How Can A PEO Service Help?
Working with a PEO is an easy way to save money on business insurance costs, while outsourcing employment administrative burdens to reduce liabilities and give you more time to focus on growing your Cedar Rapids company. Started and still known as employee leasing services, some of the advantages a PEO provides include:
- Great group benefits including healthcare, dental, vision and savings plans.
- Pay-as-you-go Iowa workers' comp insurance, with no down payments or audits.
- Complete payroll services, including all tax filings, wage garnishments, direct deposit and more.
- Professional HR services that improve employment practices, compliance and risk management to reduce liabilities.
What Are The Costs?
PEOs charge an administrative fee that averages between 2-4% of your annual payroll. For example, if your annual payroll is $400k and the PEO provider charges 2% - that's $8k yearly for services. Compared with in house costs of 8-15%, based on Small Business Administration (SBA) statistics - PEOs are a bargain!
How Does The Relationship Work?
The PEO becomes your "back office" partner, allowing you to outsource work that takes time and doesn't generate a dime of revenue - giving you more time to spend on things that do. You continue to maintain control of your employees, hiring and terminating as needed. The only differences you'll notice are lower employment related costs and more to time for sales, service and growth.
What Kind of Businesses Use PEO Services?
With over 900 PEO companies in the US, any business can find value these services. As of 2016, PEOs work with between 156,000 and 180,000 small and mid-size businesses, employing over 3 million people.
Why ELQ?
Because each PEO company is unique in their service and benefit offerings and we've done the vetting for you. For example, one may include background checks, or pre-hire drug testing in their management fee, while others may charge on an a la carte basis. Even more differences include healthcare providers, such as Blue Cross Blue Shield compared with Aetna, or Humana.
Since 2001, we've researched hundreds of PEOs from across the country, understanding their industry and employee size preferences - that's what we do! Understanding your needs is just one way we help you through the process in accessing your perfect Cedar Rapids PEO. Call today, we're here to help.
