Employee leasing is similar to a staffing service, and it can be provided by many different companies. It allows small and midsize companies to share some of the most important legal and labor burdens of hiring personnel without needing an HR department of their own.
Employee leasing can also offer different benefits for both employers and employees. On one hand, employers can hire highly qualified staff and outsource HR to handle all administrative tasks. On the other hand, your employees can have Fortune 500 benefits, no matter the size of your company.
What Are the Benefits of Hiring a PEO?
Hiring a PEO can offer huge benefits for companies but also for employees. The PEO will serve as a co-employer for the IRS, which means they will take care of tasks such as insurance coverage and taxes while the client and their company take care of the training, work culture, and integration.
Depending on the PEO company you hire, you can have some other benefits. Some PEOs also assist with tax administration, payroll, legal matters, and other administrative tasks. The right PEO provider can help you expand your business and hire overseas workers without needing a foreign subsidiary.
Workers also get benefits, which can turn your company into a better-ranked workplace while giving them more reasons to apply or stay.
Should I Lease Employees?
Every company’s needs are different, but getting the assistance of a PEO company becomes necessary when businesses start to expand. That is because a PEO allows growing companies to increase their HR capabilities without investing in an in-house HR department.
After COVID, and with the rise of remote work worldwide, American companies now have access to very specialized talent globally. However, the hiring process for those foreign employers can be complicated and expensive.
A global PEO company can solve all those problems for you while allowing you to expand your talent search to the entire world through employee leasing.
Are Staffing Agencies and PEOs the Same Thing?
While there are some similarities between staffing agencies and PEOs, the latter can provide further assistance with recruiting, hiring, and other HR-related processes. A professional employer organization (PEO) can also help you set up an efficient payroll and unburden you from all tax-related tasks.
PEOs also serve as the employer of record (EOR) for any tax and insurance purposes. Among other things, if a worker gets injured at their job, the PEO will take care of workers’ compensation and any legal matter that comes from it.
What Is the Difference Between Leasing Employees and PEO Co-Employment?
There are many differences between the two, but the most notable is staffing. Employee leasing companies focus mainly on providing temporary workers, while a PEO can help you cover fixed positions and support you with HR resources. In a co-employment arrangement, you manage your workforce while the PEO deals with all administrative tasks.
An employee leasing company may send workers to cover any temporary position at your business. But after that period ends, they return to the staffing agency for the next assignment. PEO co-employment is different because the employees work only for you, and you decide how long to keep them.
What Are the Services a PEO Can Offer to My Business?
Different PEO companies will offer different packages and services, but most of them can help you with everything related to:
- Workers’ compensation
- Time tracking
- Health and retirement benefits
A PEO is an affordable way to offer Fortune 500 benefits to your employees, no matter the size of your company.
How Much Does a PEO Cost?
Professional employer organizations usually charge a commission that depends on many things, such as the number of employees and the benefits you want. The costs will also vary depending on the other services you require.
Will PEO Employees Comply With My Company Requirements?
Yes. The PEO can guide work culture and even handle some employment-related issues. But while you will share some administrative tasks with them, you have complete control over everything related to work, business, and personnel decisions.
What Should I Look for in a PEO?
The most important thing is to find a PEO that understands your company and can offer you the right benefits for your line of business. It is very important to look for organizations with verifiable experience.
Also, you might want to look for a PEO that meets all standards and requirements from the IRS. Here, you can find more information about what to look for in PEO employee leasing.
How Do I Find the Right PEO for My Company?
Partnering with a professional employer organization for employee leasing is an important decision. With a PEO also handling your HR, payroll, workers’ comp, benefits, tax, and other tasks, you want to ensure you’ve chosen the right one to stay compliant, improve productivity, and keep your employees happy.
As PEO brokers, we have the right solutions to end your worries about employment complaints and taxes so that you can focus all your resources on what matters: making your business grow! Contact a NetPEO representative today, and let’s achieve the growth your business deserves.