What is a PEO ?

What is a PEO

In a nutshell, a PEO is an all-in-one outsourced business solution for HR, payroll, employee benefits, and workers’ compensation insurance. They're a total business management solution.

A Professional Employer Organization PEO will also support your employer-related compliance needs for payroll taxes, employee tax forms, reporting, and more.

PEOs operate under the concept of co-employment, a contractual agreement in which the PEO becomes the “employer of record.” However, you, the employer, keep full control of your business, and your employees.

In addition, one of the major advantages of a Professional Employer Organization is that it can provide large group benefits at an affordable cost. How? By pooling employees of the many businesses the PEO represents under one umbrella. The PEO can then provide access to the same level and quality of benefits offered by larger corporations and conglomerates.

PEO’s typically offer:

  • Group Health Benefits: Health insurance and dental coverage
  • HSA and Flexible Spending Account (FSA) options
  • Life insurance, short-term and long-term disability insurance
  • COBRA benefits
  • Payroll Management: Tax remitting and filing assistance, payroll review, and direct deposit services
  • Risk Compliance and Mitigation: Employment Practices Liability Insurance (EPLI) options, Affordable Care Act (ACA) support
  • Unemployment benefits, help
  • Expert Support and specialization, employee onboarding, benefits enrollment

Additionally, PEO’s can offer your employees valuable other perks and voluntary benefits including: pre-paid legal, pet insurance, flexible spending accounts (FSA), discounted movie, theme park, sporting event and concert tickets.

Why A PEO?
PEO’s offer three distinct advantages for business owners:
  1. Cost-effective medical plans & workers’ compensation
  2. Providing employees with comprehensive and top-quality benefits
  3. Getting complete HR services without hiring staff

In today’s ever-changing business world, PEO’s are fast becoming the go-to source for offering a solid employee benefits package that can help attract and keep Class-A talent.

Businesses that partner with a PEO can also benefit from:

 

  • Faster growth
  • A 27.1% ROI
  • Lower employee turnover

According to Harvard Business Review these are some of the most desirable core benefits that make the biggest impact on employee satisfaction:

 

  • Health, Vision, and Dental Insurance
  • Vacation Time
  • 401k Plan
  • Retirement Plan
  • Student Loan / Tuition Assistance
  • Maternity & Paternity Leave

By partnering with a PEO and providing the right mix of benefits that are both inexpensive and highly sought after among employees and job seekers can give your business a competitive edge.

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