What is a PEO?
Most business owners’ day-to-day focus is on productivity, growth, and revenue rather than employee taxes, COBRA compliance, and researching competitive health and dental benefit plans. Back-office and human resources administration duties can easily get overlooked and eventually affect the bottom line.
A professional employer organization (PEO) allows businesses of any size to outsource human resources and back-office administration duties. However, the company is able to decide what portion of HR and back-office services they wish to outsource.
How does a PEO co-employment relationship work?
The short version: The PEO does all the heavy lifting: From complicated regulatory paperwork and compliance issues, to improved technology resources and legal intricacies.
The detailed version: PEOs provide consistent administration for companies of any size. Payroll administration, risk management, workers’ compensation, loss control, employee benefits, and everything human resources. Essential administration business tasks are streamlined, while risks and business threats are minimized.
PEO Responsibilities
- Manages workers’ compensation and unemployment claims
- Administrative HR and back-office functions
- Payroll administration including payroll, taxes, quarterly reports, claims management, and benefit procurement
- Cost-effective, competitive benefit plans which can include health, dental, vision, Long and short-term disability, life insurance, 401(k), and COBRA
- Timekeeping and time off management
- Off-site HR department offering policies and procedures, and consultation around Family Medical Leave Act (FMLA), discrimination, and termination procedures
Business Owner Responsibilities
- Managing employees and their day-to-day responsibilities
- Safe work environment
- Providing funds for the PEO to process payroll
Human Capital offers all of these services in a flexible, customized bundle designed to be Cost-Effective and help reach the business’s goals. By removing non-revenue generating responsibilities, employers are able to put their time and energy where it is needed most: on growing the business.
With offices located across the United States, Human Capital’s professional, seasoned representatives have been helping business owners with the HR and back-office needs for the last three decades. Contact Human Capital today to learn more.
