How Does a PEO Work?
Think of a Professional Employer Organization (PEO) as your off-site back office partner- providing payroll, workers' compensation insurance, and professional HR for help with employment issues. PEOs are in demand because costs continue to soar, compliance with the Affordable Care Act has created concern and employee lawsuits are on the rise - employers need help!
PEOs assume tax and insurance liability on behalf of their client companies and help you navigate through many complex issues that affect day to day business operations. The Small Business Administration reports that business owners spend roughly 7% to 25% of his or her time managing employment paperwork. According to the study from 1995, the average cost per employee, per year, for companies employing less than 500 employees is $5,000.
There are many benefits to using a Professional Employer Organization. One of the biggest reasons to use these programs is the time benefits they provide. Instead of being responsible for the never-ending list of governmental compliance and tax requirements, waste garnishments, and claims management- an employer can focus on profit producing activities to grow their business and hire the best employees.
Some of the Benefits of Using a PEO Include:
- Big Savings on Workers’ Compensation Insurance
- Unemployment Claims Management
- Access to High-Quality, Comprehensive Benefits
- Complete HR Support
- Payroll Management
- No workers' comp audits
- Section 125 plans
- HR management
- State unemployment insurance
- 401(k) retirement plans
- And More!
How Can ELQ Help?
ELQ has helped thousands of business owners find the right PEO service since 2001. Each provider offers different options and pricing. Our industry knowledge as PEO brokers helps in finding you the right solution for your group.
We save you the effort in calling multiple PEO companies to find the one that works. We work with dozens of these companies, so we can be objective and work for your best interests in the transaction. And most importantly, we use our negotiation power and leverage to ensure you get the best PEO at the best possible price.
Give us a call and start saving today! We're here to help.