A PEO, or professional employer organization, is a type of full-service human resource outsourcing known as co-employment. In this arrangement, the PEO performs various employee administration tasks, such as payroll processing, tax administration, regulatory compliance, and benefits and workers’ compensation coverage, on behalf of a business. PEOs can also provide 401(k) plans, health, dental, life insurance and a variety of other large-company benefits, which can make partnering with a PEO for small businesses more competitive in recruiting and retaining qualified employees.
With the expert, strategic guidance of a PEO, you may be able to grow your business and have peace of mind that you’re more protected while doing so. PEOs typically help with:
PEOs provide payroll processing including withholding and remitting social security and Medicare (FICA) taxes, federal and state income taxes, local taxes and federal and state unemployment taxes (FUTA and SUTA), as well as child support, and wage garnishments. PEOs usually mirror their client company’s payroll cycle with funding typically provided by the client 24-48 hours prior to the payroll date.
A co-employment arrangement often comes with access to high-quality, cost-effective health insurance, as well as dental care, retirement benefits and other employee perks. The PEO will usually handle the employee enrollment for these benefits and process claims for you.
PEOs typically have compliance experts who can help you protect your business from fines and penalties. Their area of expertise may include payroll tax law and reporting requirements, unemployment insurance, workers’ compensation, hiring and HR compliance.
In addition to ensuring workers’ compensation coverage is in place for their worksite employees, PEOs also provide safety training, policies, and procedures to reduce work-related accidents and health exposures, and claims management to ensure timely treatment of injuries, reduce lost work time, and minimize ultimate claims costs.
PEOs provide expert HR and benefits administration managers to help their clients maximize workforce productivity and avoid costly employment law violations. PEOs can provide guidance in recruiting, hiring and training employees, assist with ADA, wage and hour laws and other employer regulations, and administer unemployment and EEOC claims.
Small and midsized business owners often turn to PEOs for support with critical and strategic HR management so they can focus on their core competencies, including creating, enhancing and selling the products and services that made their names.
By partnering with a PEO like Lyons HR, you may be able to mitigate some of the liabilities associated with being an employer. If you’re interested in exploring how our services can elevate your business, we invite you to schedule a free discovery meeting with our experienced team. We can provide a comprehensive assessment to help you determine the areas where you could provide more benefits and employee retention strategies, often at little to no additional cost to you as an employer. The assessment we will provide is free and yours to keep regardless of whether you use our services.
Lyons HR can help you address all these concerns and more, as you grow your business and position it for whatever the future looks like. Functioning like an off-site HR department, we can manage any or all your talent management needs, from recruitment through retirement. At Lyons, We Are HR. Read our related posts or contact us today to learn more.
Lyons HR functions like an off-site HR department. We offer PEO services, HR services and Payroll services for small to mid-size businesses.
Our affiliations with several accrediting agencies, including the Employer Services Assurance Corporation (ESAC) and the Internal Revenue Service (IRS) ensure our clients receive the highest level of service with demonstrated financial security. Lyons HR is proud to be the first PEO to receive the IRS certification.