Small business owners know that every penny matters when it comes to savings and spending. As a business grows, human resources demands also grow. That’s why having specialized HR experts available to outsource helps to economize some of the most challenging parts of a business’s operations. When choosing a solution to help manage HR functions, you may have plenty of moving parts to consider. It’s crucial to understand the benefits you’ll receive with different HR solutions to make the right choice for your business. Many small businesses consider an option known as a Professional Employer Organization (PEO).

In this article, we’ll look at the benefits of bringing in Professional Employer Organization companies to help HR processes.  

What is PEO?

A professional employer organization is a co-employment alternative that small and medium-sized businesses use to help HR functions. There are many benefits of partnering with PEO, including allowing more time to focus on other HR functions, business operations, and figuring out low-cost health insurance, which businesses are looking for in the wake of COVID-19.

Here are five key benefits where entering into a co-employment with a PEO helps you save money and take on many employer-related responsibilities:

  • Low Cost of Health Insurance: PEO’s have a high purchasing power when it comes to buying health insurance. PEO’s negotiate better from health insurance providers since they pool businesses together. PEO’s have established relationships with insurance providers and can leverage better benefit plans, including dental, life, vision, and a flexible healthcare spending account.
  • Retirement Savings: Your employees benefit from retirement savings plans, including 401k’s. The 401k plan allows the employees to defer compensation, so they benefit from other contributions. A PEO also helps manage other administrative tasks, such as workers’ compensation, distribution processing, etc. 
  • Payroll: PEOs help run a company’s day-to-day human resource operations, including payroll processing and critical accounting costs. These PEO companies automate the payroll process and handle withholding taxes while ensuring your business is compliant with state and federal employment laws.
  • Employee Onboarding: Small establishments spend a lot of time and resources placing job ads, interviewing potential new hires, drug screening, and other hiring tasks that take focus and time away from doing business. PEO’s offer dependable recruitment assistance and provide the expertise of helpful industry professionals.
  • Lawsuits: A lawsuit from an employee for pay discrepancies or discrimination can hurt small businesses financially and reputationally. A PEO helps you keep your employer liabilities monitored, including wrongful termination and other potentially expensive employee-related claims.

About InsureMyWorkComp & Their Workers Comp Solutions

InsureMyWorkComp is a digital brokerage that helps clients find the right workers’ compensation solution for their business needs, such as occupational accident insurance. Unlike other online platforms, we will help you to work with an agent who can provide you the right solution for your risk profile. Our staff has over 50 years of workers’ compensation underwriting and sales experience, and we are confident that we will provide you the support that you need. For more information or to get a quote, contact us today at (855) 340-9138.