Small businesses are the backbone of economic growth in the United States. For these businesses, payroll may be a headache – the resources, legalities, and red tape can be difficult to navigate. New business owners typically start their companies out of a passion for their business, but without proper help end up drowning in administrative tasks.
PEOs can help take care of many of these menial tasks, providing payroll management, among other services.
Payroll Management
The most critical way a PEO can assist with payroll is by distributing checks and keeping accounting books up to date. This helps alleviate the drain on resources and will allow owners to focus on growing business instead of administrative tasks.
What Else Can a PEO do?
PEOs can also help manage your employee’s benefits, like vacation time, sick time, and paid time off.
At the very least, simply by partnering with a PEO, small businesses can band together and receive better benefits at lower costs. This is because employees become co-employed by the PEO. With such deep employee pools, PEOs can access top-tier benefits and spread the costs across more people.
How Do PEOs Handle Payroll Matters?
PEOs are able to provide accounting services through the co-employment agreement. There is no elevated risk to an employer associated with a co-employment relationship; the agreement can actually lessen the client’s overall risk profile.
In a co-employment agreement, the business owner(s) retain all control over the company and are still the primary employer of their employees. The PEO gains rights to manage payroll and employee benefits. This allows the PEO to handle the most sensitive information and HR tasks.
How Much Does a PEO Cost?
Outsourcing HR needs to a PEO is much less expensive than hiring a full or part-time accounting and HR team. Typically, payroll needs allow companies to remain leaner and focus on growth-driven positions, such as marketing.
Usually, payment to PEOs is either done as a flat rate per employee each month, or as a percentage of payroll.
Have a PEO Handle Your Payroll Today
If you are looking for someone to take over your company’s payroll management, contact EPS today.
EPS offers unbeatable support backed by an unparalleled team of experienced specialists to assist with your PEO needs. If you are unsatisfied with your current provider or are looking for a PEO for the first time, give us a call today.