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Hiring in Canada? You’ll Need a PEO to Save Stress, Time, and Money

Posted by Stacey Duggan

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Jun 3, 2016 9:00:00 AM

Hiring_in_Canada_Youll_Need_a_PEO_to_Save_Stress_Time_and_Money.jpgAcquiring talent for your company is no easy task, and it becomes even more difficult when the 'well runs dry' in the U.S. If you're struggling to find qualified local candidates, you should join the thousands of American businesses that have taken advantage of experienced Canadian workers.

While looking up North to Canada for employees is wise, it can be quite challenging for U.S.-based companies to ensure they are in Canadian compliance when paying their Canadian staff. To avoid the common pitfalls of international employment, you need to seek the help of a professional employer organization (PEO). From outsourced payroll services to managing Canadian laws, these global management services enable you to get the most out of your new employees.

Before you begin hiring Canadian employees, you should learn about the differences in employment between the two countries. Here's a quick overview of Canadian compliance, and how a professional employer organization can help you bridge this gap smoothly.

Complete Payroll Solutions

Companies hiring within the U.S. are strongly encouraged to invest in outsourced payroll providers, but these services are particularly essential when it comes to hiring Canadian workers. There are more than 190 regulatory legislative requirements when it comes to payroll processing in Canada, and failing to adhere to even one of these regulations could put your business in jeopardy.

Avoid Bureaucratic Confusion

Perhaps the most significant benefit of a professional employer organization is that it allows you to reallocate your in-house staff and resources to other tasks. Small businesses stand to benefit from outsourcing payroll and HR services to a dedicated company because it allows them to focus on their core business. If you're stuck on the phone trying to figure out Canadian payroll legislation all day long, you'll never reach your full potential as an organization.

Bridge the International Gap

Some U.S. firms are hesitant to expand into Canada due to the jurisdictional differences between the two countries, but this can be a grave mistake. Canadian is full of qualified employees who can often work at a lower rate than you're paying your current workers. You just need a trusted third-party to handle government remittances and other tasks to bridge this international gap.

Hiring Canadian workers is truly one of the best ways to grow your business, but you need a bit of help for this transition. Learn more about PEOs and experience the many benefits of outsourced payroll solutions.

12 Things an American Company Looking to Hire a Worker in Canada Needs to Know

Topics: PEO

How Do Employees Benefit from a PEO Arrangement?

Posted by Corinne Camara

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May 13, 2016 9:00:00 AM

How_Do_Employees_Benefit_from_a_PEO_Arrangement.jpgWe know by now how a PEO arrangement can benefit businesses by saving ample amounts of time, resources, and money in both the short and long term. Outsourcing peripherals is an excellent way to promote growth within small companies, or help larger companies focus on their more direct goals. A PEO can even help a business expand into another country with ease.

That said, there is some concern about how they can help employees directly. Questions arise: what benefits are there for my workers? The business may be saving money, but does it help staff? These are important questions, and ones commonly associated with discussions revolving around outsourcing. The fact is, there’s a number of ways employees can benefit from an arrangement with a PEO. We’ve listed just a few.

Higher Accuracy

Because of it's relative complexity, both payroll and human resources departments are bound to make mistakes, especially in smaller companies where they're understaffed, overworked, and on tight deadlines. These mistakes can be relatively harmless and completely unintentional, but they can cause much bigger problems, especially for your workers.

Consider how often hourly paychecks get miscalculated—it's a topic of discussion among many hourly workers and has happened to most of them at least once. Employees need to know they will be paid on time and paid correctly. Like everyone, they have budgets and bills to worry about, and a mistake in their paycheck can have big consequences. Late paychecks can result in trouble as well, and if these problems become consistent (whether intentionally or not), they can result in lawsuits and fines. When you enter a PEO arrangement however, you're outsourcing these kinds of things to a larger team made up of the top people in their field. This means the changes of mistakes go way down and your employees can feel more secure in knowing that even a tiny mistake won't get in the way of their lives.

Free Up Time to Focus

Payroll and human resources are arguably two of the biggest time hogs in business—no matter how many people you have managing each, it takes a great deal of energy, money and resources to complete it properly. And remember: it has to happen on a regular cycle. Whether it's a small company struggling with the assets they have to complete the tasks, or a large one looking to increase their efficiency, many have entered into a PEO arrangement simply to take their own time back.

