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5 Interesting Facts About Professional Employer Organizations

Are you thinking of working with a professional employer organization (PEO)?

You might wonder what a professional employer organization does and what working with one is like. When you go about hiring a professional employer organization, you want to know as much about them as possible. What exactly do they do? How will working with one impact your business?

Professional employer organizations help you with your HR responsibilities by taking charge of your human resources tasks. Their work frees you up to focus on managing your workers and steering them in the direction you want to go.

Want to know some interesting facts about professional employer organizations? Keep reading, and we’ll go into 5 of them below!

1. Professional Employer Organizations Relieve You of Responsibilities

When you go about hiring a professional employer organization, you will begin to work with people who can help you lighten the load on your plate.

If you are a business owner, you have to juggle a lot of different tasks. You need to manage your team, make sure objectives are being met, and make certain your company runs well and is reaching its goals. In addition, you need to provide compensation and ensure your business maintains compliance with the law and tax requirements.

Professional employer organizations provide essential HR services to your company, such as handling taxes and payroll responsibilities. This relieves you of the responsibility of making sure everyone gets paid, and you can focus on managing your team.

2. They Acquire Your Employees

Did you know that you actually lease your employees to professional employer organizations?

This means your workers will still work for you, but they will be listed under the professional employer organization’s tax ID. You’ll still manage them, but the PEO will help you keep track of everything related to human resources for these employees. They’ll pay them, handle worker’s compensation, and take care of other employee-related tasks.

3. They’ll Help You Employ Great Workers

Professional employer organizations don’t just help you handle internal human resources tasks. They also take the lead in hiring new employees and getting them prepared to work for your company.

When you need a new employee, the PEO will create a job posting and search for the perfect recruit. Once the person is hired, they’ll participate in onboarding the staff member and training them. This helps you get high-quality workers while taking the responsibility of spending hours sorting through resumes off of your to-do list.

4. They Share Liability

Sometimes, incidents occur within companies that require a business to assume liability. This often involves workers’ compensation situations, in which an employee has been injured on the job and requires compensation for their injuries.

If this situation–or any other liability-related incident–arises, the professional employment organization will work with you to resolve it.

5. They Provide Benefits

When you take advantage of professional employer organization PEO services, you get benefits packages for your employees.

This means you might not be able to build customized health insurance plans. Yet, they often provide these benefits at a reduced price. This means you will get your employees covered for less money.

Want to get started? Work with Avitus Group.

Ready to Work with Professional Employer Organizations?

Are you ready to start working with professional employer organizations?

These companies help you fulfill your HR obligations. This includes taking care of payroll, taxes, safety compliance, and hiring, training, and recruiting.

Want more lifestyle advice? Check out the rest of our articles today!

This post contains affiliate links. Affiliate disclosure: As an Amazon Associate, we may earn commissions from qualifying purchases from and other Amazon websites.

Written by Marcus Richards

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