What Is A PEO?
A Professional Employer Organization, also known as a PEO, handles employee-related tasks with a team of payroll and HR experts. The PEO assumes responsibility for risk management, personnel management, human resource compliance, and tax compliance. You manage the day-to-day functions of your business, like sales and customer service.
The best way to focus time and energy on running your business and not on the endless tasks that come from having employees- is to use the valuable resources from a PEO company. Their experts have the skills associated with human resources, benefits, payroll, and the associated software systems- so you don't have to.
How Can A PEO Help Your Staffing Business?
PEO services have become a vital companion to those in the staffing industry, who know first-hand the value of outsourcing employment liabilities. PEOs, or employee leasing companies have become an important partner through these core benefits:
Many times, staffing companies just don't have the ability to offer affordable benefit plans. A PEO can offer a wide variety of group healthcare and 401(k) retirement plans, as well as dental and vision coverage, life insurance and more.
Workers' Compensation Insurance Savings
Often a critical piece affecting profit margins, the right PEO service is able to provide big discounts on workers' comp premiums. Plus, little to no money down and NO AUDITS provide additional savings while removing more administrative work.
Complete Payroll Processing
PEO companies remove the burden of payroll for staffing firms, with free onsite check printing options, visa pay cards, complete tax reporting and more. Robust, online HR payroll platforms provide easy employee record maintenance with access to PTO tracking and W2's.
Human Resources Administration
Liabilities come with running a staffing company and a PEO's HR experts help you manage them. Services such as drug testing, e-verify, management training, employee and safety handbooks are offered at a fraction of the cost at doing it on your own.
What Do PEOs Charge For Services?
Much less than in-house costs. The average administrative costs in using a PEO service are between 2% - 4% of your annual payroll. For example, if you have a $600k payroll - a 2% management fee would be $12k yearly. Considering complete payroll, work comp, employee benefits, risk management and HR services are included - the value of outsourcing with a PEO can't be beat. More importantly, you'll notice the time savings your staffing business has gained to operate and work on growth instead of paperwork.
Is A PEO Right for My Business?
Staffing companies have used PEO for decades. And since 2001, ELQ has been helped hundreds of staffing employers find the best PEO fit.
We understand your business is different than any other, and so are the PEOs that provide services to the industry. Each has different benefits and servicing costs. They work in different states and have different program options.
We take the time to know your business needs first and the areas you want to improve on before providing an answer. Give us call, we're here to help.