According to the National Association of Professional Employer Organizations
(NAPEO), businesses who utilize a PEO enjoy these advantages:
Payroll Administration | Workers’ Compensation | Employee Benefits | Human Resource Services
Professional employer organizations (PEOs) provide human resource services such as paying wages and taxes and often assisting with compliance connected to state and federal rules and regulations. In addition, many PEOs also offer workers access to 401(k) plans, health, dental and life insurance, dependent care, and other benefits. In doing so, they enable businesses to cost-effectively outsource human resource management, employee benefits, payroll and workers’ compensation.
PEOs often work with SMBs, or small- to medium-sized businesses. This is, in part, because SMBs are less likely to have the ability to fund competitive benefits for employees, utilize the latest HR technology, or have the budget to employ the multiple specialists required to oversee the many types of services a PEO can offer.
A PEO’s economy of scale enables your business to lower employment costs and increase your business’s bottom line. You can choose to have a small in-house HR team or none at all by relying on your PEO’s services. Reducing hiring overhead is an attractive part of working with a PEO. Business experts at PEOs also provide critical assistance with compliance, which helps protect your business against liability. In addition, PEOs offer powerful technology and service platforms that help save time by handling routine and redundant tasks. That means you, as the business owner, can focus on your company’s core functions and grow your bottom line.
Yes. You retain ownership of your company and control over its operations. When working with a PEO like Synuity we manage very specific responsibilities. For example, we make sure employees are paid on time and that payroll processes meet all local, state, and federal rules as well as issue W-2s. You will continue to hire and oversee your employees, schedules decisions, and daily operations just as you always do.
An employee leasing company provides personnel on a temporary basis or for specific projects, whereas the role of a PEO is that of a service provider to its clients’ business and managing employees. In the case of employee leasing, when a short-term project or temporary staffing requirement is fulfilled, the workers are either reassigned to another project or simply laid off. With a PEO arrangement, employees continue their work for your company even after the PEO contract ends.