Running a business takes time and it takes effort there is no question about that. The real question is, how effectively is that time utilized? On average 16 hours are spent on administrative tasks, two full workdays each week
Those two days’ worth of time that could be put to far better use if a business paired with a PEO. What is a PEO you ask? A positive business choice, read on to find out what else these services consist of.
What Do PEO Services Include?
The acronym PEO stands for Professional Employer Organization. These organizations pair with businesses to take on administrative and Human Resources responsibilities.
By providing these services the PEO companies allow their partners to operate more efficiently and safely.
Before partnering up with any new PEO company it is important to learn more about their work by talking to them directly however as specifics will always change.
Benefits and Insurance Administration
These partner companies can facilitate insurance benefits that may not have been available otherwise. All of the PEO’s customers are part of the same pool and this provides them with higher purchasing power for claims.
This also means better quality workers’ compensation insurance can be made available for a business.
Risk and Compliance
As a company grows the risk of administrative errors, some potentially causing huge penalties, grows as well. Additionally, there are risks involved with expanding into new territories or markets as well.
Working with a PEO that is a local expert can keep a business up to date with taxes, employment regulation, and benefits when they begin to expand. Regulations can change very quickly and must be addressed in turn.
Payroll Services
The simple administration of the payroll is a very involved and time-consuming task, by having an outsourced payroll a business will be saving a great deal of time and money.
But there is another very important aspect of payroll services that PEO companies take care of, tax laws. They will ensure compliance with tax laws and calculate withholding and garnishments appropriately.
Benefits of Utilizing a PEO
Aside from the simple streamlining of business working with a PEO offers several benefits to all areas of a business, most being on the logistics and administrative side.
Low Costs
Running a business is expensive and looking to expand into a large entity takes even more time and money. These types of resources aren’t always as easily obtained for many businesses.
By utilizing a PEO a business can avoid very expensive time-consuming processes. These processes include;
- Payroll compliance processes
- Managing employee onboarding
- Avoiding compliance penalties and fines
Fast Market Entry
By having a PEO partner a business has all of its HR services already in place. They can handle hiring and onboarding, they can address compliance issues, payroll, and most any other.
Because of that, a new or growing business can enter into the market much easier and much quicker than it would otherwise.
Lower Risk
There is a huge percentage of businesses getting fined every year for a variety of administrative issues. The biggest one, more than 33% of businesses, is payroll errors.
Any risks for error are mitigated by working with PEO services. The time and money needed to address violations is no longer a worry.
Simplifying Compliance
This remains one of the biggest benefits of utilizing PEO services. Outsourcing the regulatory responsibilities to local experts
This becomes even more important as a business expands internationally. These companies will ensure compliance with local laws and customs as well as proper compensation.
What Is a PEO Answered
We’ve been able to answer what is a PEO. We’ve identified how they can serve businesses small and large. We’ve been able to see the benefits they offer to any business pairing with them.
Now it is time to put them to work and allow your business to benefit in the same way these other businesses are.
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