PEO payroll services: which one is the best for your company?

If you’re considering outsourcing PEO payroll services to increase accuracy, reduce your administrative amount of tasks, and free up your HR team to focus on different activities, this is a good idea, but unless you choose the appropriate alternative for outsourcing, you’re not going to be able to see the whole benefits of it. What can you do to make the best decision?

PEO payroll services: which one is the best for your company?

Sometimes it can be a little bit difficult to manage all payroll activities, so today more and more companies count on professional payroll services providers. Most of the time these services are suitable for all kinds of organizations. Whether you are running a small business or a big organization, you can find a suitable solution for you.

Let’s check out the two main types of payroll outsourcing 

You need to know that the options are the Professional Employer Organization (PEO) and Payroll Service Provider (PSP). Let’s revise the differences between PEO services and PSP services, so you can choose a suitable payroll partner.

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What is a professional employer organization (PEO)?

The letters P.E.O stands for Professional Employer Organizations. They are also known as an employee leasing model, and that definition describes very well what they do, because a PEO will hire employees and you’ll lease them back, so you’re technically both co-employers.

Since the employees technically work for the PEO as well, the PEO will also be responsible for a wide range of workforce management functions like payroll, worker compensation, benefits and compliance. 

What is a Payroll service provider (PSP)?

These providers handle the administrative and compliance functions, including paying employees each pay period that normally include tax filing and employee pay options. 

Depending on the option you choose, they may also offer solutions for your business such as HR benefits, and compliance, so while you may just use a vendor to process payroll at the beginning, you could make the decision of using the option to outsource other functions until your main needs change in the future.

About the pros a cons

PEO

This option means your company will get more than just payroll processing. The full service approach of a PEO gives more free time to your HR team as we’ve said in previous posts, so they don’t have to take care of additional functions like hiring, health insurance and workers’ comp.

Under your co-employment relationship with a PEO, you’ll maintain responsibilities within the company such as assigning activities and providing your employees the tools and different spaces to work.

Payroll Provider

An outsourced payroll provider will be responsible for processing your payroll and its related functions. However, many payroll providers also offer a complete suite of solutions to help you manage your team members, including HR, benefits and compliance.

If you decide to work with a payroll provider, you still manage all your day to day operations and your workers. They will process payroll, unless you also want to use them for other workforce support and services like Human resources.

Only you and the members of your organization know about your priorities for outsourcing payroll, so you are the one to consider what’s the best fit, so you’ll need to decide what activities of a PEO or payroll provider will best meet all your needs.

Midtown HR is the company behind a hundred happy companies. We´re focused on simple solutions for payroll and taxes, propose benefits that really feel like benefits, keep up with employment law and also help protect your team.

Business needs: customs solutions Midtown HR can offer to your company

Professional employer organizations work with an employment relationship with the employer by leasing employees to companies, so it allows the PEO to share and manage many employee related responsibilities and important liabilities. In that way employers outsource their main human resource activities, such as employee benefits, workers compensation, payroll and employment taxes, among others.

As we all know PEOs usually serve as a professional employer of their clients’ employees. These businesses (clients) report their wages under the PEO’s federal employer identification number, and employee liability shifts to the PEO, after that employers gain economies of scale by having more options in terms of benefits and compensations, sometimes at lower rates.

Business needs: customs solutions Midtown HR can offer to your company

Midtown HR knows companies need solutions that fit their needs, and something that adjusts their size and their people so, for companies with unique needs, there are custom solutions. Among them we can find services such as recruitment support, insurance admin assistance, HR consulting, performance reviews, coaching and more. You can check out more about it here:

Employee recruitment

If you need to find top talent we know it’s quite a challenge, an ever expanding selection of candidates is not just difficult but also time consuming. You can now count on our team to search for the right addition and also deliver interview ready professionals with the background you’re looking for.

Insurance administration assistant

A range of insurance options through our masters policies, but we can also help you and your workers find your own competitively priced insurance from other providers. And you still get day to day policy admin and support from our team. Midtown works directly with brokers and partners to get the best available rates on health, dental, vision, work comp and other coverage. 

