Why should businesses contract with a PEO?
There are three reasons that contracting with a PEO makes good business sense: lower administrative costs, improved benefits options and greater business efficiency. Many businesses need administrative assistance in managing increasingly complex employee related matters such as health benefits, workers’ compensation claims, payroll, payroll tax compliance and unemployment insurance claims. By assuming these responsibilities a PEO not only helps reduce administrative overhead but also provides expertise in human resource management. As a result, businesses are able to concentrate on the revenue-producing side of their operations. A strategic advantage of a PEO is its ability to group smaller companies together in order to gain buying power for benefits and workers’ compensation insurance. This buying power creates savings for both the client company and the employees who participate in the benefits program, as well as giving them a more robust set of benefits options.
