Professional Employer Organization (PEO)

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PEO – 6 Guidelines to Help Business Owners Choose The Right One

With federal and state compliance and tax laws rapidly changing, it can be difficult for business owners to navigate. By starting a co-employment relationship with a qualified, Professional Employer Organization (PEO), you can rest assured that your business is compliant, and your employees are well cared for.

Despite the benefits, however, it can be difficult for business owners to choose the right PEO for your company.

Our team of experts has put together 6 guidelines for selecting a PEO.

  1. Tailor fit:
    Is the PEO able to tailor a program to fit your needs or do they have a cookie-cutter solution for all clients? If your business grows, you want a PEO that will grow with you.
  2. Full service:
    Does the PEO offer all services you want? Services may include HR management, benefits administration, payroll processing and unemployment administration. Do you also need workers compensation, safety programs and training programs? Make sure the PEO offers what you need now and may need in the future.
  3. Labor law experts:
    Is the PEO team experts in federal, state and local labor laws? Compliance is a top concern for business owners and rightly so – the consequences of non-compliance are expensive and time consuming.
  4. Online access:
    Will you and your employees have access online to payroll and benefits information? If not, what options are available to make sure employees have the information they need?
  5. NAPEO members:
    Because PEO clients give critical information and control to the PEO, the industry is highly regulated. Some indicators of a reputable PEO are membership in the National Association of Professional Employer Organizations (NAPEO) and voluntary participation in the IRS’ certification program. Also, make sure the PEO is licensed per your state’s regulations.
  6. Positive references:
    Get positive referrals from the PEO’s current and former clients. By choosing a PEO that has experience with companies similar in industry, size and objectives, you’ll be able to take maximum advantage of the partnership.

The NAPEO notes businesses using a PEO have several advantages over businesses that do not. Businesses with a PEO co-employment relationship grow up to 9% quicker, are 50% more likely to stay in business and reduce employee attrition up to 14%.

At PEO Consultants we guide you through the PEO selection process with a one-on-one needs analysis, a thorough marketplace comparison and seamless execution. For more details about how to choose a PEO, contact PEO Consultants.

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