Why Use A PEO Service?
Professional Employer Organizations (PEOs) are one of the fastest growing business outsourcing trends in the last decade. Why? Because PEOs reduce employment costs and give you more time to work on things that really matter, like growing San Jose business. Just a few of the many benefits provided include:
- Professional human resource assistance to reduce governmental compliance headaches, employment issues and more.
- California workers' comp savings, with little to no money down and no annual audits.
- Reduced rates on big company employee benefit plans, like 401(k), supplemental and group healthcare.
- Payroll management with quarterly and year-end report filings, wage garnishments, tailored reports, free direct deposit and much more.
How Does A PEO Arrangement Work?
The arrangement between a PEO and client company is often called co-employment. In this relationship, the PEO handles benefits administration, payroll processing, tax remittance, risk management, and other HR services for your company. You maintain the day-to-day operations of your business and employees, including hiring, training and employee supervision with no loss of control. The biggest changes you'll notice are higher profit margins and more time for growth.
What Are The Costs?
Average administrative costs run between 2-4% of annual payroll. A bargain considering the National Chamber of Commerce states that small businesses can spend up to 30% of their time managing employment related work. Plus, recent independent studies have shown businesses who utilize a PEO service are 50% less likely to go out of business, grow 10% faster and experience an average of 22% less employee turnover.
How Do We Receive Payroll From The PEO?
There are a number of options for receiving your payroll from the PEO provider including:
- Direct deposit or Mastercard pay cards (most popular).
- FedEx or courier delivery of checks.
- Remote check printing at your office.
How Can We Help?
Using ELQ is the easiest way to access the right PEO company for your San Jose operations. With over 900 registered PEO companies to consider, there may be only one that fits your needs. Just like your business if unique to any other, so is each PEO. They specialize in different industries. Work with different size employers, offer different employee benefits - and of course charge different fees.
Whether it's reducing California work comp costs, or improving your employee benefits offerings - we can help. Give us a call. Since 2001 we've saved thousands of employers millions of dollars in taxes and insurance, we're here to help.
