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Partnering With A PEO Can Benefit Your Business

Partnering with a PEO

Running a small or midsize business requires wearing many hats. Smart business leaders find relief from the challenge of taking on too much to do by focusing on core business activities that generate growth and outsourcing other support services like accounting, IT, and HR. So, how can a PEO benefit your business?

Partnering with a PEO helps you avoid investing valuable time and resources in essential business functions that are not part of your core offering. You can benefit your business’s bottom line and overall efficiencies by partnering with a PEO to process payroll, obtain and administer employee benefits, manage risk and compliance issues, and support human resources administration. Whether your businessisr a start-up, a small business, or a non-profit organization, you should not have to sacrifice quality HR services and benefits that are often only accessible to larger organizations. 

According to recent data from the National Association of Professional Employer Organization (NAPEO): 

  • 173,000 organizations partner with a PEO (15.3% of all employers with 10 to 99 employees)
  • Over 4 million people are a part of a PEO.
  • 69% of businesses report increased revenues since partnering with a PEO
  • Return on investment from partnering with a PEO is 27%
  • Employee turnover rates are reduced by 10% to 14%
  • 7% to 9% experience faster growth by partnering with a PEO

Many businesses are changing how they manage their HR, and reaping the benefits. A PEO partnership is a seamless extension of your business and provides effective and immediate HR solutions for you, your employees, and your business.  While HCC’s PEO solution includes the services you would expect from a PEO, we offer much more, including a technology portal to access important human resource information in real time, a learning portal for employee career growth and regulatory training, and even hiring and performance management solutions, all in one place. 

Payroll Processing

 Payroll processing can be time-consuming and complicated, especially if you have employees in various states. This has been even more complicated with the explosion of remote working. When you use a PEO to process your payroll, it is processed safely, securely, and electronically and includes all federal, state, and local withholdings. 

The benefits of partnering with a certified PEO (CPEO) instead of just a payroll service provider are that a CPEO is certified by the Internal Revenue Service and is obligated to a higher level of service for your payroll services, including: 

  • Establishes requirements that tax payments to the IRS be audited as to their timeliness and accuracy.
  • Requiring a $1 million Surety Bond  to ensure taxes are paid on behalf of clients
  • Protecting PEO clients by explicitly stating that CPEO’s are solely liable for wages paid to worksite employees
  • Allowing HCC to pass through to each client certain federal tax credits they earn. Examples include research, work opportunity, and empowerment zone tax credits.
  • Eliminating the potential for double taxation of FICA and FUTA taxes when a business enters a PEO relationship during the calendar year

When it comes to payroll processing, there is more than just paychecks, withholdings and reporting. Make sure you know the difference and choose the best option for your business. 

Benefits Administration

PEO services also include procurement and administration of employee benefits. Every business offers a unique benefits package, and a PEO will help you develop a long-term strategy for your employee benefits that includes identifying, obtaining and administering more affordable employee benefits that help you attract and retain better talent. 

PEO Benefit services can include: 

  • Healthcare 
  • Dental
  • Vision
  • Life Insurance
  • FSA & HSA
  • Voluntary Benefits 
  • 401(k) plan administration
  • Leave of Absences
  • Workers’ Compensation Issues
  • COBRA 
  • ACA Reporting

If this seems complicated, know that it can be. Fortunately, the HCC team is expert at helping you find the right employee benefits to meet the unique needs of your workforce. In addition, HCC will handle the benefits administration whether it is with employees or vendors. 

HR Support 

Another benefit of a PEO is that businesses have the administrative support they need to offer HR services to their employees at a fraction of the cost of an in-house employee. In addition, a PEO will manage all the important HR details and guide your human resources services to simplify being an employer. 

Expert advice and assistance for employee-related issues can include: 

  • Understanding employment regulations that affect your business
  • Support for labor law and employment questions that arise 
  • Onboarding/I-9/E-Verifications
  • New hire enrollment and program changes
  • FMLA/ADA Compliance
  • Employee Handbooks
  • Harassment Avoidance including Annual Training
  • Training Programs
  • Progressive Discipline Programs and Support
  • Exempt & Non-Exempt Classification Determinations
  • Development of Company Culture
  • Assistance in Attracting & Retaining Top Talent
  • Documentation Support (Job Descriptions,  Performance Management, and Company Policies)

Our human resources consultants have decades of experience and provide guidance and support in an array of difficult situations. 

Regulatory Compliance & Risk Management

HR Regulatory Compliance and Employment laws are constantly changing, and managing these regulations can be daunting. These mandates are complicated and time-consuming resulting in companies struggling to keep up to date. . As a result,  many businesses use a PEO to leverage expertise and provide the appropriate and up-to-date guidance needed for their organization’s compliance responsibilities. 

A PEO can provide HR regulatory expertise and support that will help you manage a variety of challenges, including: 

  • Regulatory Compliance Issues
  • Risk Management
  • Labor Law compliance assistance and guidance
  • Employment Practices Liability Insurance (EPLI)
  • Wage & Hour issues (FLSA)
  • Lawsuits and Audits

By following HR best practices and working in conjunction with HCC as your PEO partner, we help you manage your legal fees and costs if a claim arises. For clients who adhere to our expert recommendations, HCC will assume responsibility for paying the  Employment Practices Liability Insurance (EPLI) deductible in the event of a claim. That’s a promise you won’t get from anyone else!

Additional Services To Help Your Business

Payroll, Benefits, HR Support, Regulatory Compliance, and Risk Management are among the primary reasons businesses use a PEO. However, the benefits of a PEO can extend well beyond these core services to provide additional benefits to your organization. As an example, at HCC, we developed partnerships with com[anies that can help you in the areas of Accounting and Bookkeeping Solutions, Talent Acquisition and Recruiting Services, Background Screening and Drug Testing, Compensation Management, Work Opportunity Tax Credits (WOTC), and Employee Retention Tax Credits (ERTC) assistance, and filing services. 

Partnering with a PEO can substantially benefit your business. Knowing what to look for in a PEO will help you find answers to additional questions about the benefits of a PEO. 

Contact us if you want to learn more about how HCC can give you more time to focus on your company’s revenue, marketing, and growth. We would be honored to have a conversation.