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What Is A PEO and Why Do You Need One?

 Feb 06th 2018       PEO Articles

Are your days too short? Do you find yourself wearing multiple hats? Do you feel that your business is running you? As a business owner you may or may not have heard of a professional employer organization (PEO). A PEO is a firm that provides a service under which an employer can outsource employee management tasks such as payroll, workers’ compensation, human resources (HR), employee benefits, and risk/ safety management.

How PEOs Serve Businesses

PEOs generally work with small to medium-sized businesses of anywhere from 1 to 100 employees. The business owner continues to direct the employees’ day-to-day activities, while the PEO takes on HR and payroll functions. A PEO assumes some of the HR roles and responsibilities your staff aren’t trained to do, or don’t have time to do.

Services PEOs Perform

Payroll and human resources can take up a lot of a business owners time and resources. Most companies don’t have the staff or the training to complete these administrative tasks. HR challenges can be a real hindrance to your business’ growth — that’s where a PEO comes in.  PEOs can work with your company to save time and money by offering dozens of services such as:

  • Payroll
  • Workers’ compensation
  • HR management
  • Training on important HR topics
  • Preparing employee handbooks
  • Processing unemployment claims
  • Providing guidance on wage payment and labor laws to assist with compliance

Risk Management

PEOs provide risk management and compliance assistance. A PEO can create safety manuals with safety plans and procedures to help reduce workplace accidents. PEO’s will take on the responsibility of correctly reporting, collecting, and depositing taxes with state and federal agencies.

Talent Retention

A PEO can also help your business to attract and retain good talent. They can assist the business owner in creating good employment practices and policies so their employees can work in a safe and fair environment.

How A PEO Works

You may be wondering how a PEO can provide all these services for your business, while still taking on some of the responsibilities and liabilities? A PEO works through a co-employment arrangement, which means the PEO contractually shares certain employer responsibilities with the company. Through this co-employment relationship with a PEO, your company can effectively and efficiently mitigate a substantial portion of the risk and responsibility associated with having employees.

Benefits of Partnering with A PEO

Partnering with a PEO, like APR, would allow you, the business owner, more time to focus on running and growing your business. If your goal is to better serve your employees and customers, then partnering with APR is the perfect fit for you. APR is committed to you and your business 24 hours a day!