PEOs are full teams of experts—they know the law, they know accounting, they know payroll and human resources management, and they have the kind of resources most businesses simply can't afford. This means up to date knowledge of regulations that may shift year to year, or a firm grasp of cutting edge technology. One way or the other, they're always ahead of the curve. When you deal with a PEO, you free your current employees up to focus on your core operations—no more slogging through peripheral work, they're able to be creative and lend their skills to the most important aspects of your business instead.

Benefit Management

The topic of benefits has become more critical in the workplace as of late, with many employees insisting that they'd rather have benefits than a pay raise. This creates a quandary though for many companies—they simply don't have the money to provide the kind of benefits that would attract and retain skilled employees.

Because PEOs deal with employees from all kinds of workers, your PEO arrangement can get you quantity-based benefit package deals that you can only imagine. This means higher quality benefits for a much lower cost, something that allows even the smallest of businesses to offer only the best to their employees. And that's something we can all be happy about.

7 Signs It's Time to Outsource Payroll

Topics: PEO

Why Would a Business Use a PEO?

Posted by Karen McMullen

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May 9, 2016 9:00:00 AM

Why_Would_a_Business_Use_a_PEO.jpgPEOs (or professional employer organizations) are increasing in popularity among businesses, regardless of the industry. Small, medium, and large companies alike have had their curiosities peaked by the boundless information that's becoming available on the topic, and are following the lead of industry leaders who have taken advantage of PEO services.

That said, many questions remain. We may know a lot about PEOs themselves, but what is it they do and more specifically, how can they help businesses? We know they provide certain services like payroll and HR help, but what sets them apart from any other agency? Luckily, we have the answers to those critical questions.

Increase Payroll Efficiency

First and foremost, PEOs are known for their expert grasp on payroll—and payroll is more time-consuming and expensive than you might think. In Canada alone, there are over 190 different labour and payroll laws that have to be taken into consideration for each paycheque. It adds up quickly.

A professional employer organization will help your business manage their bookkeeping and remittances, garnishments and taxes, deductions for RSPs, the CPP, Employment Insurance, and more. Instead of hiring a full team to manage things for you (which can be costly), or having one or two people struggle through this alone (which can create expensive errors), hiring a professional employer organization means you're delegating to the experts. PEOs will get things done properly and it will all be clearly laid out on a single invoice before you know it.

Legal Compliance

Payroll and human resources are both very complicated aspects of business, and because of that, a great deal of smaller companies struggle to handle it all in-house. Surely, not everyone can afford lawyers and great legal minds to pick apart the intricacies of contracts, payment, taxes, and more—and that's where a PEO shines. They're not just experts in payroll, they're experts in law as well.

Whether you're concerned with business registration, contract and employment law, human rights codes and regulations, tax laws—PEOs are equipped to handle it. Because this is their focus, they can deal with commonplace issues with ease and are also adept at dealing with rare things that can crop up as well. You don't have to worry about misclassification again, and you can help reduce your risk of costly mistakes that could open you up to lawsuits, fines and penalties, or perhaps even jail time.

Business Expansion

There's no doubt that business expansion into a new country is often a trying event, even for businesses with experience. Administrative work and business registration alone are enough to give anyone a big headache, let alone the issue of how to hire and pay your new foreign workers. Thankfully, this is yet another task a PEO can take off your plate.

As experts in payroll, human resources, and legal compliance, you couldn't have a better partner for your business expansion than a PEO. From establishing an administrative presence in your target country to obtaining a business number, these are steps you can happily rely on a PEO to handle. Since they are already established in Canada (and thus, already fully compliant, complete with insurance, banking infrastructure, and tax setups) they can hire employees on your behalf and contract them to you based on your specifications. This means you can get started working with the best employees without any of the registration trouble. They'll manage your workers payroll, HR and taxes on your behalf as well, which leaves you with little to do but concentrate on your goals.

12 Things an American Company Looking to Hire a Worker in Canada Needs to Know

Topics: PEO

How Does a PEO Arrangement Work?

