Perhaps you’ve just encountered a PEO (Professional Employer Organization) for the first time. How are you going to determine whether the benefits of enrolling with a PEO outweigh the costs?  Here are a few things you might consider:

ADVANTAGES OF PEO SERVICES:

Your PEO is banking on the fact that the benefits they can provide your company outweigh the costs.  Consider, for example the reduced workload when payroll management is handed over to a PEO.  You simply write one check per payroll period.

In return, the PEO handles payment of individual wages, health and other insurance premiums, taxes, and all associated record keeping.  In a time of increasing government regulation, the prospect of letting another organization handle all the headaches, requirements, and potential penalties makes PEO enrollment look especially beneficial for small and medium-sized business owners. 

In addition:

1. Time previously spent on employee management can be invested toward improving productivity, earnings or profit.
2. Record-keeping and auditing processes are uniform and simplified.
3. A PEO generally offers a wider range of health insurance benefits at lower premiums.
4. The PEO’s increased buying power makes available a wider variety of other benefits (cafeteria plans, life and disability insurance, retirement plans).
5. You have help in establishing company policies, and addressing other human resource questions, as well as complying with employee-related laws and regulations.