If your passions are centered around the unique needs of your business, now is the time to consider partnering with a PEO.
What is a Professional Employer Organization (PEO)?
A PEO “provides comprehensive HR solutions for small and mid-size businesses. Payroll, benefits, HR, tax administration, and regulatory compliance assistance are some of the many services PEO’s provide to growing businesses across the country. Small businesses that work with a PEO grow 7% to 9% faster, have employee turnover that is 10% to 14% lower, and are 50% less likely to go out of business.”
–National Association of Professional Employer Organizations
Partnering With A PEO
In a co-employment relationship, the PEO relieves you of retaining recorded items, such submitting tax filings under its own tax ID number. The client company continues to direct employees on day-to-day activities.
Under the client services agreement, the share of responsibilities is defined between the PEO and the client company. The PEO will typically handle the wages, withholdings, reports, collection, and depositing of employment taxes with local, state, and federal entities under the PEO tax ID. This allows PEOs to differentiate themselves from a payroll company.
Additionally, a PEO generally offers a complete HR package with access to a benefits package, either standalone or through its own entity. The client retains ownership and control of the company and its operations, including product development, production, business operations, marketing, sales and service.