HR consulting

Whether you need day to day support or a one time consultation we can provide flexible HR services in that matter. We offer guidance on everyday HR concerns, from employee relations to government compliance, as well as larger, more strategic initiatives such as creating long term plans to keep your workforce on track to achieve company goals. 

Onboarding

Bringing on a new hire involves at a minimum plenty of paperwork and new information. We streamline the process with paychex flex onboarding platform, where new employees can complete paperwork, read/watch onboarding content and more.

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Performance reviews

For companies of all sizes, but specifically small ones, it’s important to make performance reviews about business and not personal relationships. By outsourcing your reviews to midtown HR, the process stays objective, measurable and most importantly, fair.

Coaching

Organizations can leverage our broad experience servicing diverse companies. Our coaching team can analice and advise your team on best practices for achieving your business objectives.

Workplace evaluations

Midtown HR can perform surveys to evaluate workplace attitudes and impressions. This is not only an opportunity for management to understand how employees really feel, but also to organize useful data for guiden operational improvements, if needed.

Handbook services

Memorialize your business policies, practices and benefits in a convenient, easy to reference handbook, to match your company’s unique policies or just revise your current book.

Midtown HR is the company behind a hundred happy companies. We´re focused on simple solutions for payroll and taxes, propose benefits that really feel like benefits, keep up with employment law and also help protect your team. Let’s talk!

What are the main differences between a staffing company and a PEO?

Business owners understand that when one organization grows the workforce starts growing as well, so the expansion is necessary and there are several partnership alternatives to take into consideration in order to manage HR-related responsibilities and different tasks. 

People usually get confused when it comes to differentiate PEO services with a staffing company. Actually, in different situations business owners have had experiences with one or the other, but the differences are not totally clear, so what are the main differences between a staffing company and a PEO? Let’s check it out in this article.

The main differences between a staffing company and a PEO

Let’s start with the concepts:

What’s a staffing company?

These kinds of companies not only place employees in temporary or positions with contracts, they also provide temporary to permanent placement, as well as direct hire placement. While the process is running they act as a recruiter for the employer, and the main job is to find the best candidate possible to fill the open position.

Staffing companies can provide resources for temporary positions, so you will have staff options available in case of vacations, leaves of absence, or new projects that may occur.

What´s a PEO company?

PEO´s emerged because many companies considered there’s a strong need for more support than the regular staffing companies or agencies offer. 

Professional employer organizations form a co employment relationship with the client’s organization with an agreement. The PEO offers comprehensive HR services to the company’s employer like payroll processing, HR compliance, employee benefits and everything related to workers compensation. Sometimes they run all these processes with an HR software.

On the other hand, in order for the company to comply with everything related to legal matters they also act as a co-employer and take on the legal responsibilities for a company’s employees. 

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Businesses and organizations working with PEOs

Basically any business can benefit from working with a PEO, but it might work really well with small and medium enterprises. We can say that bigger companies are also finding PEO services to be useful in the past years, and this is because they realized how robust their  technologies are and they also acknowledge that the broad expertise in every human resources activity is needed more than ever before.

Businesses and organizations working with staffing companies

Different organizations utilice staffing agencies to find the right talent for them. Small, medium and large companies work with them to fill full-time and temporary positions.

Staffing companies are experts in finding and placing permanent employees, especially in certain industries where there is a high demand for specialized skills. 

The main differences 

Both staffing agencies and PEOs are focused on workforce and HR activities, but with a staffing agency you’re outsourcing your hiring process and the associated tasks. With a PEO, you’re hiring on your own and only outsourcing the administrative tasks related, like payroll, workers compensation and compliance associated.

Let’s remember the people in a staffing company are part of their employees and when it comes to a PEO there is a co-employment agreement, where there is an employer “on site” (the client) and one employer of “record” (PEO), in those cases the PEO is responsible for taxes and unemployment claims.

In order to give a closing to this article we can say it’s clear that PEO offers more services than staffing companies, and one of the main differences is the role of the PEO as a co-employer, because they share all the accountability and responsibility related to the workers.

