The benefits that small businesses can offer through a PEO helps improve employee morale, company culture and inculcate a better work-life balance for employees
FREMONT, CA: Professional employer organization (PEO) caters to small businesses that do not have large human resources teams by carrying out standard HR responsibilities and tasks. They also provide quality benefits plans, allowing small business owners to focus on their company growth by hiring top talent and creating a solid workplace culture.
The benefits that small businesses can offer through a PEO help improve employee morale, company culture and inculcate a better work-life balance for employees. Building a great place to work for employees can lead to higher retention rates and positive employee reviews, resulting in a larger and stronger workforce.
Here are four ways how PEO can help businesses with benefits packages:
Provide small businesses greater options with health insurance plans
Companies with great benefits generally have extensive health insurance plans for their employees. PEOs usually enable small businesses to provide their employees with better health benefits compared to of standard employer-sponsored health insurance plans.
Simplify payroll processing and HR compliance
A PEO can oversee the payroll and taxes, handle workers' compensation insurance and the standard compensation of the employees.
When a company uses a PEO for payroll processing, the PEO becomes co-employer and takes over the duties of handling the client's payroll-related tasks like paying wages, depositing taxes, and issuing employee W-2s.
Help employees understand their benefits
Selecting a PEO solution that has high-quality employee perks can help enhance employee satisfaction. When employees know they are receiving quality benefits, they can focus on being productive team members.
Help small businesses offer good retirement plans
A PEO helps smalls businesses offer good 401(k) plans to employees. It takes over fiduciary liability and signs all-important compliance forms, protecting the company from possible legal problems related to employee retirement plans.
Check This Out: Top Payroll Software