If you’re like most, while you may know the basics of what a PEO provides (i.e. workers’ compensation and payroll pay-as-you go), you may be unaware of some of the real benefits your client would receive if you were to place them with a PEO. There are many benefits that come at no additional cost.
As the government is constantly changing all of the rules and regulations enforced on businesses, it becomes impossible for business owners to keep up. A PEO will ensure that the client stays compliant with all the guidelines and avoids costly penalties. And since the PEO takes on the burden of reporting all employee related taxes (SUTA, FUTA, Social Security, Medicare), the PEO takes on the liability for compliance in that area. And what happens when a company has multiple state exposure? For them to be compliant with all the regulations in each state can become a massive undertaking. As well, the PEO handles the entire audit process, freeing you up to focus on your clients.
While business owners have so much going on, there are massive HR needs that clamor for their attention and take their focus off of money-making activity. This includes but is not limited to; employee handbooks, job descriptions, industry specific policies, manager training, drug testing/background screening, employee assistance programs, and even employee benefits (unless you prefer to handle those yourself). When they are placed with a PEO, they can finally focus on growing their business.
Many businesses fail because of a lack of safety. It is in the best interest of the PEO to keep claims low and for the business to grow. Therefore, they will make recommendations to help the client keep their employees safe and out of harm’s way. If, however, a worker’s compensation claim is made, it is completely handled by the PEO from open to close. The client simply needs to notify the PEO when an injury occurs on the job.