When a business chooses to join with a Professional Employer Organization (PEO), they are electing to enter a PEO co-employment relationship with the organization. In short, this new relationship is where the employer and the PEO share certain business responsibilities in order to provide a better work environment for everyone involved.
A PEO co-employment relationship is one of the best additions you can bring to your company. Not only will this agreement open the door to bring a better work environment for your employees, it is also suited to meet your needs as well as the employer or business owner.
Benefits of A PEO Co-Employment Relationship
There is a variety of benefits associated with selecting a PEO co-employment relationship for your business. For starters, if you are a small business, joining forces with a PEO will open the door to allow you to offer a better selection of benefits to your employees because you can take advantage of the company’s group discount or policy, including health insurance, life insurance, short-term disability, legal care, discount medication programs, and more!
Not to mention, you can also take advantage of any other special promotions or opportunities the PEO is able to offer its employees. This can include connections to give you discounts to local attractions, better shopping opportunities, and more!
It will be as if your company has all the advantages of being a large corporation without losing your small business charm.
The biggest thing to understand about the PEO’s responsibility in terms of the co-employment relationship is that the PEO will become the “Employer of Record” for your employees. In short, this means they will take over much of the financial and tax responsibility for your employees so you don’t have to worry about it.
Responsibilities for the PEO under a PEO co-employment relationship include:
- Processing Payroll
- Payment of Employment Taxes
- Sponsors & Administers Employee Benefits
- Supports Compliance
- Manages Workers Compensation Issues
- Processes Unemployment Claims
- Provides HR Management & Consulting Services
Aside from these responsibilities, it is important to note that your PEO company will also be the company listed on your employee’s W-2 and other tax forms at the end of the year.
Don’t worry! The PEO co-employment relationship does not take away any day-to-day responsibilities and privileges from you, the business owner. You will still retain the worksite employer for your business.
The biggest benefit for an employer to join forces with a PEO is that it frees your time up from having to deal with much of the time-consuming and non-revenue generating responsibilities you have, including processing payroll and the other duties we listed above. This means you are able to focus all your attention on finding ways to grow your business and expanding your profit margin.
However, you will still be responsible for some employee-related matters under a PEO co-employment model. These responsibilities include:
- Managing Day-to-Day Business Operations & Employee Activities
- Providing Workplace & Resources
- Delivery of Services or Product Development
Ready to introduce your company to a new PEO co-employment relationship and bring your employees a better working environment? We can help! Call INVO PEO today to learn more about how we can help improve your business.