what is a peo

A professional employer organization (PEO) provides comprehensive HR solutions for small businesses. Many employers know that employing a PEO can help them save money on employee benefits packages and assist with payroll administration, but that’s not all they can do. When employing a PEO, an employer can outsource a wealth of employee management tasks. HR administration, recruiting and training, risk/safety management, worker’s compensation, compliance with local and federal employment laws and tax administration are some of the many services that PEOs provide to small and growing businesses across the country.

By providing payroll, benefits, and HR services and assisting with compliance issues under state and federal law, PEOs allow small businesses to improve productivity and profitability, to focus on their core mission and to grow. The employees of small businesses also prosper. Under a PEO, employees gain access to big-business employee benefits such as 401(k) plans; health, dental, life and other insurances; dependent care; and other benefits they might not typically receive as employees of a small company.

How Can a PEO Help a Business Grow?

By providing all of the above-mentioned services and assisting with HR issues and compliance with employment regulations under state and federal law, PEOs take a lot of time-consuming tasks away from small business owners so that they can put more of their time and energy into their business goals.

The advantages of using a PEO are numerous for both employers and employees:

  • Better benefits: A PEO can offer better benefits at lower costs by pooling their clients’ employees together. This can even include additional benefits, such as dental, vision, and life insurance, that are often too expensive for a small business to offer. Not only does this help employers and employees save money on their insurance benefits, it helps small business compete against larger companies when trying to recruit skilled workers.
  • Compliance: Employment law is constantly changing, and it’s not easy for employers to keep up with the latest updates or changes. Something as simple as a paperwork error can cost a small business owner thousands of dollars or more in legal fees and penalties. Because PEOs focus on HR administration, they are constantly up-to-date with the latest changes to employment law, ensuring their clients stay compliant.
  • Happier employees: Competitive benefits, consistent compliance, a well-organized payroll system, knowledgeable HR staff, and more time freed up for employers to focus on the business; all of these aspects work together to help ensure employees are engaged and able to focus on their jobs.
  • Significant business growth: PEO clients surveyed by NAPEO in 2017 reported a 10 percent median revenue growth from 2015 to 2016 versus 5 percent for similar non-PEO firms. 70 percent of employers surveyed by NAPEO reported that their revenues have increased and 66 percent reported that their profitability has increased since becoming a PEO client.

The benefits of partnering with a PEO are numerous and far reaching for small and mid-size business owners. Finding the right PEO for your business can take all of the mundane administrative employment tasks off of an employers’ plate so they can focus on increasing revenues and growing their business.

Emplicity understands that HR Outsourcing should be simple and meaningful. As a Professional Employer Organization (PEO), we strive to be a great partner in supporting your business. If you would like to request more information on how we can assist your needs, please reach out to us at 877-476-2339. We are located in California – Orange County, Los Angeles, and the greater Sacramento and San Francisco area.

NOTICE: Emplicity provides HR advice and recommendations. Information provided by Emplicity is not intended as a substitute for employment law counsel. At no time will Emplicity have the authority or right to make decisions on behalf of their clients.


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