How does a PEO work?
You focus on growing your business
while the experts focus on taking
care of the non-revenue generating
administration.
That’s the idea behind a
Professional Employer Organization
or PEO (also known as an Employee
Leasing Company). To accomplish
this goal a PEO shares the employer
responsibilities of your business.
In this co-employment relationship
the PEO helps to alleviate the burden
of employer risks, finding affordable
employee benefits and assisting
with employee administrative functions.
Because the PEO is in the business
of employee administration it can
handle the administration of benefits,
payroll taxes, regulatory compliance
and human resources support more
efficiently than a single business
could on its own. This allows you
to focus on your business, saving
time and reducing your employer
liability.
Additionally, the buying power
of PEO’s enable them to negotiate
better rates on items like Workers’
Compensation Insurance and Health
Benefits than a single business
could obtain on its own. These cost
advantages a passed down to your
business, saving you money and generally
enabling you to offer a broader
ranger of higher quality benefits
to your employees.
The PEO relationship enables you
focus on growing your revenues and
the day-to-day management of your
business such as hiring, firing,
promoting, demoting and client service.
Meanwhile the PEO takes car of the
non-revenue generating aspects of
your business including payroll
tax administration, benefits
administration, Risk
Management and Human
Resources.
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