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Major Benefits of Using a PEO

Hanna Wilson, HR tech Outlook | Friday, May 07, 2021

Many small business owners find themselves spending too much time dealing with different administrative activities related to payroll, such as payment collection, accounting, filing of W-2s and garnishing of wages.

FREMONT, CA: Skilled employer organization (PEO) offers value-added services to small businesses around the country. According to NAPEO, there are approximately 900 PEOs serving more than 175,000 organizations with more than 3.5 million employees. These organizations have worked with the PEO to address one or more business challenges, such as coping with payroll and employee benefits, navigating workers' compensation and other legal concerns, or hiring new talent.

Payroll and Other Benefits

Payroll processing can be one of PEO's most enticing offerings. Many small business owners find themselves spending too much time dealing with different administrative activities related to payroll, such as payment collection, accounting, filing of W-2s and garnishing of wages. All this can be done with almost no hands-on participation on the part of the company owner, which frees up their resources to develop the business in more practical ways.Top Payroll Solution Companies

Offering incentives is something that many small business owners believe goes beyond the reach of their financial situation. Although this could be true if they negotiate benefits directly with insurance and retirement providers, working with PEO would exponentially expand their ability to deliver competitive benefits to their employees. In addition, small business owners are relieved of the tiresome job of administering these benefits to their workers.The PEO will take over the provision of enrolment, negotiating incentives and management of COBRA incidents as they arise.

Workers' Compensation

Workers' compensation claims can be time-consuming and costly for small business owners. In addition to providing coverage, a PEO will direct the administrative tasks that occur if a claim is made. Claims include facilitating the company's compliance with federal laws, associated paperwork, audits and certifications.

Owing to the complexities of the numerous state and federal employment regulations, human resources can be a nightmare for small business owners. Failure to keep up with the ever-changing tide of requirements can be costly. However the PEO has an entire team devoted to it. This can be invaluable for small companies with workers in different countries, which is typical in today's telecommunications industry.

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