If there were one thing that could make any business successful, everyone would be doing it. So why isn’t every growing business owner using a Professional Employer Organization? A Professional Employer Organization, or PEO, is an outsourced solution for payroll, human resources, benefits and compliance. In short,a PEO is your next strategic business move.
As if increased support with the administration of the business is not enough, statistics have shown that business owners who use a PEO have seen employment grow seven to nine percent faster compared to small businesses overall. If your business could use some extra TLC, a partnership with a PEO could be the answer.
1. Improved compliance
Nobody knows compliance like a team of human resource professionals. There are policies and procedures in place for onboarding, offboarding and everything in between. The purpose of these strict requirements are to protect both the employer and the employee, and this happens as long as business practices stay in compliance. The PEO provides dedicated HR professionals who monitor business practices and help business owners stay up-to-date with policies and procedures.
2. Business owners get to focus on their core business
When a business owner uses a PEO, they gain access to a wealth of knowledge and support. The best way to think of a PEO is as an extension of the business’s back office. The PEO is available to assist the business with the administrative tasks of running the business. The PEO removes the burden of human resources, payroll and benefits administration from the shoulders of the business owner. This allows them to focus on growing their core business. The business owner can relax knowing that the administrative tasks are taken care of.
3. High-quality benefits
A partnership with a PEO gives business owners access to a rich suite of benefits. Offering a robust suite of benefits shows employees that the business owner is invested in their health, well-being, and their future. A strong benefit offering can help employers stand out among the competition in the job market. A robust benefits package also helps attract and retain valuable employees. A benefit offering may include the following:
- Health Insurance
- Dental Insurance
- Vision Insurance
- Life Insurance
- Long-Term Disability Insurance
- Short-Term Disability Insurance
- Employee Wellness Program
- Employee Assistance Program
- 401(k) Retirement Savings Plans
- Hospital Indemnity Insurance
- Flexible Spending Accounts
- Health Savings Accounts
4. Combat rising health insurance premium
Many small business owners feel that the Affordable Care Act is their only option for small group health insurance needs. The quality of these health insurance plans are on a downward slide while the premiums continue to rise. Professional Employer Organizations work with multiple small employers and harness the buying power of thousands of employees. This model allows the PEO to approach the health insurance market as on large employer. Business owners are given discounted rates on health insurance compared to what would be seen within the small group market.
5. Payroll processing
One of the key benefits of using a PEO is outsourcing payroll processing. The role of the PEO is to accurately calculate gross to net payroll, file taxes, forward garnishments, manage all other deductions and distribute checks or direct deposits. Payroll processing services may also include facilitating quarterly reports and processing W-2s at year-end.
How is this possible?
The unique relationship between a PEO and a small business owner is based on the co-employment relationship. This relationship is formed between the PEO, the business owner, and their employees.
- Business Owner – The employer maintains the day to day control of decisions and operations. Their business is always their business; that never changes.
- Employees – Employees gain access to high-quality benefits often at a lower cost. A competitive benefit package is an added benefit that is not always available to employees at small and mid-sized businesses.
- Professional Employer Organization – The PEO becomes the employer of record for tax and benefit purposes. The role of the PEO is to keep the business compliant with laws and regulations.
Are you sold yet?
The PEO gives small business owners access to one source for their business needs. Outsourcing is made simple by bundling business services into a single package for business owners to purchase. With the PEO, the hassle of coordinating two or more third-party outsourcing companies is a worry of the past. Business owners are able to focus on growing their core business knowing the PEO is taking care of the administration, HR, payroll and benefits administration. The PEO is invested in the success of the business and is there to lend a helping hand to the business owner every step of the way.
It’s hard to identify one thing that I most appreciate about Focus OneSource, but I love the transparency. On the health care side of things, annual renewal time isn’t something I look forward to, but they have made it more than tolerable every year. That’s because they spend the time, making sure that I understand the information and ultimately the options so that I can make clear, informed decisions on an expense that is no small ticket. Not to mention that it has a grave impact on the benefits package we’re able to offer so that we can be competitive for current and future employees.Jennifer S. (Iowa Business Owner)
Why Focus OneSource?
Focus OneSource is Iowa’s premier Professional Employer Organization. Owned and operated out of Des Moines, Iowa, we have a focus on helping small businesses in Iowa grow. Choosing Focus OneSource is the smartest business move. We help our customers – local business owners – increase productivity and profitability each year through our PEO and a la carte solutions.
We understand that the PEO model is not a fit for every business owner. As we notice changes in local business trends, we adapt. Focus OneSource is happy to offer our customers the ability to pick and choose the services that best fit their unique business needs. We’ve got your business covered from being the broker of record to the full-service PEO and everything in between.
With Focus OneSource, not only does the business owner gain access to large company benefits and support, but a trusted business partner. Sound too good to be true? Contact us today and see how we can help your business succeed.