Highlights
- A Professional Employer Organization (PEO) can help small business owners handle complex, time-consuming tasks such as payroll, compliance, and employee benefits.
- By partnering with a PEO, you can save time and resources, get access to experts, and implement efficient HR processes.
- At CertiPay, we provide comprehensive PEO services to support your internal team and enable you to focus on growing your business. Contact us to get started!
Imagine freeing yourself from routine, administrative HR tasks and having more time to focus on your business goals. For many small businesses, juggling payroll, benefits administration, and compliance can drain their time and resources. A PEO for your small business can be the solution.
By outsourcing these functions to a Professional Employer Organization (PEO), entrepreneurs can regain focus on their core competencies and drive business growth.
Considering a PEO partnership? Discover the five key benefits of PEOs for small businesses that could transform your operations.
What is a PEO?
PEO stands for Professional Employer Organization. But what does that mean? In plain words, it’s a company that partners with your business to handle HR responsibilities such as payroll processing, compliance, and HR management throughout the employee lifecycle.
Essentially, a PEO becomes a co-employer of your workforce, sharing responsibility for employment-related matters. The PEO business model offers you a strategic advantage by alleviating the burden of complex HR functions and freeing up valuable time and resources.
5 Benefits of Using a PEO for Your Small Business
Partnering with a PEO can be a game-changer for small businesses. By outsourcing HR and administrative tasks, you can unlock significant advantages. Let’s explore the top five benefits of a PEO for small businesses:
Enhance your Employee Benefits Package
Attracting and retaining top talent is essential for business success. Offering Fortune 500-level employee benefits can be a powerful recruiting tool for your small business, giving you a significant competitive advantage even on a tight budget.
Through a PEO, you can access top-notch employee benefits packages, at a more affordable cost. These benefits include health insurance, dental and vision coverage, life insurance, disability insurance, and retirement plans.
Beyond providing better employee benefits, PEOs excel at benefits administration. From employee enrollment to carrier management, they handle the tiresome administrative tasks, freeing you to focus on core business operations.
While traditional PEO models require full outsourcing of benefits, many modern PEOs offer hybrid options. This allows you to maintain control over specific benefits while still reaping the advantages of the PEO’s expertise in other areas.
Simplify your Payroll Process
Payroll processing can be a complex and time-consuming task for small businesses, especially when you have to manage various payroll classifications, such as hourly, salaried, and commissioned employees.
PEO services can streamline your payroll process, helping you stay in compliance with tax regulations, and providing you with a dedicated payroll specialist, reducing the risk of costly errors and penalties.
Finally, PEOs can give you access to advanced payroll software and systems, ensuring accurate and timely processing of employee wages, deductions, and tax withholdings.
If your small business is considering outsourcing payroll, engaging with a PEO might be the right approach.
Peace of Mind through HR Compliance
Employment laws are ever-changing and complex. Staying compliant with federal, state, and local regulations is crucial to avoid costly penalties and legal issues.
By partnering with a PEO, small businesses can gain access to a team of HR experts who stay up to date on the latest employment laws and regulations. They can conduct regular compliance audits, help you implement HR best practices, and provide guidance on employee policies and procedures.
Need help creating compliant job descriptions? Or keeping up with the Affordable Care Act’s (ACA) intricate requirements? A PEO for small businesses can offer expert advice and support.
Employee Retention and Company Growth
According to the National Association of Professional Employer Organizations (NAPEO), businesses that use a PEO have higher employee satisfaction and lower employee turnover.
NAPEO’s 2019 study found that “the average cost savings from using a PEO is $1,775 per year per employee, while the average PEO cost per employee is $1,395, yielding an annual ROI of 27.2%.” The study also found companies that utilize a PEO grow faster and are much more likely to stay in business.
Beyond the core PEO services we’ve explored so far, many PEOs provide onboarding solutions. These can include assisting with new hire paperwork and helping you build a stellar onboarding experience that boosts employee retention.
Efficient Workers’ Compensation Management
Workers’ compensation claims can be complex, time-consuming, and costly for small businesses. Navigating the claims process while maintaining business operations can be a significant challenge. A PEO can provide invaluable support in this area.
PEOs typically handle the administration of workers’ compensation insurance policies, including claims processing, medical case management, and return-to-work programs. This frees up your time and resources to focus on other critical business functions.
On top of this, PEOs can help you secure more favorable workers’ compensation rates, reducing costs for your small business. Finally, PEOs have in-depth knowledge of workplace safety best practices and can help you implement effective risk management strategies to prevent accidents and reduce claim frequency.
Grow Smarter with CertiPay PEO Services
Partnering with a PEO can have numerous advantages for your small business, from giving you access to more affordable benefits packages to staying fully compliant with ever-changing employment and tax regulations.
At CertiPay, we offer comprehensive PEO solutions tailored to meet the unique needs of entrepreneurs like you. Our expert team is dedicated to handling the complex aspects of HR, payroll, and benefits administration, allowing you to focus on what matters most – growing your business.
Ready to expand your business with PEO services? Contact us today to schedule a consultation.
