Looking for Help: Consider A Professional Employer Organization

Last Updated: February 16, 2021

Regardless of how organized or the number of tiers there are to a business, there will be times when additional support is necessary. That could be HR support, payroll processing, or support during open enrollment for health insurance. Piling on to the work that small to medium-sized companies may need, hiring a new employee can be just as timely, interviewing, negotiating salary, training, and offering benefits. That can be double or triple trouble if that new employee doesn't work out. That is where Professional Employer Organizations (PEO) not only come in handy, they can come in to save your business. This article will share details about what a PEO is, what they do, and how it can help your business.

What is a Professional Employee Organization?

A Professional Employee Organization is an outsourced organization that becomes a co-employer with firms to help with employee-related tasks. They are for small companies with as few as two employees to mid-sized companies with 200 employees, and so, in essence, your small or mid-size business has access to a larger enterprise. Although the original business owner maintains control, they have some say so in decision making. They come to solve problems in every area, and some of their tasks can include payroll, HR, benefits, compliance, safety and risk management, taxes, and more. Having one in place frees up the owner so that their vision can be realized, and it gives them the necessary time to focus on running and growing their business.

What are Advantages and Benefits of a Professional Employee Organization?

Aside from the hassle of the owner spending time doing administrative tasks, the benefits and advantages of using professional employer organizations are numerous. According to experts, the main advantages of is twofold; you get to run your business and the cost efficiency with being part of a larger company. For example, a small company won't have the same success finding affordable health insurance benefits for a small group of employees. However, having a professional employer organization in place would mean that your business will benefit from representing many more employees, making benefit rates more affordable.

What you Should Look For in a Professional Employer Organization?

As with any company, business in this industry vary from company to company. They have various tools and different ways of doing business. However, a high-quality professional employer organization is there to help your business, not hinder or create problems. That said, there are things that all should be able to do for your company, and those are listed below. When you interview for a professional employer organization, keep this list in mind.

Access to Quality Benefits

Dental, medical, and vision insurance are massive selling points for prospective employees. Being able to get quality benefits will be the difference between getting mediocre employees and quality employees. Top-notch employees are looking for top-notch benefits.

Automated Payroll Administration

A good professional employer organization can take care of your payroll processing needs with a smooth process that prepares and disburses payroll documents like W2s and other document filings.

Compliance Support

Keeping up with both your state and federal government's employment-related compliance, such as ACA filings, disability insurance, and sexual harassment. They will also handle unemployment insurance issues and new hiring documents.

They will also handle HR and act as a resource center for your company. They also consult and deal with complex HR issues

Some other benefits of professional employer organizations are:

A savvy organization can withhold, report, and remit your payroll taxes and file your W-2s for your company. They save business owners an average of 21 days a year on the payroll. Am experienced expert in compliance regarding payroll laws.

As stated above, professional employer organizations save money for businesses by scaling your teams' benefits with their high-quality services at affordable rates reserved for larger companies.

Also, professional employer organization experts free up the owner to deal with growing the business. They take care of the employee-related administrative work.

As an entrepreneur, the vision you have for your company is what will make your company unique. Having a PEO enhances and saves your skills to make your dream a reality.


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