Being a small business owner, you know the importance of every penny your company spends. Obviously, you would want to make your money count and help you down the line to accomplishing your entrepreneurial goals. But did you as a startup owner ever thought of using a professional employer organization i.e. a PEO for strategizing your business operations?
Well, PEOs specialize in providing integrated services to help business owners productively manage crucial employer responsibilities and risks. Since PEOs or Employee Leasing Services cater to the requirements of many companies, they can easily leverage their clients’ numbers for excellent healthcare and retirement savings alternatives. Once you partner with a PEO, you come under a co-employment structure. Co-employment exemplifies that your company employees are also the employees of the PEO. Sounds intimidating? After partnering with your chosen PEO, the latter will have complete control and authority over your tax and healthcare responsibilities. Therefore, in a co-employment framework, the business owner only runs the company, but the rest is completely managed by your PEO like payroll processing and human resources management.
Why Choose a PEO for Small Business?
PEOs or the employee leasing services come with a long list of services for small business owners, right from creating your employee handbook to providing legal advice about employee disputes. Therefore, we have come up with effective reasons as to why employee leasing services are an absolute must for small businesses:
PEOs help reduce the Benefits Cost
PEOs provide you with a chance to save money on major expenditures like healthcare as they come up with numerous more options than what is actually available. If your business comprises of more than 50 people, providing health insurance to the employees becomes necessary according to the Affordable Care Act (ACA). But how to scale fast when you are not sure of how to get benefits for those 50 people? Well, this is where PEOs can save you bundles.
Considerable savings on the cost of health benefits has never been more significant than it is today. So if you own a startup, PEO is the best choice for you.
Managing Taxes and Payroll
Only an accountant is aware of several ins and outs of tax laws. And for this, you can always hire your accountant to handle the taxes for you, but PEOs come with an added advantage.
Not only do these employee leasing services handle your yearly taxation, but they also provide payroll services and deduct the genuine tax amount every month from each month’s pay. PEO account managers are well-acquainted of all the tricks to effectively manage state and federal taxes, so you don’t have to worry about that. Moreover, the majority of the PEOs today come with online websites and apps to make it easy for the employees to check their tax information anytime they want.
PEOs help Enroll New Employees
When looking for the right talent or candidate in your team, identifying and reaching the best candidates can be a daunting task. But here, PEOs come with an upper hand as they help make a potential list of eligible and talented candidates as employee leasing services have seamless access to all kinds of recruitment networks. PEOs independently screen eligible candidates and the right candidates are lined up. Thus, setting you free to interview the cream candidates and make the best hiring decision.
PEOs help track Employee Performance
Small businesses function well only if managers and their reports reveal openly about the performance. And if the latter doesn’t have significant managerial experience, it might be difficult to talk about the employees’ performance in a positive way. On the other hand, PEOs come with a performance tracking software where employees are required to fill up the necessary details in the forms. And you can easily view the employees’ areas of improvement and their performance. Moreover, PEOs might even organize training and coaching sessions for the all-round development of an employee.
Retirement Savings
Choosing a retirement plan is a complex and well-detailed process. It’s not like choosing health insurance, but PEOs help you go easy on it. PEOs provide effective guidance on different options to choose from so as to make your retirement healthy and worry-free.
