Running a business can be overwhelming, but outsourcing services can reduce the workload and help you focus on core business activities. Employee leasing in Utah is a contractual agreement where the third-party leasing company, known as a professional employer organization (PEO), handles your human resource responsibilities. Usually, the PEO and business owners share duties.
When you use a Utah employee leasing company such as NetPEO, you retain complete control over your business and operations. The leasing company’s role is to ensure that you have an efficient workforce for both temporary periods and specific projects. They also oversee responsibilities such as managing wages, reporting taxes, and providing other human resource services.
How Does a PEO Work?
As an employer, you need to offer the best benefits package to attract top talent. Unfortunately, it’s both challenging and costly to develop competitive benefits packages without access to the right knowledge, tools, and networks.
Using PEOs can help you access more workers and create competitive benefits packages. The relationship between you and your PEO is best defined as co-employment. The National Association of Professional Employer Organizations (NAPEO) defines co-employment as the contractual allocation and sharing of employer responsibilities between the PEO and the client.
Employee leasing allows you to increase the number of workers in your organization without adding administrative complexity. In this arrangement, you access great benefits packages for your workers without taking on most legal and administrative duties. You also retain the power to hire, fire, and oversee the management of your staff.
Responsibility Sharing in Co-Employment Arrangements
In co-employment, your business and the PEO share responsibilities. However, the roles are distinctly defined:
- Your PEO partner is legally allowed to handle the payroll, human resources, benefits, taxes, benefits, worker’s compensation claims, unemployment requests, and more.
- As the business owner and manager, you remain the principal employer of all workers in your organization. You can hire and fire and direct PEO activities.
At NetPEO, we provide recruiting, training, evaluations, and analysis. We also handle employee disputes, unemployment claims, and other employment claims against your business.
How Is a Utah PEO Different From an HR Outsourcing Service?
Both HR outsourcing services and PEOs allows you to hand over HR roles to professionals outside the organization. However, PEOs have a more powerful arrangement. For an HR outsourcing firm, the contract only allows the third party to do the work for HR without extending benefits to your workers.
However, PEOs handle more responsibilities. Since the workers are technically yours, you can bargain for benefits packages on their behalf. The PEO will also endeavor to find the right benefits package for you.
What Can a Utah Employee Leasing PEO Company Do for Me?
A PEO provides all the benefits of an outsourced HR department and more. You can expect the following:
- Your business can offer an excellent health benefits package with vision and dental services that assist your workers. In addition, you can offer these benefits at an affordable rate since the PEO negotiates the rates on your behalf.
- You can ensure compliance with the Affordable Care Act, allowing you to transform how companies offer benefits to their employees.
- A PEO oversees complete payroll, including direct deposits, online pay stubs, and digital W2s. At NetPEO, we have the technology and the team to reduce redundancies, payroll errors, ghost workers, etc.
- PEOs handle claims and disputes on your behalf, freeing your business from legal and administrative conflicts. PEOs handle the disputes, including the paperwork, correspondence, and negotiations, to keep the costs of conflict down for all parties.
- While you can reserve the right to recruit and hire, PEOs can offer full recruitment and hiring services. At NetPEO, we scout, screen, interview, and onboard the best employees for your organization.
- PEOs offer performance reviews, which help you offer better rewards, boost output, set better goals, and continually find ways to improve your workforce.
What Kinds of Businesses Use Employee Leasing Companies in Utah?
A PEO can work across all industries and organizations. At NetPEO, we partner with companies in Utah at all scales:
- Small business
- Medium-sized businesses
- Large businesses
- Not-for-profit organizations
What Should You Look for in Employee Leasing?
If you consider partnering with a PEO in Utah, here are several questions you might have.
Will I Get All the Services I Need?
Absolutely! With employee leasing in a PEO, you get a complete solution for recruiting, onboarding, payroll, taxes, worker’s compensation, time tracking, performance reviews, etc. You also get access to excellent and affordable employee benefits packages.
How Do PEOs Charge for These Services?
PEO contractual arrangements can vary. You can pay for services as a percentage or lump sum payment. Choose a PEO that matches your budget and offers the best benefits at an affordable rate.
What Responsibilities Will I Have as an Employer?
In co-employment, you can still decide who gets hired and fired. You can work with the PEO to find the best benefits providers and negotiate costs for each benefits package. You will also oversee the employee tasks, processes, and training in collaboration with the PEO.
The PEO is a partner that helps you handle HR issues such as recruiting, training, and managing payroll. However, the processes at work and information required for training or analyzing employees may be entirely up to you. Look for organizations that can scale with you and have excellent communication to keep you in the loop.
Contact NetPEO and Start Your Employee Leasing Today
With a Utah employee leasing company and partner, you can start offering better benefits packages to attract top talent. NetPEO is ready to partner with you for cost-effective and customized HR services. To learn more about how we can benefit your business, fill out our contact form and get a free quote today.