Payroll Companies vs. PEO Companies: Which is Best for My Small Business?
Small businesses may improve workplace efficiency, safety and management through the outsourcing of payroll services. Depending on the services needed, a small business can choose between a payroll company and PEO (professional employer organization). However, payroll companies and PEOs allow small businesses to operate in different capacities, so it’s necessary to weigh the benefits of each before selecting one.
Payroll Company Advantages
Payroll companies are exactly what their name implies: an outsourced service that manages your small business’ payroll processing services. From cutting employee checks to tax filing, a payroll company is an affordable service that helps better manage a company’s human resources. In addition to the basic wages administration of your employees, a payroll company may include vacation and sick time management, deduction of employee benefits and calculating of employee wages. However, payroll companies do not provide any extra services that may limit the liability of an employer, especially in the face of a workers’ compensation claim or employee health insurance. For small business owners that wish to remain in full control of these employee benefits, a payroll company makes a strong candidate for efficiently outsourcing your payroll services.
Professional Employer Organization Advantages
PEO’s extend the benefits of a payroll company beyond the basic financial services. While a payroll company may provide little more than payroll services and tax management, a PEO can provide benefits that include hiring management, drug screenings, retirement plans and safety programs, as well. The small business will still handle all of the operations and direction of employees in day-to-day business, but the PEO administers several departments for better workplace efficiency. If your small business needs a streamlined human resources department with the added bonus of OSHA regulation and health coverage, a PEO makes a perfect choice.
The full benefits of a PEO differ from business to business; therefore small businesses should consider an evaluation of services in order to fully educate themselves on professional employer organizations. SourceOne Partners is a South Florida-based institution that can pair you with the perfect PEO or payroll service for your business. Whether looking for PEO services or payroll management in South Florida (Miami, Fort Lauderdale, or Palm Beach) or in the surrounding areas of New Jersey, Pennsylvania and New York schedule a free PEO or payroll analysis today. Contact SourceOne Partners by emailing us or calling 561-674-0748 to speak with a PEO expert today.