A PEO (that is short for”Professional Employment Organization” or”Professional Employer Organization”) is a form of entity that may save a lot of headaches and frustration by taking over some of the significant employee-related functions that you as a company owner or supervisor are responsible for. These are activities that may soak up your time and cause you to need to pull your hair out. Functions so heavy in paperwork and bureaucracy that you are not even left with enough time to conduct your business. Running a business is hard, and there’s often only the slimmest of margins between succeeding and failing. So you will be well-served to position yourself so that you can concentrate on actually running your business instead of doing paperwork. By outsourcing particular employee-related functions, you are freed up to look after the things that affect your bottom line.
A professional employment organization provides services which fall into four big categories. These sections discuss each of those categories.
Employees’ Compensation Administration
Employees’ compensation management includes tasks such as reviewing and administering claims; performing safety-related audits and reviews; managing and creating workers safety plans; coverage and Assessing on-the-job mishaps; complies with OSHA regulations; and employees compensation billing reconciliation.
With a PEO, workers’ comp claims in the company are charged against the PEO for purposes of re-evaluating insurance costs, rather than your company. It averts the possible disaster of having a significant claim filed against your company, which may possibly be so big that it raises your workers’ comp insurance premiums beyond the point where you can possibly pay them. If you run in an industry in which there is a reasonable prospect of someone getting hurt, then having a PEO to deal with your workers’ comp can save you hundreds of thousands of dollars, or possibly even prevent you from going out of business.
Payroll administration includes functions like preparing and distributing payroll checks; creating employee direct deposits; managing government withholdings; reporting; preparing W2s, W3s, and other employee-related documents; payroll record keeping for audits and inquiries; and tracking vacation and sick time. If you currently, do your own payroll, then you know what a burden it is. A PEO can take care of this for you and save so much money in different areas that payroll administration is practically free.
Benefits administration includes jobs like 401k administration; management of disability plans; life insurance policy administration; COBRA compliance; benefits direct generation; flexible spending account management; annual benefit plan inspection; and administration of employee assistance plans.
Providing your employees with the very best benefits you can possibly afford is a fantastic way to keep your workers happy and productivity high. Employing a PEO to manage your employee benefits can save you a large amount of money and time by freeing you from needing to research, store, and compare rewards plans. In addition, Tax saves you money by providing you lower rates than you would be able to have by yourself.
Human Resources Administration
Human resources management includes such activities as accepting employment programs; performing background checks; generating employee handbooks or communicating employment policies from other means; refinancing compliance; handling EPLI insurance; and legal aid. Hiring the wrong people, or with workers who aren’t clear in their roles and obligations, can perform your business much damage. Rather than have lax HR policies or spending hours handling HR functions yourself, you’ll have everything done for you and avoid the headaches associated with poor human resources management.