What Are the Advantages of Using a PEO for Payroll Services?
When you look for new strategies and better solutions to optimize your business, relying on professional services experts makes sense. You rely on your lawyer for legal advice and support. You rely on your accountant for financial advice and support. So, why wouldn’t you rely on your PEO for human resources advice and support?
PEOs are changing how today’s businesses achieve success, with expertise to streamline HR activities and remove additional tasks like payroll processing from their teams so they can focus on growth. In addition, having a certified PEO (CPEO) for payroll services removes an organization’s liability for federal employment taxes. But that’s only the beginning. Leveraging the right PEO partner could be game-changing for a company’s growth.
What a PEO Service Can Do for Your Small Business
Small and medium-sized businesses rely on partnerships, specialists, and experts to grow. The right PEO partner can make all the difference by alleviating stress, reducing risks, streamlining efforts, and improving company culture. The right PEO can take care of your human resources so you can focus on growing your business.A study released by the National Association of Professional Employer Organizations determined that organizations using a PEO saw the following:
- 69% reported increased revenue
- 27% average annual ROI
- 10%-14% lowered employee turnover
Payroll Services Can Bog Down Operations
You may not realize it, but your payroll processing and management could be bogging down operations and affecting your bottom line. In addition to routine payroll processing, you and your staff are also overseeing reporting, compliance, unemployment, employee time tracking, employment verifications, benefits administration, and more. Now imagine how much more effective you could be if you could delegate those responsibilities to a trusted PEO service. If you’re bogged down with operations associated with payroll and human resources, you may be missing key opportunities for growth or have the potential to make mistakes that could prove to be costly.
Here are a few signs that your company is ready to explore PEO payroll services:
- You or your payroll team spend too much time tracking down incomplete employee paperwork
- You’re losing top-performing employees to competitors, in part due to mediocre benefits packages.
- You’ve been fined or penalized in the past for HR compliance violations
- You’re experiencing higher turnover than you’d like
- Payroll processing and management are monopolizing your teams’ time.
- You find the ever-changing rules and regulations associated with employees confusing and don’t want to risk mistakes that can cost your company
Benefits of Using PEO Services for Payroll
Using PEO services for payroll allows you to relieve your teams of all those time-consuming payroll tasks and regulatory hiccups. But it’s more than just outsourcing. A PEO partner provides your organization with benefits that far exceed the basics of payroll operations.
CPEOs Handle IRS Compliance
All payroll providers are not the same. Make sure you work with a CPEO certified by the IRS. CPEOs like Human Capital Concepts maintain IRS compliance within the strictest guidelines and standards. Enjoy an added layer of security when it comes to IRS reporting and compliance with a CPEO.
PEOs Provide Access to Better Employee Benefits
Small businesses often struggle to provide the same level of benefits that larger organizations have access to, because of their size. When you work with a PEO service for payroll, you’ll access expertise and options to help secure the best benefits for your team. That can go a long way in attracting and retaining better talent.
PEO Services Improve Company Culture
When your employees know their pay and benefits are being handled by a professional team of PEO staff, they have reduced processing issues, a quicker turnaround for their questions, and improved employee communications. They’ll be more confident and loyal to your company. You can effectively demonstrate to your employees that you value and prioritize their needs, and they’ll return the favor as dedicated contributors.
PEO Services Streamline Operations
If time is money, then PEO services can streamline your small business operations in a way that directly impacts your bottom line. Save yourself and your team the wasted time spent understanding exempt/non-exempt classifications, PTO tracking, and leave laws. Look to your PEO partner to automate and handle these things, streamlining your operations and allowing staff to focus on their core competencies.
You can actually save your company money with a PEO payroll service by repurposing employees away from HR-related efforts. The right PEO partner will help you reduce mistakes and compliance concerns to keep your organization on the right path.
Types of Businesses Benefiting from PEO Payroll Services
PEO payroll services are ideal for a variety of business types and a host of industry segments. Whether you’re a product or service-based company, regional brand, or non-profit organization, a PEO can be a time and money-saving solution to your payroll problems.
Business owners are turning to PEOs to reduce company risks. Startup founders are launching with PEOs in place to streamline operations when staffing is lean. Non-profit executives rely on PEOs for payroll to help ensure alignment with their mission and to take care of employees. As you can see, a host of companies often find the right PEO service can be the all-in-one HR solution they need.
What to Look for in a PEO
Not all PEO services are created equal. Only one out of ten PEOs are IRS certified as CPEOs. So, before partnering with any payroll service, look for the right PEO to best complement your company’s objectives. Look for experience in all aspects of payroll, human resources support, employee benefits, and compliance. Ask for references and verify the PEO has a service model that meets your needs. In short, look for a PEO that can be the right partner for your business, serving as an extension of your human resources and payroll teams.
As you carve out your strategies and solutions to grow your organization, include a PEO partnership with Human Capital Concepts. Contact us to explore how we can help you tap into all the available benefits and advantages of PEO payroll and more!