When you add it all up, the amount of work and time that goes into fulfilling all employee HR needs is shocking, especially if you're a business owner without an HR team. HR tasks are time-consuming and often confusing. Add in having all compliance and benefits in place, etc., and struggling with keeping up with these and running your business simultaneously — and it's no wonder that achieving growth is a challenge.
According to HR Daily Advisor, at least 45% of small business owners say they spend a day or more on administrative human resources issues. The report also noted that 35% reported 6-10 hours weekly on HR issues. Imagine the work that could be done had the opportunity to free that time up and use it elsewhere.
So, how can a PEO help a business? First and foremost, the best PEO services will alleviate the strenuous workload without sacrificing a smoothly-ran HR department. Here are some more specific examples.
HR Administration Needs are Fulfilled
When you partner with a PEO you are assigned an HR Manager. In most — if not all — cases, this doesn't just mean more free time for business owners -- It also means more desirable results
Take, for instance, employee training and onboarding programs for employees. You may or may not know how to implement an effective training program for your employees, but splitting your time between several areas of your business means you'll never truly give it 100%. This is detrimental since training can influence everything from employee retention and turnover to safety and your bottom line.
On the other hand, a PEO will give it 100%, because they have "skin in the game". They will help you with training programs in various ways:
- Improve safety and efficiency with employee handbooks
- Procedures are put in place
- Employee onboarding is done with the help of PEO
Payroll and Payroll Tax Services are Covered
Likewise, a PEO will assign a Payroll Specialist to you to cover your payroll and payroll tax service needs. This will be of significant use for your company since Internal Revenue Services (IRS) penalties resulting from mismanaged payroll processes cost nearly 40% of small businesses $845 or more annually to rectify. Additionally, the IRS reports a collection of almost $7 billion in penalties in 2021 alone.
Payroll administration with a PEO, on the other hand, means we:
- Process payroll checks and direct deposits
- Deposit state and federal withholding tax liabilities
- Create journals and summaries
- File 941 and 940 forms
- File state unemployment tax returns
- File and mail W-2s and W-3s
- Process garnishments for child support
- Provide detailed payroll reports
- Provide certified payroll reports
- Answer employee inquiries
- Eliminate IRS and state payroll tax audits
- Reduce paperwork and overhead
- Respond to employment and wage verifications
- Store employee records and files
The benefits of having these tasks removed from your plate are insurmountable. It means fewer payroll mistakes due to having too much on your plate and expert eyes ensuring you're compliant every step.
No Need to Worry About Safety and Workers' Compensation
Another way a PEO can help business owners is by taking the stress and hassle out of safety and workers' compensation. You'll be assigned a Loss Prevention Specialist to help:
- Create a Safer Workplace
- Minimized Risks
- Control Workers' Comp Costs
Why's this important? Because, in just a year, businesses lose tens of thousands in workers' compensation and for some industries it’s even more. According to Injury Facts, the cost averages as high as $81,971 per claim for motor accidents, $58,284 for burns, and $47,681 on falls & slips. A safer workplace and minimal risks mean much less coming out of your bottom line.
Business Owners Can Finally Focus on the Core Needs of the Company
Several hours a week are saved with a PEO when payroll, benefits administration, safety, training, etc., are handled by our specialists.
When these HR tasks don't bog down business owners, the extra free time allows them to focus on growth:
- ROI
- Expansion
- Customer Service
- Reputation Management
In fact, the National Organization of Professional Employer Organizations (NAPEO) reports that ROI alone is averaging around 27.2% for PEO clients. They also found that most of this return is due to cost savings in areas like HR personnel, health benefits, workers' compensation, unemployment insurance (UI), and other external HR expenditures (payroll services, employee benefits, etc.)
PRO Resources for PEO Services
When it comes to growing your business and ensuring everything is running smoothly while your attention is elsewhere, there's no better PEO to put your trust in than PRO Resources. Our specialists are passionate about what they do, and we are more than ready to help you reach your goals without doing it all yourself.