Unbiased comparison of HR outsourcing vendors

They keep you from wasting time
The employee leasing company gets rid of things that take the employer away from focusing on growing their company. Business owners do not go into business to worry about government regulations, payroll taxes, or administrative duties. Professional Employer Organizations allow you to get back your time, and get back to revenue increasing tasks.

Help You Improve Your Cash Flow
The employee leasing company takes all your employment fees (FUTA, FICA, etc) and combines them into one known monthly fee. After all, what better way to understand your expenses than to work with an employee leasing organization that provides predictable payments each payroll period. Also, rather than increasing internal investments in new employees, PEO's help you keep your HR/employee related costs to a minimum.

Provide Predictable Medical Benefits
A PEO uses an umbrella method and takes on many small business companies and consolidates them to offer each lower premium medical benefits. This essentially takes your 15 person company and incorporates it into a medical benefits pool of 1000 employees or more. Using this method, levels out the playing field and allows you to offer comparable benefits to much larger companies.

Government - Understanding Rules and Regulations.
An employee leasing company will help the business owner understand the various rules affecting them and provide guidance as to what they should do in various situations that may arise. They help in compliance of federal, state, and local laws. In addition, the Professional Employer Organization will provide and store legally required employee forms and paperwork.

Maintain and Reduce Risk
Additional benefits are acquired in companies with workers comp modifiers that are relatively high (greater than 1). The employee leasing company that you work with may have a modifier that is less than that, therefore offering your small business a better rate. Also, employee leasing company employees provide great advice for improving workplace safety and how to reduce claims. An employee leasing company will proactively manage their clients' workers comp claims and help to reduce claim costs, including identifying fraudulent claims. Truly, there are not many professional employer organization disadvantages.

Hi! Although I go by cstoll on my profile, I would like to introduce myself. My husband (that's his picture on the right) founded PEOcompare.com to match small business owners with PEO groups that would match their HR needs. We have since created a library to share article that help inform small businesses and the public about professional employer organizations and human resource outsourcing. In order to fill our library with tons of great information we have writers like Anthony Kelly.

Anthony Kelly is a frequent contributor to PEOcompare.com and has experience working for small businesses and employee leasing companies since 1997. He frequently writes about compliance, HRO, PEO insurance, and other issues affecting the small business owner. He can be reached at info@peocompare.com.