HR and Payroll outsourcing has grown every year since the mid 1980’s. According to the Small Business Administration, between 1980 and 2000, the number of labor laws and regulations grew by almost two thirds. Small business owners can spend up to a quarter of their time on employment-related paperwork or payroll duties. PEOs also help thousands of companies provide better and less expensive benefits. These cost and time savings are an invaluable asset to small businesses with limited personnel and resources.
The major difference between a staffing firm and a PEO (professional employer organization) or an employee leasing company is that the leasing company takes over (hires) a new or existing business’ permanent employees. These employees, unlike temps, perform their existing jobs at their existing worksite indefinitely and do not move around to different work assignments.
This is essentially accomplished under a long-term contractual relationship in which the two businesses become co-employers of the leased workers. This allows the PEO to perform most of the human resource, payroll and benefit administration work that is required by a variety of state, federal and local agencies. This also allows the Client’s employees to participate in the PEO’s benefit plan. This arrangement frees the business owner from many daily non-revenue producing activities and allows the owner to devote their time and skills to making their business profitable, all the while offering better benefits and services to the leased employees. The result is a more productive and happy business owner and worker.
Some other benefits associated with this arrangement include eliminating large fluctuations in your cash flow. We break all of your taxes, workers’ compensation and other mandated costs down and spread these out over 52, 26, or 12 payroll periods. We complete all the weekly, quarterly and annual tax filings, tax deposits, and reporting requirements. Most small businesses can’t afford to offer health benefits, direct deposits or a 401(k) plan. Imagine if you could for essentially no cost, time or effort.
We will secure your workers’ compensation policy, complete the required annual audits and file all workers’ comp claims. We also administer any Unemployment claims and will represent you at any Unemployment appeal hearings. We can help you create a handbook and job descriptions, and are available to assist you with Labor Department audits, sexual harassment and discrimination claims. In short, we help you stay in compliance with government rules and regulations. We can also assist with the proper way to discipline, document and terminate staff thus keeping you out of court.
Realistically speaking, how many small business owners have time or even the desire to try to keep abreast of changes in the law? It’s a full time job itself. So, does your business hire a full time employee to devote to this and administer your payroll, or is it more practical for you to outsource these functions? Most small businesses only have an occasional human resource problem that would require a call to an attorney or require someone with HR experience. This is hardly worth the cost of a full or part time worker. Our HR staff is here when you need that occasional assistance.
All of these benefits are available to you and your staff for one low fee. You write one check which covers all your payroll costs: wages, FICA, FUTA, SUTA, state and federal income withholding, benefits, BET taxes, support garnishments, and workers’ compensation. We take care of all the reporting, filing, paperwork and other routine human resource administration so you can get down to business – YOUR Business!