A Professional Employment Organization, or "PEO" for short, is a type of company that can save you a lot of headaches and frustration by taking over some of the major employee-related functions that that you are required by law to manage. Succeeding in business is difficult. But by letting someone else take care of functions that soak up your time and require a mountain of paperwork, you are freed up to concentrate on running your business.
A PEO provides services that fall into four major categories. We examine each of those four categories below.
Major Professional Employment Organization Activities
Payroll Administration
Payroll administration includes tasks such as writing payroll checks; getting payroll checks into your employees' hands; making direct deposits; managing withholdings; required reports; preparing W2s, W3s, and other employee-related documents; payroll record keeping for audits and inquiries; and keeping track of things like vacations and employee sick time.
This is one of the critical duties of any PEO because of the heavy amount of paperwork and record keeping. You really don't want to be inaccurate with the information you provide to the government, because you could get burned. Hiring a PEO will insure that your payroll gets done correctly.
Workers' Comp Management
The administration of workers' compensation includes duties such as claim administration; safety reviews and audits; worker safety plan administration; accident reporting; OSHA compliance; and workers comp. billing reconciliation.
The best reason to get a PEO handle your workers' compensation is the ability of a PEO to absorb a claim much more cost effectively than an individual business. PEOs have people on staff who deal with workers' comp claims quickly and efficiently, and claims filed against a PEO are charged against the PEO rather than your company. It keeps your business clean and prevents the claim from being filed against your business, which could result in having your workers' compensation insurance rates skyrocket. In other words, using a PEO can keep you in business!
Benefits Administration
Benefits administration includes tasks such as administering 401ks; administration of disability plans; employee life insurance; COBRA; creating handbooks that explain employee benefits; administering employee flexible spending accounts; reviewing your benefit plan on an annual basis; and administration of employee assistance plans.
Making sure your employees have excellent benefits, or the best benefits you can possibly afford, is an outstanding way to maintain worker loyalty. It's also fairly difficult. Hiring a PEO to manage your employee benefits can save you a large amount of time and money. Time is saved by not having to do the work of finding the best benefit plan. You save money by purchasing benefits for less than you would be able to on your own. A PEO pays rates based on the total pool of its' clients' employees. A PEO will pay a rate based on many more employees than you have.
HR Administration
Human resources administration includes items like administering background checks of your employees; taking job applications; communicating employment policies via handbooks and other means; complying with audits; and managing EPLI insurance.
It is difficult to stay current on employee-related laws, but failing to do so can lead to lawsuits or other issues which are very harmful to your business.Use a PEO to save your sanity and your business by letting someone else deal with those issues.
As you can see, using a Professional Employment Organization can make your life a whole lot easier by eliminating human resources-related tasks so you can concentrate on running your business.
Contact C. Emory Cross at www.cemorycross.com to learn how to get started today using a professional employment organization for your business.
Posted by kennyhughes7462
at 2:20 PM EST
