If there were one thing that could make any small business successful, everyone would be doing it. So why isn’t every small 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 administration of the business is not enough, statistics have shown that small 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. Business owners get to focus on their core business
When a small 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 benefit administration from the shoulders of the business owner, allowing them to focus on growing their core business. The business owner can relax knowing that the administrative tasks are being taken care of.
2. High-quality benefits
A partnership with a PEO means small
business owners have access to a rich suite of benefits. Offering a robust
suite of benefits shows employees that the business owner is invested in their
health, their wellbeing, and their future. A strong benefit offering can help
an employer stand out among competition in the job market while attracting and
retaining valuable employees. A competitive 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
3. Combat rising health insurance premiums
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 worksite employees. The PEO model allows the PEO to approach the health insurance market as one large employer. Small business owners are given discounted rates on health insurance compared to what would be seen within the small group market.
4. Improved compliance
Nobody knows compliance like a human resource professional. There are policies and procedures in place for onboarding employees, offboarding employees and everything in between. The purpose of the strict requirements are to protect both the employee and the employer, and this happens as long as practices stay in compliance. The PEO provides dedicated HR professionals who watch business practices and help the small business owner stay up-to-date with policies and procedures.
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. Some PEOs will also facilitate quarterly reports and filing and finish with W-2 processing 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 small business owner and their employees.
- Small Business Owner – The employer maintains the day to day control of decisions and operations. Their business is always their business; nothing ever changes with that.
- Employees of the Small Business – The employees gain access to high quality benefits often at a lower cost. This is and added benefit that is not always available to employees at small and mid-sized businesses.
- The 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. Small business owners are able to focus on growing their core business knowing that the PEO is taking care of the administration, HR, payroll and benefits administration. Due to the nature of the relationship, the PEO is invested in the success of the small business and is there to lend a helping hand to the business owner every step of the way.
Why Focus OneSource?
Focus OneSource is Iowa’s premier Professional Employer Organization. With a focus on helping small businesses in Iowa grow, Focus OneSource is the smartest business move. We help our customers — local small business owners — increase productivity and profitability each year through our PEO and a la carte services.
We understand that the PEO is not a fit for every small business owner. As we notice changes in the 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? Give us a call today at 515-369-7550 and see how we can help your business succeed.
Alaina Riley
Marketing & Wellness Coordinator