10 Things That Business Owners Using a PEO Do NOT Do

You’ve heard that partnering with a PEO will boost productivity and your bottom line, but what are the benefits reaped most by business owners using a PEO? In talking to business owners and executives, here are the top 10 things they no longer do now that they use PEO services.

Business owners using a PEO do NOT:

1. Lose sleep over compliance.

Employment compliance changes constantly and can be confusing. Most business owners do not set out to break the law but may end up with practices or procedures that are either borderline or completely outside legal guidelines because they don’t know any better. A PEO will keep you in compliance with all applicable employment laws.

2. Hesitate to fire that non-productive employee.

Every once in a while, your business will have an employee that just doesn’t fit. They may not be productive, they may not be a good culture fit, or perhaps they’ve outgrown your organization. Whenever a business partnered with a PEO needs to lay off an employee, they can rest assured that it will be done professionally and in compliance with the law.

3. Spend valuable time on HR administration.

Nope. None. A PEO will handle all of your HR administration including payroll processing, benefits shopping and administration, employee relations issues, and risk management or safety issues.

4. Fret over costly payroll or payroll tax mistakes.

Many small to mid-sized business owners do not hire an internal payroll professional. Instead, they assign the task to an office manager or administrative assistant. While multiplying the number of hours worked by the rate of pay may not seem difficult, there are many different wage laws, tax rates and other legalities that can prove costly should they be overlooked or misunderstood. Business owners that use an IRS certified PEO (or CPEO) turn over their payroll amount to the CPEO who is now responsible for submitting the correct documentation and tax amounts to the employee and the government.

5. Worry about management practices and training.

A PEO will help guide your managers to handle employee relations issues with tact, professionalism, and compliance. Also, most offer learning and development tools for new and seasoned managers.

6.  Agonize over preparing W-2s on time.

Your PEO payroll experts are responsible for preparing and delivering Form W-2s to your employees on or before January 31st. Check that off your to-do list!

7.  Wonder if their employee handbook is up-to-date.

Because a PEO shares liability with you, they are very interested in keeping you compliant. One major vehicle for employment law compliance is your employee handbook. It is essential that it stays up to date. When a new law affects your organization, a PEO will update your employee handbook for redistribution to your employees.

8. Need to shop around for benefits options and pricing.

Shopping for new, added or more affordable benefits takes time and can prove burdensome when you’re unfamiliar with benefit terms and practices. Before open enrollment rolls around, your PEO will discuss benefits options with you. Want to add vision insurance? No problem! You won’t be spending time shopping around and comparing vendors – your PEO will do that for you.

9. Spend loads of money on HR technology.

Business owners that partner with a PEO get to utilize the PEO’s HR technology. An HRIS system for a smaller business doesn’t make much financial sense. However, with a PEO you can offer online HR tools from the application through the termination process.

10. Suffer unanswered HR questions.

Experts on all things HR are a chat, email or phone call away. Business owners that partner with PEOs have a lot to say! Learn what Tandem HR clients say about the impact of the PEO on their business.

Are you intrigued? Compare the time and cost of your current HR practices with PEO services in Tandem HR’s FREE financial analysis form below. Don’t forget to ask these 9 questions when talking to prospective PEO partners.

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