Starting your own business can be an exciting endeavor, especially if you manage to avoid the fate of the majority of entrepreneurs and go out of business within two years. One way to help you overcome the odds and launch a successful enterprise is to get help from a professional employer organization (PEO). You can outsource time-consuming tasks that have nothing to do with your core business, such as payroll processing, to a PEO. If you are feeling overwhelmed by the mundane tasks that take you away from concentrating on growing your business, consider how a PEO can help you be successful.
Provide Lower Workers' Compensation Costs
Federal and state workers' compensation laws are complex. In addition to federal rules, each state has its own set of regulations that may vary depending on the size of your firm.
If you are a small business owner, you do not want to spend unnecessary time making sure that you provide workers' compensation insurance coverage that adheres to a myriad of confusing regulations.
Instead of wasting your energy trying to decipher all of the regulations and deadlines of workers' compensation, use the services of a PEO firm to provide coverage on your behalf for your employees.
You will not have to worry about consulting expensive lawyers to answer your queries about workers' compensation or burden your human resources employees with the extra work involved when an employee files a claim.
In addition, you will not have to negotiate with insurance companies who provide coverage. You will have peace of mind that your employees have adequate protection in case of an accident.
Relieve the Burden of Dealing with Payroll
Handling the payroll of your employees is another activity that can suck up your time and energy as a small business owner. PEOs can provide comprehensive payroll services so you do not have to worry about processing paychecks, dealing with direct deposits, and handling state and federal tax deductions.
Other payroll chores that PEOs can perform include
With a PEO handling your payroll, you can ensure that your employees will be paid accurately and on time.
Offer Better Benefits Packages
The type of benefits your company provides to employees can be a factor in whether or not you can recruit and retain employees.
A comprehensive healthcare plan, a retirements savings package, life insurance, and other benefits can entice talented employees. If you feel like you cannot keep up with competitors in offering top-notch benefits, you should consider using the services of a PEO to provide benefits.
By partnering with a PEO, you can provide not just health insurance but other coveted benefits, like dental and vision plans, a 401K package, and educational benefits. Offering these perks that are common for large Fortune 500 companies can help your firm stand out from the crowd among job seekers.
Assist Growth and Decrease Employee Turnover
Because a PEO enables you to be laser focused on your core business, you will be a lean and efficient operation. One of the main reasons that small businesses fail is that owners think they can do everything themselves. Firms also fail because of poor planning and underestimating the competition.
However, small businesses that entrust PEOs with major tasks grow 7 to 9 percent faster than other small firms, according to the Intuit Small Business Employment Index. In addition, your business will have lower employee turnover if you use a PEO. Furthermore, companies that enlist the help of a PEO are 50 percent less likely to go out of business.
To find a PEO to help your company, contact a business like Tailored Solutions​.
Share23 May 2016
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