A Professional Employer Organization (PEO) allows businesses to outsource their administrative needs to an outside company. Hiring a PEO allows a company to focus on their core business model instead of worrying about administrative tasks. For example, a doctor’s office can focus on providing quality medical services to their clients while the PEO makes sure that all employees are paid on time.
Some of the services provided by a PEO include:
- Brokerage Services:connecting businesses with other PEO specialists.
- Human Resources:hiring, training and retaining employees, including creating onboarding materials and completing any required background checks.
- Payroll Assistance:paying employees and handling tax obligations such as providing W2 and 1099 forms.
- Benefit Planning:medical, vision and dental insurance, paid time off, life insurance and retirement planning.
- Reviewing Workers Compensation Claims:a PEO specialist can review all claims to make sure that all proper forms are completed and investigate employee claims as well.
- Risk Assessments:managing government regulations and reviewing ways to decrease workplace injuries.
PEO and Co-Employment
Another term you are likely to come across when you are considering utilizing a PEO is co-employment. This refers to when your company retains control over its core business services or products but the PEO handles all employee-employer issues that you outline in your agreement.
What this does is create two sets of employers over all of your employees. In this way, the PEO is an employer in the sense that they handle all administrative functions for the business. On the other hand, the business is the employer when dealing with all other tasks. This creates a symbiotic relationship between the PEO and business where the business can focus on its mission and the PEO has the authority to handle administrative employment issues.
Advantages of Hiring PEOs
Companies that work with Professional Employer Organizations have significantly increased their core strengths. Some of the biggest advantages of hiring PEO services are:
- Benefit Access– small to midsize businesses often lack the resources to provide benefits to attract the employees they want, PEOs have established relationships with insurance companies so they can provide access to a much more rewarding benefits package.
- Lower Costs– hiring PEO services allows a company to reduce costs by outsourcing all administrative tasks.
- Reduced Liability– having specialists reduces your chances at liability because each PEO will focus on their specific task and the laws that surround it (ex. HR and employment laws).
- Lower Turnover– constantly hiring new employees can take a financial toll on any business, however companies that use PEOs have a much lower rate of employee turnover.
However, to sum it up the biggest advantage of working with a PEO is that it offers business owners a little bit more peace of mind. Along with running their business, owners are also expected to be HR managers or accountants. Yet, most business owners do not have the kind of experience required to handle these tasks accurately which runs the business into potential risks. Not only will working with NetPEO save a company time and resources it will also ease concerns about accurate reporting, filing paperwork and following regulations.
How NetPEO’s Brokerage Services Can Help Your Business
NetPEO differs from other Professional Employer Organizations because we match companies seeking PEO assistance with those that have PEO specialities. Another way to think of it is that NetPEO matches “buyers” (business owners that have specific PEO needs) to “sellers” (PEO specialists). Not only can NetPEO find the best PEO services that your business requires but also negotiates on your behalf. This service also allows clients to avoid having to handle administrative tasks completely in-house.
Clients have the option of choosing an a la carte or full coverage package. With a pick and choose option companies can create a specialized plan that bests fits their companies unique needs. Alternatively, a full package will find PEOs that can handle all of the administrative needs for a business. Using NetPEO’s brokerage services, companies can save time searching for and hiring several different companies because the entire process will be handled by NetPEO. NetPEO will find you PEO specialists for each problem area, ranging from human resources to workers compensation assistance.
NetPEO offers assistance to a variety of companies throughout the United States, any company that has employees would benefit from NetPEO’s brokerage services. Using NetPEO’s services allows a person to focus on their strengths while filling in the weaknesses for their businesses with PEO specialists. Most business owners already have to juggle tasks directly related to their services and products, PEO outsourcing allows owners to not have to also worry about learning the intricacies of payroll or how to put together a comprehensive benefits package.
Whether you run a business with 5 employees or 100 employees, allow yourself to grow your company without being bogged down with administrative problems. Contact NetPEO today!