A PEO Can Help to Establish Smoother Operations
Companies bogged down by necessary employee paperwork, which includes payroll and other pertinent daily tasks, many of which can make human resources (HR) challenges a real hindrance to the growth of a business, often look to outsourcing as a solution. Constantly dealing with HR issues which, lets face it, in addition to being a huge distraction, can also make it easy to overlook some key revenue-generating opportunities.
A professional employer organization (PEO) can work with your company and provide comprehensive and affordable payroll and benefits services as a human resource department through a business-to-business relationship called co-employment. Because issues could develop that result in claims against your company you should purchase peo insurance to address these types of concerns.
Advantages of working with a PEO
Through the co-employment relationship, a PEO takes on many of your employee-related employer responsibilities while you continue to manage and run your business. What that actually means for your business is that your company remains the primary employer, so you’ll maintain control over managing your employees daily and core job functions, as well as overseeing your organizational structure.
As the co-employer, its the duty of the PEO to take on specific employer obligations, which you can set forth in your service agreement. This arrangement allows the PEO to handle key functions, such as payroll, benefits, tax remittance and related government filings.
Because it acts as an employer for those purposes, the PEO is given the ability to assume a greater amount of responsibility than, for example, a general payroll company. This arrangement helps employees as well. Typically, with any benefit plans sponsored by a PEO, your employees will be given access to a wider variety of benefits than your company could likely obtain on its own.
This includes better medical, dental and vision coverage, a health care flexible spending account, a retirement plan, life insurance and personal accident insurance, short-term and long-term disability insurance, adoption assistance, commuter benefits and educational assistance.
Payroll processing remains a vital service for your employees, including managing the regular compensation of your employees, along with payroll record maintenance and management, payroll compliance, online pay-stubs and W-2s, payroll management reports, garnishment and deduction administration and PTO accruals. Costly errors could cause huge concerns, so peo insurance will help re-mediate any errors or mistakes that could occur.