In the modern corporate environment, every organization is in the search for novel ways to leverage efficiency to its advantage particularly focusing on human resources and/or payroll. A recent trend in this respect is a partnership with a Professional Employer Organization or commonly referred to as PEO. This blog post will include explaining all the details of PEO including its services and impacts on your company human resources and payroll.
PEO Meaning
PEO is an organization that agrees to work with an individual who owns a small or a medium scale enterprise. Its purpose is to address the functions concerning the human resources, including the calculation of the wages, the administration of the employee’s benefits, observing the compliance, and managing the risks.
Therefore, the major roles and responsibilities of a PEO would include being held responsible for some of the employers’ responsibilities. By this way, the owner can concentrate on his enterprise.
Key Differences between PEO Services and HR Outsourcing
Compared to the traditional methods of HR outsourcing, PEO has your workforce co-employed and so the company has to share the employer obligations. This arrangement makes these companies receive better benefits, a professional assistance in handling human resource.
What Does a PEO company do?
A PEO company performs numerous tasks that can include everything from processing the payrolls and offering the employee benefits to handling the compliance, administrative HR and even taking on the risks. Following are some standard employer activities taken care of by a Professional Employer Organization:
Payroll Management: Payroll processing, preparation of tax filings, on-time payment concerns
HR Administration: Record management of employees, employee recruitment, joining and separation formalities
Employee Benefits: Providing Comprehensive benefit package- health insurance, retirement plans and wellness programs
Compliance and Risk Management: Ensures the business remains within the circles of labor laws and regulations, workplace safety and disputes among employees are dealt with.
Outsourcing PEO
Hiring a PEO Services for Small and Medium-Sized (SMEs) Businesses?
Cost Savings: You can utilize the volume-buying discounts the PEO receives for employee benefits, insurance, and human resources software.
Time: The time of the business owner is freed up since the work in human resources that takes time is contracted to other companies.
Risk: Hiring a PEO can reduce serious human resource compliance risks that make a company targets of lawsuits and penalties.
Compliance Support: It is not easy to keep up with the ever-changing labor laws. However, PEOs provide the best guidance in the industry on how to keep your business in total compliance.
Understanding PEO Services and Plans
The services and plans offered may vary. A few examples include:
HR PEO Services: Pre-employment service for a specific organization, such as staff acquisition, employee administration, and evaluation.
Payroll PEO Services: Complete paycheck management including payroll computation, check preparation, and submission of payroll taxes, and electronic transfer of funds.
PEO Consulting: Consulting services to assist companies establish their HR strategies, manpower planning and legal guidelines.
PEO Services For Businesses Overview
Beyond payroll and HR, most PEOs will also offer other business services, including the following:
Onboarding and Training: Smoothening the onboarding process for new employees, professional training in a particular field is conducted.
Services for Human Resources: Some key areas involving maintaining a good work environment include employee relationships, performance management, and conflict resolution.
Consulting Services: This includes advice on workforce planning, talent acquisition, and retention, as well as performance management.
Is a PEO Services Right for Your Business?
In a partnership with a Professional Employer Organization, there are numerous chances to save costs, get support on compliance issues. Still, choosing the optimal business partner-a PEO-is not an easy decision. Service portfolios, industry experience, and customer service are just some of the factors to look into.
How FastLane HR Can Help
At FastLane HR, we are committed to offering inclusive PEO services to answer the unique needs of your business-be it payroll management, HR administration, or strategic consulting. How may we transform the HR and payroll functions in your business? Contact us today and find out.
On the other hand, it could be that knowing what a PEO is and what support would look like means making an informed decision toward growth and efficiency in business.