Human resource outsourcing
what's a PEO well in the world of small business and human resource outsourcing PEO stands for professional employer organization here's the technical definition a PEO is a co employment relationship between a human resources outsourcing provider like resourcing edge and a business like yours in a PEO rei becomes the employer of record.
The employer of record a PTO is responsible for the day-to-day administration of things like payroll 401 k and other retirement services HR administration compliance and regulatory issues unemployment claims administration and EPLI coverage rei covers your safety and lost control best practices which includes robust workers compensation coverage they also offer affordable fortune 500 level benefits plus with rei you'll have access to SP HR and ph are certified human resources consulting and advice by using a PEO like resourcing edge you can take your mind off the day-to-day work of HR and payroll administration and focus on what's important growing your business if you'd like more information on PEO structures or other HR outsourcing services .
What Is a Professional Employer Organization (PEO)
Professional employer organizations or peos have been around for decades and really began to increase in popularity in the 1980s when business owners begin looking for better and more efficient ways to run their companies PEOs were developed of a need to help owners increase profitability maximize employee productivity and reduce the time spent on payroll and human resources activities.
Peos also allow companies to streamline their cash flow with no down payments or audits on workers compensation insurance and they help owners share in the risk and liability of having employees ultimately companies who partner with peos know they have one team of professionals to help them with all the administrative duties and paper pushing that it takes to run a business.
PEOs can not only help to reduce your overall labor costs but will also help you sleep better at night knowing that you have a business partner with a vested interest in your success let's face it it's not getting any easier to run your business with all of today's regulation and compliance issues please take a look at our website m2 PEO com to see how business owners like you have grown their companies by partnering with a PEO
What Does Peo Stand For
Peos or professional employer organizations what they are? And how they could benefit your business?
Basically if you have a business a medium to small business and you're running payroll through your business a lot of times it becomes a hassle so you can either pay a company to do the payroll you get outsourced your payroll or you can do it in-house.
now I'm usually when you get you know we're doing the taxes the overtime making sure you're doing everything correctly it could definitely be a hassle and you want to be able to focus on your business that's your number one priorities you want to focus on growing your business making money you know cutting expenses as low as possible and profiting as much as possible you don't want to be wasting your time and spending your time because time is money on your payroll.
If you're going to your contractor for instance there's these companies out there to call the PEOs and what they do is they'll process the payroll for you so they'll be like a standard payroll company that you outsource but they also offer other benefits and the benefits are a lot of times.
most beneficial reason that I see is for workers comp insurance and basically what they do is they provide they have agreements with these workers companies and because they have many employees it's a call Co employment relationship so you people with your employees you tell everyone if they hired they're fired you give them raises whatever you want to do you tell them that job tests till your employee but technically they're listed as an employee under the PEO company and they cut the payroll.
they handle their payroll they handle their HR they handle if you want to do accent policies life insurance benefit packages safety meetings they can also do coaching on you know they valuations on how you minimize your risk and what happens is out in the workers comp field especially for small to medium businesses.
in the construction field a lot of times they can't get workers comp insurance because these insurance companies out there they figure that they need a premium to be worth the risk so if you have a small company and a workers comp policy is not going to cost your company that much the insurance carrier doesn't want to cover it because they think oh I'm only going to make a little bit of money god forbid a claim happens the average worker's comp claim is a thirty seven thousand dollar claim so god forbid a claim happens the insurance company is going to be out a lot of money and they're not really bringing in any money.
They don't want it so they basically reject the risk so in the state of water for particularly you got to go do like a force-placed option the state option if you have no other options so an alternative option to that would be a PEO.
The PEO would handle your payroll they would handle the workers comp exposure and the reason they'd be eligible for that workers compensation so they have many other employees from other companies that they have on their payroll.
because they have more payroll more couple more people working under them technically they have many more options than just small a company would so they have benefits health benefit packages that they could offer the Hanalei HR they do the payroll they offer the workers comp on coverage and then some POS actually will have a workers comp carrier in house so they can actually cut the workers comp rates down quite a bit to save you some money.
if you're looking to grow you're looking to focus on just working and growing your business you don't want to deal with the employee payroll and the HR and the in case is a workers comp claim and the coverages and the taxes and all that stuff and PEO is the way to go.