As a small or mid-sized business (SMB) owner, you have a lot on your plate and may be looking for relief and ways to save money. If you’re curious about the benefits of working with a PEO, look no further. A PEO can take care of a significant chunk of your administrative responsibility, leaving you free to focus on other tasks necessary to your business. Below, we’ve gathered some top reasons business owners choose to partner with a PEO.
1. Affordable Employee Benefits
Take advantage of cost savings on premium health insurance packages with leading healthcare providers by partnering with a PEO (Professional Employer Organization). As a small to mid-sized business looking to purchase employee benefits, you may have less purchasing power than a larger business because you have fewer employees. This can lead to higher health insurance rates per employee, which is expensive for a small business to afford. However, when you work with a PEO, your purchasing power will be combined with all the other clients under the PEO. This provides access to the best possible rates on top-tier plans and reduces overall costs. Additionally, the professional employer organization will manage your employee benefits administration, leaving these complicated plans in capable hands and giving your employees the best support available. Set yourself above your competition by offering premium benefits at a fraction of the cost with the help of a PEO.
2. Save Time and Money
There are only so many hours in the day, and as a busy business owner, it’s hard to do it all without help. Don’t spend your time managing HR tasks, figuring out workers’ compensation, and onboarding new employees. Many SMB owners use a PEO to save time on administrative tasks, freeing them to focus on other needs.
Not only will you save time, but you’ll also save money with error-free payroll processing. Payroll is a constant administrative task that must be maintained and can take a significant amount of time. The process can also be prone to mistakes if you don’t have the right person running your payroll. Additionally, your record-keeping can cause expensive mistakes. Get on the right track with accurate timekeeping technology. PrestigePEO utilizes payroll software to offer clients a cloud-based, comprehensive, and data-rich time and labor management solution.
Further, federal employment taxes and state employment laws vary, and they are updated frequently. These changes make it difficult to stay compliant. If you make an error, incorrectly classify an employee, or make any other oversight, you can face costly fines in payroll taxes with the IRS. This is another huge benefit of partnering with a PEO; you get access to payroll services and human resources experts who will take this task off your plate.
When you partner with PrestigePEO, your company will be matched with a dedicated service team that includes a payroll specialist, an employee benefits manager, a workers’ compensation specialist, an HR expert, and more. Instead of hiring these individual roles and taking on the expenses of additional salaries, you can access all these services with your PEO. By partnering with a PEO, you’ll feel confident in your payroll processing.
3. Help Reduce Your Employer Liability
When you’re running a business, there is always risk involved. As a small business owner who may not have an in-house HR person, it’s difficult to face these legal challenges on your own. Labor laws vary state by state, so regulations can quickly become confusing if employees work in multiple locations. Labor law compliance and overall HR services management are some of the great reasons many business owners partner with a PEO. PrestigePEO will match your company with a team of HR experts, which includes access to our compliance and risk management team. We will guide you through the complexities of state and federal employment laws, giving you crucial guidance to make informed decisions.
4. Offer Retirement Benefits and 401(k) Options
The job market continues to be competitive. To seal the deal on top talent, employers are trying to offer great benefits packages to secure the employees they want most. Employees want to think about their future, and 401(k)s are an important benefit. Many small business owners feel they cannot offer this benefit because it’s too complicated to manage. Retirement benefits can be difficult to administer on your own, but with the help of a PEO, it’s a no-brainer. The PEO will manage your retirement program, and you won’t have to worry about it. For the same reason that a PEO can offer you better employee benefits because they can pool your employees with those of other companies, a 401(k) can also be more affordable with the help of a PEO. At PrestigePEO, we offer a Multi-Employer Plan, which allows us to provide low expenses because they are shared among all our clients and participants. In addition, PrestigePEO is responsible for your government filings, delivery of all required notices, annual compliance tests, and monitoring of the plan’s investments, so we bear all the financial liabilities for you. Offering retirement benefits shows your employees that you’re invested in them for the long run, and with the help of a PEO, you won’t have to worry about plan management and compliance issues.
These reasons only scratch the surface of why a partnership with a PEO benefits small and mid-sized businesses. You don’t have to do everything on your own! PrestigePEO is ready to help you with your administrative tasks, support your team, and let you get back to business. With expert help in HR services, payroll, compliance, risk management, and incredible prices on Fortune 500 employee benefits, a PEO could boost your company’s growth and help it to thrive. Contact us today to get started.