February 5, 2024, by HR Search & Rescue Running a business has never been more challenging. From overseeing day-to-day operations, attracting and retaining clients, and managing human resources, business owners have a large amount of important work to deal with. Fortunately, some of these demanding and essential tasks can now be outsourced. Human resources management, for example, has become easier thanks to customized HR solutions provided by professional employer organizations (PEOs). How a PEO Services Company Can Assist Businesses Adhere to Labor and Tax Regulations A PEO services company can help businesses focus on their core business and still hold good standing with labor, employment, and tax-related mandates. Below are some roles PEOs can assume to ensure compliance: Employment Laws Compliance PEOs can help ensure business practices are consistent with federal and state labor laws. These include company wage and work hours policies, workplace safety, anti-discrimination, and sexual harassment prevention. Businesses seeking to protect sensitive and confidential information, such as financial data, can also rely on PEOs to handle their confidentiality agreements, also known as non-disclosure agreements. A PEO services company can also assist businesses in protecting their interests through non-compete clauses. These contractual provisions can help in the following ways: Prevent employees from taking and using trade secrets and proprietary knowledge gained during their employment for the benefit of a competitor. Keep employees from soliciting clients immediately after termination of their employment. Prevent employees from using specialized training or skills development received during their employment to compete with their former employers. PEOs can also ensure the non-compete clauses are legally enforceable and do not violate employment laws. Payroll Tax Compliance Corporate tax compliance is an area of concern for small businesses. This is due to the complex nature of tax laws and the lack of economies of scale required to maintain a tax specialist. Tax non-compliance usually attracts dire consequences, such as hefty fines and legal action. PEOs can process and file all necessary payroll taxes, including federal and state income taxes, social security and Medicare taxes, and unemployment taxes. Immigration Laws Compliance Businesses that hire non-U.S. citizens often find themselves impeded by intricate immigration laws. A PEO services company can help these companies complete the necessary documentation. A PEO can verify employment eligibility through the I-9 form and maintain proper records to avoid legal implications. Employee Benefits Administration PEOs can also help businesses comply with employee benefits laws as the Affordable Care Act (ACA) requires. PEOs usually pool businesses’ employees together, resulting in a large group of employees under one policy. As such, PEOs can negotiate lower insurance rates for their clients. This enables small and medium-sized ventures to compete with established companies for top talent. Risk and Safety Management Apart from handling workers’ compensation insurance, PEOs provide safety audits and training programs to reduce the frequency of claims. PEOs can also offer guidance on compliance standards and necessary action plans before Occupational Safety and Health Administration (OSHA) inspections. HR Documentation Proper HR documentation entails employment contracts, employee handbooks, and performance appraisals. These records allow businesses to respond to disputes and alleviate liability risks easily. PEOs can help businesses create, maintain, and update these documents. This can help ensure compliance with federal and state laws. They can also maintain employee wages and tax withholdings records for tax audits. Ongoing Compliance Monitoring Businesses must continuously adjust their policies as they expand and align with any updates in regulatory changes. Additionally, they must remain on top of their talent acquisition and management to remain competitive. A PEO services company can monitor and update businesses on any changes to labor laws and ensure that their policies are compliant. PEO services include end-to-end talent management services, including strategic recruiting, retention, employee training, and performance management. Partner With HR Search & Rescue for Customized PEO Solutions Navigating employment regulations is challenging, especially for small and medium-sized businesses without dedicated HR departments. Businesses should leverage the expertise of a PEO services company to remain compliant with employment laws. This will also allow them to focus on growing their operations. It is essential to find a PEO that will customize its solutions to fit the unique needs of your business. HR Search & Rescue is an HR benefits broker and an independent consulting firm specializing in PEO services. Its HR and PEO solutions are customized to meet the needs of small businesses following employment and tax regulations. Its specialization also includes human resource information systems (HRIS), employee practices liability insurance (EPLI), life insurance, and fractional HR support. Contact HR Search & Rescue today for customized PEO and HR solutions.
