Professional employer organizations, or PEOs, are becoming a staple for businesses across the country, with about 173,000 companies using PEOs for various HR operations.
In today’s cut-throat business landscape, companies that hire PEOs stay ahead of the curve. That’s because PEOs provide an all-inclusive, comprehensive solution to managing payroll, benefits, and HR.
One of the most difficult aspects of running a business is making and managing payroll. Between making timely payments and accounting for employee deductions, managing payroll can be stressful. However, PEO payroll services can help take a huge load off.
Don’t believe us? Well, keep reading, and we’ll show you how. That’s because, in today’s post, we’ll be highlighting a few benefits of hiring a PEO payroll service for your business.
What Is PEO?
A PEO is a co-employer arrangement in which an organization contracts with a PEO to handle all or most of its human resources functions. The PEO becomes the employer of record, assuming many of the responsibilities associated with being an employer.
PEOs exist to help businesses save time and money by handling HR functions such as:
- Payroll processing
- Employee benefits
- Workers’ compensation
- Tax compliance
PEOs also offer a wide range of value-added services, such as:
- Recruiting and staffing
- Training and development
- Employee relations
- Safety and risk management
- Health and wellness programs
PEOs are immensely beneficial to businesses of all sizes. One of the most notable PEO services is payroll management and employee benefits administration.
What Are the Benefits of PEO Services?
As mentioned earlier, PEOs do a great job at handling payroll, aside from performing other human resources activities. Here are a couple of benefits of PEO payroll services.
Better Employee Benefits
Employee benefits are a huge selling point when it comes to recruiting new employees. PEOs can help businesses offer their employees better benefits, such as:
- Health insurance
- Dental and vision insurance
- Retirement plans
- Life insurance
The best part is that PEOs offer these benefits at a much more affordable cost. That’s because PEOs offer discounted rates for these benefits.
Help With Compliance
PEOs can also help businesses with payroll compliance. PEOs make sure that businesses are compliant with state and federal regulations, such as:
- The Family and Medical Leave Act (FMLA)
- The Affordable Care Act (ACA)
- The Americans with Disabilities Act (ADA)
In addition, PEOs also offer compliance training for businesses and their employees. This ensures that businesses are up-to-date with the latest compliance regulations. In doing so, they can sidestep hefty penalties and fines for non-compliance.
They Handle Employee Retirement Plans
PEOs offer a wide range of retirement plan options like 401(k) plans, 403(b) plans, and 457 plans. They also help with the administration of the said retirement plans. They’ll handle tasks like:
- Making sure that employee contributions are made on time
- Processing employee withdrawals
- Sending out statements to employees
PEOs make it easy for businesses to offer retirement benefits to their employees. And with PEOs handling the administration of these plans, businesses can save a lot of time and money.
Handle All Employee-Related Legal Matters
It’s not uncommon for employees to sue their employers for violating their rights. This can deal a huge blow to the employer, but PEOs can help. They can handle all employee-related legal affairs on behalf of the employers.
PEOs have teams of lawyers that will represent businesses in cases like:
- wrongful termination
- sexual harassment
PEOs will also conduct investigations if an employee complaint is filed. And if the case goes to trial, PEOs will be there to represent the business. They may also negotiate with the employee for an amicable out-of-court settlement.
Assist With Worker’s Compensation
Most states have made workers’ compensation mandatory to cover employees for any work-related injuries. PEOs will handle all the paperwork and documentation related to worker compensation claims. They’ll also contact the insurance carrier on behalf of the business to start the claims process.
What’s more, PEOs will also provide safety training for employees. This will teach them how to prevent injuries at work. As a result, businesses can avoid costly and time-consuming worker compensation claims.
Handle Employee Training and Onboarding
PEOs will develop training programs that are tailored to the specific needs of the business. They’ll also handle all aspects of employee onboarding, such as:
- Conducting background checks
- Creating employee handbooks
- Processing new hire paperwork
PEOs make it easy for businesses to train and onboard new employees. They’ll also help recruit the best talent to fill vacant positions in your company. This not only saves a lot of time and money but also increases business turnover.
Help Create Employee Handbooks
Employee handbooks are special handbooks that outline the company’s policies and procedures. They also include information on employee benefits and rights.
PEOs help businesses create handbooks to get employees up to speed with company policies and work culture. They’ll also ensure that the handbooks are compliant with state and federal laws.
Creating an employee handbook is a time-consuming process. But with PEOs, businesses can get it done quickly and easily.
Gives You Peace of Mind
Running a business is no walk in the park. There are tons of things to think about and handle on a daily basis. This can be stressful and overwhelming for business owners.
But with PEOs, businesses can outsource their HR functions. This will give them peace of mind knowing that their employees are being taken care of. PEOs will handle all employee-related matters, so businesses can focus on running and growing their business.
What’s more, with PEOs, employers don’t have to worry about any run-ins with the law. That’s because they’ll ensure that every aspect of a company’s HR is compliant with employment laws. This helps businesses sidestep costly lawsuits and penalties.
In fact, some of the best PEOs in the country are backed by top-tier law firms. You can check it out and decide whether such a PEO works for you.
PEO Payroll Services to Boost Your Business
Take your business to the next level with PEO payroll services. With so many benefits of hiring PEOs, there’s no reason why you shouldn’t. Just ensure you find a top-rated PEO for the best results.
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