With the help of a PEO, small and medium-sized businesses may streamline their HR processes, such as payroll, benefits, compliance, and workers' compensation, and offer their employees better and more affordable benefits.
In the past, companies had no choice but to hand over all their human resources work to a PEO. However, with the help of modern PEO service providers' technology, businesses can save time, get expert advice, and boost benefits without outsourcing work or compromising control of their most important data.
Where exactly can you save money by using a PEO?
PEOs manage various employer responsibilities, providing additional benefits beyond reduced stress and hassle. They could also save costs by preventing HR compliance issues that may result in costly fines and blunders like hiring the wrong individual for a crucial role.
If you outsource some aspects of HR to a PEO, you may see significant cost savings.
Benefits The PEO partnership's main goal is to provide your employees with comprehensive benefits at reasonable prices without the burden of administrative and regulatory constraints.
As a co-employer, the PEO may provide various benefits to your employees via plans it sponsors, such as health, dental, vision, a healthcare FSA, and life and disability coverage.
In its role as a plan sponsor, the PEO will handle all administrative tasks related to the plan, including communicating with carriers, enrolling employees, providing required notices, and handling COBRA.
The PEO will help your employees understand and value their benefits by providing online access to benefit plan material, enrollment tools, and a dedicated contact center.
Payroll
You might save money on payroll processing and related accounting costs if you work with a PEO. By automating the payroll process, PEOs make handling withholdings, W-2s, and garnishments simple.
Look for a PEO that provides payroll services at a flat, up-front fee instead of one that charges multiple prices for each payroll service, like providing quarterly and annual payroll reports.
Services for Seniors
Access to retirement savings plans like 401(k)s is a major perk of working with a PEO and may help you maintain your workers.
Small businesses must know whether your PEO has a 401(k) plan allowing employees to save for retirement via salary deferral, company matching, or other contributions.
As the plan sponsor, the PEO service providers are responsible for carrying out all 401(k)-related administrative tasks and legal requirements, such as conducting compliance testing, processing distributions, and providing required notifications. In addition, the PEO will provide your staff members access to online tools and training materials that might improve their retirement preparations.
HR Compliance
Labor law is complex and ever-changing. Several local, state, and federal agencies may fine you if you don't follow the rules.
Do you understand these regulations and statutes? If not, PEO service providers may guide HR experts from Husys and help you avoid making compliance mistakes.
