Owners of small and medium-sized businesses have many important tasks to juggle. In order to ensure the company remains profitable, they need to develop new products and services, find partners and investors, hire talented staff, pay salaries, and manage their taxes. These are all key aspects of building and growing a successful company, but most business owners can’t do everything on their own. That’s where a PEO company can help. A certified Professional Employer Organization can take over many of the time-consuming administrative functions.
What Is A Peo And How Can It Help Your Business?
A PEO services provider allows companies to outsource important tasks such as payroll, benefits, HR administration and risk management. They also help businesses remain in compliance with state and federal employment laws. A PEO ultimately gives you more time to focus on your core business. A Professional Employer Organization can help with:
- Payroll: A PEO service can make sure your employees are paid correctly including PTO and overtime calculations.
- HR management: A PEO company can help to manage employer liability, onboard new hires, and provide guidance on employee relations.
- Employee benefits: PEOs are typically able to give your employees access to a wider variety of benefits than the company could offer on its own, including medical coverage, life insurance, ancillary insurance, and flexible spending accounts.
- Compliance support: A PEO support organization will help your company stay up to date with constantly-changing regulations and reporting requirements.
- 401(k) retirement plan: A Professional Employer Organization can often negotiate attractive 401(k) plans, as well as handle all of the administrative and regulatory requirements.
- Risk management: PEOs could help you get access to lower workers’ compensation insurance at lower rates.
PEOs take on all of the above tasks for you after you sign a contract with them to share employer responsibilities.
How Do Professional Employer Organizations Work?
The PEO focuses on human resources matters and administrative tasks while you work on further developing your business. Outsourcing HR can also help you leverage economies of scale. You get to maintain day-to-day control, while benefiting from the efficiencies and cost savings normally enjoyed by larger companies.
What Are The Benefits Of Working With Peos?
Business owners who work with certified Professional Employer Organizations quickly realize the benefits of outsourcing for small businesses. Companies that use PEOs grow up to 9% faster, retain more employees, and are more likely to stay in business. They can also save up to 35% on HR services.
PEOs are different from other companies that offer outsourcing because of the co-employment relationship. Under this arrangement, workers are technically employed by both the business owner and the PEO provider. Co-employment is beneficial because it transfers many risks and responsibilities to the Professional Employer Organization. As the business owner, you’ll still have control over operations, hiring, firing, and promotions. At the same time, you’ll have access to experts in workers’ compensation, tax and labor laws, and they can all help you to improve your business’ profitability.
Your Advantage: Many Small Business Owners Don’t Know About Peo
PEO services for businesses have existed for more than three decades, but many people still struggle to get help with their HR-related problems. This means they spend a lot of time dealing with payroll and other administrative matters while the rest of the business doesn’t get their attention. If you want to give your firm an advantage, you should seek the services of a certified Professional Employer Organization.
Thinking Of Boosting Your Small Business By Working With A PEO
If you are ready to reap the benefits of outsourcing your small business, you may be wondering about which PEO to choose. You should take some time to examine what goes on in the industry and thoroughly study the candidates. Pay attention to the PEO’s:
- Experience in HR in your state and industry
- Offerings regarding employee benefits
- Proposed plan for helping your organization
Concurrent HRO can provide you with a number of valuable business services that will help your business to grow. Our PEO services include HR planning, payroll and benefits administration.