Four Things a Professional Employment Organization Can Do For Your Company
A PEO (which is short for”Professional Employment Organization” or”Professional Employer Organization”) is a form of thing that may save a lot of frustration and headache by taking over a few of the significant employee-related functions that you as a company owner or supervisor are responsible for. These are activities that may soak up your time and make you want to pull out your hair. Functions so significant in paperwork and bureaucracy that you’re not even left with sufficient time to conduct your company. Running a business is hard, and there’s often only the weakest of margins between failing and succeeding. That means you’ll be well-served to place yourself so that you can focus on actually running your business rather than doing paperwork. By outsourcing particular employee-related functions, you are freed up to take care of the things that affect your bottom line.
A professional services organization provides services which fall into four big categories. These sections discuss each of these categories.
Employees’ Compensation Administration
Employees’ compensation administration includes tasks like reviewing and administering claims; doing safety-related audits and reviews; creating and administering workers safety plans; coverage and Assessing on-the-job mishaps; complying with OSHA regulations; and workers compensation billing reconciliation.
Having a PEO, workers’ comp claims at your company are billed against the PEO for purposes of re-evaluating insurance costs, rather than your company. It prevents the potential disaster of having a major claim filed against your company, which may possibly be so large that it raises your workers’ comp insurance rates beyond the point where you can possibly pay them. If you run in an industry in which there is a fair chance of a person getting hurt, then having a PEO to deal with your workers’ comp can save you hundreds of thousands of dollars, or possibly even prevent you from going out of business.
Payroll administration includes functions such as organizing and distributing payroll checks; creating employee direct deposits; handling government withholdings; reporting; preparing W2s, W3s, along with other employee-related records; payroll record keeping for audits and queries; and tracking vacation and sick time. If you , do your payroll, then you understand exactly what a burden it is. A PEO can look after this for you and save so much money in other regions that payroll administration is practically free.
Benefits administration includes tasks like 401k administration; direction of disability plans; life insurance policy management; COBRA compliance; benefits direct generation; flexible spending account administration; yearly benefit plan review; and management of employee assistance plans.
Providing your employees with the very best benefits you can possibly manage is a good way to keep your employees happy and productivity high. Hiring a PEO to deal with your employee benefits can save a large amount of time and money by freeing you from needing to research, shop, and compare rewards strategies. In addition, it saves you money by offering you lower prices than you would be able to have by yourself.
Human Resources Administration
Human resources administration includes such activities as accepting employment programs; performing background checks; creating employee handbooks or communicating employment policies from other ways; audit compliance; handling Compliance insurance; and legal aid. Hiring the wrong people, or having workers who aren’t clear in their roles and responsibilities, can do your company much harm. Instead of have lax HR policies or spending hours managing HR functions , you’ll have everything done for you and avoid the frustrations associated with poor human resources management.