A professional employer organization (PEO) is a company that enters into a joint-employment arrangement with a company by leasing people to the company, allowing the PEO to share and handle numerous employee-related tasks and obligations. Employers can offshore human resource operations such as employee benefits, compensation and payroll, workers’ compensation, and employment taxes as a result of this.
When you engage with a PEO, it takes on the role of professional employer for your current employees, offering services and benefits. A PEO is quite popular with small and mid-sized businesses looking for strategic and critical management of HR, payroll, administration, and tax.
Benefits of a PEO
With the experienced, strategic advice of a PEO, you may be able to develop your business while having peace of mind knowing you’re better protected. Let’s take a quick look at some advantages.
By utilizing a PEO, you could avoid costly and time-consuming setup processes. The most significant cost savings result from the elimination of the need to form a separate legal company. On top of that, you can save tons of money because of:
Improved recruiting methods that result in lower turnover
Strategic planning for future projects
Having a better sense of overall investment
Improve Employee Experience
Your workers receive access to big-business advantages and a single point of contact for information and issues by using a PEO. This might help you in attracting and retaining better people for your firm. If or when you join a PEO, you can get some amazing benefits including life insurance, medical coverage, accident insurance, retirement plan, and more.
Many PEOs may also assist businesses with specific employment concerns, such as payroll issues and legislation governing paid time off. If you’re unsure about the legalities or laws of a scenario, PEOs usually provide HR professionals or attorneys to assist in answering questions and avoiding risks. They can also provide help while making key decisions and creating career objectives.
Small and mid-sized businesses that outsource their human resource obligations to a PEO may frequently devote more time and resources to other activities, such as key missions, efficiency, and income production. Individuals may focus on corporate growth and development if they can divert their attention away from the recruitment and onboarding processes. As a result, businesses may develop more quickly by locating suitable individuals in a timely way and focusing on more demanding problems, such as deliverables and customer acquisition.
Professional employer organizations also manage a company’s payroll, including sick leave accrual, tax withholdings, and paperwork. Typically, a PEO develops an automated payment system that pays employees by direct deposit on particular days of the month. They also offer pay stubs and electronic W-2 forms to individuals and businesses, making calculating and record-keeping simple.
What to Look in a PEO?
Although PEOs provide several cost, time, and operational savings, they may not be appropriate for every organization. Even after finding that a PEO can help your firm, it is critical to choose the PEO that provides the correct combination of add-on services, a variety of advantages, and service contract flexibility.
If you are searching for a PEO that caters to your needs, you shouldn’t look beyond BRG Advisory group. BRG AG is holistic in its approach and works for our prospective clients, not for the PEOs. You can get in touch with our team via our online form or simply give us a call at 800-971-3006.