A professional employer organization (PEO) helps grow a business as it can provide solutions to the challenges of building a business. When companies grow and obtain more full-time employees, they can be subject to new regulations they didn’t have to deal with before. There are new requirements to comply with, usually related to health care.
Professional employer organizations (PEOs) can help businesses gain success before and after they grow. Retaining quality employees: A PEO company works through a co-employment relationship, where the PEO company becomes the employer of record, sharing liability with your business.
Through the co-employer agreement, the PEO company will take on legal responsibility for your employees and compliance matters while you maintain control of your employees and operations. A PEO company can offer comprehensive business solutions to cover your employees, including managing payroll, taking over HR functions, and handling tax administration.
Regarding PEO companies covering employees, payroll is one of the most complex areas to process. Payroll requires much time, and PEOs offer payroll outsourcing services that improve your business workflow.
A PEO company can help build a happy team of employees and provide them with benefits and great perks. Selecting a PEO company that offers employee perks can help small or medium-sized businesses attract and retain valuable employees. PEOs can help your small business by accessing affordable, comprehensive health insurance and retirement plans. Also, PEO companies provide business owners with HR support and technology, such as employee recruiting and training, regulatory guidance, and payroll.
Recruiting good employees can be difficult for small or medium-sized businesses. An attractive salary and benefits package is enticing to top talent, and this is how a professional employer organization can become an excellent solution for business owners.
PEO companies help small or midsize businesses with standard HR responsibilities and tasks. The benefit of working with a small PEO company is the time to focus on growing your company and streamlining your workforce.
HOW PEO Companies Can Offer the Best Benefits
PEO companies can provide small and midsize businesses with benefits packages generally offered to more giant corporations. Employee benefits can include:
- Medical, dental, and vision insurance
- Hospital and accident insurance policies
- Life and group life insurance
- A 401 (k) retirement plan
- Tuition reimbursement
- Short-term and long-term disability insurance
- Commuter benefits
Typically, smaller businesses cannot afford to provide their employees with benefits that larger companies can offer. However, when they work with a PEO company, they have access to affordable gifts because, of the co-employment agreement, your employees get pooled together with their employees to form a larger group that can access cost-effective benefits packages.
PEO Companies Help Employees Understand Their Benefits Packages
In addition to offering comprehensive benefits, PEO companies save business owners and staff time by cutting through the paperwork of enrolling employees into benefits. Choosing a PEO service with high-quality employee benefits can help boost employee morale. When employees know they are receiving perks, there is more of an initiative to be productive in the workplace.
HR Benefits of Using a PEO Company
Get PEO services to perform other HR tasks, which can ease the pressure off internal HR staff or free up time for business owners to focus on building and growing their company. Small or midsize businesses can benefit from a PEO service in four ways:
- A PEO company can reduce employee-related costs, including discounted employee benefits, taxes, and workers’ compensation.
- A PEO company can provide business owners additional HR support and technology, including employee handbooks, job descriptions, recruiting, training and performance management, and government and regulatory guidance.
- A PEO company can reduce a small business employee-related liability
- A PEO service can provide a human resource information system to help small or medium-sized businesses manage their employees.
PEO Companies Help with Retirement Plans
Along with health, vision, and dental benefits, a PEO company can help access great retirement plans, including 401 (k) plans with profit-sharing contributions to your employees. These benefits can help with employee retention. A PEO company assumes financial liability and signs the necessary compliance forms for employee benefit plans, protecting your company from the potential legal issues associated with employee retirement plans.
PEO Companies Streamline Payroll Processing and GR Compliance
PEO companies can streamline payroll processing and HR compliance for your business and employees. A PEO company will administer your payroll, maintain workers’ compensation insurance, pay payroll taxes, and manage the regular compensation of your employees.
When you decide to use a PEO company for your payroll processing, the PEO company becomes the co-employer. It takes over managing the client’s payroll-related tasks, including paying full-time and part-time wages, depositing taxes, and issuing employee W-2s.
Below are some advantages of how working with a PEO company can cover your employees:
- PEO companies help small or medium-sized businesses stay current with regulations – A PEO company will ensure that your business is always compliant. PEOs do this by keeping current on the ever-changing rules and regulations of employment law and providing your business with an action plan to help stay compliant.
- PEO companies handle compliance paperwork – A PEO company is an expert on employment-related regulations. PEOs know the paperwork your business needs to file; in some cases, they can file the paperwork on behalf of your business.
- PEO companies can help reduce your business risk of liability – When you partner with a PEO company, you gain access to licensed HR professionals and legal experts. They can help your business with employment-related risks.
Your small or medium-sized business can use a PEO company to cover your employees by outsourcing recruiting, hiring, and training. When you partner with a PEO company through a co-employment agreement, you can access payroll HR services and employee benefits and retirement plans. A PEO company can help cover your employees, allowing you to focus on growing your business.