Owning a small business can be incredibly rewarding. It’s the American Dream with a capital D. But what separates the successful entrepreneurs from the herd? Smart decision making, efficient resource allocation, and strategic HR administration planning can all go a long way toward keeping the capital-D dream from becoming a capital-N nightmare.
Small business owners frequently reach an inflection point where workload starts to exceed current staff bandwidth. As this occurs, you find yourself needing to hire quickly but not being quite able to hire a full-time HR professional. A PEO, or Professional Employer Organization, can help address specific HR needs through a relationship called co-employment. PEOs help companies develop policies for payroll, taxes, regulations, and employee benefits, while keeping costs low.
What is Co-Employment?
First, let’s explore the framework that enables small businesses to hire industry talent without having to invest in internal HR expertise. Co-Employment is a legal partnership that allows organizations to outsource specific HR and payroll services to a PEO. This is a contractual sharing of certain employer responsibilities. We’ll outline some of the most important services and benefits below.
Payroll, Taxes & Regulation
Outsourcing select HR functions to a PEO can reduce pressure on upper management by addressing these three big items. Employees expect accurate and on-time payment, so trusting an experienced firm to handle payroll administration makes a ton of sense. Moreover, payroll taxation can be complicated and carries high penalties if you get it wrong.
A PEO facilitates quarterly payroll tax reconciliation and helps organize Federal tax payments. Questions about W-2s, state withholdings, unemployment returns or other regulations? Your PEO serves as an authoritative source of information for each of these topics and helps to make sure your organization remains in compliance.
You’ve hired a talented job applicant. Now what? Your PEO partner will help put together the right benefits package and onboarding procedures. In today’s market where talented employees change companies every few years on average, offering competitive benefits has become critical. A PEO relies on purchasing power to negotiate affordable health insurance policies and other employment perks.
We can help.
Employers that offer professional development opportunities, hire internally, carefully cultivate their company culture, and layer accountability through training often find themselves in a position to build on past success with an eye toward the future. Management training and succession planning can benefit an organization for many years to come. Our experienced team of HR professionals can help managers unlock the hidden potential for staff in surprising ways.
At SourcePointe, we utilize our industry-experience to provide you with a multitude of customizable HR services, support, and solutions. All so your business can do one thing – more business. We’ll provide tailor-made solutions that fit your company’s needs while providing a solid return on your investment that pays off immediately – and for many years after that.Back to Insights