What is a PEO?
What is a Professional Employer Organization?
PEOs partner with businesses to provide payroll, benefits and human resources support. They operate under a co-employment model, meaning you will still have control of all your employees, but they legally appear on the PEO’s books for tax and compliance purposes.There are several advantages to working with a PEO, such as sustained growth and saved time. As your business expands and the demands of growth weigh on your day-to-day responsibilities, PEOs can take time-consuming, routine processes off your plate.
There are many reasons to consider working with a PEO, from improved payroll processes to more attractive benefits. These companies can be a game-changer for an SMB, helping it attract new workers and grow as a business. Before you try to determine which PEO is right for your company, though, it’s important to understand what a PEO is and how it serves small businesses.
Benefits & Advantages of Hiring a PEO
- Reduced administrative burden: PEOs handle many HR tasks, such as payroll, tax administration, and benefits administration, freeing up your time to focus on running your business.
- Improved compliance: PEOs stay up-to-date on employment laws and regulations, which can help you avoid costly fines and penalties.
- Increased access to benefits: PEOs can offer a wider range of benefits than you may be able to afford on your own, such as health insurance, dental insurance, and vision insurance.
- Reduced risk: PEOs are jointly liable for certain employment taxes, which can help protect your business from financial liability.
- Improved employee satisfaction: PEOs can help you attract and retain top talent by offering a comprehensive benefits package.
