Benefits of Using a PEO
For Employers:
- Controls Costs
- Saves time and paperwork hassles
- Provides professional assistance with compliance
- Reduces turnover and attracts better employees
- Manages claims (e.g. workers’ compensation, unemployment insurance)
- Provides better benefits package(s)
- Provides professional human resource services (e.g., employee handbooks, forms, policies, and procedures)
- Reduces accounting costs
For Employees:
- Access to comprehensive benefits previously unavailable
- Better employer/ employee communications
- On-time and accurate payroll
- Professional assistance with employment-related problems
- Professional orientation and employee handbook
- Extension of statutory protection to more employees
- Up-to-date information on labor regulations and workers’ rights, worksite safety
- Efficient and responsive claims processing
- Portable benefits (employees can move from one PEO client to another without loss of eligilbilty for benefits)
For the Government:
- Consolidates several small companies’ employment tax filings into one
- More professional preparation and reporting
- Accelerated collection of taxes
- Extends access to medical benefits to more workers
- Improves the communication of government requirements and changes to small businesses
- Reduces litigation by resolving many problems before they reach court
- Allows government agencies to reach businesses through a single- employer entity