Highlights
- A PEO acts as a business co-employer, assuming payroll, compliance, benefits administration, and other HR-related tasks.
- By partnering with a PEO, companies save costs, gain access to premium benefits, and make admin processes more efficient.
- At Paramount PEO Solutions, we help businesses find PEO services that fit their needs. Contact us to get started!
Running a small or mid-sized business comes with overwhelming tasks. From processing payroll and taxes to managing employee benefits, there’s a lot of paperwork and legal requirements to stay on top of. Hiring PEO services can reduce your business’s admin workload and grant you access to advanced technology and seasoned experts.
This article goes through the basics of PEO services and how they can help your business grow and be more efficient.
Let’s dive in!
Understanding PEO Services
A PEO, which stands for Professional Employer Organization, is a valuable business partner as it takes on various HR tasks such as payroll processing, compliance, and benefits administration.
PEOs work under a co-employment arrangement, which means they are responsible for certain administrative functions while leaving companies in control of day-to-day operations, managing employees, and making strategic business decisions.
By hiring PEO services, companies can alleviate tiresome admin tasks and have more time to focus on revenue-generating activities.
Advantages of PEO Services
PEO services can accelerate growth for SMBs and provide numerous benefits. Let’s look at some of its main advantages:
1. Competitive Benefits at an Affordable Cost
Attracting and retaining top talent is vital for small businesses, but providing competitive benefits can be costly.
With their economies of scale, PEOs can negotiate and secure premium benefits at more convenient rates. This is very attractive for small companies, which can save costs and improve employee satisfaction and retention:
72% of businesses using a PEO say the main reason to do so is to access more employer-sponsored benefits to offer their employees
— Guardian
2. A Team of Experts to Keep up with Regulatory Changes
Keeping pace with changes in labor regulations and compliance requirements is a time-consuming task that requires well-versed professionals. Unfortunately, small businesses often lack dedicated compliance teams, which exposes them to a higher risk of legal issues and penalties.
By delegating the responsibility of managing complex regulations to a PEO, companies can ensure that both their business and their employees stay on the safe side.
3. More Efficient Payroll Processing
Payroll administration covers a wide array of tasks, including tax filing and tracking employees’ work hours.
Managing all these responsibilities can be a major drain on your internal HR team’s time and result in errors that may require businesses to invest more time and money to rectify.
By outsourcing payroll-related tasks to a PEO, companies can reduce the administrative workload on their internal team and avoid any potential errors and penalties.
4. Advanced Technology to Automate and Enhance Processes
When it comes to HR technology, PEOs are at the forefront, offering cutting-edge platforms that simplify crucial processes such as time and attendance tracking, benefits enrollment, and empowering employees with self-service capabilities.
This saves companies from the financial burden of investing in their own software and makes processes more accurate and efficient.
Paramount PEO Solutions: Over 20 Years of Industry Experience
PEOs can help your small or mid-sized business gain access to state-of-the-art HR software and negotiate employee benefits at a more competitive rate. By partnering with a team of specialized professionals, you can wave goodbye to the tedious and time-consuming tasks that hold you back and focus on what truly matters – your business growth.
However, with thousands of PEO providers throughout the U.S., choosing a PEO that fits your business needs can be tough. At Paramount PEO Solutions, we can help! Based on your requirements and unique needs, we can recommend the right PEO for your company.
Contact us and let’s find the best PEO solution for your business!
