Professional Employer Organizations, or PEOs, revolve around the concept of “co-employment.” This makes them the legal employer of your employees for the purpose of insurance, taxes, worker’s comp and more.
Co-employment is the “secret ingredient” that lets PEOs purchase insurance plans at reduced rates, provide department-sized HR services to small businesses and cost-effectively undertake reporting burdens like taxes, benefits administration and more.
Will I lose control over my employees?
No. While co-employing with a PEO, your employees will still be entirely under your authority. A PEO has no ability to alter the work schedule of your employees or ask them to work on behalf of the PEO. They simply oversee their taxes, salaries, benefits, insurance, HR, et cetera — so all of the “not-fun” parts of being a boss. Leaving you to run your business.
Will I still have access to all my business’s information?
Absolutely. If anything, being in a PEO makes it easier to access key figures, fact and more because it’s properly filed and organized from the start. While you’re no longer the person who has to do all the paperwork, you’re never more then a few moments away from the essential figures. It’s all benefit of being organized, none of the hassle of being the organizer.
What are the costs of being in a PEO?
Each PEO charges an “admin fee” per employee head. This pays for the infrastructure supporting that individual — and is often much, much cheaper than hiring an equivalent HR person or department. Plus, those fees are often paid for by insurance savings, making joining a PEO a win-win. SBA Financial will help you know exactly what your admin fees will be.