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The tough competition in the business sector prevents a number of small-sized companies from making it big. With the rising cost of healthcare and other employee benefits, small sized businesses are struggling to comply with the regulations and at the same earn enough money to keep the business. Ask any business owner about their goals for the company and income is one of the most important things. Investing time and money on setting up and if expenses continue to rise, most small business are left with no other choice but to shut down their operations.
However, help is on the way for small-scale company owners, through the services offered by PEO or Professional Employers Organization. Their task is co-manage the employees and focus mainly on handling the aspect of payroll and taxes. Also known as human resource outsourcing, it provides a company with the help it needs in order to manage their employees well; ensuring that all documentations, reports are completed and in compliance with the laws and regulations.
But before you sign a contract with a Professional Employers Organization, do not forget to conduct a thorough research about the company to ensure that they are authorized. Here are some of the things that you should review carefully before employing the services of a PEO company:
1. Verify that they are licensed to work in your area. States have different laws governing businesses and a PEO must be able to comply with this. Double check with a local government agency to determine if the company was given the permission to work on your State. You may also obtain a copy of their credentials and company background in order to have an insight on how they run the company.
2. When in search for a PEO, expect to get bombarded with proposals from different companies. Take some time to listen and study their offers before jumping into any decisions. You can compare your business policies to that of the PEO and see if they can provide you with more benefits and savings. Also compare the proposals from various companies and choose the one that can meet your requirements and budget.
3. With all the legalities and technical terms involved in signing a contract with a PEO, consult your lawyer first and have the drafted contract reviewed. This is for your interest and to protect you from liabilities that may occur in case of failure from the PEO to comply with the contract agreement.
A common problem for most businesses especially during its initial stage is the lack of resources in order to establish an efficient HR department; this is where PEO enters the picture.
This guest post was written by business writer Danielle Jones for National PEO.