Finding the right level of support is essential to the growth and success of your business. If you are looking for payroll assistance, consider hiring a PEO payroll service provider.
Understand What PEO Means
Before we dive into some of the reasons why it’s a smart decision on your part to choose a PEO company for payroll services in Denver, CO, you’ll need to know what the term means. PEO stands for professional employer organization. It provides payroll administration help along with compliance assistance. If you require additional HR services, a PEO company is also well equipped to handle those tasks.
Benefits of a PEO Company
When you look for options, you’ll find payroll service providers or PSP. There are several differences between them and PEO companies:
A PEO company can handle more tasks than a PSP. These tasks include the acquisition and administration of workers’ compensation insurance, handling employee hiring and termination, and also providing large-employer plans. They also offer health insurance higher than those offered by PSPs. PSPs focus on payroll tax responsibilities.
PEO companies charge more. But they provide you with more cost savings in the long run through the insurance plans they offer. PSPs offer insurance plans with little to none of the cost savings that PEO companies do.
Large-employer rules apply to your organization when you hire the services of a PEO company. You only face regulatory and contracted-based changes, though, when you hire a PSP.
Risk and Compliance
PSPs don’t cover for any compliance errors, so if they make a mistake with your taxes, you’ll end up liable for the legal damage that occurs. PEO companies, though, manage risk and compliance properly. They share the responsibility with you, so they know how to minimize the risks. From getting workers’ comp plans to handling claims investigations, they can take on all those tasks for you.
Which One is Better?
If you want more support, PEO companies provide a range of services for your every need. PSPs mainly focus on payroll processes. If you want to expand your business or looking for a service provider that you can work with long term, hiring PEO company is smart, as they can handle plenty of the services you need. You won’t have to worry about hiring more in-house staff to take care of those tasks. Just make sure you have enough in your budget to pick the right team. Look for affordable options that fit your price range.