In today’s heavily regulated business environment, it can be a tough thing just to stay on the right side of the legal fence. Do you worry about what might happen if one of your managers is accused of harassment or discrimination? Are you concerned about having enough workers’ compensation insurance, or what to do about regulations as your business expands into new states? A PEO can help you stay on the right side of the law, while keeping these costs under control.
Protecting Your Business from Tax Law Liabilities
Payroll taxes are extraordinarily difficult. Just when you think you’ve got a handle on the laws, everything changes. Instead of sweating over payroll taxes, turn the task over to a PEO. Under new regulations that were recently established, a PEO certified by the IRS would assume all of the liability for payroll taxes, removing your business from the hot seat. If the IRS does decide to audit you, the PEO handles the audits and faces any penalties if things aren’t as they should be. A side benefit is that your workers are more productive when these issues aren’t their responsibility anymore.
Protecting Your Small Business From Insurance Liabilities
Does your small business have the right amount of workers’ compensation insurance? Do you have enough general insurance to protect your building and assets? Is there coverage in place for things that aren’t covered under most general policies, like floods? A PEO can get this insurance for you, and since they are able to take advantage of bulk rates, they are able to acquire coverage faster and cheaper than you could on your own.
Protecting Your Business from Employee Lawsuits
Small business lawsuits for issues like sexual harassment, wrongful termination, and discrimination are on the rise. In fact, the rate has increased by a whopping 400 percent in recent years. For every 1,000 people in the workforce, 6.5 of them initiate such a lawsuit. Employees win at trial about 67 percent of the time, for an average award of $500,000 before legal fees. Even settling out of court costs companies an average of $300,000. A PEO can help you secure Employment Practices Liability Insurance to cover these issues, which are not usually covered under a general business policy.
Guiding Your Business Through Murky HR Laws
Is it okay to ask someone if they have children during an interview? If a blind person interviews with your company, is it okay to inquire how they will manage to get to work? Does an anti-smoking policy ban e-cigarettes or vaping? Is there a minimum number of minority workers you need to achieve? Do you have to consider whether your contractors meet discrimination laws? These and other questions troll through some murky laws. A PEO offering human resources services can help you stay within the law, so that your business doesn’t violate equal opportunity employment laws during job interviews, with hiring practices, and among employees or contractors.
Assuring Compliance Across States
Is your business expanding beyond your home state borders? If so, you will double the amount of laws and regulations you have to abide by. A PEO can help steer you through expanding operations to new states, assuring that you are in full compliance with all payroll tax laws, workers’ compensation laws, and other regulations that affect your business.
To find a qualified, experienced, reputable PEO to keep your business within the law, contact SourceOne Partners online or call 561-674-0748 today. We will give you a list of all of the pros and cons of working with a particular PEO so that you can select the perfect fit for your business.