When To Hire A Professional- PEO
June 26th, 2008 -- Posted in Starting a Business | No Comments »Table of contents for When to Hire a Professional
- When To Hire a Professional - Accountant
- When To Hire A Professional- PEO
Most of the time, a small business owner can save money by wearing many hats in the business. If they consult with an accountant a few times a year they usually do just fine. Things change when you decide to add an employee or two. I cannot stress this enough, when you have employees, even if you have only one employee, you need to hire a professional.
Unlike almost anything else you will do in business, when you hire your first employee you are now under the jurisdiction of a number of different government entities, all with their own set of rules, reports, and regulations! You will need to worry about labor laws, worker’s compensation insurance, wage garnishments and benefits administration, as well as federal and state withholding requirements.
If you are not ready to hire a whole HR (Human Resource) department, then a good way to go is with a PEO service like NationalPEO.com. PEO stands for Professional Employer Organization. On a contractual basis, the PEO takes over the HR responsibilities of the employer. In effect, the PEO becomes the employer and leases the employees to the small business.
This frees the small business owner from many responsibilities and liabilities of being an employer. The PEO will provide all required HR services, including payroll services such as time card management, government reporting and tax payments, benefits administration and worker’s compensation insurance. And more importantly, they will verify that your employees are eligible to work in the U.S. NationalPEO uses E-verify to insure that every employee you hire is legal to work. They will also work with the employee to quickly resolve any discrepancies.
Another benefit of using a PEO is that it is a cost effective way for small employers to offer large company benefits, such as health insurance, cafeteria plans, and 401(k) plans to their employees.
This is one area where it just doesn’t make sense to try and save money by doing it yourself. A small mistake can lead to expensive consequences including lawsuits and government fines. Before you even interview your first potential employee, hire a professinal. In the long run, it will save you time and money.
