Learn more about how your business can benefit from PEO payroll services.
Payroll management is a critical element for any organization. It’s not just a monthly responsibility- it’s how you compensate employees for their hard work. Payroll processing comes with a set of complications. There are hundreds of payroll regulations and tax codes that you need to understand and stay on top of. Any accounting errors, reporting conflicts, and delays can result in significant penalties and dissatisfied employees. Working with a Professional Employer Organization (PEO) to work alongside your in-house team can be a great asset to the productivity of your business.
What is a PEO?
A PEO is an HR and payroll outsourcing firm that acts as your co-employer. Through a co-employment relationship, the business owner and the PEO share certain employer responsibilities.
The PEO acts as the administrative employer and you act as the work-site employer, handling day-to-day business operations and maintaining full authority over your employees.
Here are the benefits of relying on a PEO payroll service.
When running a business, time is a valuable resource. However, in-house payroll processing is a time-consuming task and requires lots of attention to detail. You need to keep track of garnishments, benefits deduction, paid time off, regulation changes, new hires, and terminations.
You also have to input critical amounts of data and double-check for errors. Time spent on such tasks is time taken away from the core tasks of your business. PEO payroll solutions allow you to save a great deal of time, which can be devoted to refining sales and improving workflow efficiencies.
Processing payroll in-house is a waste of time you could be spending on growing your business. There’s the cost of hiring and paying payroll staff and the cost of keeping the HR or payroll department moving.
This means investing in the necessary hardware and software, providing training to ensure that payroll is processed correctly, and continually hiring more skilled personnel, especially as staff numbers grow. Also, mistakes and non-compliance can be costly and expose your company to additional liability. Working with a PEO can generate cost savings for your business by:
- Preventing compliance issues
- Easing administrative burden
- Reducing employee turnover
- Streamlining processes
- Giving you access to better technology
A PEO is able to use their advanced infrastructure to perform administrative tasks than an in-house HR team could.
Complying with state and federal laws and regulations is one of the most daunting tasks for small to mid-sized businesses. Payroll tax, labor, immigration, health insurance, and anti-discrimination laws are complex and constantly changing. Compliance becomes even more complicated when you have employees out of state. Maintaining compliance with government regulations takes a lot of time.
In fact, HR departments spend about 36 hours per week on compliance-related tasks. That’s a full-time job! A PEO serves as your payroll compliance partner, staying up-to-date with regulation changes and ensuring payroll compliance.
They assist with tasks like:
- Issuing and filing tax forms
- Classifying employees correctly
- Ensuring compliance with minimum wages and overtime requirements
- Reporting and depositing taxes
With PEO payroll services, you can avoid penalties and unnecessary audits.
Improve Data Security
You need to consider the security of your server, network, and payroll software. While the software could be secure, you may store your employees’ data on a network or server that has security flaws, leaving you open to data breach.
Comparatively, quality PEOs use highly secure servers, cutting-edge encryption technology, and redundant data backups to ensure your critical information is safe. And they don’t charge extra for this kind of security. Everything is included in the outsourced service they provide.
Access to Better Technology
Technology limitation is a top reason why businesses outsource payroll to PEOs. Today’s PEOs use cloud-based systems to manage critical employee data, streamline payroll processing, and ensure better data integrity. A top PEO also integrated payroll and human resources system to facilitate seamless sharing of data and removes the need for manual transfers, before and after processing.
This makes the process faster and more secure. With PEO payroll, you’ll always have access to the latest technology, removing the costs and headaches of purchasing, maintaining, and upgrading systems yourself.
Partnering with a PEO for your company’s payroll means you gain access to expertise that was previously available only to big companies. This is especially important if you have out-of-state employees and need an expert who understands rules and regulations in multiple jurisdictions. A top PEO has a team of experts who handle many areas of payroll and human resources. They’ll provide expert advice and help you handle issues without causing your team any headache.
Facilitate Employee Self-Service
Providing self-service options to employees can help your business cut costs and offer more information in a faster and more efficient way. Experienced PEOs have an integrated payroll platform with employee self-service features.
Employees are able to:
- Log their hours
- Submit time-off requests
- Complete onboarding paperwork
- Update information
- Print tax documents
- Update tax allowance and benefits forms
- Review benefits information
- Access pay stubs and preview pay information
- Manage withholdings
With the right PEO, your business can access advanced platforms and tools without having the expense of buying and maintaining them.
Working with a PEO means your payroll is handled by a team of payroll experts. This means every aspect of your payroll will be handled more efficiently and with fewer errors. If your employees are juggling payroll on top of other duties, they could easily issue incorrect paychecks or overlook 401(k) contributions. Payroll mistakes are a huge source of stress for employees and administrators alike.
Errors could come with fines, the hassle of making corrections, and upsetting employees. PEO payroll solutions can help streamline processes and boost productivity, freeing up key staff and allowing them to focus on building your product and brand. Better efficiency can do wonders for your business.
Access to a Variety of Services
With a PEO, you typically get a wide variety of services and the benefit of a team of HR experts. In addition to the standard tax calculation and payroll solutions, many PEOs offer additional services like employee benefits administration, workers’ compensation, human resources, and risk management. These services can be customized to your specific needs. PEO solutions will have a ripple effect across your business, with more time for core business operations and better employee management.
Peace of Mind
Payroll processing is stressful. When you work with a PEO, they deal with the stress and hassles associated with processing payroll. A PEO employs professionals who know payroll processing and specialize in the complexities of taxes, government compliance, regulations, and human resources.
These are the tasks they handle every day and the core of their service guarantee. Reducing the administrative and transactional aspects of your business can save you a lot of money, time, and headaches, allowing you to focus on growing your business.
Get Outsourced Payroll Solutions with Vested HR
At Vested HR, we make it easy for small and medium-sized businesses to take better care of their teams and focus on growing their bottom line. With our proven history, dedicated team of experts, and easy-to-use online payroll platform, we’re proud to handle the behind-the-scenes details, limiting risk, reducing cost, and saving time and money. Contact Vested HR to talk with one of our HR and payroll experts and learn how we can help and schedule a free consultation today.