Experts estimate that 14%-16% of small businesses partner with a professional employer organization (PEO).
The goal of this co-employment relationship is to remove many time-consuming tasks from the employer, freeing their time to focus on running their business.
If this is a new idea to you, you’re probably not aware of the many benefits of co-employment. In this guide, we’ll provide a brief overview of co-employment and how it can improve the way you run your company.
Keep reading to learn more!
- Offer Better Benefits
Small companies often have trouble recruiting the best talent. Why? It’s hard to compete with larger companies that offering stellar benefits packages.
One of the biggest benefits of co-employment is being able to offer those “big business” benefits to your employees. These include health and dental benefits as well as 401(k)s, flex spending accounts, and other supplemental insurance plans.
- Help With Worker’s Comp Coverage
Most states require employers to purchase worker’s compensation coverage — even if you only have one employee. Depending on the size of your company and current cash flow, this can be an expensive addition to your list of business expenses.
Co-employment organizations have access to better rates than you’d be able to find on your own. They can also handle the claims process in the unfortunate event one of your workers gets sick or injured on the job.
- Ensure Legal Compliance
Do you have the time or desire to keep up with the latest laws pertaining to business in your area? How much do you know about laws relating to taxes, HR, insurance, COBRA, and workplace safety?
A professional employer organization keeps track of all these updates and changes for you. They’re there to ensure you’re compliant in all areas so you don’t get hit with unexpected violations or fines.
- Automated Payroll Services
Forget those late nights in the office deducting taxes and writing checks. A co-employment relationship means that the PEO handles all of your payroll processing and tax filing.
They’ll also take care of those nitty-gritty bureaucratic tasks, like employee tax forms and reporting forms. This link has more information about leveraging the power of a professional employer organization.
- More Free Time for You (The Employer)
What do all of these benefits of co-employment add up to? Simply put, a lot more free time for you!
Think about how many hours a week you dedicate to payroll, human resources, and other time-consuming paperwork. Now think about what you could (and should) be doing with that time instead.
Partnering with a professional employer organization will drastically reduce the amount of time you spend in the back office. Instead, you can be out where you should be — at the forefront of running your company.
Harness These Benefits of Co-Employment Today
For these reasons and more, many companies are turning to co-employment or a professional employer organization.
Could it be the right solution for your business? Bookmark this article and refer back to it as your company continues to grow!