Are you bogged down by employee paperwork?
Is your payroll a pain in the neck?
Or maybe, attracting and retaining good employees is a constant struggle because your benefits aren’t up to par.
Whatever the cause may be, HR challenges can be a real hindrance to your business’ growth. It’s easy to overlook key revenue-generating opportunities when you’re distracted by your HR to-dos.
The good news: There’s help out there – it’s called a professional employer organization (PEO).
These organizations can work with your company to provide comprehensive and affordable payroll, benefits and human resource services through a business-to-business relationship called “co-employment.”
What is co-employment?
As a business leader, you may cringe a little when you hear the term co-employment. But it’s really not as intrusive as it may sound.
Through the co-employment relationship, a PEO takes on many of your employee-related employer responsibilities, while you continue to manage and run your business. Here’s what that actually means for your business:
The PEO’s role
As the co-employer, the PEO takes on certain, specific employer obligations, as set forth in your service agreement. This allows the PEO to handle functions such as payroll, benefits, tax remittance and related government filings. Because it acts as an employer for those purposes, the PEO can assume a greater amount of responsibility than, for example, a payroll company.
Typically, a PEO can manage all the HR jobs that you would have to outsource to multiple service providers – like payroll processing, benefit plan management and administration, recruiting and training, and more. This way you can spend less time managing various vendor relationships.
The PEO becomes your one-stop shop for:
- Employee benefits
- Payroll processing
- HR administration
- Workers’ compensation coverage and administration, including claim resolution
- Performance management support
- Training and development
- Recruiting support
- Strategic HR support and planning
Reduce your employer liability
What’s more – through this co-employment relationship with a PEO – your company can effectively and efficiently mitigate a substantial portion of the risk and responsibility associated with having employees, including risks associated with things like:
- Correctly reporting, collecting and depositing taxes with state and federal authorities
- I-9 requirements
- EEO reporting and claim resolution
- Management of certain employee-related claims and provision of Employee Practice Liability Insurance (EPLI)
At-the-ready compliance assistance
Most PEOs employ specialists who are responsible for monitoring many employer-related state and federal laws. Armed with this knowledge, they can help you stay abreast of constantly shifting laws, regulations and reporting requirements that impact your ability to successfully run your business. These include things like properly following federal and state leave laws, assisting your company in its compliance with the Fair Labor Standard Act (FLSA) overtime requirements and employee handbook development.
A PEO does NOT
- Control your business
- Replace your internal HR staff
- Cause disruption to your workplace
Still wondering what a PEO can do for YOUR business?
Check out our latest infographic to discover the 5 big benefits of joining a PEO.