The 21st century is rapidly proving to be one of immense change for the business world. Thanks to the developments made on the internet, it has never been easier for individuals to start up their own businesses. At the same time however, the surge of new businesses across the nation means that it is simultaneously harder to keep a business going. With expenses to manage, inventory to order, and human resources to maintain, owning a business can quickly prove to be an overwhelming task. For this reason, many small businesses have turned to professional employment organizations (PEO) so that they can just focus on business with confidence.
Employees are the lifeblood of any business, so ensuring that employees are paid in a timely manner is essential to keeping a business going. Many business owners start by managing their payroll in house and quickly learn the stress of doing so: business owners have to total hours, perform gross-to-net calculations for every employee, calculate and deposit payroll taxes, and prepare and file tax returns accurately and on time. Since payroll processing can be complex and expensive in the event of a mistake, many business owners instead find that outsourcing their payroll sources not only saves time, but can significantly cut down on the costs associated with mistakes when it comes to tax season.
Among professional employment organizations (PEO), human resource services are some of the most frequently contacted services. Small businesses with fewer than 50 employees are believed to benefit the most from outsourcing human resources; these services include employee-access tools, employee search tools, and benefits management among other features. A majority of small businesses that outsourced their human resources stated that they noticed a significant increase in productivity and employee retention alike; over half of all employees cite benefits as one of the primary determining factors for remaining at their job.
The Advantage of Professional Employment Organizations (PEO)
By far, the principal advantage of PEOs is the fact that they enable businesses to redefine what is possible. For instance, many firms in the United States are wary to expand into Canada due to the significant jurisdictional differences between the two countries — since taxes are far different between the U.S. and Canada, partnering with a payroll processing company or outsourcing human resources can allow your business to expand without jeopardizing it. By partnering with human resources or payroll processing services, companies are prepared to tackle the rising needs that come with owning an evolving business all the while focusing their attention on the business matters that take precedence.