Why Do Business Use A PEO?
Accurate named a Professional Employer Organization, because PEO companies focus on everything that has to do with employment. Moreno Valley businesses use a PEO service, to spend their time on sales, service and growth instead of being a “professional employer."
How Does A PEO Service Work?
The relationship between a PEO and an employer is called “co-employment", because the PEO takes on many employment related liabilities, while the employer continues to manage and run the day-to-day operations. The employer remains the primary employer and maintains the structure of the business, while the PEO handles the back office tasks.
The PEO administers payroll, tax remittance, governmental filings, and employee benefits. Often, a business owner must outsource these obligations to multiple providers. Through a PEO relationship, these are all managed by one entity- simplifying the process.
What Does A PEO Charge For Services?
Average administrative costs in working with a PEO, or employee leasing company will be between 2-4% of your annual payroll. The Small Business Administration (SBA) shows in-house costs of payroll, HR and benefits management to be 8-15%. So, you're not only saving money, but also unloading work that never produced income in the first place.
Who Uses A PEO Company?
- PEOs provide services to 175,000 small and mid-sized businesses, employing 3.7 million people.
- There are 907 PEOs in the United States.
- The total employment represented by the PEO industry is roughly the same as the combined number of employees for Walmart (United States only), Amazon, IBM, FedEx, Starbucks, AT&T, Wells Fargo, Apple, and Google.
- The PEO industry's 175,000 clients represent 15 percent of all employers with 10 to 99 employees.
Why Choose ELQ?
Employee Leasing Quotes began our mission to help employers in 2001, so we understand the differences in PEO providers and how they work. Not every PEO can provide the services and programs your unique business needs. We save you the time and effort interviewing multiple companies to access the one that works for your Moreno Valley business.
Most importantly, we use our negotiation power and leverage to ensure you get the best PEO at the best possible price. Getting started is easy. Just give us a call or fill out our simple quote request form and we'll get to work.
