Offering employees a benefit package is hard for small or medium-sized businesses. It’s hard for small companies to compete against more prominent corporations when it comes to recruiting top talent because they don’t necessarily have the tools to attract candidates to fill their positions.
A professional employer organization, or PEO company, helps small businesses with managing their employees, including payroll, reporting, and compliance. Through a co-employment agreement, the PEO company becomes the employer of record for tax purposes. A PEO company reduces work on the employer’s end and ensures the employer is compliant with all employment laws.
A PEO company, through co-employment, will take responsibility for your employees. The co-employment agreement, basically means that you and the PEO share responsibility to the employees. Through the sharing of employer responsibilities, the PEO company will oversee payroll administration, tax filing, human resource support, and access to the market while you as the business owner, are responsible for managing day to day management of your business. You can use sites like Retire at 21 to compare PEO companies.
Managing employees and human resources involves many tasks, and most can be handled by a PEO company, which allows the business owner to focus on other aspects of their business. Here are some services a PEO company offers:
- Payroll – PEO company help by managing payroll processes and can account for items like commissions or bonuses for full and part-time employees. They can set up automatic deposits for your employees and offer payroll administration.
- Benefits – A PEO company can provide attractive benefit packages to your employees and help them manage it. A PEO company will help with all benefit administration, such as onboarding benefits, claim, and other benefits. A PEO company allows your employees access to medical, dental, and vision benefits at negotiable rates. With the ability to offer benefits, recruiting skilled and talented employees is easier. Your employees also have access to the PEO’s online platform where they can view their benefits, make variations to them, add beneficiaries, and keep track of payroll deductions. As a small business owner, you can set up a benefits package, put together enticement programs, and create reports for analysis, which helps improve the administration for benefits.
- Compliance Support – Your business will get support for employer-related compliance issues when you partner with a PEO company, including payroll taxes, reporting forms, and employee tax forms. A PEO company provides other support in workers compensation, unemployment insurance filings, and employment practice liability insurance.
- Additional Benefits – PEO companies can offer other benefits to your employees, such as discounted gym memberships. Any benefits that a PEO company offers your employees are provided to create a happy and healthy team environment in your workplace.
There are numerous advantages that a PEO company can bring to your business, including cost savings on employee benefits, cost-saving through hiring, protection again risk, and it frees up the hours in your day.
Partnering with a PEO allows your employees to access health cover at the competitive rates of more prominent corporations.
A PEO company saves you having to hire administrators for human resources because they handle employment-related paperwork and guidance from HR specialists.
PEOs have HR specialists to help with risk mitigation and make sure that your business is always in compliance with the continually changing employment laws and regulations.
Being a small business owner means every minute of your time is valuable. A PEO company alleviates some of the stuff on your plate by taking over employment-related work.