Running your own business is tough. While you may be an expert in the product or service you provide, you probably are not an expert in the behind-the-scenes administrative tasks necessary for keeping your business running smoothly. Most business owners are in that same position, which is why large businesses have legal and human resources departments to take care of those duties.
But owners of small or mid-sized businesses typically cannot afford to employ enough qualified people to fill those roles and end up spending much of their time handling them and often find themselves “in trouble” for having missed or misinterpreted one of the many very-specific regulations governing small businesses. With over 200 years of combined experience, NetPEO brokers help business owners fulfill these administrative roles by facilitating co-employment partnerships with San Francisco PEO insurance services providers.
PEOs and Co-Employment Partnerships Explained
A Professional Employer Organization (PEO) is an organization that performs administrative and human resources (HR) tasks for businesses. When you enter a co-employment relationship with a PEO, you and the PEO both serve as employers of your employees, but with distinct roles.
These roles do not diminish your authority as a business owner. You still control the day-to-day business operations and decisions and manage your employee’s activities. The PEO’s co-employer status simply allows the organization access to employee and company information so it can carry out the duties you have assigned it in your co-employment agreement.
PEOs also streamline your HR costs. If you consider outsourcing these responsibilities in a more a la carte fashion to individuals or small firms, you end up paying more for the services overall.
What NetPEO Does for You
While a partnership with a PEO can improve your business and your life as a business owner, you might wonder where to begin–how do you find the right PEO? This is where NetPEO comes in. Our company is not a PEO itself, but a PEO brokerage with a network of highly qualified San Francisco PEO insurance services.
If you look for a partner on your own, the process can be time-consuming and even overwhelming. Researching the many San Francisco PEO insurance services available, determining which ones are legitimate, and then narrowing down the selection to the one which is the best fit for you is a challenging process. When you work with a NetPEO broker, you do not have to do that work. Instead, your NetPEO broker will:
- Assess your business’s needs during your consultation
- Review NetPEO’s extensive network of reliable PEOs to determine which partners will fulfill your business needs best
- Send you a manageable number of PEO recommendations so you can make the final selection
- Work with you and your PEO partner to develop a clear co-employment plan, and help you transition to the co-employment structure
- Help you sort through any issues or bumps in the road as you adjust to your new partnership
NetPEO has a strong track record of successful first-time matches. However, if you decide a PEO partnership change is necessary, your broker will help set you up with another partner.
What a PEO Can Do for You
As the business owner, you decide which responsibilities to give the PEO. Some business owners hand over all administrative tasks, while others curate a more selective list. Whatever you decide, there are a variety of HR duties your PEO can take off your to-do list.
Your PEO partner can take care of background checks, drug testing, and other hiring responsibilities while still leaving you with the final say, if you want it, about onboarding a recruit. The PEO can also see to the employee’s training and continued professional development for all workers.
Should you need to fire an employee, the PEO will make sure the process runs according to state regulations.
To be successful, businesses must have an efficient payroll system, and your PEO can handle all payroll-related duties such as:
- Tracking employee’s work time, time off, and benefits
- Paying employees on time
- Paying employment taxes
- Developing expense reports
- Correcting payroll discrepancies
- Keeping the company’s “books” balanced
It is very difficult for small or mid-sized business owners to offer employees quality benefits or compete with the benefits packages large businesses provide. These packages are expensive, and with so few employees in a small business, rates per employee are even higher. As a result, it is tougher for small businesses to attract qualified workers, and when they do, it is harder to keep them.
Since your employees are also the PEO’s employees, as are employees or other businesses partnering with the PEO, the PEO has more bargaining power and can negotiate stronger benefits packages at a lower cost. Better benefits level the playing field as you compete for stronger workers and will help keep your workers satisfied with their employment situation.
Small business owners in San Francisco must comply with California’s small business regulations governing matters from workplace safety and health, to general labor laws, to workers’ compensation.
The California Business Journal highlights additional regulations about advertising, environmental issues, and data security.
Falling out of compliance, even unintentionally, can leave you with fines or other penalties. Your PEO can take on compliance oversight so you avoid these penalties and potential damage to your brand.
Results of a PEO Partnership
A PEO partnership has a domino effect of benefits. When you streamline administrative costs, you have more money to invest in your business. When you no longer have to put hours into administrative tasks, you can dedicate more time to the business itself.
When your employees are well compensated, they are more satisfied and productive. These benefits add up to a thriving business with a healthier bottom line and greater opportunity for growth.
Trust NetPEO to Connect You to a San Francisco PEO Insurance Services Provider
NetPEO brokers care about their clients’ satisfaction, and our 95% PEO partnership retention rate proves it. Call or send us an electronic message to <a href=”https://www.netpeo.com/contact-u