In the alphabet soup of professional acronyms, are you wondering what “PEO” stands for – and whether or not it’s an option you might consider for your company?
PEO is short for “professional employer organization.” PEOs provide a range of HR services for small to mid-sized firms, so their owners and senior managers can focus on their core mission and strategic business planning. Currently, the PEO industry’s 175,000 clients represent 15 percent of all companies with between 10 and 99 employees. This amounts to a total of 3.7 million workers.
- Businesses that work with PEOs grow seven to nine times faster, have employee turnover that is 10 to 14 percent lower, and are 50 percent less likely to go out of business than those that choose to go it alone.
Why Partner with a PEO?
When you work with a PEO, you enter a co-employment relationship. This means your PEO assumes certain employer rights, responsibilities and risks, but you retain overall control of your workforce and final HR decisions. It becomes a “win-win” as you can focus your energy and in-house resources on running your company, rather than being mired in time-consuming, yet necessary, talent management functions.
- PEOs can provide expertise and support in myriad areas. These include all or part of the management of payroll, benefits, taxes, training and development, safety, regulatory compliance and more.
- A PEO partnership enables you to offer better benefits. PEOs use group purchasing power to provide your employees with benefits that may not otherwise be affordable or feasible for your company: better health insurance, dental and vision care, life insurance, retirement plans and educational assistance, to name just a few.
For a more itemized look, a PEO can provide services including:
- Risk management: workers compensation coverage and procurement, claims management, accident and fraud investigation, employment practice liability insurance and assessments.
- Benefits: ACA compliance and reporting, plan negotiations, open enrollment, Section 125 and FSAs, premium reconciliations and payments, and COBRA, HIPAA and ERISA support.
- Taxes and payroll: Processing, direct deposit, FICA, FUTA and SUTA payments and filings, W-2 and W-3 filings, time and attendance interface, new hi re reporting and immigration verification, tax lien and garnishment processing, and HRIS and employee file management and storage.
What Can LyonsHR Do For You?
Lyons HR is a PEO accredited by the Employer Services Assurance Corporation (ESAC) and certified by the Internal Revenue Service (IRS), which ensures our clients the highest levels of service and financial security. We’d be happy to discuss the specifics of a PEO partnership with you. Contact us today to learn more.