Having a professional employer organization (PEO) for your business creates opportunities your company may not have been open to them before. When you are hoping to grow, focus your efforts on developing new products and services, and need help with your company’s human resources needs, a PEO could be the solution you have been looking for.
Instead of spending time handling administrative responsibilities, you can devote more of your efforts towards growing your business while your co-employer takes care of your employees and HR tasks and responsibilities. Here is more about how working with a PEO could benefit your company.
What Does a PEO Do?
A PEO is an organization that you work with to manage your company’s human resources needs. This often involves worker’s compensation, payroll ministration, employee benefits, compliance, and more. It is one of the most common ways businesses can take care of their admin and HR needs without having to hire an entire team of professionals individually.
You work as part of a co-employment agreement, which allows your business to access benefits and insurance packages that may not be available to smaller size companies. However, you still maintain control over your business decisions, employee termination and hiring, and daily operations. Your PEO handles the administrative responsibilities you delegate.
Reasons to Work with a PEO Company
You may be unsure whether working with a PEO is the best decision for your company. Here are some of the advantages of having a PEO handle your HR and administrative responsibilities:
Access to High-Quality Employee Benefits Packages
One of the primary reasons to start working with a PEO is to get access to comprehensive employee benefits packages. When you have a larger business through your co-employment agreement, you will have an opportunity to access benefits that might not have an option for your business otherwise. This includes life insurance, full coverage, vision and dental, retirement savings, and more cost-effective pricing.
Boost Employee Productivity and Performance
When you have a PEO working for you, you also are more likely to boost your employee’s productivity and loyalty and reduce business turnover rates. Some of the tasks and responsibilities your PEO can handle regarding your team members include:
- Conducting employee evaluation
- Offering online learning opportunities
- Ensuring employees have access to the resources they need
- Employee development in training
- Helping employees set professional goals
- Handling employee complaints or concerns
Get a Ready-Made Human Resources Department
If your business does not have a human resources department yet, working with a PEO makes it possible for you to get your HR and administration duties taken care of so you can devote more of your time and energy towards your business’s growth. Your HR team will:
- Help develop training and onboarding materials
- Provide a friendly customer service team to employees
- Handle payroll administration
- Help your employees get set up with benefits
- Health employees deal with workers comp or disability claims
- Measure your company’s performance
Access to Legal Support When You Need It Most
It is more common than you might think for small to midsize businesses to find themselves dealing with legal issues, especially those involving employment and labor law violations. You can protect yourself from the start by having a PEO ensure your business remains in compliance with state and federal employment and labor laws.
Your employees can speak with your PEO about paid time off complaints, payroll discrepancies, and other issues so you do not wind up in court. You may also benefit from a PEO provider if you are a remote company that employs staff across multiple states, where the laws may vary on a state-by-state basis.
Protect Your Employees with Workers Comp Coverage
Most employers are legally required to provide employees with workers comp insurance coverage. This can ensure your employees have the financial support they need when they have suffered on-the-job injuries. When you have a PEO, you can help your employees get top-of-the-line worker’s compensation insurance protection coverage.
Your PEO provider will also handle all workers comp paperwork, address employee questions or concerns surrounding on-the-job injuries, and conduct safety audits to ensure your team members are following necessary protocols and procedures. Having a PEO also means your employees have access to specialists who can help them get back to work more quickly and prevent future accidents and worker’s compensation claims.
Delegate Your Payroll Responsibilities
One of the most popular services PEOs offer is payroll administration responsibilities. Not only can your PEO take care of your business’s payroll, but we can also ensure you remain in compliance with documentation regulations and federal and state tax withholdings and handle your employees paid time off or sick day accrual.
Your PEO can also set your employees up on an automated payroll system so they can receive their paychecks via direct deposit weekly, biweekly, bi-monthly, or once a month, depending on your financial needs. Your PEO provider will also handle your bookkeeping and provide your employees with the W-2 forms they need when tax season rolls around. Depending on your business needs, you could be charged a flat rate or on a per-employee basis for payroll administration.
Offer Employees Retirement Savings Options
Having a PEO provider means you can offer your employees more comprehensive and innovative benefit services. One of the most valuable includes retirement savings options. You can even match your employee’s contributions to their retirement savings accounts as well.
PEOs give you multiple options to choose from, including Roth IRAs, 401(k)s, and other retirement savings solutions. When you offer employees the opportunity to save for retirement now, you can expect employee loyalty to boost and turnover rates to decrease.
Connect with NetPEO Today
Working with a PEO opens up your company to comprehensive employee benefit services packages and allows you to outsource your human resources department while still showing your employees how much they matter to you.
When you are ready to be connected with the right PEO provider to meet your business needs, do not hesitate to contact our team of specialists at NetPEO. Schedule your free consultation today when you call our office or complete our convenient contact form.