Midtown HR is the company behind a hundred happy companies. We´re focused on simple solutions for payroll and taxes, propose benefits that really feel like benefits, keep up with employment law and also help protect your team. Let’s talk!

What is the future of work?: tips to prepare your workforce

Asking where people should work in the future might not be the right question, the question should be: what’s the option that enables people to have better health and productivity? If we articulate a good answer for that maybe it would make us understand what is the future of work.

It’s a question many are asking to the collective intelligence in order to reimagine how and where we work. Different studies have discovered that most people want a hybrid model, where they sometimes work remotely and sometimes go to the office.

Human resources policies and leadership practices have changed, and new workforces segments are emerging. The truth is organizations are struggling to provide models that satisfy the needs of all workers all the time, but maybe it’s not possible to make everyone happy consistently so, hybrid might be the closest answer to this dilemma. 

In any way, in this article we´ll check out a couple of tips that you should consider if you are looking to prepare your workforce for the future.

What is the future of work?: tips to prepare your workforce

The pandemic has certainly triggered a transformation in our lives. We’ve been forced to drastically change the way we work, travel, seek care, spend our free time and interact with friends, family and other people we love.

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1 | Adaptability and changes

Adaptation is key, so today you should look at your people and start considering how they are working, what they think, how they feel and react today. Maybe you´ll find out the shift to remote work is better for them or maybe not.

You might discover that a system you put in place as an emergency alternative to survive the pandemic works better than what you actually used before.

2 | Retention of workers is important

Employee retention is more important than ever before. We need to understand quality employees are considered premium. While it was effortless to keep them on board during the height of the pandemic, they’re beginning to realize they have alternatives.

Today people are thinking twice about their current position, everyone is evaluating roles, payment and the expectations they value the most. A retention strategy might help your HR team to cope with different situations ahead.

3 | Train Your Workforce

We all know this is important but, you should always remember introducing your workforce to new strategies, tools, or technologies that the company is adopting is necessary, and it’s also a good way to generate trust.

The best way to do that is up to you. According to different studies online courses are reported to still rank second compared to in-person studies, in terms of perceived effectiveness. 

3 | Human resources processes 

HR collaborators have had to work hard in their organizational agility in order to keep up with the quick and unexpected changes at their workplaces, for instance, a massive transition to remote work. 

It’s been almost two years but, the pandemic continues to make the future of many businesses uncertain, prioritizing and taking care of employees has become one of the most relevant parts. 

HR has always been responsible for this in some way, but everything has taken on a brand new meaning, so we can say key priorities nowadays are:

• Cultivating the wellbeing of employees.
• Give alternatives when it comes to the place people work from
• Facilitate effective remote work
• Engaging employees.  Effective communication is key
• Be committed to diversity, equity and inclusion
• Cultivate the company culture
• Build good relationships with frontline collaborators

Midtown HR is the company behind a hundred happy companies. We´re focused on simple solutions for payroll and taxes, propose benefits that really feel like benefits, keep up with employment law and also help protect your team. Let’s talk!

How to choose the right (PEO) professional employer organization?

Choosing the right PEO (professional employer organization) could be something not easy for some companies, so before making your decision you can check out a couple of pieces of advice we organize in this article.

First thing you need to learn is what features to look for when choosing a PEO. A professional employer organization is basically a great HR solution for small/medium business owners. As we’ve said in previous posts, PEOs use a co-employment model, which grants businesses access to different benefits, including health and dental insurance, workers’ compensation coverage and risk management support, among others.

How to choose the right (PEO) professional employer organization?

1 | Analice their accreditation and performance

One of the first things you need to look at when you are selecting a PEO is to ensure they run their processes the right way, and in order to do that you can consider what follows:

• Be sure the PEO is accredited.
• They are members of NAPEO (National Association of Professional Employer Organizations)
• Ask if their financial states and different operations are certified by an outside source.

