Sunkiko is a PEO (Professional Employer Organization) that provides a wide range of outsourced employee and HR management services, including payroll administration, unemployment management, insurance, benefit administration, human resources, workers’ compensation and tax reporting.
We get calls daily from business owners and company leaders who feel they need help, but are unsure of how payroll and HR outsourcing works. More often than not, we can help provide them with information on different types of services and help them decide which type of arrangement will work best for their needs. The goal of this blog is to help you understand what a PEO is and how it can help your growing business.
So, what exactly is a PEO?
A PEO provides outsourced human resources services and back office solutions, including payroll, benefits, employee administration and workers’ compensation to other companies. PEOs deliver these services through a co-employment arrangement in which a client’s workers become joint employees of their company and the PEO, being paid by the PEO directly with the PEO serving as their employer of record for tax and insurance purposes. In other words, the client is the onsite employer and the PEO is the administrative employer. While employers retain control over operations and workforce management in this scenario, hiring a PEO allows them to transfer much of their compliance burden and employer-related risks to the PEO. PEOs also offer deep HR expertise, allowing them to consult on HR strategy, processes and best practices to create customized programs designed to meet specific business needs and goals.
Why should I work with a PEO?
In a recent e-blast from PEO Compass, the company shared a terrific infographic with the 3 major benefits that come from using a PEO (see below). These include faster growth, lower employee turnover and greater business longevity.
If you ask our clients, they’d tell you that we’ve been able to help remove a huge administrative burden from their shoulders, allowing them to place their focus on what they enjoy doing most – running and growing their businesses. Interested in learning more? Give us a call today!