PEO offers benefits not typically provided by smaller firms
Posted on November 14th, 2011 Read time: 1 minutes
Businesses in Rhode Island may be able to outsource their HR administration duties to a professional employer organization in the near future, GoLocal Prov reports.
By signing with a PEO, the organization will become the employer of record for a company's employees. It will handle duties such as benefits, payroll and tax administration, workers' compensation and unemployment insurance to free up time for businesses to focus on internal issues.
Employers also save money with this option, as PEOs pool clients' employees together to create lower prices for benefits. As a result, companies achieve greater retention because they have the ability to offer more attractive packages that include vision coverage or 401(k) plans – options smaller businesses without a PEO may not be able to provide. This can be a deal-breaker for potential employees when deciding on job offers.
New Jersey Newsroom reports that Secaucus, New Jersey-based Goya Foods recently hired nine new workers and aggregated nearly 150 more into its PEO. By doing so, the company is counting current contractors as new workers under the state's subsidy law, since they'll be converted into direct payroll employees.
Related Articles
Posted on November 14th, 2011 Read time: 1 minutes
Businesses in Rhode Island may be able to outsource their HR administration duties to a professional employer organization in the near future, GoLocal Prov reports.
By signing with a PEO, the organization will become the employer of record for a company's employees. It will handle duties such as benefits, payroll and tax administration, workers' compensation and unemployment insurance to free up time for businesses to focus on internal issues.
Employers also save money with this option, as PEOs pool clients' employees together to create lower prices for benefits. As a result, companies achieve greater retention because they have the ability to offer more attractive packages that include vision coverage or 401(k) plans – options smaller businesses without a PEO may not be able to provide. This can be a deal-breaker for potential employees when deciding on job offers.
New Jersey Newsroom reports that Secaucus, New Jersey-based Goya Foods recently hired nine new workers and aggregated nearly 150 more into its PEO. By doing so, the company is counting current contractors as new workers under the state's subsidy law, since they'll be converted into direct payroll employees.
