:: outsourcing to a PEO will:
Help control your HR costs:
Are you finding it necessary to hire a Human Resource Director or add an additional staff member to the department? Faced with rising insurance costs and increased regulatory requirement, small businesses are finding it necessary to pay the ongoing salary of a staff HR administrator to manage the employee administration and oversee the company's benefit programs. Those owners that can't afford an HR administrator have to spend their precious time dealing with these issues. To resolve the situation, many small business owners have opted to hire a Professional Employer Organization (PEO).
Keep up with employment laws:
Give the constant change in Federal and State Employment Law, it is increasingly necessary to have the best and brightest protecting your company from not being compliant with the new regulations. A PEO offers your business access to HR and Employment Law Professionals keeping you focused on your core business.
Save your time and reduce HR paperwork:
As we experience an increase in government regulations and paperwork, contracting with a PEO allows you to share and most times transfer the burden of this employer liability. Gaining freedom from administration allows HR managers and Executives the time to focus on the business of building.
Companies hiring PEO's need not worry about being compliant with laws of their industry A PEO is responsible for keeping abreast of all new state and federal laws.
The PEO will create your employee handbooks, develop proper HR forms, and help you develop policy and procedure manuals for you. Safety reviews can also be conducted as well as employee training.
Reduce your group health insurance costs:
Each year you experience increase in health insurance premiums.
Each year you notice that the insurance companies are not only rising health insurance premiums by 9-15%, but are lowering the benefit choices, and / or increasing the amount of money your employees pay to receive benefits.
A Professional Employer Organization has at its core function the mission to solve the health insurance crisis facing America's business owners. These organizations have accumulated a large pool of contracted employers and their employees, giving them the ability to contract directly with insurance companies, resulting in lower health insurance premiums and stronger benefit designs.
The lower premiums and stronger benefit designs is a direct result of the significant size of the employee base managed by the PEO; again confirming the theory of the "Law of Large Numbers".
Hiring, conflict resolutions and Terminations:
All of this can be taken care of by the PEO! If you or the HR manager wish to perform these tasks, the PEO will also guide you every step of the way. The PEO will offer the proper forms, timelines and all necessary instruction to hire an employee correctly.
Conflict resolution and terminations are a part of reality in the corporate world. With today's laws, employers must be very attentive to procedures required to resolve conflicts and/or terminate employees. A PEO's help is invaluable!
Ensure the Lowest Workers Compensation rates:
The cost of workers compensation insurance today is unbearable. Businesses are spending so much money on this insurance that they are unable to grow the business and achieve profitability. Most business owners have reached the point of despair, feeling like there is no option. Some even have to close down their businesses. Fortunately, there is an option. A Professional Employer Organization (PEO) offers businesses workers compensation insurance at rates that are fair and affordable. By using economies of scale, a PEO gives businesses access to rates they could never acquire alone.
Take away the burden of Payroll Administration:
Federal and State payroll administration responsibilities are becoming more and more complex for business owners. The complexity centers around changes in withholding rates, documentation and filing requirements, the ability to structure a company's employee benefit plans in such a way to take advantage of the tax benefits available in the income tax system, and the determination if an individual should receive a Form 1099 or W-2.
Some business owners chose to have their accountants perform these tasks. The choice to use their accountants is honorable, but most of the time payroll processing is not a significant part of the accountants practice, and the accountants do not have the systems established to perform the tasks efficiently.
Other Employers chose to outsource these responsibilities to regional and national payroll processing companies. This choice generally results in a reduction in the costs to administer the payroll, but the regional and national payroll companies, sometime do not offer all of the professional guidance and tax incentive benefit plans available to the employer.
A growing trend is to outsource this responsibility to a Professional Employer Organization (PEO). By doing this, the Employer is not only able to reduce the costs of payroll administration compliance, but the Employer is also able to receive professional guidance and support to take advantage of all tax incentives available to them under the law.
According to the Small Business Administration, the average small business owner spends 25% of his/her time dealing with issues that can be outsourced.
A PEO can also help with the following:
• Eliminate Down Payment Requirement
• Assist you in times of Audits
• Instruct you on better employment practices to reduce liability insurance
• Unemployment claims