If your business is growing faster than you expected, this can lead to a need for more employees. While you may want to hire more to do the work for your company, you may want to avoid having to hiring more individuals to manage your payroll, taxes, and insurance needs. These are duties typically left to human resource (HR) employees in a company, but you can also outsource them. One way to do this is to hire a professional employer organization (PEO) to do these tasks for you. Here are three things to know about this.
What Is A PEO?
A PEO is a company that provides all kinds of HR services for businesses. They can help with businesses in almost any industry, and you can select which duties to let them complete for you. Here are some of the common services they offer to their clients:
- Health insurance – They can provide group health insurance policies for companies of all sizes and types.
- Workers' compensation insurance – This type of insurance is required for all employers, but it can be expensive. It provides benefits to employees that are injured on the job.
- Payroll – A PEO company can also handle all your payroll needs. They can calculate paychecks, write them out, direct deposit them, and calculate all withholdings and taxes.
- Taxes – These companies also take care of making all your tax payments for you, which is very beneficial because they will make sure they are made on time when they are due.
- Employee benefits – They will also manage any other duty related to your employees, including all the benefits you offer to your workers.
When you hire a PEO to take over these duties, you will not have to train them. They are experts in this industry already, and you can simply pay them for their knowledge and work.
What Are The Benefits Of Hiring A PEO?
As an employer, hiring a PEO offers several key benefits, including:
- You can have fewer employees – While many companies have many workers in their HR departments, you can eliminate this need. The PEO company will replace the HR division in your company, which means you will not need to have as many employees.
- You will need less space – As a company grows and needs more employees, the company may also need more space. If you do not have an HR department, you will not have to worry about providing space for these employees.
- You can focus on your company – When you know that all your HR duties are being taken care of, you will have fewer worries, which may give you more time to focus on your company's operations.
These are just a few of the benefits offered through PEOs, but there are others too.
How Do You Hire A PEO?
If you decide this would be a good move for your organization, you might want to look for a PEO broker. There are over 700 different PEOs you could hire for the job, and it can be difficult knowing which one to hire. If you hire a PEO broker, he or she will have contracts with many of these PEO firms. Because of this, you will have access to quotes and information from multiple PEOs through one PEO broker.
The broker you choose will do all the research for you. You can tell the broker what services you are looking for, how many employees you have, and any other details the broker needs to know. The brokerage firm will take care of the rest for you.
Outsourcing certain parts of your company's operations can be beneficial for so many reasons. If you would like to learn more about how a PEO could help your organization, contact a PEO broker, like those at Tailored Solutions, today.Share