PEO benefits: how do PEOs operate?

PEO benefits: how do PEOs operate?

7 de February, 2022

If you are asking yourself about the Professional Employer Organization (PEO) benefits you can leverage today for your company, it would be worth reading this entire article. The PEO usually counts on HR, payroll, legal and tax experts to partner with different businesses to minimize administrative costs, to improve payroll operations management and to help those businesses expand to international markets.


Furthermore, PEOs are helpful in mitigating health insurance and providing cost benefits for companies. Working with a PEO could be an excellent business strategy to get higher return on investment in different areas. This is why, currently, it is a popular and effective way to outsource human resource functions.

PEO benefits: how do PEOs operate?

Usually PEOs operate as professional employers of their clients’ workers. The client’s company reports its wages using the PEO federal employer identification number, and from that point onward employee liability shifts to the PEO. This kind of alliance makes employers gain a better economy and scalability because they will receive lots of benefits and alternatives at lower rates in most of the cases.

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PEO operations


If you work in close association with a PEO, you can outsource Human Resources (HR) functions. There is also an agreement called Administrative Service Outsourcing (ASO) that gives options to organizations.


Small and medium enterprises can receive significant advantages. This is because at times they do not count on the team with the right expertise or system capabilities to achieve goals needed for different functions such as payroll, workers compensation management, or do not have the time and resources available to focus on many of the HR functions.


PEO services may vary depending on providers 


Common services include: payroll, workers compensation, employee benefits, HR compliance, and custom solutions.


If you are starting or if you have been around for several years, it is important to know that you can rely on a partner in some of the more complex matters of the business. 


A PEO partnership brings incredible value to businesses of all sizes, especially small and medium enterprises, without the need to hire a good human resources manager or a benefits coordinator. 


Midtown HR is the company behind a hundred happy companies. We are focused on providing simple solutions for payroll and taxes, proposing benefits that really feel like benefits, keeping up with employment law and also helping protect your team. Let’s talk!