Trying to decide if PEO is the right model for your business can seem like an overwhelming decision. But, it doesn’t have to be. Here are a few specific areas to consider if you’re thinking about going with a PEO to handle HR needs:
1. The number of employees or contractors you employ.
One of the biggest misconceptions about PEO providers is that they only work with large businesses. And, while large businesses use them, there are numerous ways a PEO can provide benefits to small businesses.
So, what’s the best distinction for small businesses? Many consider 20-75 employees to be the PEO sweet spot, as it frees up employers to focus on the business side of the business.
2. The type of benefits you want to provide your employees.
PEO’s have thousands of employees, so they can generally secure better, more cost-efficient benefits packages that are usually reserved for larger companies. Later on in this post, we’ll highlight some of the additional benefits your employees can get by partnering with a PEO.
3. The complexity of your state’s tax regulations.
When it comes to abiding by the State Unemployment Tax Act (SUTA), most employers dread the costs and burden of filing these tax returns and managing the claims process. A PEO can handle all the administrative burdens of payroll tax regulations.
4. The growth potential of your business.
If you own or operate a business, especially one that’s growing, you can definitely attest to the ever-evolving complexity of managing employees. With the daily human resources tasks involving payroll, healthcare, training, and benefits (just to name a few), making the decision to work with a PEO as you grow will ensure the HR-related needs of your team are getting the attention they deserve.
5. Your desire to attract and hire top talent.
For large and small businesses alike, attracting the best possible talent is key to long-term success. Even more, preventing high turnover rates is something every company wants to avoid. A PEO can help any business compete for the top candidates in their industry.