A PEO company, the acronym for Professional Employer Organization, works with small businesses to help them with managing their payroll-related taxes, human resource and employee-related administration, and accessing benefits. A PEO company is a subcontracting firm that will help your small business in human resource administration, compliance, risk mitigation, training, and development.
PEO Company
PEO companies can take on human resources and administration roles for your business because of a practice called co-employment, which is a contract agreement and sharing of employer responsibilities. The contract between your business and PEO company, in contrast with employee leasing, distributes part of the employers responsibilities from day to day operations. By being able to share employer responsibilities, your small business can leverage more substantial companies benefits and opportunities.
A PEO company will handle items such as handling payroll administration, tax filing, HR support, and access to the market. When managing a global workforce, partnering with a PEO company that offers global payroll services can help your business navigate the complexities of international payroll and compliance. This ensures you remain compliant with local laws and regulations that you may otherwise fall foul to if you were to attempt payroll yourself.
Find the best national PEO companies that could help your business with a search on the web.
How Can a PEO Company Help Your Business?
There are advantages to going into contract with a PEO company can bring to your business.
Cost Savings on Employee Benefits
Working with a PEO allows employees to be grouped with the rest of the PEO co-employees to form a large group, which means that the PEO can provide employees access to health and dental benefits and at rates that are on par with those of a more significant business.
Cost Saving through Hiring
A PEO company helps you manage your employee-related paperwork and proves HR support, so your company can delay in hiring someone to fill this position in-house. When your business has enough capital to hire someone for HR or administration, then utilizing the tools provided by the PEO can help free the new hires time and lets them focus on making your company an excellent place to work at.
Protect Against Risk
Many small businesses get fined every year for making mistakes in their payroll. Compliance rules and regulations are complicated, and there is lots of paperwork to file. The cost of not following compliance properly can’t be prohibitive. PEO companies are knowledgeable on employee-related compliances, and they know and understand the paperwork needed to file.
Get Time Back
When you are a business owner, there is never enough time in your day, and there is always more to do than hours in the day. A PEO company can take some of the work off your plate when it comes to employee-related administrative work, which allows you to focus on jobs that need to get done in your business.
Additional Benefits
Many PEO companies provide access to other benefits for their customers, such as access to 401 (k), and discounted gym memberships. Another perk that many PEO companies have is commuter benefits, which allows employees to use pre-taxes for transportation costs. The additional benefits that a PEO company provides are aimed at creating and maintaining a healthy, happy team.
Getting into Business with a PEO
A PEO company helps small businesses. They help small businesses by providing cost-saving from employee benefits, cost savings through hiring, protection against risk, and freeing up hours in your day.
Hiring
Having extra money to hire administration might not be in your budget, but by partnering with a PEO company, they save you from that worry, because they will oversee administrative or human resource items such as employment-related paperwork.
Cost Savings
Partnering with a PEO company is a substantial cost savings for you and opens doors to provide your employees opportunities you wouldn’t be able to on your own. With a PEO company, your employees are grouped with other PEO co-employees that form a large group, which is why, with a PEO, you can provide employees access to health and dental coverage at competitive rates.
Final Thoughts
A PEO company will help your small business by performing specific business tasks and creating a better work environment. Clients of PEO companies are mostly small businesses that have 19 employees, but no less than ten. If you are a small business owner and struggling with the human resource and administrative aspect of your business, then going into a contract with a PEO company might be an option for you to consider.
