A PEO (that is short for”Professional Employment Organization” or”Professional Employer Organization”) is a form of entity that can save a lot of headaches and frustration by taking over some of the major employee-related functions that you as a company owner or manager are responsible for. These are tasks that can soak up your time and cause you to want to pull out your hair. Functions so significant in paperwork and bureaucracy that you’re not even left with enough time to conduct your company. Running a business is tough, and there’s often only the weakest of margins between succeeding and failing. That means you’ll be well-served to place yourself so that you can concentrate on actually running your business instead of doing paperwork. By outsourcing certain employee-related functions, you are freed up to take care of the things that influence your bottom line.
A professional services organization provides services that fall into four big categories. The following sections discuss each of those categories.
Employees’ Compensation Administration
Employees’ compensation management includes tasks like reviewing and administering claims; doing safety-related audits and inspections; managing and creating workers security plans; coverage and Assessing on-the-job accidents; complies with OSHA regulations; and employees compensation billing reconciliation.
With a PEO, workers’ comp claims in the company are charged against the PEO for purposes of re-evaluating insurance costs, rather than your own company. It averts the potential disaster of getting a significant claim filed against your company, which may possibly be so large that it increases your workers’ comp insurance rates beyond the point where you can possibly pay them. If you operate in a business in which there’s a reasonable chance of a person getting hurt, then having a PEO to deal with your workers’ comp can save you hundreds of thousands of bucks, or possibly even prevent you from going out of business.
Payroll administration includes functions like preparing and distributing payroll checks; making employee direct deposits; managing government withholdings; reporting; preparing W2s, W3s, along with other employee-related documents; payroll record keeping for audits and queries; and tracking vacation and sick time. If you , do your payroll, you then know exactly what a burden it is. A PEO can take care of this for you and spare you so much money in other regions that payroll administration is practically free.
Benefits administration includes jobs such as 401k administration; direction of disability programs; life insurance policy administration; COBRA compliance; gains direct generation; flexible spending account administration; annual benefit plan inspection; and administration of employee assistance plans.
Providing your employees with the best benefits you can possibly manage is a good way to keep your employees contented and productivity high. Hiring a Global Mobility to manage your employee benefits can save you a large amount of time and money by freeing you from having to research, shop, and compare rewards plans. It also saves you money by offering you lower rates than you would be able to have by yourself.
Human Resources Administration
Human resources administration includes such activities as accepting employment programs; doing background checks; generating employee handbooks or communication employment policies from other ways; audit compliance; managing EPLI insurance; and legal assistance. Hiring the wrong people, or with employees who aren’t clear on their roles and obligations, can do your business much harm. Instead of have lax HR policies or spending hours managing HR functions , you can have everything done for you and avoid the frustrations associated with poor human resources management.