What is a PEO?
Professional Employer Organizations (PEOs) provide full-service HR solutions for businesses. Payroll, benefits, HR, tax administration, and regulatory compliance support are a few of the many services PEOs can provide to small and mid-sized companies.
PEOs help with paperwork and provide regulatory compliance support, improve productivity, increase profitability, and focus on their core goals.
With a PEO, the employees gain access to large company employee benefits such as 401k plans, health, dental, life, and other insurance. As well as many other benefits they may not receive as employees of a small company.
Why use a PEO?
Owners want to focus their time and energy on the goals of their company and not on the non-revenue generating functions. As companies grow, most owners do not have the necessary HR training, payroll skills, understanding of regulatory compliance, insurance and employee benefit programs to meet the constant demands of being an employer. PEOs provide companies access to many benefits and employment features they would not have otherwise.