Using a PEO or professional employer organization is a way of outsourcing your human resources department. This type of arrangement is known as co-employment. While the services that every PEO company offers are different, most help with administration, payroll, and benefits. They may also help with payments and taxes.
When it comes to payroll, the PEO company will process the payroll, but in some cases they are able to pay your state, local, and employment taxes. Payroll and benefits pretty much go hand in hand, so employees will usually have their benefits administered by the PEO company if their employer is using a PEO company for payroll. This can be a big bonus to the employee and employer because they’re usually able to get cost effective and quality benefits.
On top of administering your employee benefits, PEO companies can also help with administering Workers Comp insurance. This includes audits, safety training, and assistance with OSHA. Most PEO’s usually have professionals that are experts in protecting you from fines and penalties. They can also help with payroll tax law and reporting documents, unemployment insurance, among other services, while helping to relieve some of the liability.
PEOs aren’t just for large businesses. Small to medium sized businesses mostly use PEO companies for assistance with human resources. This allows the employer to focus on what made them successful in the first place, while still knowing the benefits are being maintained by professionals. They may also be able to get access to benefits they would otherwise be ineligible for. Some small to medium sized industries that usually take advantage of PEO’s are typically real estate, health services, business services, manufacturing, insurance, wholesale, and nonprofits. While they’re not limited to these groups, they are popular among them.
While PEO’s may not be a right fit for every company, at Keaney Financial Services Corp. we believe that we should cover every aspect of your business. Our goal is to not only help you with attaining and keeping employees, but to also make sure that you the owner is also receiving a benefit because the last thing you want to do is offer benefits that hurt you or your company.