2 | Experience in compliance aspects

Everything related to compliance is changing constantly, with new mandates coming down monthly from federal, state, and local authorities. One of the main tasks a professional employer organization has is to help your company apply all the knowledge associated with staying up to date with compliance. 

3 | What kind of benefits does the PEO offer?

This is one of the main reasons organizations decide to work with PEOs, because everyone wants to receive better benefits (quality benefits) or check out a list with different good options, so take the time to revise what programs they offer, how those programs compare with your offerings today, and it’s important to understand everything related to costs as well.

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4 | Testimonials and reviews can help

When it comes to choosing the right options and making decisions, the opinions of other people or maybe companies that have worked before with the PEO can be something useful and beneficial. Actually you can ask them about references from other clients. 

To get the best benefits requires partnering with the right PEO. At the end of the day, it’s clear that choosing the right one can take your human resources, payroll, and general HR management efforts to the next level, which means happier employees around.

Midtown HR is focused on simple solutions for payroll and taxes, propose benefits that really feel like benefits, keep up with employment law and also help protect your team, ¡Let’s talk!

PEO international trends to pay attention in 2021

Everyone knows the last two years have changed different companies and industries, professional employment organizations are not the exception. Despite the hard days we´ve been living in the pandemic, PEOs everywhere have still been able to add real value to their clients by helping them find solutions to Human Resource (HR) related challenges. Let’s take a look at some of the PEO international trends to watch in 2021.

PEO international trends to pay attention in 2021

Compliance is a priority

A key aspect of business ownership is compliance to the country’s laws and regulations. This includes areas such as payroll, tax contributions and employee rights. Employers can find it challenging to stay on top of all these regulations, especially since they are dynamic, unpredictable and ever-changing. 

Automatization of processes

PEOs offer online portals where HR departments and employees can manage different key work functions. Today we can leverage the benefits of a software, so repeatable tasks are no longer made manually, the steps can now be made with a few clicks.

This possibilities ensures accuracy in every task performed and also makes us save a lot of time, at the end of the day the quality of the whole work increases.

Cloud storage is key 

Cloud computing technology or cloud storage offers immense benefits and It’s not something new and weird anymore. Different services are available by using the Internet connection and the Cloud. The cloud offers servers, software, storage and security over the internet.   

The PEOs are changing from traditional servers to online cloud systems, and it’s actually a great decision. Cloud storage not only provides better security systems, but also great analytics and a higher quality service as the result.

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Client growth

Companies working hand to hand with a PEO have experienced significant growth. This is reflected because now they have the ability to focus on their own business management while leaving the tasks like payroll, compliance, workers compensation and other employee benefits management to a PEO.

In order to close this article we can say that PEOs have been going through different changes to meet the demands of the new workforce, and this will continue because as we all know the industry will evolve, the good thing is that we will do it along with it.

MidtownHR can help your company with simple solutions for payroll and taxes, propose benefits that really feel like benefits, keep up with employment law and also help protect your team, ¡Let’s talk!

What are the best PEO company services in 2021?

One of the best things about PEO companies is that they allow you to choose from full service selection or a specific custom pack for your business. The chance to adjust services to the needs of your organization makes them ideal and unique.

PEOs are an excellent option for organizations that aim to deliver world class support in terms of different benefits for employees and without the need of hiring an in-house group of people.

It’s imperative that you find and understand the right PEO services for your organization, so here we show you some of the very best services in 2021.

The best PEO company services in 2021 

Payroll processing

The steps needed to manage payroll processes the right way can be accomplished using different tools and methods. The important thing is to do an accurate and efficient job in order to comply with various payroll regulations.

PEOs first suggestion is to keep a precise record of hours worked, wages already paid and worker classifications, among other details considered relevant. A professional employer organization ensures your calculations are correct and also file all the necessary taxes and paperwork with government authorities on time. 

Employee benefits

A PEO can do the necessary work to reunite and compare different quotes from insurance companies to provide your employees with the most cost-effective benefits packages. 

