4 Advantages of Using a PEO for Your Business
PEO stands for Professional Employer Organization which involves a co-employment relationship between the business, PEO and Employees. Co‐employment means that the PEO will employ your company’s employees and pay them through their Tax Identification Number (TIN) allowing your company to access the PEO’s benefit portfolio and cover the company under its Workers’ Compensation insurance.
PEO’s provide many benefits to keep you devoted to the most important parts of your business, such as:
Financial Savings
Because of PEO’s industry experience and connections, they can help you save money in a variety of ways. For example, you’ll have the chance to save on major healthcare expenses as well as payroll-processing and related accounting costs.
For some PEO’s the savings don’t stop there. Larger companies may be able to offer discounts on extra perks like travel fees, automobile fees, and cellphone fees.
Compliance Assurance
Compliance is an all encompassing word that involves federal and state laws as well as HIPAA privacy, department of labor, IRS, Affordable Care Act and many other regulations that affect all employers. Every employer that offers an employee benefit plan needs to worry about compliance, since violations can result in significant penalties.
A PEO can provide guidance on the most current laws and regulations to help you avoid compliance mishaps.
More Attractive Benefit Packages
One of the key components of attracting and retaining top level employees in today’s very competitive market is by offering a full and complete employee benefit package. Offering a full suite of benefits is a great way to retain your employees by demonstrating that you care about their safety, security and quality of life.
PEO’s are able to offer employees more inclusive benefit packages than a typical small business can. By presenting your employees with non-medical specialty insurance programs, you will be creating a more enticing benefit package, appealing to all ages. A comprehensive package may include:
- Medical
- Dental
- Vision
- Life Insurance
- Disability
- Retirement
- Healthcare Savings
Your PEO can handle all administrative tasks related to benefits administration, including onboarding of new employees and coverage changes. At Benchmark, we are always looking for the right strategic and innovative carrier partners to best suit your needs.
Risk Management
Just one lawsuit can be detrimental to a small business. PEO’s can limit liability and vulnerability by providing legal advice as well as implementing safety protocols and procedures to reduce company risk.
A PEO can offer advice on important laws and practices regarding several employee matter, including:
- Minimum Wage
- Overtime
- Sick Leave
- Parental Leave
- Workers’ Compensation
Partnering with a PEO, may be a good option for small businesses that need help managing many details involved in overseeing a workforce. A PEO helps with providing employee benefits, tax filing, HR and administrative support, and much more.
BMPG has over 10 years of experience in guiding clients into solutions that keep their employees secure and business goals aligned and prepared for the future. If you’re ready to take The Benchmark Approach to your insurance needs, schedule a free consultation today.