These organizations not only act as the payroll department but are also experts in insurance, benefits, worker's compensation, and a lot more.
Below are six areas most PEOs specialize in:
Payroll - This is the sum of all financial records of salaries, wages, commissions, bonuses, and deductions. Keeping up with the correct deductions, which can differ for each employee and on a yearly basis, can be a challenge without a dedicated company dealing with the changes.
Worker's Compensation - Also known as "Workers' comp," this is a form of insurance that provides medical coverage for anyone injured on the job. PEOs use equations to subtract the proportionate amount based on a worker's history. Having an expert in this area and knowing your rights as a business owner can save a ton on liability.
Taxes - Social security, unemployment insurance, sales taxes, receipts and write-offs -- this can all be quite an overwhelming task for one person. PEOs can take care of all of this for you.
Government regulations compliance - Knowing the appropriate, government-mandated classes can save you as a business owner on liability. For example, many PEOs offer Sexual Harassment Awareness classes. You can require your employees to take these classes and thus greatly reduce your risk being sued by someone claiming they were harassed or were in a hostile work environment.
Insurance and Benefits - Benefits could include accrued vacation pay, severance, or unemployment. PEOs take care of these details.
Remember, the best run and most profitable organizations concentrate on what they do best and delegate the rest.
