A professional employer organization (PEO) is a valuable service because they help small or medium-sized businesses with frustrating tasks that can take up a lot of time. PEOs specialized in services, such as human resources management, state and federal tax compliance, payroll processing, and comprehensive benefits administration.
PEOs provide a unique co-employment agreement that grants small or medium-sized business access to the same benefits of larger companies, standardized human resource policies, and practices, risk management support, workers compensation coverage, and training resources for employees.
What Is A PEO?
As mentioned above, a professional employer organization uses a co-employment model in which the PEO and yourself share responsibility and liability of the business. The PEO company becomes the employer on record and is responsible for the legal aspects of employment administration and compliance matters. However, your business maintains the responsibility of the day to day operations and assignment of tasks for employees. Great PEO companies offer comprehensive business solutions and services, including:
- Managing Payroll – PEO companies are the employer on record. They are responsible for managing payroll functions, such as PEOs payroll services, including setting up and running employee payroll calculations, which makes appropriate deductions, and coordinating final payments at termination.
- Taking Over HR Functions – Great PEO companies handle various human resource functions. They offer comprehensive human resources services, such as managing leave and holiday benefits, administering benefits, managing annual leave, and setting up insurance. A PEO company helps risk management tasks and minimizes the business’s possible liability.
- Handling Tax Administration – PEO companies are familiar with tax structures in other countries and regions. PEOs can advise on compliance matters and manage the tax administration.
- Providing Immigration Consulting – A great PEO should provide reliable consulting on immigration matters and processing visas.
- Drafting Compliant Employment Contracts – A good PEO company is up to date with local and regional employment laws that are compliant and save your business time, money, and frustration.
- Recruiting Top Talent – A great PEO company can help recruit top talent from all over the world.
- Onboarding Employees – A PEO company assists with the process of onboarding employees to create a unified transition into the workplace.
- Providing Legal Services – Some PEO companies can provide legal services and these services involve protecting property, meeting compliance measures, advising on foreign investments, and offering legal advice when making finance decisions.
What To Look For In A PEO Company
A little research can help you find a PEO company, but there are a few things to look for when making the best choice for a PEO company to help your business. Complete the following steps in your search for a great PEO company:
- Assess Your Business Needs – In order to know what services you need out of a PEO company, you must assess your business’s actual needs. Consider the challenges your business is facing and your potential needs, such as payroll, human resources, and risk management. Determine if the PEO company you are interested in can meet your needs in the areas you need help.
- Determine Employee Benefits – Take into consideration how the PEO company tailors benefits for employees and if their approach coincides with the needs of your workforce. Being able to offer better benefits will help attract top talent to your business and retain employees. Working with a PEO company means your business can take advantage of accessing benefit policies at lower premiums. You want to make sure you partner with a PEO company that offers benefits that matter to you and your employees.
- Evaluate the Technology of the PEO Company – The purpose of going into a co-employment agreement with a PEO company is to make administrative tasks easier for your business. Good PEO companies have access to technology and tools that can manage payroll, track employee time, track deductions, access payroll information, and simplify workers’ compensation payment.
- Meet Important Managers – When you have a few PEO companies on your list that you are interested in, you need to personally meet with the key people in their business to determine who you will be working with. During this meeting, ask the PEO company and representatives about relevant experience and expertise by asking questions relevant questions, like what is your experience as a PEO?
- Ask for References – Ask the PEO company to provide references. A great PEO company should have a thorough list of professional references who can confirm their quality of services.
- Complete Your Due Diligence when Analyzing the PEO Company – You need to conduct your due diligence when you examine the PEO and its experience, qualifications, and history. Make sure to perform a background check and look into its requirements to ensure that the company is compliant with government rules and regulations.
- Review the PEOs Contract – Before agreeing with the PEO company, be sure to review the contract carefully. Make sure you comprehend the contract agreement and your responsibilities and the responsibility of the PEO company.
A good PEO company can be a massive benefit to your business, as it allows you to outsource time-consuming tasks to experts so that you can focus on the daily operations and growth of your business. When selecting a great PEO company, it is essential to assess the needs of your business, and what the PEO company can offer to help you with your needs. Ensure that the PEO company can help in the areas you need help in, such as risk management, payroll, human resources, and any other services your business requires.
A PEO company can provide your small or medium-sized business with various human resource services, including HR management, benefits administration, insurance plans, payroll administration, and processing, recruiting and outplacement support, government and tax compliance, and training and development.
A general thing to consider when choosing a good PEO company is the structure of their organization. Look for a PEO company that has a dedicated team of experts who can handle your HR, payroll, risk management, and payroll needs. Working with a PEO company that offers many services that can help your business to make sure you are receiving the most out of your co-employment agreement.
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