PEO Services

The benefits of a professional employer organization

PEO services can be a lifesaver for many companies. Advanced tasks like workers' compensation and payroll can often be too much for a company that's understaffed or undertrained. Making use of the professional training and expertise of a PEO can help relieve the burden and the stress of trying to manage these tasks.

PEOs may seem like a big investment, especially if you think you don't have much work to be done. However, in many cases hiring PEOs is cheaper than hiring additional manpower because they are often experts in multiple areas and can therefore fill multiple roles for your company. That means you save on paying a full-time person when you only have part-time work.

What Is a PEO?

PEO stands for professional employer organization. (You may hear reference to PEO organization, but this is incorrect terminology.) A professional employer organization is an outsourcing service that allows companies to take advantage of professionals in a number of roles to help staff their businesses—without actually having to hire a new employee. The most common areas PEO services provide expertise in are those usually handled by human resources staff, such as payroll, benefits administration and recruiting, but there are many others, including training.

Many businesses can benefit from the use of a PEO; companies that have difficulty finding and retaining employees to fill critical roles, for example, can ease this process using PEO services. With a PEO, the company simply signs a contract in order to be provided with a dedicated person performing the services they desire, for a specified amount of time. Working with a PEO may also be a cost-effective measure to help fill a number of roles that have been absorbed by other employees, and it can also help remove legal liability.

In the PEO process, the PEO itself is responsible for filing tax and insurance records for the employee who signs on with a company, but the day-to-day activities of the employee will be managed by the client.

Using PEO Services

When signing on for a PEO service, the most important thing is to ensure that you will have a relationship with a specific individual or team who will be dedicated to your services. Because the person or people aren't always in the office, it can be difficult to establish a relationship and convey the necessary knowledge to understand the processes of a business.

You'll also want to make sure that the staff are professionally trained and certified in the roles they will be performing, to avoid any legal issues that may arise.

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