Are you struggling as a small business owner with dividing your time with employee-related issues and trying to grow your revenue? If your human resource workload is becoming overwhelming and the vision you had for your company is slipping, then consider a Professional Employer Organization, PEO.
PEO companies will help your company with administrative and human resource tasks. When your business becomes a client of a PEO service, you enter in the co-employment agreement, which gives the PEO company access to sharing responsibilities of employees. The contract agreement allows your business to several benefits and additional perks for your employees. A PEO company will also take over handling payroll administration, tax filing, and HR support so that you can focus on growing your business. You can compare PEO companies on Retire At 21.
If you are not sure if you require the services of a PEO company, consider any of the below warnings as a sign:
Reactive Management Style
If your clients or customers are regularly pointing out mistakes being made that you aren’t aware of, then your plate is too full, and you aren’t managing your employees’ work. Which has you putting out fires that could have been prevented. Most small business owners don’t have the time, and sometimes the skill set to investigate and effectively remedy the situations. This all hurts your customer satisfaction and the work environment and employee morale. In the day to day work environment, small things that happen are essential.
Incomplete Employee Paperwork
Did you onboard your last new hire correctly? Was all the paperwork filled out correctly? You might not notice an error, till there’s a payroll issue with the IRS. This can be a horrible headache for you as a small business owner, and potentially a costly one if you are penalized.
Penalized for Compliance Violations
Keeping up to date and compliant on HR rules and regulations can be hard for a small business owner. Changing employment laws and new rules can be challenging to follow, especially if you have employees in different states. Mistakes on paperwork or not filing taxes correctly can leave your business open to fines, and most small businesses don’t have the bandwidth or expertise dedicated to overseeing this.
Payroll Takes Up All Your Time
Payroll can be a full-time job, and you might not be accurately reporting your payroll tax. Being overburdened in pay will have you trying to stay up to date on paperwork and calculations, and even correcting errors from an inefficient process.
How a PEO Company Can Help Your Business
If you’ve dealt with the above warning signs or have felt like the administrative tasks of your business are holding your business back from growing, then you should consider the help of a PEO company.
Outsourcing your human resource to a PEO company can provide many advantages to your business, such as:
- Benefits – A PEO service can help ensure your employees access to competitive benefits which include medical, dental, and vision insurance. A comprehensive benefits package can help your business attract and retain high-quality candidates for open jobs.
- Relief from Administrative -A PEO company can give your business relief over payroll and tax filings. By outsourcing HR to a PEO company, you can spend more time on growing your business.
- Employee Onboarding – With the help of a PEO company, you can offer comprehensive employee onboarding, that provides new hires with proper paperwork and integrated HR technologies.
- Human Resource Guidance – PEO companies, will provide valuable advice on HR-related issues that focus on employee-related federal, state, and local government regulations. The HR specialists can help with guidance for situations that might come up with employees and can determine the best plan of action to help all parties involved.