Posted by Stacey Duggan

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Apr 25, 2016 9:00:00 AM

How_Does_a_PEO_Arrangement_Work.jpgThere’s been a great deal of discussions lately on the topic of PEOs (or, professional employer organizations) and all the benefits they can extoll. Apart from just being experts in all things payroll and human resources, they're also legal experts and can even act as employers of record for companies looking to expand across the border. Even so, you need to know specifics when it comes to the actual process itself and how it works when you're thinking of partnering. How does it work? What exactly does it include? Is the process as easy as it seems? That's something we aim to clear up now.

What Is Included?

It's important to keep in mind exactly what a PEO can provide for you. It's not just a matter of handling payroll and managing human resources. They can also take legal responsibility for your workers and subcontract them to you to help you avoid the hassle of registration overseas. This co-employment situation takes a great deal of the pressure off of working through complex and tedious paperwork in a new country.

You'll not only be gaining access to experts in the field, but their tools as well—this means technology like integrated HR systems and payroll software, making it easier to manage even the most intricate of tasks. Because they work for various businesses, you'll be getting more buying power when it comes to employee benefits, with the benefits themselves being more comprehensive. You'll be able to know with confidence that the people handling your work are constantly being trained so they remain up-to-date on everything—the newest and most obscure laws, the best technology, the most efficient methods, and more.

The Details

So down to the bottom line: how does it work? Well, there are many options. Generally, when you first partner with a PEO, you'll be establishing some things between you—rates of pay, vacation and holiday policies, pay schedules and other things of that variety. This can all be negotiated based on your preferences and will be double-checked by the PEO to ensure everything is correct before they proceed.

A PEO will help you get set up and stay in communication during the entire process, ensuring that everything meets your standards and needs. This means providing in house training and making sure the tools are well understood by anyone responsible for those duties.

When that's over, your first payroll goes out and will be under heavy review to make sure everything is exactly how it's meant to be. This means ensuring compliance across more than 190 different regulatory legislative requirements across Canada, catching costly mistakes (billed for 400 hours, rather than 40) and making sure all parties involved understand the full process. Since everything will be dramatically simplified on your behalf, it's no trouble to add expenses or commissions, track vacations and sick days with ease, access histories, ROE's, T4's and a lot more, all of which reduces the incredible amount of time payroll can take up. If ever anything becomes confusing or difficult, you can rely on a strong customer support team (no robots or electronic phone calls) to help you out whenever you need it. Finally, you'll be billed for each pay cycle on a single invoice that details everything done so you're always in the loop. Given how simple the process truly is, and how much time and money it can save, it's no wonder that so many businesses have made the switch.

12 Things an American Company Looking to Hire a Worker in Canada Needs to Know

Topics: PEO

Why You Need a Canadian PEO to Expand Your Business into Canada

Posted by Ray Gonder

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Mar 2, 2016 9:00:00 AM

Why_You_Need_a_Canadian_PEO_to_Expand_Your_Business_into_Canada-1.jpgIt's 2016 – a new year for us both personally and professionally and now's the time a lot of companies have decided to take the leap and expand their business into Canada. And why not? Canada is a land full of resources, with a strong foundation and intelligent, skilled workers abound. Culturally, it's diverse but also familiar, and the citizens make up a massively untapped market, ripe with opportunity.

That said, there seems to be something stopping more companies from taking the leap and it's no wonder that it often comes down to bureaucracy. Expansion is difficult, there's no doubt, but the rewards often outweigh the gain – and as for that difficulty? That's where a Canadian PEO comes in.

1. Expedite Registration

No doubt the most difficult and anxiety-producing aspect of expanding a business is having to establish yourself in a new country. Even in the case of Canada, where laws seem familiar, you need to create an administrative presence, which amounts to registering for a business number, buying all appropriate insurance, hiring foreign employees from the area (and that comes with complications of its own, as you'll see below), and more. For many business owners who have already done this in their own country, it can seem like an irritating step and one they'd like to avoid if at all possible. Luckily, it is possible.

When you partner with a Canadian PEO, you can skip that step altogether. A PEO is already well established in their country, already registered, and already insured. They have a full tax setup and as a recognized and official company, can hire whichever employees they want. This means you can simply use them as a go-between. Work with a PEO that will hire employees on your behalf and you can skip those steps and get the benefit of their vast experience in all things payroll, human resources, and law.

