Our friends over at Insperity have put together a detailed blog that explains Professional Employer Organizations in simple terms. Here’s an excerpt:
Typically, a PEO can manage all the HR jobs that you would have to outsource to multiple service providers – like payroll processing, benefit plan management and administration, recruiting and training, and more. This way you can spend less time managing various vendor relationships.
- Employee benefits
Typically, with PEO-sponsored benefit plans, your employees will have access to a wider variety of benefits than your company could obtain on its own. This includes medical, dental and vision coverage, a health care flexible spending account, a retirement plan, life insurance and personal accident insurance, short-term and long-term disability insurance, adoption assistance, commuter benefits and educational assistance. In addition, your PEO can provide guidance on compliance related to the Patient Protection and Affordable Care Act to help you avoid costly penalties.
- Payroll processing
The PEO becomes your payroll service provider, managing the regular compensation of your employees, along with payroll record maintenance and management, payroll compliance, online paystubs and W-2s, payroll management reports, garnishment and deduction administration and PTO accruals.
Read the rest of this helpful article by clicking here.