Employers Resource

PEO: Definition and Benefits for Your Business


  • Professional Employer Organizations (PEOs) help small and medium-sized businesses outsource some of their most time-consuming administrative HR tasks.
  • By engaging with a strategic partner, businesses can free up time to focus on high-impact initiatives. 
  • Employers Resource provides PEO services for businesses of all sizes, supporting them with payroll, employee benefits, compliance, and other HR activities. Contact us to get started!

What if your HR team could spend more time growing your business instead of just handling daily administrative tasks? You can achieve exactly that by delegating the most time-consuming aspects of HR —like processing payroll, handling taxes, and keeping up with compliance requirements— to a Professional Employer Organization or just PEO.

Think of a PEO as a strategic partner that ensures your business runs safely and smoothly, while you can focus on implementing strategies to attract and retain a skilled workforce.

Keep reading to find out what exactly a PEO is and how it can help your business. Let’s dive in!

PEO Definition

As we mentioned, a PEO is a Professional Employer Organization. These companies become strategic partners for small and medium-sized businesses, taking charge of essential HR tasks such as payroll processing, tax compliance, and managing employee benefits.

By outsourcing routine administrative HR tasks, businesses can free up valuable time to concentrate on more impactful initiatives.

PEOs work under a co-employment model. This means that both parties share different responsibilities: 

  • The PEO becomes the administrative employer, handling payroll and taxes, Workers’ Compensation, managing employee benefits, and other HR-related tasks.
  • The client (your business) is responsible for managing the core business, hiring staff, determining employee compensation levels, and supervising employee’s daily tasks and performance.

PEO Benefits for Your Business

If you run a small or mid-sized business, partnering with a Professional Employer Organization can offer some interesting benefits. Let’s take a closer look at the main advantages of starting a co-employment agreement with a PEO:

1. Relief from Administrative Tasks & Focus on Higher-Impact Activities

Your HR team is probably bogged down by repetitive administrative tasks related to payroll, compliance, and benefits.

PEOs can take over these time-consuming functions, allowing HR professionals to focus on more strategic activities. By partnering with a PEO, you can boost your team’s productivity and concentrate more on the things that move the needle, like keeping your employees happy and engaged.

2. Access to Better Employee Benefits

Employee benefits are a crucial factor when it comes to attracting talent to your company and can also help reduce employee turnover.

“If offered access to more benefits, 73% of employees would be encouraged to stay with their current employer for longer.”
— MetLife

However, the rising costs of healthcare can burden small businesses, which find it very hard to compete.

PEOs aggregate employees from multiple client companies, creating a larger pool. This allows smaller businesses to access more competitive health, retirement, and workers’ compensation benefits that they might not be able to negotiate on their own.

3. Make Payroll More Efficient and Error-Free

PEOs often have access to advanced payroll software that automates various aspects of the payroll process, making the entire process more efficient. Additionally, PEOs can integrate time and attendance tracking systems that can help you avoid potential errors in wage calculations and minimize instances of overpayment or underpayment.

Finally, since payroll involves keeping up with complex tax regulations and specific requirements, a PEO ensures you are always in compliance and keeps you safe from fines and penalties.

“40% of small to mid-sized businesses incur IRS penalties for incorrect payroll filings, with an average penalty amount of $845.”

4. Reduced Employer Liability and Risk Management

Because they share certain employer responsibilities and liabilities with client companies, PEOs can help you manage risk more effectively.

PEOs give you access to a group of experts who are always up-to-date with compliance and regulatory changes, reducing the risk of legal issues. This shared responsibility model can provide a layer of protection for your small or mid-sized business.

Learn How PEOs Can Make Payroll More Efficient

Employers Resource’s PEO: Make Your Life Easier

Having a strategic partner taking care of all your HR administrative workload can help you achieve more with your business.

With our PEO services, you can say goodbye to tedious administrative tasks, while reducing business costs and keeping your business safe

At Employers Resource, we’ve been supporting the dreams of American business leaders for over 30 years, assisting companies in four main areas:

  • HR & Compliance
  • Payroll & Tax
  • Employee Benefits
  • Workers’ Comp & Safety

Benefits of Employers Resource’s PEO

Here are the main benefits of partnering with us:

  • Access to a comprehensive PEO solution to handle your business’s payroll, compliance, HR, Workers’ Compensation, benefits administration, and more.
  • Tap into the expertise of a company that has been in the PEO industry for over 30 years, helping businesses of all sizes across the U.S. (Did you know we were the first PEO licensed in all 50 states?).
  • Engage with a company that makes things easy and transparent for you: A one-page service agreement and a single payment every month and we’ll get all your HR needs covered.

PEO Conclusions

Partnering with a Professional Employer Organization can help small and medium-sized businesses by relieving them of administrative HR tasks, providing access to better employee benefits, making payroll more efficient and error-free, and reducing employer liability and risk.

Employers Resource‘s PEO services offer comprehensive solutions and expertise in the industry, making it easier for businesses to focus on their core operations.

Contact us to find out how we can help you win back time and make your business more efficient!

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