In today’s economy everyone is focused on price vs. value and getting the most of their money; A decade ago, PEO’s were more focused on their HR services than the pricing. PEO’s have had to adapt to this change and have found a way to make programs much more affordable.
Here is an explanation of what a PEO actually is and what it can offer:
A PEO offers a bundled program that may include payroll processing, workers compensation insurance, complete HR services, payroll tax collecting and reporting, group health insurance, risk management, and comprehensive legal compliance. To utilize a PEO program, the PEO must process your payroll and provide your workers compensation insurance, all other services (as listed above) can be used at your discretion.
You are probably thinking to yourself, how can a PEO be competitive in today’s market with all of these extra services provided? That is a great question because traditionally a business is only going to endure costs for what is required or necessary. Surprisingly enough, PEO’s can provide a wide variety of these combined services for less or equal to the premium you pay for workers compensation alone. These programs come in handy for mid-sized companies who have employees who are focused on processing payroll and providing HR services when they can be utilized in other departments that may be more vital to your business.
Another great perk you get with a PEO program is you have NO AUDITS at the end of the year. Since you are processing your payroll with the same company that is providing you your workers compensation insurance, you are paying as you go so there is no need for an audit. This takes away the added stress of owing more money at the end of the year. PEO’s generally do not charge down payments or deposit as well! A PEO program stands by the fact that they can truly allow the client/business to focus on what they do best which is the trade they specialize in and allows the PEO to take care of the rest.