What is a Professional Employer Organization (PEO)?
A PEO, or professional employer organization, is an organization that allows businesses to outsource certain key human resource administration functions like payroll, benefits, and workers' compensation. PEOs can also give guidance to assist with maintaining compliance with federal and state employment laws. Your business and the PEO enter into a service contract known as a Client Service Agreement (CSA) that addresses the relationship between the business owner, the PEO, and the employees. Some PEOs also have strategic services, but not every PEO is alike, so it's important to research providers and compare their capabilities. Below is a list of services a PEO may provide for your business!
PEOs process payroll and, in some cases, can pay local, state, and federal employment taxes.
Human Resource Support
In many cases, a PEO has HR professionals who provide human resource services and support. If you already have an in-house HR person or team, the PEO partners work with them strategically and administratively.
Compliance
PEOs typically have compliance experts who can help you protect your business from fines and penalties. Their expertise may include payroll tax law and reporting requirements, unemployment insurance, workers' compensation, hiring, and HR compliance.
Risk and Safety
In addition to workers' compensation insurance, PEOs sometimes provide safety audits and training programs to help you limit claims. They may also assist with Occupational Safety and Health Administration (OSHA) inspections.
Benefits Administration
Your service contract with a PEO often comes with access to high-quality, cost-effective health insurance, dental care, retirement benefits, and other employee perks. The PEO will usually handle the employee enrollment for these benefits and process claims for you.
Working with a Professional Employer Organization has many advantages, including saving time, saving money, having peace of mind, and improving administrative functions. Learn more about the services we offer as a PEO at SimpleHR.com.
* SimpleHR provides HR assistance as a Client benefit. This assistance is provided by an HR professional as general information and is not a substitute for legal advice.
SimpleHR is a Professional Employer Organization (PEO) headquartered in Destin, FL, providing cost-effective human resource outsourcing while managing employee risks for client businesses for over 23 years. PEO license number EL374
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