In a nutshell, a PEO is an all encompassing Professional Employer Organization that is capable of helping businesses operate. PEOs are popular today because, they allow businesses to spend time and money on business growth rather than back office and employee management.
When running your business gets in the way of growing your business, then it may be time to hire a PEO otherwise know as a Professional Employer Organization.
WCCOP can help you decide if hiring a PEO is right for your company.
Professional Employer Organization
- HR Expertise
- Cost Savings
- Risk Management and Compliance
- Access to Benefits and Employee Programs
What is a PEO?
A Professional Employer Organization (PEO) is a company that provides comprehensive HR solutions to businesses. It typically enters into a co-employment arrangement with client companies, where the PEO becomes the employer of record for certain HR-related purposes, handling tasks such as payroll processing, benefits administration, compliance, and other HR functions.
How does a PEO arrangement work?
In a PEO arrangement, the client company and the PEO become co-employers. The client company maintains control over its business operations and day-to-day activities, while the PEO assumes certain employer responsibilities, such as payroll administration, tax filings, employee benefits management, and HR compliance. Employees are typically shared employees, with the client company maintaining supervision and control over their work.
What are the benefits of using a PEO?
Using a PEO offers several benefits, including access to expert HR knowledge and support, cost savings through economies of scale, enhanced compliance with employment laws, access to competitive employee benefits packages, streamlined administrative processes, improved risk management, and the ability to focus on core business operations and strategic initiatives.
Can a PEO help with managing employee benefits?
Yes, one of the key services provided by PEOs is the management of employee benefits. They often have established relationships with insurance providers, allowing them to offer competitive rates on health insurance, retirement plans, and other employee benefit programs. PEOs handle the administration of these benefits, relieving the client company of the associated administrative burdens.