Professional Employer Organizations (PEOs) provide comprehensive HR and compliance services to small and medium-sized businesses allowing for a one-stop solution to a variety of complicated management tasks.
PEOs allow for small businesses to outsource time-consuming processes like paying wages and taxes, complying with myriad state and federal laws and regulations, and benefits administration. In addition, PEOs often provide workers with access to 401(k) plans, health, dental, and life insurance, dependent care, and other benefits not typically provided by small businesses.
Because time is your number one commodity. Why did you start your business? Because you’re the best at what you do. But it takes time and energy to maintain the standards that brought you this level of success.
Many small businesses are turning to Professional Employer Organizations (PEOs) for help with their HR needs. A PEO provides the human resources services that a company might not have the time or resources to do themselves, things like payroll, benefits management, and employee training. What many SMBs don’t realize is that using a PEO could save them money and heartache in the long run!
Did you know?
– Businesses that use a PEO actually have higher employee satisfaction and up to 14% lower employee turnover and;
– The average cost savings from using a PEO is $1,775 per year per employee, while the average PEO cost per employee is $1,395, yielding an annual ROI of 27.2%
PEO services will save you time and money, but they aren’t all built the same. Each PEO plan comes with administrative fees and a variety of services. A PEO broker will not only negotiate on your behalf for the best fit but assist in the lifetime of the relationship ensuring you make the most of the services you are paying for. PEO Arm will be your lifetime partner making sure that you are scalable and competitive in your market and space. Don’t risk going it alone.
Your total cost will depend on a variety of different factors, including the size of your company and what services you’re searching for. Typically, PEOs will use one of two main pricing structures:
- Fixed Per Employee Fee
- Percentage of total payroll plus taxes, employer practice liability insurance, and workers’ compensation
Either situation will include various set-up and administration fees and require a contract. Contracts will need careful consideration before signing because they may include hidden fees.
Despite what you may have heard, co-employment does not mean that employers give up their power and control. In actuality, they still manage the day-to-day operations of their business while a PEO focuses on HR-related tasks like payroll, benefits administration, and regulatory compliance.
The PEO co-employment partnership involves a contractual sharing of certain employer responsibilities between the PEO and the client, as agreed to in a contract typically called a client service agreement (CSA).
What They’re Saying
“My experience has been great. If I had to give them a score I would give them a 10. I love how they are very personable, and any time I reach out, they is always an answer.”Cynthia VoorheesTexas Neuro Spine