Five reasons why you should use PEO services for your business
The Professional Employer Organization, or PEO industry, has significantly grown in the last three decades.
The industry successfully generated an average of $146 billion in gross revenue every year.
The PEO services provider has helped over 150,000 small to mid-sized businesses progress and expand. The National Association of Professional Employer Organizations reported that small businesses using PEO services grow about 7% to 9% more quickly.
They are also 50% less likely to run out of business. Here are five key benefits that make PEO services essential for your growing business.
1) They provide amazing perks
Collaboration with a PEO services provider allows business owners to offer their employees with cost-effective, all-encompassing benefits without the burdens of regulative and administrative burdens, both of which can be quite expensive and overwhelming.
The PEO, as a co-employer, can provide various benefits to the company’s employees via the PEO-sponsored scheme. It includes medical coverage as well as life and disability benefits.
As one of the sponsors for the program, the PEO will manage the related administrative tasks. They will negotiate with carriers, enroll employees, and give out legal notices.
The PEO can also help the company’s employees understand and value the benefits by offering online benefit scheme content and tools for enrollment. Employees with any problems have access to a customer support center.
2) They minimize the effort of processing payroll
PEO services can reduce the company’s payroll processing and related accounting expenses. The services also include automation of the payroll process and management of the company’s withholdings and garnishments.
3) They help you comply with the HR laws and regulations
Employment regulation is quite complicated and always changing. Not being able to keep up and comply with the HR rules and regulations that apply to the company can put the company in jeopardy. If the issues aren’t corrected and reported, you may get fined by state and federal agencies.
A PEO can offer helpful guidance from experienced HR experts that can keep the company in compliance. This extra hand means that the company has access to reliable and trustworthy advisors who will work hand-in-hand with the company. This ensures that it abides by the regulations and makes adjustments properly.
4) They manage your workers’ compensation coverage
The claims management and insurance premiums process cause workers’ compensation to be both expensive and time-consuming.
The PEO can cover the worker’s compensation for the company’s employees via its own workers’ comp insurance plan. And at the same time, the PEO helps manages the compliance, audits, documentation, and certifications related to running the program.
A decent PEO will provide the company with access to workers’ compensation experts who are familiar with the company’s business and work cooperatively with the company’s HR services team. A PEO can also help the company to reduce risk while giving impacted staff the answers they need promptly.
5) They share liability
A single lawsuit can significantly ruin a company. So, it is vital that the company keep their employers’ obligations in check. Fortunately, the company won’t have to carry this burden alone when they use PEO services. The PEO will share liability related to specific employment-relevant claims, which includes underserved termination.
Collaborating with a PEO can help relieve the company’s various employment-related responsibilities, including the risks that come with operating a business and hiring employees.
Furthermore, working with a PEO can give the company’s employees access to an all-encompassing benefits plan, as well as the advantage of online information and enrollment gears, all of which will help the company get more talent and retain the desirable ones.
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