When you started your business, did you ever imagine the paperwork that comes along with it? Do you find yourself drowning in HR, payroll, and administrative paperwork, which leaves you little to no time to focus on growing your business. You can minimize the amount of paperwork by hiring a PEO company.
What is a PEO
A PEO company stands for Professional Employer Organization, and these companies help manage human resource outsourcing and any other administrative tasks for their clients. PEO’s are a useful source for small or medium-size businesses that don’t have the resources for their own HR department.
PEOs are often referred to as co-employers, and under this agreement, the PEO shares the responsibilities of the employees. This arrangement helps with reducing costs since both parties share responsibilities.
How Does a PEO Work
PEO companies provide specific services with a small business, general services include:
- Human Resource – A PEO will have experts in local laws and regulations in their employees so that they can assist with compliance, severance pay, and any other human resource duties. Also, they provide compliant labor contracts that adhere to local, federal, and state regulations.
- Payroll – PEO services will handle the payroll and make payments to employees. Payroll work includes pay, wages, salary reparation, tax solutions or contributions, check deliveries, the filing of taxes, application and implementation of laws, and ensuring on-time payment to employees.
- Benefit Administration – PEOs administer benefits and coordinate insurance for your employees, which includes handling the administration allowances, vacation pay, sick leave, and any other benefits provided by your company.
- Tax – PEOs will calculate and distribute tax contributions which includes social security contributions
- Risk and Compliance – PEOs have the expertise with compliance and statutory requirement and better equipped to handle items such as employee complaints/lawsuits, workplace safety requirements and implementation, and works compensation management.
Benefits of Using a PEO
PEO companies employ specialists in human resources, taxes, legislation, and payroll. Agreeing with a PEO company can help you with minimizing the amount of paperwork you are doing and focus on growing your business. Other benefits of a PEO are reduced costs, payroll solutions, compliance, human resource, recruiting and onboarding employees, terminations procedures, workers compensation insurance, and medical benefits.
- Handling the paperwork – paperwork and payroll for employees can stack up and take up valuable time and resources. A PEO company handles the majority of HR-related paperwork for your business.
- Up to date with government regulations – A PEO company looks out for your business to make sure you are in line with state and federal regulations at all times, so you don’t have to worry about paperwork and keeping up to date with state and federal rules and regulations.
- Offering affordable employee benefits – A PEO company, groups your employees with their own employees to leverage for buying power with benefit providers to get reasonably-priced employee health care and benefit plans.
- Limiting liability –A PEO company will help avoid mistakes or dangers in the workplace. The PEO company will also help you set up workplace training, safety procedures, and policies in your business that will help you limit and hazardous or unlawful situations.
A PEO company can help you minimize HR-related paperwork and payroll, and come with other benefits. This lets you focus on building your business and promoting your products and services. You can look for PEO companies on Retireat21.com.