Welcome back to our 3 part series on Daycare and Preschool-specific PEO solutions! Last week we reviewed the many benefits associated with utilizing a PEO for Workers Compensation Insurance. This week, we’re talking Payroll.
Again, we’re making it easy to digest and so that you can go back to investing time and energy into what matters most – the children!
Part 2: Payroll
Let’s circle back to Sandra’s Daycare Center (If you don’t know who Sandra is, see Part 1!)
Sandra is a small business owner with only 7 employees, 8 including her – She manages her own organization’s payroll to save money. Sandra is responsible for the following each month:
- Timely distribution of checks to employees on the 15th and 30th
- Upholding precise records
- Managing and paying payroll taxes
- Liability in the event of a payroll error or mistake in reporting to the IRS
While Sandra may be saving money, she is losing resources and time to manage payroll administration each month. Sandra is by no means an expert in payroll, and although she’s doing a great job thus far she is spending more time than necessary reviewing documents, taxes, compliance, and payroll checks to ensure she is doing everything right.
She’s finally at the point where hiring someone seems like a much better option. She needs to spend more time overseeing her employees, interacting with parents, and helping out with the children.
Fortunately this payroll scenario has come into play at just the right time. Sandra just engaged a PEO to secure better rates on workers compensation insurance. Can they help with payroll too? For larger companies with big payrolls, the PEO solution is clear – PEOs save these companies a tremendous amount of money and will streamline the process. But will PEO payroll solutions benefit Sandra who only distributes checks to 8 people each month?
All PEOs and pricing structures vary, but in Sandra’s situation, if she decides to utilize the PEO she has selected, standard pricing for payroll with full service human resources support is as follows. (the following prices are industry standard and do not reflect the discounts available to clients of PEO Advantage.)
- 1-4 Employees: $83.25 per employee per month*
- 5-9 Employees: $58.33 per employee per month* <<< SANDRA
- 10-14 Employees: $54.16 per employee per month*
- 15-19 Employees: $50 per employee per month*
- 20-49 Employees: $43 per employee per month *
*Depending on the PEO, an implementation fee may also be necessary.
For Sandra, the small business owner, the solution is also very clear. Bundling payroll services into her current PEO contract is a lot more economical than hiring a payroll and human resources professional.
Sandra’s new payroll benefits include the following when working with a PEO:
- On-time and accurate payroll each payroll period
- Specialized technology to streamline payroll
- Reporting options: Web-based access on any device with internet access, Direct information feeds from your existing time and attendance system or more simply you may choose to call-in or fax-in your timesheets.
- Better communication with employees: Improved access to payroll information, benefits, personnel data, vacation and sick time accrual
- Peace of mind surrounding compliance: All liability falls on the PEO in the event of a mistake in payroll or reporting to IRS
- More time to focus on her business: With payroll taken care of, Sandra can go back to doing what she loves, and what she does best: working with the children, parents, and employees each and every day.
Sandra’s new PEO won’t stop at payroll though. PEOs handle workers compensation insurance and payroll administration services amongst many other management services of HR in order to form a complete package. Join us next week as we review Part 3: Human Resources Administration.
In the meantime, if you have any questions about Payroll, and would like to request a quote, contact PEO Advantage today!