2. Expert Payroll Processing

Speaking of payroll expertise, I'm sure we're all well aware of just how much time and energy payroll can take up. That only becomes more complicated when you're paying employees from another country, even one you're expanding into. There's a question of what currency to pay them in, following the various labour laws related to pay cheques, managing deductions for government services you're not familiar with, and holiday pay for holidays you might not have even heard of. A Canadian PEO is first and foremost a payroll expert and it shows in the quality of their work. Not only do they act as the legal employer of your workers, but they also handle all payroll and human resources related duties as well. This means you don't have to worry about handling any of the payroll, just paying a flat fee to your PEO to ensure it all gets done.

3. Thorough Legal Compliance

Legal intricacies dog just about every aspect of a business expansion, from registration to hiring to payroll and human resources – that's why so many businesses in the past have hired expensive lawyers to help them navigate those rocky waters. Perhaps the most valuable aspect of a Canadian PEO is their legal expertise. For those hoping to spend more time worrying about their operations and less time worrying about nuances in the law, this is where a PEO really shines.

A Canadian PEO is not just well trained, but also familiar with just about every imaginable scenario – from the common situations to the rare and complicated ones – and can ensure you're fully protected in any case. You can keep yourself fully compliant without having to navigate thousands of new laws and regulations and ensure that your company, your employees and you are all treated fairly. When you have so much else to worry about, any concern that can be taken off your plate is welcome, so consider consulting with a Canadian PEO before you go ahead with your expansion.

12 Things an American Company Looking to Hire a Worker in Canada Needs to Know

Topics: PEO, Expanding Business into Canada

What Is a PEO and How Can Your Business Benefit?

Posted by Stacey Duggan

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Feb 29, 2016 9:00:00 AM

What_Is_a_PEO_and_How_Can_Your_Business_Benefit.jpgSimply put, a PEO is a professional employer organization – a company tasked with aiding other companies in day-to-day tasks that can otherwise cost a great deal of money or time. They have myriad talents and for that reason, more companies than ever have been partnering with PEOs in order to simplify their daily processes and be able to focus more on their businesses.

Naturally, there are still some people in the dark about all the ways a professional employer organization can benefit them and they have a lot of good questions about the specifics. Here are just a few things that a PEO can do for you.

1. More Efficient Payroll

By far, payroll (and human resources, but we'll get to that) is one of the most strenuous areas of doing business. Small businesses and start-ups rarely have the resources to dedicate to comprehensive payroll, while growing businesses discover just how complicated payroll can be. That's where, perhaps, a PEO shines the brightest. As payroll experts, that's their specialty and for a lower cost than several full-time employees, their team can step in and simplify the process for you.

Consider all the deductions a regular pay cheque requires, the timing and the legal compliance on top of it. Garnishments and taxes, credits and vacation pay – there's so much to worry about and it can be an overwhelming ordeal, especially since you'll have to do it again within the month. Consider finding out just how efficient a PEO can make your payroll processing, and no doubt you'll enjoy the extra time and money.

2. Smoother HR

Because it's difficult to separate human resources and payroll from one another, this is another task that PEOs are specifically specialized in. For many companies, those departments are linked directly, so while you're at it, consider how a PEO can vastly smooth out human resources on your behalf.

By dealing with experts, you're making a pointed decision to minimize your risk overall – as with payroll, human resources is steeped in complication and it's a good idea to have the same people managing both (so the left hand knows what the right is doing, so to speak). This already simplifies the process, but it can be further simplified when you consider how a PEO can minimize costs associated with recruitment and layoffs, contract and union negotiations, and a great deal more.

3. Legal Compliance

All things in the end come down to legal compliance, perhaps one of the more dreaded aspects of business. Even a small, unintentional error on a standard tax form or pay cheque can open a company up to serious fines, penalties, liability, and more, which is why many companies end up putting a lot of money into legal experts – money they may not necessarily be able to afford.

