The PEO Solution to Your Payroll Problem
Ever had a payroll deadline sneak up on you? When you run a small business, it’s easy to get overwhelmed with the administrative side of the job. Payroll reports, compliance issues, regional payroll differences, and a thousand other details pile up on your desk every day.
And if you miss something? Say hello to fines, fees, and penalties.
But there’s a better way to do business.
What if you could box up the whole payroll package and hand it off to someone else? What if you never again had to research compliance regulations or set up a direct deposit?
That’s why you need a PEO.
PEO Payroll and Your Small Business
As your business grows, so do your payroll needs. Managing one or two employees is a lot different from managing twenty. The more people you hire, the longer and more complicated your payroll process becomes.
PEOs (aka, professional employer organizations) take that box of payroll “stuff” off your plate and manage it for you. They act as the employer of record, which means they can handle all those pesky problems and tedious tasks on your behalf. Here’s a sampling of the payroll responsibilities a PEO can handle for you:
Employee Classifications
Regular full-time, temporary part-time, temporary full-time or temporary excluding benefits? Exempt or non-exempt? The PEO will classify every employee correctly and manage associated overtime requirements, benefits, and employment terms.
Time and Attendance Tracking
How many hours can an employee work before overtime kicks in? Do full-time employees have to work a full 40 hours every week? What if someone doesn’t clock in or out correctly? Not to worry. The PEO has it covered.
Wage Garnishments and Deductions
Child support payments, alimony payments, expense reports, and tax deductions differ for every employee. It’s a lot to keep track of. A PEO will calculate deductions, process them, and file the right reports.
Compliance
I-9 form changes, overtime rules, exemptions, and scads of other compliance regulations will come back to bite you if you miss even one deadline, report, or piece of information. A PEO will stay on top of all those details so you are free to keep your business running.
Holiday Pay and Other Paid Absences
Do you have a good method for tracking holiday pay, family leave requests, vacation days, sick leave, and all the other times your employees take time away from the office? Even if you do, managing all those requests and absences eats up hours each week. A PEO will dot all those i’s and cross all the t’s.
Paying Employees in Different Regions or States
If you have several locations scattered across multiple regions or states, staying on top of local regulations is another time-consuming task. Hand it off to a PEO. It’s their job to know the laws in every state and make sure your payroll complies.
Flexible Payment Options
Max wants to receive a physical check, but Jane wants to use direct deposit. Your PEO will set up each employee’s payment preferences so you don’t have to worry about why the direct deposit didn’t go through to Jane’s bank. Every employee gets paid on time, every time.
Finding Your PEO Solution
Partnering with a PEO payroll solution puts hours back in your schedule every week. And you can recover even more of your precious time by using other PEO services like tax management, benefits management, recruiting, worker’s comp, training, and performance management.
If you’re ready to grow your business, but you don’t know how you’ll manage the increased HR responsibilities that will entail, consider a PEO.
Ready to take that step but don’t know which vendor is right for you? We’ll help you find the right one with our PEO matching tool. Simply tell us what you’re looking for in our brief survey and we’ll give you a customized list of vendors who meet your requirements.
