Liability sneaks up on many a business owner. It is one of the last things you should have to worry about while managing your business. You may have tax liability, or your employees can even become a liability. Either way, liability is something you should avoid when you can. A PEO can help.
A professional employer organization (PEO) is a precious resource for any business. A PEO can help you keep your employees by handling their issues for them. This also reduces your liability. A PEO can manage your state and federal labor law liabilities as well.
Learn more about how a PEO partnership can reduce your business’ liabilities. Call NetPEO today at (678) 376-1212.
Federal and State Law Liability
As soon as you hire even one employee, the laws affecting your business change. You must obey the Fair Labor Standards Act (FLSA) and the Occupational Safety and Health Act (OSHA). You also must pay payroll taxes. These include paying and withdrawing FICA and FUTA.
The Consolidated Omnibus Budget Reconciliation Act (COBRA) affects businesses with 20 or more employees. COBRA is temporary health insurance your employees can use after they leave the company.
If you have over 50 employees, you must also offer the Family and Medical Leave Act (FMLA) to your staff. This law allows employees to take unpaid leave in certain situations. Examples are if your employee just had a baby, or if they need to take care of a sick relative.
You may also have to follow different state laws affecting employees. State law requirements are different based on your state. A PEO can help you understand which state laws apply to your business. A PEO can also help you follow them.
If all of this seems overwhelming, don’t worry. A certified Professional Employer Organization (CPEO) can help. A CPEO is like a PEO, but they enjoy more permissions. To be specific, the IRS certifies a CPEO, which allows them to handle financial matters for their clients. This includes tax issues at both the state and federal levels.
State and federal laws can confuse even the most experienced tax professionals. For this reason, you should definitely consider a partnership with a CPEO. A CPEO can handle tax matters for you and confirm your business is following the related laws.
Employer’s Liability Insurance
If an employee gets hurt or sick while on the job, they can file a worker’s compensation claim. This claim pays their medical bills and part of the income they lost while they were working on getting better. However, an employee can still sue you for damages if they believe you did (or did not do) something that caused the problem.
Employer’s liability insurance is a valuable resource in situations like these. Employer’s liability insurance covers lawyer fees and court costs, which can add up quickly. This insurance also pays out on any settlements or judgments the court awards the employee.
With employer’s liability insurance, you do not have to worry about your business going bankrupt because of a lawsuit. Either a PEO or CPEO can help you find an employer’s liability insurance plan that meets your budget.
Employer’s liability insurance is important, no matter what kind of business you are in. However, this is especially true if you work in an industry that is otherwise more dangerous than your average industry, like construction or manufacturing. Let a PEO broker find a plan for you that will reduce your stress and allow you to run your business without interruption.
NetPEO Can Help You Find the Right PEO for Your Business
Every employer has liability. No matter the reason, liability can put you out of business for good if you’re not careful. However, you can save your business and reduce your liability with the right PEO.
NetPEO can match you with a PEO that can reduce your business’ level of liability. A PEO is also good for your employees. They do not have to worry about losing their job if you’re doing everything correctly.
A PEO can also help you acquire benefits you might not otherwise have had before, including better health insurance and options for retirement and worker’s compensation. Whether your business is large or small, established or just starting, there is a PEO out there for you. Even the best businesses can become better. A PEO can help get you there faster.
If you would like to receive a free analysis of how a PEO can help your business, call NetPEO at (678) 376-1212 today. You can also send us your contact information online. We will then profile your business and match it to one of our partner PEOs. Call NetPEO today and take the first step toward improving your business!