PEOs are dramatically well-rounded and even while the team works on your payroll and human resources, they're doing it all with a legal mind. For the cost of one service, you're getting what amounts to a full legal team, dedicated solely to your compliance. This means the filing of your business’s annual taxes, relevant deductions on pay cheques, compliance with human rights and employment and labour regulations. Not to mention that, but you're also getting the benefit of a team that stays constantly up to date, always training with new technology, familiarizing themselves with new laws and more – all for your protection and peace of mind.

4. Less Waste

In the end, all of these things amount to less waste. You don't have to worry about pay cheques anymore, or human resources – your legal compliance is being taken care of and all for a single flat fee. This by far trumps the cost of having a department to handle HR and payroll, not to mention a legal team and leaves those workers able to focus more on the important things, like your operations. 

12 Things an American Company Looking to Hire a Worker in Canada Needs to Know

Topics: PEO

3 Benefits of Using a PEO When Expanding Business into Canada

Posted by Ray Gonder

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Jan 27, 2016 9:00:00 AM

3_Benefits_of_Using_a_PEO_When_Expanding_Business_into_Canada.jpgFor businesses expanding into Canada, a professional employer organization (PEO) can be a blessing. Companies that make use of their services comment on their speed, efficacy, cost efficiency overall, but those who are still making the decision should see more specific examples of what they can do. Here are just some of the major benefits of partnering with a PEO.

1. Better Human Resources

Human resources can be very challenging, especially when trying to manage employees in a different country. Even if you set aside all the differences in culture you may face, like language barriers or holiday schedules, you're still looking at a pile of unfamiliar labour laws and employment regulations that will adversely affect how you do business. A PEO is in a special position to handle those issues for you, since they're always up to date on any and all laws that would affect your business, as well as ensuring that you're compliant in every aspect.

When it comes to your employees, it's shown that many foreign workers, especially those who don't have a great deal of contact with their head office, are largely unhappy without hands-on HR or a direct manager to respond to. A PEO not only benefits you financially and in the matter of efficiency, but in a way that helps employee motivation and morale as well. This also minimizes your risk of issues in the workplace arising largely out of sight, as they can manage any complaints or problems on your behalf with all the delicacy and attention they deserve.

2. Efficient Payroll Processing

Payroll is actually one of the most expensive and time-consuming aspects of business overall, and can get more expensive as foreign laws complicate it. In Canada alone, there are more than 190 labour and payroll laws that need to be considered and that can present some serious challenges.

Payroll is an aspect where a PEO shines the brightest perhaps, as they specialize in payroll processing. Their expertise expands across bookkeeping and taxes, remittances and garnishments, payouts to programs like RSPs, the CPP, EI, etc. They can manage small or large companies and everything in between and lessen the possibility of mistakes, which means a lower risk of problems on your end. By being able to convert what would usually require an entire department into a single organization (and a flat rate to boot), things are done to better effect for less money.

3. Full Legal Compliance

Legal compliance is always a tricky subject, regardless of where you are, but it can be especially tricky in the case of expanding into another country. Not only are you generally required to follow your own country's laws, but those of another country as well. Many of the laws seem the same, but others are completely different – and this is where many companies find themselves in trouble, by making simple mistakes.

A PEO is a fantastic asset in this case, having full legal expertise and constantly ensuring that they're on top of any changes in those laws. This means regardless of whether it's business registration and administration, labour and employment law, tax laws or regional policies, they're already well equipped to handle anything that arises and prevent any problems from occurring to begin with. They can help you navigate the complex world of misclassification, aid you in creating fair and legal contracts that protect both you and your employees and best of all, save you a great deal of trouble and time you might otherwise spend researching dense Canadian laws in order to stay out of trouble. That way, you're able to focus on operations instead of peripherals.

Consider consulting with a PEO as part of your planned business expansion and see how they can help you not only expedite the process, but make it better.

12 Things an American Company Looking to Hire a Worker in Canada Needs to Know

Topics: PEO

How a Canadian PEO Can Help US Companies with Business Expansion

Posted by Ray Gonder

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Jan 18, 2016 3:22:10 PM

How_a_Canadian_PEO_Can_Help_US_Companies_with_Business_Expansion.jpgBusinesses from all over the world have begun expanding into new markets like Canada at a record pace – looking for new opportunities, different customers, richer talent pools and more. While some companies appear to make expansions with ease, others seem to have more trouble and this is what is holding a great deal of companies back from this ultimately beneficial decision.

