What is a PEO? What good will it do for my business? Don’t worry, we’ve got your answers right here. This is the simplest description of what a PEO company is and some common PEO services you might want to know about.
PEO stands for Professional Employer Organization. A PEO takes care of the administrative tasks related to employees for your business. When you partner with a PEO, you enter the co-employment model. This makes the PEO company your employer of record and provides unique benefits to your business, like shared liability, large buying pools, etc.
Let’s look at some common PEO services.
Perhaps the most important piece to any PEO is their payroll services. Some of the top benefits of a payroll solution include: check and direct deposit processing, tax withholding calculations, vacation and leave tracking, benefit premium collection, and new hire reporting.
Workers’ Compensation Insurance and Safety Program
How does industry leading workers’ compensation sound? How about customized safety programs? And reduced premium? Sounds pretty nice, right? A PEO can offer these to your business. Services often include: safety rebate programs, safety training, claims management and processing, back to work programs, and OSHA consultations.
PEO companies are a big advantage for small business owners and their employees when it comes to benefits. These are some of the most popular: Slavic 401(k) plans, major medical plans, vision and dental, life insurance, flex spending accounts, savings clubs, and the administrative support you need to keep it all running smoothly and in sync with payroll.
Human Resources and Compliance
When you partner with a good PEO, they’re like your complete HR department just a phone call away. They will help you stay in compliance with state and federal regulations of all kinds. Their HR services might also include employee handbook services, and conflict resolution services.
PEOs have a shared responsibility to make sure your business is in compliance with current legislation. They will help with your W-2 and 1099 preparation, tax liabilities, and answer any compliance questions for you or your employees.
This is just a brief description of a few of the many PEO services you’ll find attractive. For a more in-depth look at the PEO advantage, download our one-page PDF overview of all of our services.