The PEO you select to help you with your business’ needs can solve many, if not all, of your HR department concerns. However, some things may remain unclear at first. For example, even though your PEO is handling your HR department, who is responsible for obeying state and federal employment laws: you or your PEO.
Well, that really depends on which laws and regulations we’re discussing. From the moment you sign the contract, your PEO takes on the responsibility for whatever you need them to help you with. This may or may not concern paying employee wages, for one thing. Your PEO may also be responsible for following the law with respect to reporting your finances and filing worker’s compensation claims. But each PEO relationship is different. It all depends on what you need them to do.
The IRS considers a PEO a “third-party payer.” Therefore, you can, if you so choose, hire a PEO to pay your employment taxes for you. However, because the PEO is a third party and not actually you, the IRS still holds you accountable for complying with all the laws and regulations that apply to your business, unless you inform them of your arrangement with your PEO.
How nice does that sound, not to have to deal with the IRS either at all or on your own anymore? NetPEO can help you find a PEO that works as your right-hand man (so to speak) and takes on these responsibilities for you. Give us a call today at (678) 376-1212 for a free analysis of your business. Let us help you find that perfect match!
State Laws and PEOs
As long as you let the IRS know you are working with a PEO, they will see your PEO as the one responsible for your payroll taxes. Likewise, a PEO is also responsible for paying your state unemployment taxes. As such, it’s in the PEO’s best interest to report things correctly and on time, as the PEO is also liable for any payroll and unemployment tax mistakes.
Double-check the laws in your state. Many (but not all) states recognize PEOs as the employers for their businesses. As such, states see PEOs as the ones responsible for providing workers’ compensation coverage.
PEOs are also in charge of discrimination claims. In fact, and this is important, employees who work for smaller businesses would not even be able to pursue a discrimination claim if a PEO wasn’t involved. This is due to exemptions under the law for companies with smaller workforces.
In other words, when several companies team up with a PEO, all of the employees of those companies group together under one umbrella. Because the “workforce” is larger, laws now apply to your employees that may not have applied before — yet another invaluable benefit you can enjoy when you partner up with a PEO.
A PEO as Your HR Department
A PEO can do more than just help with your state and federal tax concerns. A PEO can literally exist as an off-site HR department for your business. A PEO can help with everything from payroll to managing your employees’ paid time off.
By teaming up with a PEO, you can actually make money. How, you ask? Because of the time you get back that you can instead devote to growing your business. Imagine if all the time you spend each week calculating payroll and doing administrative paperwork you could instead put into your business’ social media accounts, or working on advertising campaigns?
Let a PEO help you with the tedious stuff so you can focus more on doing what your business needs to thrive.
Your PEO and You: A Match Made in Heaven
In the United States today, there are between 750 and 1,000 PEOs out there, and one of them is your perfect match. But we literally just spent a whole article telling you about how a PEO can save you time. How can we expect you to put time you already don’t have into screening PEOs?
You don’t — that’s where NetPEO comes in.
We have the knowledge and experience necessary to take a free analysis of your business, then match that analysis to a PEO with strengths exactly where you need them to be. And if it turns out our matching skills weren’t quite right, no worries. We’ll check in with you for feedback and if you’re unsatisfied with our pick, we’ll dive right into a new search to find you a better match.
Let NetPEO help you find that partnership that will change your life. Give us a call at (678) 376-1212 to learn more. Save your business, save your employees, and save yourself the time and energy you need to succeed. Call NetPEO today!