That's where a professional employer organization comes in (also referred to as an employer of record). A great deal of businesses have been turning to PEOs in order to help them speed up and smooth out their transition into Canada with great success – it's no wonder more haven't considered the option. A PEO can be the defining difference between a difficult expansion and an easy one and it's not hard to see why.

Establish an Administrative Presence

Perhaps the most complicated aspect of expanding your business is having to establish an administrative presence in your target country. It can be especially irritating to those who have already worked long and hard to establish themselves in their own country, only to have to go through the same process in a foreign land. In Canada's case, it's imperative to obtain a BN (business number) and register yourself with the Canadian Revenue Agency before you can do anything else – this can take a great deal of processing time and can make it hard to find real estate and new employees in the meantime.

This is where a PEO shines the brightest. A PEO is already established in Canada and is already fully compliant with all registration laws and policies needed, including a full tax setup and the proper insurance and banking infrastructure. They come perfectly equipped with all the knowledge of your new business landscape on top of that, which means it's easier to understand all the nuances you need to know – like where to hire in your field, what areas of the country are best for what industries and so on. When you partner with a professional employer organization, you not only get the benefit of their presence, but the benefit of their wealth of experience as well and you can never have too much of that.

Navigate Complex Legalities

Arguably, the most frustrating part of any new expansion is the intricate legal intricacies (though, we could also argue that's the most frustrating part of anything). Especially when expanding into a new country, there are a great deal of laws to consider – laws that seem similar but aren't, laws that are the same but apply differently, laws that are completely brand new – and it can take a toll on anyone. For businesses trying to focus on getting started, they can seem like unnecessary hurdles and a waste of time when all you want to do is worry about operations.

PEOs specialize in legal compliance, everything from business registration to employment law and can ensure that everything is in order as you make your move. The best kind of PEO is one who is not only well-trained, but one that is familiar with every imaginable scenario, so regardless of what comes up, you're fully covered and protected. When a company breaks the law, whether intentionally or not, they can find themselves slapped with heavy fines, severe penalties, even jail-time – and that's not to mention what can happen to their reputation in their new market. It's incredibly important to know that a professional employer organization has your back and that's the real reason why so many businesses feel comfortable and secure knowing they partnered with professionals. Consider consulting with a PEO before you make your move, and see how much stress they can take off your plate.

12 Things an American Company Looking to Hire a Worker in Canada Needs to Know

Topics: PEO

What You Can Add to a PEO Employee Agreement

Posted by Karen McMullen

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Dec 25, 2015 9:00:00 AM

What_You_Can_Add_to_a_PEO_Employee_Agreement.jpgAll businesses are well familiar with employment agreements but lately a lot of tides have changed. With the rise of the independent worker, a higher emphasis on business expansion into foreign markets and tighter international labour laws, many companies are forced to rethink how they draft their agreements in the first place. This is even truer of companies who deal with professional employer organizations (or PEOs, often referred to as EORs in Canada).

When a company partners with a PEO, all or most of their responsibilities to their employees and contracted workers become delegated to them, but they still maintain some control over how those workers act, how much/often they're paid and other details. Since they act as the legal employer of your workers, it's the contract you draft that dictates a lot of important details and terms. It's critical in that case to know exactly what can and cannot be included in a PEO employee agreement – that way, you can ensure you have the amount of control you need without overstepping your bounds.

Health and Safety Rules

First and foremost, you should ensure that your contract contains any health and safety policies or rules that your company needs to abide by. This includes any laws that pertain to the region you're in, as well as more specific rules you abide by in your own workplace. Whether you're dealing with employees (full-time or part-time) or independent contractors (remote or on site), it's absolutely vital that you spell out what's required of them. As an addition, ensure you have workplace violence and harassment policies laid out as well to avoid any trouble for your employees, your business, and the PEO.

Legal Protections

As a business, you need to be able to protect yourself – that means your secrets, your special methods of doing business, your client list, and your employees. That's why it's not uncommon in the US for businesses to ask that their employees (whether they're hired through a PEO or not), sign non-disclosure agreements, which basically mean your workers can't take advantage of their inside knowledge to share your practices or product secrets without legal recourse.

