How Does a PEO Work?
PEO services, also known as employee leasing companies, free you from employment related paperwork and reduce a number of liabilities. The PEO acts as the employer of record for your employees- providing and administering all employee benefits, while you retain complete control over hiring and workplace management.
The PEO saves you valuable time and money by freeing you from payroll and HR tasks, so you can focus on growing your Goose Creek business.
How Much Does a PEO Cost?
Most PEOs charge an administrative fee ranging from 2 to 4% of your annual payroll. This is significantly less than in-house costs, which average between 8-15% as noted by the Small Business Administration.
How Does a PEO company Save You Money?
Reduced rates on insurance: Working with a PEO means better coverage and lower costs on South Carolina workers' comp insurance and employee benefits. With thousands of employer groups pooled into "master plans", immediate savings are passed on to you. Plus, the PEO is responsible for administering your health and workers' compensation insurance saving you valuable time eliminating audits and compliance paperwork.
Lower turnover and better retention: Seemingly minor matters such as inconsistent or unclear employee handbooks and policies can drag team morale down and lead to high turnover and low productivity. The HR experts from a PEO help lower costly turnover and unemployment claims, by putting in clear procedures that reduce these expenses.
End cash flow worries: PEOs offer pay-as-you go plans for most insurance policies, freeing you from the stress of large quarterly payments. This lets you better plan your budgets and gives you more freedom to allocate your resources to critical areas of your business.
Who Uses PEO Services?
PEOs provide services to 175,000 small and mid-sized businesses, employing 3.7 million people. The industry has grown considerably in the past few decades, with more than 900 PEOs now in the U.S. alone. PEOs can benefit almost any industry, and work in almost every state.
Why ELQ?
As a nationwide PEO brokerage since 2001, we've done the vetting for you - visiting and communicating with hundreds of PEO services each year. Understanding their differences in pricing, services and benefits is how we help our customers connect with the RIGHT outsourcing partner. Give us a call, ask questions and find out how your business will benefit.
