If you’re a growing company, you’re likely looking to find any competitive advantage you can. One term you might have heard is PEO. But what is a PEO and what do they do for businesses? Read on to learn more.
What is a PEO?
A PEO is also known as a Professional Employer Organization. PEOs normally work with small to medium sized businesses, helping them with various functions. Here are a few things that a Professional Employer Organization will work on:
- Admin Tasks for Benefits - PEOs can help you with onboarding, benefits claims, paperwork, and even getting better rates for benefits overall
- Payroll - The small details of payroll can be handled by a PEO. They can do things like get payments to employees, contractors, and more.
- Compliance - PEOs also offer compliance support. They can file W-2s, 1099s, unemployment, reports for new hires, and more.
How Do PEOs Help My Business?
So now that you know a little bit about what a professional employer organization does, you’re probably wondering what they can do to help your business overall. Here are some of the biggest benefits of hiring a PEO:
Lower Cost of Employee Benefits
When you use a Professional Employer Organization, your company is included with their other customers. This means you’re technically part of one large group, which allows the PEO to get you much better rates on employee benefits and also expands the kinds of benefits you can offer.
Avoid Compliance Violations
Sometimes errors slip through the cracks, and those errors can be costly when they violate compliance regulations. When you use a PEO, you get compliance experts helping you handle payroll, paperwork, and more. This helps you reduce your risk.
Save Time
A PEO can take a lot of busywork off your hands and off the plates of your employees. As a growing business, time is at a premium, so all of the help a PEO offers will feel like a huge relief and allow you to focus on the big picture instead of the more tedious details.
Hiring a Professional Employer Organization
Ultimately, the decision to hire a PEO is going to be dependent on the needs of your business. But if you’re a growing business who needs some extra help, it’s definitely worth looking into. You’d be surprised at how much it can help.
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