We hear it all the time—“PEOs save businesses time and money,” but if there’s one thing we love most about PEOs, it’s their ability to take away many of the tasks that may be slowing your business down and costing you a bundle—especially payroll processing.
Payroll is just one of the many ways a PEO can save you and your staff time and administrative headaches. Professional Employer Organizations manage and deliver payroll to your employees, in addition to accounting for the necessary Federal, State and Local taxes. This responsibility also includes Social Security, Medicare, Federal Unemployment Tax (FUTA), State Unemployment Insurance (SUI) and any other taxes that are applicable.
As a result, your business will be decreasing its liability, and by outsourcing payroll and other administrative tasks to a PEO, your business may be able to limit the number of employees you have within your office location, further reducing labor costs. Many PEOs have invested hundreds of thousands of dollars into their Payroll and Human Resource Information Systems (HRIS). PEO clients enjoy the benefits of having access to industry leading systems such as People Soft, Ultimate Software, HR Pyramid, Davidson, Lawson, and Kronos to name a few. If you’re considering hiring a staff (or additional staff) to manage payroll in-house, it’s worth a consultation before making any costly decisions.
You’ll also notice that with a PEO, business and processes will become a lot more streamlined. Expertise and improved technology guarantee on-time and accurate payroll and efficient claims processing. A PEO will also manage vacation and day-off accruals on your behalf.
As previously mentioned, it is worth consulting with an expert if you are looking to streamline or decrease the costs associated with payroll. Not every PEO or payroll outsourcing company is the perfect fit for your company- it depends on your current costs, current needs and company size. Through a series of more than 200 questions that cover everything (including payroll processes), we’ll identify and prioritize your current and future requirements and determine what your most cost-effective alternatives to managing in-house are.
Contact us today to learn more.