Axcet HR Solutions, we’re proud to serve as your trusted HR resource, and we want your business to be successful and run as efficiently as possible because we know your time and attention are often required to be elsewhere at any given moment. Knowing what a PEO does and the benefits of outsourcing your HR team can drastically improve things.
So, how does a PEO work, and what are the advantages of working with them? We have your answers to that and much more below! Don’t hesitate to contact our team if you have any questions or want to learn more about what we do.
What Does PEO Mean?
PEO stands for professional employer organization. It’s a full-service human resource outsourcing staff that handles employee administration tasks, including benefits administration and payroll for your business. Some PEOs do have strategic services, so it’s essential that as you’re researching the different companies, you know what they offer.
How Does a PEO Work?
The PEO provides expert and strategic guidance to help your business grow and give you peace of mind that your business is protected. The process is straightforward; the client company and PEO will enter into a service contract called a client service agreement (CSA) and discuss in detail exactly what that relationship will entail.
What Are the Benefits of a PEO?
There are many benefits and reasons companies should consider using a PEO. Whether you’re a new business or a larger one that’s flourishing and needs assistance, a PEO can assist with the following:
- Benefits Administration — The PEO will help cover employment benefits enrollment and process claims.
- Recruiting and Hiring — They have an in-house HR person or team to provide HR services and can provide support in recruiting, training, and employee engagement.
- Payroll Administration — Handle payroll, paying local, state, and federal employment taxes. This role can also integrate handling payroll with time and attendance to avoid errors.
- Unemployment Administration
- Workers Compensation Administration
- Compliance Assistance — PEO has compliance experts to protect your business from penalties and fines, such as payroll tax law, reporting requirements, workers’ compensation, HR and hiring compliance, and unemployment insurance.
- Drug Testing Programs
- Family and Medical Leave Act Administration
Why Should I Use a PEO?
Now that you know more about how a PEO works and its benefits, you may be wondering why you should use their service. Many reasons!
- Save Time and Money — Clients have saved time and money on general HR tasks using a PEO with workers’ compensation and health insurance alone. Doing this allows you to focus your time and attention on other areas, which is especially great for smaller businesses.
- Peace of Mind — Using a PEO helps alleviate any stress because your PEO team has you covered and will protect your business from unnecessary fines and penalties.
- Business Growth — Many have reported strong growth in their business and even lower turnover rates after using a PEO for HR services.
- Assistance with Recruiting and Retention — As mentioned above, the lower turnover rates are due to having a PEO assisting with recruiting, training, employment engagement, and retaining staff. These tasks can be time-consuming and expensive, and having a PRO helps maximize your investment in your current and future employees.
- Administrative Functions — The PEO typically takes on admin functions like an in-depth HR assessment to lower risks and find ways to increase development opportunities to grow the business.
Get More PEO and HR Tips Today!
Want to learn more about PEO or how to grow your business through better HR solutions? We have you covered at Axcet HR Solutions! Visit our website to check out our additional resources, or give us a call today to ask about our services!