About
Oak Services Inc of Lafayette is A Professional Employer Organization.
A Professional Employer Organization is defined as: “ an organization that provides an integrated and cost effective approach to the management and administration of the human resources and employer risk of its clients, by contractually assuming substantial employer rights, responsibilities, and risk through the establishment and maintenance of an employer relationship with the workers assigned to its clients.”
In the relationship among, a worksite employee, and a client company, there exists a co-employment relationship in which both the OSI and client company have an employment relationship with the worker. OSI and client company contractually allocate some and share other traditional employer responsibilities and liabilities.
The OSI concept provides an integrated, cost effective approach to facilitating the human resource responsibilities an employer risks for the business owner. The origin of this concept can be traced back to certain members of the accounting profession desiring to provide relief for many of their small business clients facing every day challenges in the above mentioned areas.
OSI assumes the burden of managing increasingly complex employee-related affairs, including payroll and the associated tax liabilities, mandatory benefits such as workers’ compensation, and various other compliance issues. In addition, by effectively “grouping” client companies together under the OSI umbrella, they are able to provide optional benefit programs like group health insurance, 401K programs, and pre-tax spending programs. Typically, in the past, many of these programs have been cost-prohibitive to the individual business owner. Quite simply, by removing the headaches associated with managing the direct and indirect costs associated with employees, the OSI enables business owners to concentrate on their core business.
Under the OSI arrangement, subscribers transfer the employees at their location to the payroll of the OSI, and then the employer leases the employees back from the OSI. The OSI becomes the employer of record for insurance, payroll and tax purposes. Daily supervision and direction of the employees at each location remains the responsibility of the client company business owner. OSI, at the business owner’s request, is available at all times to assist in developing training programs and personnel policies, as well as to provide guidance relative to compliance issues.