The company HR department deals with everything and anything that has to do with people within a company, from payroll and workers’ compensation benefits to employee benefits. Companies handling all these responsibilities on their own often find they spend more money to hire additional employees to handle the workload. Plus, it is often necessary to pay for additional training for these employees to ensure they understand new laws and regulations, such as those related to the Affordable Care Act and employee benefits.
Even with the additional expenses and training, companies still have concerns about compliance issues. One solution to this problem is working with a Professional Employer Organization (PEO), which allows the company to benefit from the specialized expertise they offer. Outsourcing HR functions to a PEO has many benefits for companies of all sizes.
A PEO offers administrative support, which includes a variety of assistance and project staff to help with everything from accounting and billing to clerical work. This includes payroll, a common HR function that companies often outsource.
Letting go of payroll has several advantages. It means the HR department is free of handling withholding deposits and payroll taxes. Outsourcing payroll with a PEO is extremely affordable and can help alleviate any tax compliance concerns.
Handling employee benefits can take up a great deal of time, and that time is often best handled by another company. Outsourcing tasks such as enrolling employees in 401(k) and insurance plans or assisting them with other benefit issues can relieve staff of time-consuming processes and free them up to focus on other details related to running the business.
A PEO offers consulting services that include litigation support and procedure audits along with records management consulting. These services assist companies who don’t feel comfortable developing, implementing and enforcing records policies and programs in-house.
Records and Information Management
Legalities that a company must deal with range from OSHA policies to issues with affirmative action and discrimination. Legal issues become more complex as a business grows.
A PEO can assist a company in developing a strong records management practice in a variety of specialized areas. This includes help in addressing changing mandates so that the company meets all regulatory, fiduciary and legal requirements and streamlining the process to reduce costs in managing electronic and physical records.
Outsourcing is a smart business practice for companies of all sizes. With the help of a PEO, companies can avoid lawsuits stemming from sloppy hiring or firing practices, sexual harassment lawsuits, and spend less time dealing with paperwork and employees. Outsourcing can give businesses the peace of mind of knowing that they are complying with regulations.
One big advantage of working with a PEO is that HR can focus on activities with the most strategic value, while saving money and reducing tax penalties. Outsourcing allows the company to benefit from the specialized expertise offered by outside firms to ensure functions are done properly. Companies wishing to outsource some of their HR functions can work with a PEO to transfer time-consuming task to a group of HR specialists.
If you are interested in outsourcing HR functions to qualified PEO professionals, the experts at SourceOne Partners can help you find the right match for your needs. Call us today at 561-674-0748 or contact us online.