A professional employer organization can provide a plethora of ways to improve your HR services. Large businesses have more PEO options due to a larger income and resources. Small businesses are not as lucky. Luckily, a solution exists that SMBs can explore to simplify their HR in today’s challenging environment—outsourcing.
If your small business is experiencing issues like the ones listed below, outsourcing will be beneficial to you:
Rising HR costs
HR and Employment Law Compliance Issues
Lackluster Employee Benefits
Recruiting and Retention Problems
Spending Too Much Time on HR Tasks
PEO offerings can include:
Healthcare benefits that are affordable and tailored to each client’s industry.
Life, disability, dental, and vision benefits to complement a client’s healthcare program.
401(k) and other savings plans to help employees plan for retirement, healthcare, or education expenses.
Voluntary benefits such as commuter benefits, legal assistance, pet insurance, identity theft protection, financial planning assistance, and much more!
Complimentary benefits like employee assistance programs (EAPs), discounts on entertainment and shopping, and access to credit unions.
In co-employment, the PEO becomes the employer of record for tax purposes, filing paperwork under its own tax identification numbers. The client company continues to direct the employees’ day-to-day activities. PEOs charge a service fee for taking over the human resources and payroll functions of the client company: typically, this is from 3 to 15% of total gross payroll. This fee is in addition to the normal employee overhead costs, such as the employer’s share of FICA, Medicare, and unemployment insurance withholding.
CONTACT COSMO FOR A PEO QUOTE