On the other hand, your company might have great benefits to offer already, but you don’t have the time to manage properly, or you don’t have the resources for admin, so a PEO can take over your plan’s administration. This service is typically used for health insurance but we can adapt it for other benefits.

You can also read: What is a professional employer organization (PEO) and how does it help my company?

HR compliance

HR compliance consists in defining policies and procedures to ensure your employment and work practices demonstrate a thorough understanding of applicable laws and regulations, while also being aware of the company’s larger human capital resources objectives.

Compliance essentially refers to the rules that your organization must follow in order to protect your interests and your employees. From local statutes to federal regulations, it’s the PEOs job to understand the right requirements and to keep you compliant.

Workers compensation

When it comes to workers compensation businesses in 2021 continue to adopt a digital first approach, and it goes from safer work environments to the increased use of telehealth, workers’ comp rates and policies will likely shift next years.

These trends can impact workers’ compensation rates. A PEO company can work hand to hand together with your organization so your business will be able to provide the right coverage and plans for your employees.

MidtownHR can help your company with simple solutions for payroll and taxes, propose benefits that really feel like benefits, keep up with employment law and also help protect your team. MidtownHR is on a mission to create a world of optimistic entrepreneurs.

What is a professional employer organization (PEO) and how does it help my company?

Let’s start this article defining what´s a PEO. A professional employer organization (PEO) is a type of full – service human resource outsourcing company that performs different employee administration tasks, among them we can find services such as employee benefits, payroll, worker compensation and others. Some PEOs have strategic services as well, so it’s important for you to find the provider that best suits your needs.

PEOs are really helpful for small-medium sized companies, if you work hand to hand with them your business can grow, and you can be confident knowing that human resources activities are well managed.

How can a professional employer organization (PEO) help my business?

Here are some examples of the activities that professional employer organizations do:

Employee Benefits

When it comes to employee benefits, PEO companies work with the co-employment model (a contractual allocation and sharing of certain employer responsibilities between the PEO and the client), which means there’s a large amount of members paying into benefits packages, so medium and small businesses have access to a great quality of employee benefits.

These companies can help you access medical, dental and vision coverage for your employees at accessible rates.

Payroll

These services not only free up company owners so they can focus on their growth and the good development of the business, but it reduces the chance of any kind of errors on payroll management.

MidtownHR has an alliance with Paychex, and works ensuring compliance with all state and federal tax requirements, to direct deposits, electronic W-2s and more. It helps administer payments to full-time and part-time employees (salaried and hourly).

HR Compliance

HR compliance is about employment laws, regulations and advice on how to comply. If you work with an outsourcing company like a PEO that helps you with this type of activity, they can ensure that your business is in compliance with all commun labor laws.  Compliance essentially refers to the rules that your business must follow in order to protect your interests and your employees.  

Workers´ Compensation

It’s something sometimes it’s not considered, but a lot of businesses need worker compensation insurance to provide to their workers in order to give it to employees who injured themselves on the job in the course of their duties. 

In some states it is required by law, and rules vary between states, for example, in the state of florida, it is enforced to businesses with four or more employees. Construction businesses must have coverage for every employee. In the state of california every company must have it, no matter the size or the type of company.

Workers’ compensation is a critical part of protecting both your company and the people who work there. Safety management is important, PEOs use comprehensive tools in place that help reduce companies risk and the possibilities of a workplace incident.

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What professional employee organizations do not offer?

As we have said before, PEOs can handle different types of HR administration activities, but it does not mean they have the whole control of your organization, so what they´re not going to do is:

• Make decisions regarding your business independently
• Marketing activities, sales or product distribution
• Dictate pay rates, hours or schedules (but PEOs ensure compliance on 

the minimum rate pay)

Different businesses can benefit from outsourcing their HR needs to a PEO, but according to data small businesses with between five and 100 employees are especially prepared to have a great boost.

MidtownHR can help your company with simple solutions for payroll and taxes, propose benefits that really feel like benefits, keep up with employment law and also help protect your team. MidtownHR is on a mission to create a world of optimistic entrepreneurs.

Advantages of a PEO for the Small and Mid-sized Business