With every business expense, you want to make sure the ROI is worth the price you pay. If you feel your HR-related tasks have become too complex, too costly, too time-consuming – or all three – it may be time to partner with a professional employer organization, or PEO.
How a PEO Works
A PEO partners with you by hiring your employees. You become co-employers, with your PEO as the employer of record for compliance, insurance and tax purposes. You are your employees’ direct supervisor, but your PEO is responsible for such complex areas as legal compliance, benefits, and payroll processing.
- Businesses are typically pooled together in a PEO, which gives the PEO leverage to negotiate better rates. PEOs have established partnerships with major insurance companies and therefore can offer myriad services at reasonable prices.
- As a co-employer, your PEO ensures your company is always in compliance with state and federal labor laws, and uses HR best practices.
- When it comes to everyday business, you maintain full control. But anything that may raise HR issues, such as safety, labor law compliance or employee discrimination, is where your PEO will standardize procedures for you.
How a PEO Helps
A PEO is comprised of professionals who are extensively trained and experienced at managing HR functions. For instance:
- A certified risk manager can review your safety manual, identify potential workplace hazards, and provide related training and support materials.
- Licensed experts can minimize your employment liabilities and related costs, assist with hiring and firing, provide insight into wage laws, and help formulate policies and procedures.
PEOs can secure workers’ compensation coverage at lower cost than you could on your own. Their buying power also is beneficial when it comes to FICA, unemployment, state taxes and general payroll matters.
By partnering with a PEO, you get significant discounts on the cost of benefits. And, you can have someone else take responsibility for constantly changing regulatory issues.
Work with Lyons HR!
Lyons HR is an ESAC-accredited PEO. Working with us, you can be assured your tax and benefits dollars will be well spent and properly dispersed to authorities and providers. This commitment is backed by a $15 million Bond Guarantee. Lyons HR Risk Management Services are certified for best practice by the Certification Institute, an independent authority for risk management oversight. Read our related posts or contact us today to learn more.