When you hire a PEO to help you with your business, you may be wondering what kind of responsibilities they have. For instance, does the IRS recognize a PEO as your staff’s employer? Or is that still your responsibility? One question you may have is whether your PEO is required to have an active workers’ compensation insurance policy in order to handle workers’ compensation claims.
Well, this answer actually has two parts. First, you must declare your PEO an official employer of record with the IRS. In other words, your PEO will be the organization your staff reports to for legal purposes. You don’t disappear from this equation at all. Instead, you share in the responsibility with your PEO. And because you and the PEO are now both employers of record for your business, then yes, you both must have current workers’ compensation insurance policies.
To learn more about PEOs and how they can open up a world of possibilities for your business, give NetPEO a call today at (678) 376-1212.
Paying Employment Taxes
Because your PEO is an additional employer of record for your business, you can also trust your PEO to handle things like payroll for your business. This is because the IRS recognizes a PEO as what they call a “third-party payer.” Yet, the IRS still expects you to pay your employment taxes. Sure, you can trust your PEO to do it, but you’d better follow up to make sure they did, or it’s your head on the chopping block.
You may be thinking, wow, is a PEO arrangement even worth it then? But you’ll see that it is when instead of doing and filing your taxes, you just have to make sure they’re filed. It’s like working with your accountant, only a PEO has more power. A PEO can function as your right-hand man and help your business on a daily basis. We’d like to see your accountant do that!
And hey, even if you don’t want your PEO handling your taxes, no problem! With all the responsibilities you will hand over to them, you’re giving yourself back more time to focus on the more important aspects of your business.
A PEO: Your New HR Department
PEOs can be lifesavers for all things HR. This includes everything from worker’s compensation claims to making sure you file your payroll on time. They can train new employees and fire those who aren’t working out. They can pay your taxes for you or establish a better filing system to keep track of all your paperwork.
When you get right down to it, your relationship with your PEO is a malleable one. You can give your PEO as much or as little power as you want. You can let them handle 75% of your business or only 10%. It’s truly up to you.
One thing you will notice is a better employee retention rate. Your employees are more likely to stick around if they’re happy. And with what a PEO can do for them, why wouldn’t they be?
Uninterrupted payroll. Claims and PTO handled in a timely fashion. Better health insurance. What can’t a PEO do for your employees? Answer: there really isn’t much they can’t do.
And your PEO isn’t just there for your staff. It’s there for you too. Compare the difference in your profits from before and after you hire your PEO, and you’ll be amazed. Consider how much more you can handle, and how much better you handle it, when you have the time to focus on it. Instead of drowning in paperwork, you now have the time to go out into the field and chase new clients!
Not only that, but never again will you have to worry about late fees for delinquent paperwork. To paraphrase that old show tune, anything an HR department can do, your PEO can do better!
Let NetPEO Change Your Life Today!
Right now in the United States, there are between 750 and 1,000 PEOs operating. And at least one of them is a perfect match for your business. But how do you find it? That’s where NetPEO comes in.
We know you’re looking for a PEO to save time and cut down on paperwork. We certainly wouldn’t want you to take on even more in finding the right PEO. That’s why, with your free analysis, we can collect all the information we need to find the PEO of your dreams!. And if we’re wrong on the first try and you’re not 100% satisfied, we’ll put in the work necessary to get you a better match.
Your employees will be amazed at how much better working for you is about to become. Call our friendly team at NetPEO today at (678) 376-1212 and have an experience like no other. You’ll be wondering why you didn’t consider a PEO sooner. So don’t waste another minute – call us now!
