Starting a new business is an exhilarating yet harrowing experience, especially in today’s uncertain economy. Thankfully, there are some ways to make the process easier, such as partnering with a PEO (Professional Employer Organization) like Consolidated Personnel Services. The following are some notable areas where you can implement the services of a PEO as you launch a new business:
Payroll can become an enormous responsibility for new business owners. For small business owners in particular, payroll can be complicated and confusing. After all, ensuring that payroll is set up properly requires an understanding of various tax forms, federal, local, and state laws, on top of current regulations. It also demands a great deal of time which can be in short supply for business owners trying to get a new enterprise off the ground. Business owners often opt to outsource this responsibility to a payroll provider. While this does help some, it is more advantageous to partner with a PEO as they have the ability to offer additional professional services in addition to payroll administration in the realm of HR, thus providing more value.
Ensure Workers’ Compensation is Set up Correctly
Workers’ Comp is legally required in almost every state. Unfortunately, setting it up properly is one of the most complicated tasks most new business owners face. It is often identified as the singular biggest hassle and headache by business owners when it comes to setting up a business. What adds to this confusion is the fact that workers’ comp varies based on several factors, including:
- The number of employees a business employs.
- If there is a claim history or evidence of loss.
- The industry a business operates within.
- How long a business has been in operation.
Some workers’ comp insurance carriers simply refuse to insure new businesses. This causes many new business owners to turn to state-run funds. Unfortunately, this option is often more expensive than typical insurance companies. In addition, owners often have to deposit a large sum of money and there are year-end audits that get immensely complicated. Thankfully, simply partnering with a PEO can take care of many of the issues surrounding workers’ compensation in a few notable ways, such as:
- PEOs can often work with companies to help a new business avoid state-funded programs.
- PEOs handle year-end audits and often handle deposits on behalf of clients.
- PEO services can set workers’ comp to be pay-as-you-go, which is tied into their regular payroll. This can protect a business from overpaying for coverage.
- PEOs offer various services that can reduce the cost of workers’ compensation costs for businesses.
- They manage or oversee any workers’ comp claims.
- PEOs can save businesses money on their workers’ compensation costs.
Reduce The Load Shouldered by Human Resources
Employee management demands a huge amount of energy, time, and resources. Human resource specific responsibilities like developing job descriptions, developing/reviewing/revising employee handbooks and policies, conducting training sessions, assisting with hiring and firing guidelines, and reviewing employee record keeping regulations are all part of the day-to-day tasks of a HR team. Thankfully, by partnering with a PEO, new business owners can forgo having employees who are dedicated to these employee-management tasks. This allows them to dispense that money back into their business.
Helps New Businesses Thrive
Not only do PEO services help new businesses save money and function more optimally, they also help them thrive. Consider the following facts about businesses that partner with PEOs:
- They are 50% less likely to go out of business when compared to their peers who have not partnered with a PEO.
- PEOs help businesses grow. In fact, businesses that have PEOs grow 7-9% faster and enjoy a low turnover rate of 10-14%.
- Businesses save money, $450 annually (average), on their administrative costs per each employee.
Your Next Step
At Consolidated Personnel Services, we proudly partner with new businesses to get them off to a great start. No matter what services you require, we are happy to partner with you and ensure your business has the best chance of success. If you are a new business owner, we want to hear from you. Contact Dawn Hove at firstname.lastname@example.org or call 1-800-339-3548 for more information on how CPS, Inc. can help your new business.