PEO service or providers will work similar to an HR department and can replace the complete HR department but their responsibilities are larger and more important. If you have a business, you can hire such service to handle the human resource department, employee wellness programs, employee health benefits, injury claims, workman’s compensation, taxes, and payroll.
A PEO service is a great way to reduce the costs of a company, as they allow organizations to handle employees in a better way. Based on the size of your company and the number of employees, you may find the need to hire a specific type of PEO Company. Let’s find the main types out there.
The traditional PEO:
Traditional PEO Payroll Providers will act as the co-employer who will manage the employees and other administrative works. However, even though it sounds like you have given half of your company to the hands of other people, it’s not that. You will still be the owner and the main administrative work will be your duty.
The PEO professional will works as the administrative employer. They will hire workers, and process taxes, withholdings, benefits, and wages under their employer identification number. On the other hand, as the owner of the company, you will have the authority over the HR department, and decide the payment of the employees. You will also control the entire strategy of the business function, including customer support, sales, marketing, and research and development.
Human Resources Outsourcing Organization:
An HRO or human resource outsourcing organization handles the HR department. They mostly hire talents for your company, handle employee benefits, and payroll, organize open enrollment, and do other employee-related tasks. These tasks are very important but they can be tedious at times. So, when you outsource peo payroll providers, you can focus on more important things in your company, while the HRO will take care of the human resource department.
Administrative services organization:
The work of an ASO is similar to a traditional PEO, as they also provide the HR needs of your agency, with one exception an ASO will take care of the tax and insurance. An ASO works a bit differently from traditional peo payroll providers in the aspect that they do not engage in hiring employees, or any other employment-related work. Although a professional ASO will handle the insurance and taxes, it will be under your employer identification number. This means, that without your authority the outsourced company will not be able to do anything. When you hire an ASO, you must have all the rights in your hands.
Why hire a PEO service provider?
The main reason for hiring a PEO service provider is to relieve some pressure from your head. As you are the owner of the company, hiring a PEO service will help you handle more important work in the organization. Although the full power will be in your hands, only the PEO professionals do the work under your employer identification number. This way you can manage your business properly.
While PEO service providers can offer better benefits to your company, it’s also important to determine your needs and goals. This way you will be able to find the right professional. Take a look at these three major types of PEOs, and you will also get service for employee or staff leasing, this is a part of the traditional PEO services.
