A Guide for Choosing PEO Payroll Services
For companies operating globally, PEO payroll services can help keep track of employee salaries, benefits, and more. Payroll is a large company expense and can also be a huge time waster for managers and company owners. Here is some information about PEO services, what they are, and how to choose the best provider of services.
Understanding PEO Services
Professional employer organization (PEO) services provide select human resources services for various companies around the world. These services can range from selecting and offering insurance for employees to processing payroll and distributing payments. By hiring someone to perform PEO payroll services for your company, you outsource busy, complicated tasks to them so you can focus on other important duties your role requires of you.
Meeting Legal Standards
PEO services also assure that a company stays compliant to international employer standards, which can be incredibly complex rules with severe consequences for violations. Hiring a PEO is unlike straight outsourcing in that your business maintains control over the employees the PEO manages. The PEO is essentially taken on as a supportive arm of your company, rather than someone who bills you for outside work. This means you won’t have to maintain a foreign corporate entity for your goals in global expansion.
The fees for their services vary, but the benefits are vast. Choosing the right PEO requires that you understand what services you want them to offer you, how many employees you have and plan on hiring in the near future, especially if they’re in another country, and what type of company culture you want to create. You should only work with a PEO that understands your goals and wants to help you reach them.
PEOs have different cost structures—some charge per employee or per payroll session, while others charge a percentage of the gross payroll payout. The ideal cost arrangement varies and is based on your company’s size and finances, and whether it’s establishing itself in another country.
You should also base your decision on the PEO’s commitment to customer service. You and your employees will all need to rely on the PEO and should feel comfortable working with them. Locate PEO payroll services providers online and contact them to find out if their services are right for you.