Professional Employer Organisations (PEO) have been gaining popularity in recent years. In short, a PEO provides comprehensive HR solutions to clients. This includes payroll and tax processing, employee benefits and regulatory compliance assistance.
There are many undeniable perks to engaging a PEO. Cost effectiveness, increased compliance, and employee welfare and some of the most common perks of engaging a PEO. However, the question remains about whether one’s company is suitable to engage a PEO.
If you are considering engaging a PEO, below are some questions that will help you in making the decision.
1. Has your company been fined for regulatory violations?
Every country has its own regulations regarding employee working hours and welfare. On top of that, there are also tax contributions, payroll, and off day requirements to be met. Needless to say, there are countless regulations to be met.
To add on to the headache, many of these employment laws can be changed at the drop of a hat yearly, monthly, or even weekly. In order to stay compliant to these laws, employers need to constantly keep on the lookout for any changes. Small to medium-sized businesses often lack the resources to keep up with any legislative changes that may take place.
This is not only time-consuming but can ultimately add up to additional costs for any lawsuits or fines that may build up from accidental non-compliance. A PEO is experienced and up to date with the newest legislations and changes and as such, can help you significantly with these.
If your company often finds it a challenge to stay updated and compliant to new legislations, a PEO might just be right for you.
2. Is payroll processing taking up too much time?
In the realm of payroll, taxes and compensation, there is a mountain of tasks to keep up with. Are you certain that you are able to keep up with all of these accurately and in a timely manner? If you find that payroll processes are taking up a massive chunk of time, it may be time to consider engaging a PEO to perform these for you.
Having payroll processes monopolising a large portion of the workday is no doubt time-consuming but also unproductive. It is important to know that all payroll-related functions are being calculated accurately and reported in a timely manner. An overwhelmed HR team might spend more time than necessary to stay on top of payroll reports, on top of correcting any inaccuracies in calculations.
If payroll processes tend to take up a large bulk of your HR team’s day, it is time to consider engaging a PEO to worry about this for your instead. PEOs are well equipped and experienced in the sector of payroll management.
As such, they are able to handle all your payroll matters accurately and punctually. A PEO leaves you with a lot less to worry about in the matters of payroll management.
3. Is the paperwork piling up?
Managing employees often means a mountain of data that needs to be recorded and kept for a certain duration of time. From payroll reports to employee data, there’s plenty of data that is mandatory for employers to keep a record of. However, that amount of data inevitably comes with a large mountain of paperwork and filing that needs to be done and kept.
Filing all of these manually and in hardcopy can be disorganised and messy. This not only puts you at a higher risk of losing important information, but these can also get stolen in more serious cases. If you are having trouble keeping up with paperwork, a PEO is a good solution to keep you organised and on top of the game in regard to these.
4. Where can I find a trustworthy PEO Vendor?
If your answer to any of the above questions is a “yes”, it might be time to look into engaging a PEO. There are plenty of vendors to choose from but it is important to check a potential PEO’s accreditation before proceeding with anything.
If you are considering engaging a PEO, you have come to the right place. AYP Group is well-versed and experienced in the HR sphere and all it entails. We act as a co-employer and take care of all your HR needs. If you have any questions about PEO, do not hesitate to contact us.
Handling HR matters can be a confusing process, but it doesn’t have to be that way. AYP Group has organised a webinar designed to tackle common pain points that many have with regards to HR. This includes issues such as payroll, finance, HR and management.
This webinar consists of two special guests, a General Manager and Operations Director who are experienced in HR, and what this consists of.
Registration opens on Monday, 30 November and is limited to 100 attendees. Sign up today at juztalent.com/webinars
