Why choose a Professional Employer Organization
Over the years, PEOs (Professional Employer Organizations) have tremendously grown in popularity. PEOs offer numerous valuable services to clients. In most if not all arrangements between the PEO and client (s), the PEO agrees to conduct specified employer responsibilities for leased workers. They include some or all of the following:
• Paying and accounting wages for workers
• Securing WC (Worker’s Compensation) insurance for employees
• Completing the withholding and/or reporting of payroll-related taxes
Companies, regardless of the size and shape, can utilize PEO as a co-employer of a business’ employees. As much PEOs solve countless issues for businesses, such as providing employee benefits, filing taxes, lessening the administrative burden of running/managing a payroll, outsourcing human resources function. A business should be able to understand and appreciate the main benefits of PEOs. Here are some of the reasons you should enter into a PEO arrangement:
1. PEOs might be more than willing to cover all your worker’s compensation exposure if you are a small start-up or medium size company.
2. Small to intermediate deductible options are usually available.
3. For businesses in high growth mode, PEOs can be an alternative to payroll funding or factoring.