The benefits of a PEO are too numerous to do without

While many payroll services options are available for any business, a professional employer organization (PEO) will go above and beyond that standard. In addition to handling all payroll calculations for wages, taxes and benefits deductions, a PEO will also directly remit amounts due to the state and federal taxing authorities and also provide all insurance premiums to the carrier. Your company will then avoid the risk of fines for late payments. A PEO will ensure that your company employees get advantageous tax treatment (section 125) so that any deductions for health insurance get deducted prior to tax calculations.

Also, PEOs offer great workers’ compensation insurance programs employees and companies. Obtaining competitively priced coverage is part of the program when you join a PEO. A PEO will provide your employees with work comp coverage (mandated in all states except Texas). In addition, a PEO will help establish or improve your company safety program. All claims are against the policy of the PEO and they will work to ensure claims are administered fairly and in a timely fashion. All PEO programs are “pay-as-you-go” and eliminate the need to make a large insurance deposit in order to get coverage in place.

Finding a PEO that provides the “best fit” employee benefits program for your company can be challenging. PEOs offer a wide variety of coverage plans and administrative options for managing your employee benefits plans. As the cost for health insurance has increased, PEOs have worked hard to keep costs in check.

Using a PEO can help administrate your company workforce. PEOs offer a full suite of HR-related services which will ensure your company is following the best practices available for your workers. The HR area can be a mine field of risks for the managers without formal HR training or on-call expertise.