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Why You Can Put Your PEO Fears to Rest

Posted by Anna Mastrandrea

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Feb 4, 2019 9:00:00 AM

Why_You_Can_Put_Your_PEO_Fears_to_RestIf you’ve decided to take your business international, you’ve likely heard some discussions about working with a professional employer organization. While you might be considering a PEO to help you avoid common challenges, ensure compliance, or take HR administration off your plate, other business owners and managers may have told you about their own experiences.

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Perhaps you have questions of your own as well. You may be worried that working with a PEO means you’ll lose control of your business, or you might be concerned about the PEO suddenly altering your terms.

It’s natural for a business owner to worry about these sorts of things. When you work with a PEO, however, you can rest assured your investment in the relationship is safe.

A PEO Will Not Take Over Your Business

One of the most common misconceptions about professional employer organizations is that they’ll take over your business or reduce your control over it. You’ll no longer have a say in who you hire, how much you pay, or anything else.

This isn’t true. A PEO acts on your behalf, providing you with expert help for payroll and other HR tasks. While they may act as the employer on record for your workers, they’re ultimately following your policies and orders. They’ll advise you on changes you need to make to remain compliant, but the decisions are left to you.

You are still ultimately in control.

Do Your Research

Many business owners worry the PEO they partner with will go out of business. While this can be a valid concern, you should do your research beforehand. What’s the business’s record like? A newer company is more likely to go under than one that’s been successfully operating for over a decade.

You might also question whether the PEO partnership is a good investment. This can require a little bit more research, but the answer is often yes. If you run a small to mid-sized business, you may find a PEO is a great option to keep operations running smoothly.

Of course, this hinges on what you want out of the relationship. You’ll want to ask whether the PEO has experience in your industry and what their area of expertise is. If you want someone to handle payroll and the PEO you’re considering has an army of tax lawyers and benefits administrators, you might want to consider another company.

You should also ask questions about fees and pricing structures. Some PEOs do have hidden fees. Ask for an unbundled quote and read the fine print. Discover exactly what you’re paying for before you sign on the dotted line.

Most PEOs File Taxes on Time

Another reason you may want to engage a PEO is to ensure your payroll taxes are being filed on time and correctly. A common concern is that the company won’t prioritize your taxes, especially if your account is small.

It’s prudent to check the PEO’s reputation. You can do so by looking at online reviews. Most PEOs that have been in business for some time can be counted on to file taxes on time.

You may also want to check your contract for protections. What happens if they don’t file taxes on time? Your contract should give you options.

PEOs Are Professionals

Occasionally, you may make a misstep and partner with the wrong company. Most PEOs, however, are reliable and can be trusted. In most cases, you won’t need to worry about a PEO suddenly going under, altering the terms of your agreement, or unexpectedly ceasing communications.

That’s because PEOs are staffed by professionals. When you partner with them, you enter into a professional relationship between two businesses. Service agreements and contracts must be honoured.

If you do your research, read the fine print, and act professionally, chances are you’ll find a winner. Working with a PEO can ease your operations, so don’t let fear hold you back.

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Topics: Professional Employer Organization

Anna Mastrandrea

Anna Mastrandrea is the team lead of the payroll department at The Staffing Edge. For over 10 years, Anna has been providing the highest level of customer service to our members. Anna is an important part of our back office operations, running payroll for all of our members assignment employees, ensuring all proper payroll deductions have been set up, billing clients, and processing record of employment and filings to Service Canada. Her goal is to make sure all of our members assignment employees are paid properly, and most importantly, on time. Anna’s passion for challenges, learning, and problem solving makes her a great asset for our members, as no one member’s situation is ever the same. When Anna is not on the job, she enjoys spending time with her family, indulging her love for great wines, and playing volleyball.
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