A PEO (that is short for”Professional Employment Organization” or”Professional Employer Organization”) is a form of entity that may save you a lot of frustration and headache by taking over a few of the significant employee-related functions that you as a business owner or manager are responsible for. These are tasks that may soak up your time and cause you to want to pull out your hair. Functions so heavy in paperwork and bureaucracy that you are not left with sufficient time to conduct your company. Running a business is tough, and there is often only the slimmest of margins between failing and succeeding. So you will be well-served to place yourself so that you can concentrate on actually running your business rather than doing paperwork. By outsourcing particular employee-related functions, you are freed up to look after the things which influence your bottom line.
A professional employment organization provides services that fall into four big categories. The following sections discuss each of these categories.
Workers’ Compensation Administration
Employees’ compensation management includes tasks such as reviewing and administering claims; doing safety-related audits and inspections; creating and administering workers safety plans; reporting and Assessing on-the-job mishaps; complies with OSHA regulations; and workers compensation billing reconciliation.
Having a PEO, workers’ comp claims at your company are billed against the PEO for functions of re-evaluating insurance costs, as opposed to your own company. It prevents the possible disaster of getting a major claim filed against your company, which may possibly be so large that it increases your workers’ comp insurance premiums beyond the point where you can possibly pay them. If you run in a business where there’s a fair prospect of someone getting hurt, then having a PEO to manage your workers’ comp can help save you hundreds of thousands of dollars, or perhaps even keep you from going out of business.
Payroll management includes functions such as preparing and distributing payroll checks; making worker direct deposits; managing authorities 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 understand exactly what a burden it is. A PEO can take care of this for you and spare you so much money in different regions that payroll administration is almost free.
Benefits administration includes tasks like 401k management; management of disability plans; life insurance management; COBRA compliance; gains direct generation; flexible spending account administration; annual benefit plan review; and administration of employee assistance plans.
Providing your employees with the best benefits you can possibly manage is a good way to keep your workers contented and productivity high. Employing a PEO to manage your employee benefits can save you a great deal of money and time by preventing you from needing to research, store, and compare rewards plans. In addition, it saves you money by providing you lower prices than you would have the ability to get on your own.
Human Resources Administration
Human resources management includes such tasks as accepting employment programs; doing background checks; creating employee handbooks or communicating employment policies by other means; refinancing compliance; handling EPLI insurance; and legal aid. Hiring the wrong people, or with employees that are not clear in their roles and obligations, can perform your business much harm. Rather than have lax HR policies or spending hours handling HR functions yourself, you can have everything done for you and avoid the frustrations associated with poor human resources management.