You have taken the steps and started your business. You always knew you were born to lead an organization and want to make it as successful as possible. Part of making your business a success is knowing when to have help and how to use it.
You now want to use any tactic you can to ease your burdens and at the same time make your company better. You have heard of outside companies that work with you known as PEOs. So what is a peo company?
What Is a Peo Company?
PEO stands for Professional employer organization. It is a company that has a joint partnership with you by sharing specific employer responsibilities between you and the PEO instead of leasing employees to your company. It is a company that has a joint partnership with you by leasing employees to your company. Your company will report the wages under the PEO’s federal identification number.
This helps you as an entrepreneur by shifting human resource responsibilities to the peo company. Simply put, this reduces the number of work headaches you may have to deal with. This gives you more time to be creative and drive your business towards success.
Peo companies sometimes carry duties like payroll, benefits, drug testing, and workers’ compensation. These are tremendous burdens that small business owners do not need.
If this sounds good, click for more advantages of using a peo company. It is something to consider if you want to save yourself a lot of hassle and time. Peo companies save small business owners a lot of time and risk.
Is It Right for You?
If you consider having a relationship with a peo company, you need to know if it will be beneficial to your company. Peo companies are good for smaller businesses that do not have in-house human resource departments or payroll and accounting departments.
They can be useful for companies that want to cut employment risk. They take on the burden of things you might now want to deal with as a small business owner.
Peo companies will handle compliance risk so that you are free to lead your company in the right direction and now worry about things that may not be your specialty.
These reasons carry enough cause to work with a peo company. Having a relationship with a good peo company will give you time to better your business.
What About the Cost?
Peo organizations charge a percentage of the employees’ salary or a flat rate per employee. Sometimes you will have to pay startup fees and training costs for employees. These will be small when compared to how much time and money you will save.
You may have health insurance premium fees and workers’ compensation fees depending on the plan you select. A peo organization representative will walk you through the process.
No matter what the percentage of the cost, it will still save you money when you think about the costs of hiring and firing people. This is not to mention the time it takes to find and interview possible job candidates.
What is a peo company? It is a way to make running your small business easier by partnering with a company you trust to ease burdens you don’t want or need. Follow us for more tips!