Another common clause found in employment agreements is the non-solicitation clause (not to be confused with a non-compete agreement, which is next to impossible to enforce in Canada). Under a non-solicitation clause, your workers wouldn't be able to court your clients privately, or attempt to lure other employees away from your business to their own benefit. Especially in situations where you're dealing with a third party, like a PEO, it's a good idea for everyone to ensure that trust is fostered.

Employment Terms

Like most labour contracts, you should ensure that all terms of employment are clearly spelled out. This should include the rate of pay and the regularity of pay, along with any and all policies that relate to human resources. This means spelling out terms of vacation pay and overtime, if applicable, setting minimum or maximum hours and more. Even though you're speaking to your employees through a PEO, you can ensure control over how they complete their tasks by making sure to include all terms related to them in your employment agreement, just like a traditional contract.

Insurance

As traditional businesses go, most employees are covered by insurance – whether purchased themselves, by a union, or by the company. Many contractors are required to have their own insurance when they come on board, or are otherwise provided with it. When working with a PEO, ensure that appropriate insurance is in place to protect you and your employees from any safety, harassment, or legal issues that may arise.

What Are You Leaving to Chance by Handling Payroll on Your Own

Topics: PEO

5 Tips for Using a PEO to Increase Payroll Efficiency

Posted by Ray Gonder

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Oct 26, 2015 9:00:00 AM

5_Tips_for_Using_a_PEO_to_Increase_Payroll_EfficiencyIncreasingly, companies of various sizes are relying on professional employer organizations (PEOs) to manage their payroll, leaving it to them to handle the day-to-day details while they focus on their own businesses. For some, it can be hard to see why it's even necessary, but efficiency is the keyhere's why.

1. Expertise

Relying on the experts is never a bad solution, and PEOs are more than familiar with every step of payroll. While local companies might not see a big problem with their current system, it can often be limited. If you decide to expand your company into another market, start hiring freelancers or even start working internationally, your entire system will require a massive shift. A professional employer organization can expertly navigate any arising concerns and issue unique solutions that your local payroll staff may be unfamiliar with or too small to handle.

2. Legal Intricacies

As you well know, payroll law is complicated and only continues to get more complicated as the laws change all the time. You need to concern yourself with labour laws, employment laws, local rules and regulations, garnishments, levies, employee risks and moreeven a single mistake can lead to fines, penalties or even jail time, in a worst case scenario.

This is where a PEO comes in. Not only can they navigate these muddy legal waters, but they are constantly training and improving their own staff to keep up to date with any new changes in regulations, policy or technology that could affect your business. This means that everything is always done 100% in compliance with the law and is kept as efficient as possible, all while ensuring you, your company and your employees are all protected.

3. Infrastructure

Instead of concerning yourself with complex new infrastructure needed to expand your business, a PEO will gladly set you up with all the appropriate insurance, banking and financial infrastructure you need, so you can start hiring and doing business as soon as possible. Most of the time, this is one of the biggest challenges for a company because of all the elaborations involved, but it can be streamlined. This saves you a great deal of time and resources, making it easier for you to funnel your concerns into the core of your growing business.

4. Human Resources

Human resources and payroll are intrinsically linked and are often part of the same department (in many small companies, they can even be the same person!). Even as some larger companies make the pointed separation between the two, the two remain too closely related to ignore. This means, if you're truly looking for appropriate and efficient payment management, you should consider hiring a PEO to concern themselves with your employees as well. In this way, they can minimize costs and risks associated with recruitment, termination, layoffs, contract and union negotiations and more, all of which save you money and even legal trouble.

5. Less Waste

Since a PEO handles everything on the administrative side of things for your company, including payroll, human resources, benefits, workers’ compensation and more, you can spare resources on having separate departments handling each. Instead, you can be confident knowing that all things are well taken care of by an expert whose sole purpose is to increase your efficiency.  This means saving time and money, as well as protecting valuable company assets and employees from these day-to-day complications.

When you leave someone else to handle the details of your operations, your company will expend less personal resources, which means your workforce becomes leaner and more focused on doing what it does best.

Learn What Makes Us Unique

Topics: Payroll, PEO

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