October 18, 2016 |
The time for end-of-year payroll is almost here.
While you’ve muscled through the year thus far without issue, the end of the year is creeping up quickly, and you’re finding yourself overwhelmed.
You have to close out payroll, deal with taxes, and make sure you’re in compliance for 2017.
That’s a lot to do all while running a business too.
Luckily, you don’t have to go at it alone. A Professional Employer Organization (PEO) can help.
PEOs are one of those secrets that most businesses keep to themselves, but happily utilize. These companies offer everything from employee leasing to HR support.
As a busy Northern California business owner, you need someone to handle your HR department. A great PEO is one that can do everything from payroll to administration, employee health benefits, retirement benefits, workers’ compensation insurance, and tax compliance.
Did you know that companies who use PEOs for at least an entire year are approximately 50 percent less likely to fail? This is according to the National Association of PEOs.
This is because they handle a company’s HR needs. HR is surprisingly time-consuming, costly for a company, and overwhelming for any business owner.
As you try to run your business, you do not have time to do payroll, stay up on the latest employment laws, or worry about if you meet the right workers’ compensation limits dictated by the state of California.
With a PEO by your side, you are less likely to get hit with penalties and fines, stay in compliance, and keep your business running smoothly.
2. Payroll Processing Is Done For You
You no longer have to sit down and do payroll once a week. Instead, the PEO is your payroll service provider.
They manage all compensation for your employees, as well as payroll record maintenance. They can ensure you are meeting all payroll laws for the state of California, and generate online pay stubs as well as W-2s for the end of the year.
Even better, if you have employees with garnishments or deductions, the PEO will implement those so that you don’t have to worry about the excess calculations yourself.
A PEO can help your business with all employment-related regulatory compliance.
This includes the ADA, OSHA, EEOC, California Labor Standards, and IRS requirements. This is a tremendous cost-saving opportunity for your company alone. The assistance from a PEO for compliance purposes means that your business avoids penalties and possible shutdowns, according to Entrepreneur.
California has implemented the mandatory paid sick leave rules, and your business must comply.
A PEO can help you ensure all sick time accruals are met, vacation days are recorded, and generate individual reports for employees.
Also, your PEO will understand the rule for accrual of sick time in California, based on the 30/90 standard. So, you don’t have to worry about tracking employee days and accounting for mandatory paid sick leave hours.
It is not just you that will benefit from a PEO this year. Your staff can also benefit when a PEO is involved.
For example, they are more likely to receive their W-2s at the end of the year for taxes faster than if you were doing it yourself in-house.
Also, a PEO provides your employees with the opportunity to get retirement benefits and health insurance. This is important if you plan to hire for 2017; you need these benefits to remain competitive and attract the best talent.
Lastly, job security could be improved for the upcoming year by using a PEO, because your costs are lower, so you can afford to keep the employees you have and possibly take on more.
While the year is wrapping up, you should consider taking on a PEO.
With your payroll needs growing, labor laws changing for the upcoming year, and your end-of-year business to-do list growing, a PEO may be the best investment you make for 2016.