Many companies in Colorado opt to hire a Professional Employer Organization (PEOs) for a variety of reasons. A PEO operates under a co-employment agreement with businesses. The business continues to maintain control over its employees but the PEO shares in the risks and liabilities. What services should a business expect from their PEO?
A PEO is responsible for computing withholdings, calculating deductions and pay, tracking vacation and verifying employee eligibility. With companies that are larger than five employees, it can cost an employer a lot of time and money. These efforts are best to outsource.
Payment of federal and state withholding taxes, federal and state unemployment premiums, submissions of payroll tax reports, and managing tax penalties are all services provided by a reputable PEO. The penalties for not complying with state and federal taxes are substantial and not to be taken lightly. You won’t suffer tax mistakes when you have a PEO at your service.
PEOs assist in maintaining the government requirements of W4 and I-9 employment verification forms. But even more beneficial, a PEO can help you map out a plan for your hiring processes and secure the top talent in the positions you are looking for.
Insurance and Benefits Management
Managing employee benefits provides a big relief to business owners. PEOs administer dental, medical, vision, and life insurance. They negotiate rates with insurance companies and help manage worker’s compensation plans. They offer 401(k) and Section 125 plans which make your company more competitive in the workforce to attract the employees you want to hire. It is time-consuming and complicated to monitor and manage all of the insurance and benefits. That’s where a PEO can come in and do it all seamlessly.
The supervision, hiring, and firing of employees is maintained by the business while the PEO manages all the paperwork, deadlines, regulations, negotiations and everything else involved with having employees. A partnership with a PEO can help solve a great many issues that a business owner faces in running their company.
If you’re tired of managing all the HR for your company, it’s time to consider a partnership with a PEO. Contact Staffscapes today and we’ll talk you through the steps involved.