A Professional Employer Organization (PEO) is a service of a human resources (HR) outsourcingÂ company that helps a business manage its human resources tasks. The definition makes it sound simple, but PEO is in-depth and can vary depending on your company’s HR needs.
PEO offers different services than HR outsourcing. For instance, your Columbus PEO company to obtain an insurance policy to help protect you against wrongful termination, discrimination and harassment. You pay nothing for the policy. However, an HR outsourcing service will require you to pay for the policy on your own.
Another difference is how you and the HR outsourcing company work together. The HR outsourcing company and your business works by using a co-employment relationship.
What Is Co-Employment?
The HR co-employment is a contract between you and the HR company offering their PEO services. The PEO assumes certain responsibilities and other responsibilities remain with your company. Your employees are co-employed by you and the PEO. This provides you with a built-in HR department to complete duties like:
- Tax infrastructure
You will not become a co-employer of other companies’ employees. For example, the company you partnered with has other clients and PEO partnerships. You and the co-employerâ€™s other clients are separate and have nothing to do with each other. You only have your co-employment agreement with the HR company.
How Does a PEO Relationship Work?
A Professional Employer Organization relationship is commonly called a co-employment agreement. The HR outsource company is the Administrative employer. Your business is the Worksite employer. You and the HR outsourcing company may share some duties. However, they are responsible for your company’s:
- HR regulatory compliance issues.
- Advice on proper termination procedures.
- Provide unemployment insurance, health insurance and 401(k) plan.
If you are not familiar with the laws and regulations connected with human resources, you may be setting your company up for failure. Mistakes and wrong decisions will be avoided by creating a Professional Employer Organization partnership with an HR outsourcing company. Other benefits to having a PEO plan include, but are not limited to:
- Providing your employees to comprehensive, high-quality benefits.
- Gain HR support without increasing your business costs.
- Minimize the number of HR tasks your company is responsible for completing.
- Ensure federal employment taxes are paid.
Why Should You Choose a PEO Partner?
You need a PEO partnership so you can focus on your business. HR is hard work. It is even harder if you don’t know what you are doing. You can focus on growing your business when you have a PEO partnership. Other reasons to choose a PEO partner are:
- Peace of mind: You know your must-haves such as healthcare, training and safety support are handled by HR experts.
- Attract and retain employees: Your PEO partner is responsible for picking employee benefits. This will allow you to compete with larger competitors because you offer similar or better benefits like dental and medical.
- Lower expenses: Outsourcing HR services allows you to keep costs down. You are not hiring additional HR employees to do the work on your behalf. This puts more money in your company’s bank account.
- Control of your company: A PEO plan does not change ownership. You retain control over your own business with a Professional Employer Organization relationship.
- Reliability: You don’t have to worry about HR tasks not getting done because your employee is sick or on vacation. With a PEO partner, your payroll and other administrative duties always done on time and with the quality you expect.
- Provide Recruiting Support: Your PEO partner can assist you with designing a recruitment process that fits your business. For instance, we can help you develop job descriptions, salary surveys and improve the interview questions you ask job candidates.
Take Your Columbus Companyâ€™s HR to the Next Level
Let Einstein HR become your PEO partner. We know both sides of the human resources business. Our founders spent years in Professional Employer Organization, human resources outsourcing, and small business payroll in Columbus, Georgia. We’ve taken what we learned in HR and applied it to helping clients. We have an impeccable customer service record. Our customer satisfaction rate is the highest. In fact, we were named in the Top 100 Privately Held Companies in Atlanta by an Atlanta Business Chronicle. We serve Columbus, Atlanta and nationwide. Our PEO plan offers a lot of services.
Contact Einstein HRÂ today.