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6 Things a PEO Does (So You Don’t Have To)

If you’re like most business owners, you’re probably overwhelmed with employee paperwork, HR matters and other tasks that keep you from achieving your primary business goals. Fortunately, you don’t have to be burdened with these concerns when you outsource them to a PEO (Professional Employer Organization).

According to a fairly recent article, more and more small and mid-sized companies are discovering the benefits of PEOs. In fact, roughly 6,000 small to mid-sized businesses partner with PEOs each year. Simply put, a PEO is a firm that provides human resources services for small to mid-sized companies. Here are six important things a PEO does, so you don’t have to:

Payroll Administration

One of the most costly and time-consuming aspects of managing a business is payroll processing. In addition to dealing with details, there’s the worry of making mistakes as even a tiny error can mean significant losses to a company.

But when you hand over this job to a PEO, you can be assured that your employees will be paid correctly and on time. Making mistakes on income taxes can be even more devastating, which is another reason to use a PEO who can file and distribute W2s, in addition to handling state and federal tax filings.

HR Solutions

One of the main tasks of a PEO is to provide outsourced HR solutions. A PEO can be a huge help in managing Human Resources issues. For example, PEOs provide employee handbooks, manage leave of absence requests, offer substance abuse prevention services, give employee relations support and provide both basic and complex HR services and support.

 Changing Industry Laws

The demands of managing a business can make it difficult to keep updated on the constantly changing industry regulations. That’s another reason many business managers use PEOs. When you connect with a PEO, you can don’t have to worry about new laws regarding background checks when hiring new employees. Consider how most business managers don’t know whether their states allow them to examine credit scores on employee candidates, so it can be used as a determining factor in hiring them.

Workers’ Compensation Coverage

When you join a PEO, you receive coverage for workers’ compensation. Furthermore, a PEO takes care of claims management involving on-site injuries.  Additionally, PEOs help in preventing injuries before they occur by offering workplace safety reviews helping your company come up with effective safety programs.

Training for Supervisors on Important Policy Issues

Partnering with a PEO gives you access to HR professionals who can assist in training supervisors on critical company policy concerns. These include those, such as anti-harassment policies, sexual harassment, workplace violence prevention substance abuse prevention, employee counseling and others.

Safety and Risk Management Solutions

PEOs offer important accident prevention strategies that help in preventing accidents at work. They provide various accident prevention plans, such as issuing safety manuals, for employees to keep them safe and lower the risk of injuries. By evaluating a business’s current situation and giving practical solutions for problems, your business is less likely to have a financial loss.

Considerations and Warnings

  • Because PEOs are specialists on employment-related compliance, they’re able to file all the necessary paperwork required with a business
  • Hiring a PEO doesn’t necessarily replace a company’s internal HR team.
  • Although a PEO helps to manage your business’s risks and employee-related administration, it does not control your business. You are still in total control of all operational decisions pertaining to your company.
  • PEOs are suited for almost all types of industries, such as computer services, engineering services, real estate, and property management, technology, manufacturing, electrical, plumbing/HVAC, wholesale, health services, construction, warehousing, and many others.
  • When choosing a PEO, be sure the service meets the state regulatory requirements.

Wouldn’t you rather invest your energy and time on the jobs that you actually enjoy doing for your company? Why not join the increasing number of small and mid-sized businesses that are using PEOs. Harbor America is a PEO providing workers’ compensation, HR, payroll, benefits, compliances, and other services to small and mid-sized businesses in many industries, such as construction and the oil field business. Please contact us and sign up for a free consolation.

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