Managing employee payroll and related responsibilities can be stressful, time-consuming, and, in the event of errors or shortfalls, potentially crippling to your small to mid-sized business.
For an increasing number of companies, the solution to avoiding such scenarios is partnering with a professional employer organization (PEO). When you work with a PEO, your business enters into a co-employment relationship, which allows your PEO to share and manage many employment-related responsibilities and liabilities, including those related to payroll and tax administration.
Your PEO relieves you of payroll headaches by:
The lengthy and often complicated process of ensuring your employees are always paid accurately and on time is lifted from your plate when you partner with a PEO.
- Many PEOs provide payroll process automation, which further enhances efficiency and minimizes errors. Working with a PEO on payroll and other HR functions can be especially helpful as the trend toward more remote work continues.
Assuming payroll taxes and risks.
Federal, state, and even some municipalities each have their own complex laws regarding payroll taxes. PEO subject matter experts stay constantly on top of them to ensure your company stays compliant, even as laws change frequently.
- As a co-employer, a PEO uses its own tax ID number, rather than yours, and is responsible for tasks including paying wages, depositing employment taxes, and issuing W-2s. No worries, though: when it comes to payroll and other aspects of a PEO partnership, your business still maintains control of its management and day-to-day operations.
Guarantee that your business is financially protected.
Specialized certifications and accreditations earned by top PEOs ensure their financial stability and adherence to a number of rigorous security standards.
- Internal Revenue Service (IRS) certification demonstrates that a PEO maintains the highest individual and government standards for payroll administration, federal employment tax reporting, and payments for its clients.
- Certificate Institute (CI) Workers’ Compensation certification provides independent professional verification that a PEO’s risk management program meets proven best practices to reduce work-related accidents.
- Employer Services Assurance Corporation (ESAC) accreditation is the PEO industry gold standard. It requires a PEO to meet the most rigorous financial, ethical and operational criteria and provides business owners with time-tested verification and financial assurance in all areas of a PEO’s reliability.
Managing workers’ compensation.
Employers who work with a PEO gain access to a highly personalized workers’ comp claims management team. The team helps ensure all cases are handled quickly and thoroughly, while maintaining compliance. Immediate, early intervention is provided, along with face-to-face assistance for both clients and employees.
Ready For A New PEO Partnership?
Turn to Key HR if you’re looking for the best payroll and other talent management solutions for your growing business. You can trust us to offer innovative ways to meet your needs while helping you cut costs, save time, optimize your workforce, increase revenue and reduce risk. Read our related posts or contact us today to learn more.
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- On April 6, 2022
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