Many small businesses find it helpful to partner with a PEO that can handle the critical HR functions that are essential to hiring and keeping employees. This convenience only becomes more magnified as your business grows.
As your business expands and you need to hire more workers, it becomes critical to offer benefits, like healthcare, that are harder to find. Offering quality benefits helps you attract and retain competent, hard-working staff. For business owners, PEOs relieve the stress and burden that comes with the legal paperwork of hiring and onboarding new employees. PEOs also help your business comply with federal and state regulations.
Below is more about the various features that the best PEOs offer that help small business owners as their companies – and staff – grow.
The primary function of a PEO is to take care of human resource functions so that business owners don't have to. PEOs can provide as much or as little HR assistance as you need. They can manage HR tasks like employee handbook and policy creation, employee onboarding and termination, unemployment assistance, compliance reporting and more. Their features are typically accessible through intuitive online platforms and mobile-friendly applications. These platforms make it easy to access all of your HR features in one place.
One major function that most PEOs perform is payroll processing. Since your employees are on the PEO's books, they track employee time and attendance, and help prepare and issue employee paychecks. The PEO tracks hours worked, paid time off, sick time and vacation days. Additionally, PEOs can process employee liens and garnishments, if needed. Many PEOs manage and report on quarterly and year-end state and federal deposits and filings. Having a PEO take care of your payroll can ultimately save you time and money. Reputable PEOs pay employees accurately and on time, which can improve your company culture.
Risk and Compliance
PEOs are often well versed in the laws and regulations that your company has to abide by, and they can help you manage risk and compliance functions for your business. This can be especially beneficial if you operate in multiple states or regions. PEOs can help manage compliance with the Affordable Care Act, the Health Insurance and Portability and Accountability Act, and the Occupational Safety and Health Administration. In some cases, they can conduct employee accident investigations and perform onsite safety inspections and job hazard analyses.
Since PEOs employ a large number of employees, they have access to affordable, desirable employee benefits. These benefits can include medical, dental insurance, vision and life insurance. Some even offer additional plans like health savings accounts, flexible spending accounts and heath reimbursement arrangements. They often provide long- and short-term disability, an employee assistance program, and retirement plan options like 401(k). Many PEOs offer a choice of additional benefits like commuter benefits and parking discounts, to name a few.
Workplace Training and Employee Development
Most PEOs offer standard workplace training on topics like sexual harassment and discrimination. However, many PEOs offer additional onsite and virtual training on topics like leadership, communication, workplace technology, recruitment, disciplinary actions and social media. Some even offer industry-specific training. Having access to employee training and development materials is a great way to encourage employee growth and skill advancement. PEOs that offer training and development typically have an online platform to track and report employee course results.