There Are Plenty Of Benefits To Utilizing A PEO
More employers are seeking the benefits of outsourcing their human resources tasks to professional employer organizations (PEOs). By passing on some of the duties normally performed by their own human resources personnel, businesses can save on expenses and reassign some of those HR employers to areas where their skills might be better utilized. These are just some of the benefits that come from working with a PEO.
PEO services aren’t just beneficial to large companies with human resources departments. They also offer HR solutions for small businesses in Florida, delegating tasks that might otherwise have to be handled by busy managers or the business owner himself. The PEO relationship creates a partnership, where the duties traditionally assigned to a manager can be outsourced. The added expense of paying for the service is still less than the cost of distracting a manager from his normally assigned duties.
At a bare minimum, the PEO handles payroll processing, taking up that task from the business manager or owner. Traditionally, the employer passed on payroll information to the PEO, but, today, even that process is made easier through the use of the internet. Additionally, the professional employer organization can handle the administration of benefits, such as life and medical insurance, the filing of payroll taxes, and can handle worker’s compensation claims. The PEO is responsible for knowing state and federal laws relating to employment and worker compensation, so the small business owner can rest easy knowing the firm will comply with all laws and regulations.
Using a PEO does more for your business than just outsourcing tasks that aren’t related to the production of your company’s product. It also serves as a barrier of protection for the business by becoming the employer of record. Some services also offer recruitment services, seeking out qualified candidates to fill any open positions that may arise. In administering benefits packages, the PEO can get better group rates on specific benefits, because they work with a number of different employers. In the end, this enables the employer to offer a more attractive benefits package to the company’s employees.
Working with a PEO can take a significant workload from an employer, especially where small businesses with limited staff are involved. In addition to saving money for the company, a PEO can offer an array of services to each employer’s workforce and protect the business owner from some types of liability.