PEOReview.com

Professional Employer Organizations - Supporting small businesses across the USA

There are lots of challenges for small and mid-sized businesses. Competition puts pressure on profits. Solid customers and employees are getting harder to find and keep. Companies are forced to find ways to work more efficiently. These conditions are the force driving the dramatic increase in the popularity of Professional Employer Organizations.

Are you an employer? Congratulations – you just went to work for the government.

As an employer you are compelled to carry out regulatory mandates as an involuntary, uncompensated agent for the government. There are currently 33 Federal Mandates and a handful more from the State (depending on your state) that are enforced with financial and legal penalties. As an employer, you have the responsibility for collecting and remitting federal (and in some cases state) taxes, employee's health & welfare plans, providing for their retirement, funding unemployment claims and their overall safety. You become the collector when employees have unpaid delinquent taxes, or don't pay their child support or have other garnishments. If these responsibilities are not handled properly, you are liable and get to pay them with no regard to hardship or consequences to your business. In addition, there are a wide variety of predators that prey on small businesses. Employees are right at the top of the list. Bogus workers compensation claims and unemployment claims can destroy your business experience (used to determine how much you owe) and drive your cost high enough that your business is unprofitable and uncompetitive. Legislation that was intended to be a shield to protect employees from unfair employers can become a tool used to attack good, honest businesses. Since the government has not stopped illegal immigration at the border they have decided it is much easier (for them) to make employers responsible. Employers are responsible for a myriad of changing rules about who can be hired, the documentation required and the processes for legal employment. In addition, simply firing someone who has provided falsified work or customs credentials may get you sued for discrimination.

To protect yourself and the livelihood of your workers, your business must pay attention to every detail. Professional Employer Organizations (PEOs) have stepped up to answer theses challenges and make sure that your business is not destroyed because of some overlooked technicality or mistake by one of your employees. PEOs insure things are done properly, from beginning to end. Your exposures are minimized and you can get back to running and growing your business.

Attracting and retaining solid employees

Creating a solid and cost effective employee benefits program for health insurance, disability insurance, 401K plans and other benefits is a challenge. PEOs have banded together to create purchasing power (lots of clients like you) with the large insurance and financial companies. This allows them to negotiate rates that are more favorable than most small companies can attain on their own. In addition, they provide and administer all the ERISA and other complexities on your behalf. Pick the programs you want, get a competitive price and let the PEO administer the programs. PEOs offer a great plan for every business.