If you are interested in hiring a PEO to help your business, you may be wondering who would be responsible for paying employment taxes. Is it still you, or is it the PEO? Per the IRS, a Professional Employer Organization (PEO) is what they consider a “third-party payer.” As such, a PEO can share in or even take over the responsibilities of paying employment taxes. However, the IRS still expects you to pay them unless you make them aware of some other such arrangement with your PEO.
The laws may change, depending on whether you give the PEO the responsibility of paying and/or firing employees. However, in most cases, the IRS will consider you the Common Law Employer (CLE). As the CLE, you are the one responsible for paying your employment taxes on time. If you trust your PEO to do it, you still need to follow up with them to ensure they did it.
However, even if your PEO doesn’t pay your employment taxes, it can free up more of your time to pay them yourself. A PEO can take the focus off you when it comes to handling payroll, worker’s compensation claims, and filing benefits paperwork. You can instead work on paying and filing your employment taxes on time, so you don’t suffer consequences later.
NetPEO can help you find the right PEO today to make a positive impact on how you do business tomorrow. Give our team a call at (678) 376-1212 to learn more.
Installing a PEO as Your HR Department
If you find yourself falling behind on more than just your employment taxes, you may want to consider teaming up with a PEO for help. Businesses experience growth rates like they’ve never seen before, as well as lower turnover rates, when they join forces with a PEO to help them handle their HR responsibilities.
But how does hiring someone to help with your HR paperwork end up making you money in the long term? It’s simple really. The less time you need to dedicate to paperwork and back-end responsibilities, the more time you can spend out in the field, growing your business and making a profit.
Trust your PEO to handle your payroll and taxes so you don’t have to, and you’ll see just how much of a lifesaver a PEO can be. A PEO can help with everything from hiring and training someone new to managing paid time off for your current employees. A PEO can also create employee handbooks for new hires and ensure your employees go for their mandated drug-testing.
Simply put, if you’d trust your HR department to handle it, then a PEO can handle it for you.
What a PEO Can Do for You
A PEO can benefit your business in invaluable ways. You can enjoy both peace of mind and better financial stability when you partner with a PEO.
A PEO helps companies retain employees simply because they make the companies they team up with better places to work. If you enjoy where you are, and you can enjoy a competitive benefits package (also thanks to the PEO), why would you ever want to leave? That saves you, the employer, both time and money on what you would have otherwise spent training new hires.
You also never have to worry again about whether you’re following state and federal labor laws by filing your paperwork and paying necessary dues on time. Both big corporations and smaller mom-and-pop shops can benefit from the services a PEO provides. And you don’t have to sign up for a package complete with services you don’t need. Pick and pay for only what you want and need, and nothing you don’t need.
NetPEO Can Help You Find the Right PEO for You
In the U.S. alone, there are between 750 and nearly 1,000 PEOs currently operating. How can you possibly narrow that field down to the exact PEO that’s the right match for your business?
The good news is you don’t have to! That’s what we do best here at NetPEO. We conduct a free analysis of your business. We then match your needs up to what a particular PEO does best and arrange for the two of you to meet! Best of all, if the match doesn’t turn out to be 100% satisfactory, we’ll simply set our sights on a different PEO and find you a different match.
You can change your business for the better without doing much at all. Just give our team at NetPEO a call at (678) 376-1212 or send us a message on our website to get started. Enjoy an experience like you never thought possible when you team up with a PEO. Let us help you on your journey — call us today!