Every dollar counts when it comes to running your business and positioning it for growth. And as this happens, your HR demands increase. It’s a good problem to have – and partnering with a professional employer organization (PEO) can solve it.
A PEO enters into a co-employment relationship with you, assuming employer-related HR responsibilities and handling related tasks. This frees up valuable time you can devote to running your business. There are significant savings to be gained there alone, but a PEO partnership offers many more as well.
Five Reasons to Partner with a Professional Employer Organization
PEOs offer access to health coverage, retirement plans, and numerous other benefit options that might not otherwise be available or affordable to you. This is possible because PEOs pool a large group of employees at their client companies together, thus lowering costs for everyone.
- A PEO can handle all related administrative functions including negotiating with carriers, enrolling members, providing legal notices, handling COBRA management, and more. PEO experts can also help your employees better understand their benefits by providing online content and enrollment tools.
You can eliminate costly liability in terms of payroll and related taxes, based on your PEO’s employer of record status. Processing and related accounting costs will be lower, and your PEO can handle payroll automation, withholdings, W-2, and garnishments.
- Working with a PEO, you can streamline not just payroll, but all your labor-related expenses into one line item, so accounting, in general, is simplified. This is one reason why administrative costs are about $450 lower per employee at businesses that opt for PEO partnerships.
3. HR Compliance
Employment law is complex and constantly changing. Keeping up with it can be a job in itself, but if you become lax, it can cost you greatly. Specialized PEO experts are up to speed on all laws and regulations and can provide guidance to keep you on track, as well, and avoid costly mishaps.
4. Workers’ Comp
Insurance premiums and claims management make workers’ compensation costly and time-consuming. As a co-employer, your PEO provides coverage to your employees through its own workers’ comp program. PEO specialists can also handle audits, paperwork, and certifications.
5. Risk Mitigation
A single lawsuit can devastate your business. A PEO shares the liability associated with certain employment-related claims, including wrongful termination. For instance, EEO specialists at a PEO are well versed in the intricacies of discrimination laws. While not a substitute for legal counsel, this provides an added layer of defense.
Looking for a High-Quality PEO? Contact Us Today!
When you consider PEO partnerships, look for the best. A select group of PEOs are accredited by the Employer Services Assurance Corporation (ESAC) and certified by the IRS. This ensures their clients of the highest level of services with demonstrated financial security. Lyons HR meets both criteria. In fact, we were the first PEO in the nation to earn IRS certification. Contact us today to learn more about our services to benefit your growing company.