Today’s business environment is complex and ever-changing. Government regulations and procedures are increasing each year. All employers have a “System to Employ People”. These systems can be very complex and well thought out or just as simple as who has the time and some expertise to handle the issue. Professional Employer Organizations (PEOs), through the co-employment relationship, become the legal “employer of record” for employment and benefits purposes, thereby assuming many of the responsibilities and liabilities present in every business. In other words you are outsourcing your “System to Employ People” to a professional that has the training and knowledge to handle the complexities of being an employer.
Employees on a PEO’s payroll are able to participate in the PEO’s health, retirement, and supplemental benefits and are covered by their workers’ compensation policy, so you don’t have to worry about making these complex arrangements. The PEO also takes care of the payroll, including everything from printing the checks to reporting and paying the employment taxes. Additionally, the PEO provides human resources and compliance expertise. All while you remain completely in control of your product and day-to-day business operations.
Your business is reliant on being able to attract and retain quality, knowledgeable and highly skilled workers. To establish this workforce you need to have the time and energy to make the back office non-income producing aspects of being an employer work for you. This is where outsourcing these functions to a PEO allow you to have the benefits and structure to attract and retain quality people but also allow you the time to provide attention to the “core” functions, which earn profits for your business.