRA plan, you can adopt Cardinal’s 401(k) which we administer. Be sure to check out our great funds and low fees.
