A PEO (that is short for”Professional Employment Organization” or”Professional Employer Organization”) is a type of entity that can save you a great deal of frustration and headache by taking over a few of the EOR functions that you as a business owner or manager are responsible for. These are tasks that may soak up your own time and cause you to want to pull your hair out. Functions so significant in paperwork and bureaucracy that you are not left with sufficient time to conduct your company. Running a business is tough, and there is often only the slimmest of margins between succeeding and failing. So you will be well-served to position yourself so you can concentrate on actually running your business rather than doing paperwork. By outsourcing certain employee-related functions, you are freed up to look after the things that influence your bottom line.
A professional employment organization provides services which fall into four major categories. The following sections discuss each of these classes.
Workers’ Compensation Administration
Employees’ compensation management includes tasks such as reviewing and administering claims; performing safety-related audits and reviews; creating and administering workers safety plans; coverage and documenting on-the-job mishaps; complying with OSHA regulations; and workers compensation billing reconciliation.
Having a PEO, workers’ comp claims in the company are billed against the PEO for purposes of re-evaluating insurance outlays, rather than your company. It prevents the potential disaster of having a major claim filed against your business, which may possibly be so big that it raises your workers’ comp insurance premiums beyond the point where you can possibly pay them. If you run in a business in which there’s a fair chance of a person getting hurt, then using a PEO to manage your workers’ comp can save you many thousands of bucks, or perhaps even keep you from going out of business.
Payroll management includes functions like organizing and distributing payroll checks; making worker direct deposits; managing authorities withholdings; reporting; preparing W2s, W3s, and other employee-related documents; payroll record keeping for audits and inquiries; and tracking vacation and sick time. If you currently, do your own payroll, you then understand what a burden it is. A PEO can look after this for you and spare you so much money in different regions that payroll administration is practically free.
Benefits administration includes jobs like 401k administration; direction of disability plans; life insurance administration; COBRA compliance; benefits direct generation; flexible spending account management; yearly benefit plan review; and administration of employee assistance plans.
Providing your employees with the very best benefits you can possibly afford is a fantastic way to keep your workers contented and productivity . Employing a PEO to manage your employee benefits can save a large amount of time and money by preventing you from needing to research, store, and compare rewards strategies. In addition, it saves you money by providing you lower prices than you would have the ability to get by yourself.
Human Resources Administration
Human resources administration includes such tasks as accepting employment programs; doing background checks; creating employee handbooks or communicating employment policies by other means; audit compliance; managing EPLI insurance; and legal assistance. Selecting the wrong people, or having workers that are not clear in their roles and responsibilities, can do your business much damage. Rather than have lax HR policies or spending hours managing HR functions , you’ll have everything done for you and avoid the frustrations associated with poor human resources administration.