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Professional Employer Organizations Keep the Government Off Your Back

Keep the Government Off Your Back

Small business owners need every edge they can leverage, but most don’t think about leveraging “boring.” What’s boring to you?

The answers we hear most often at Agents of Efficiency are payroll, benefits, and employee management and regulations. The way to leverage “boring” in these areas is to hire someone else to do all of that for you — and there are many options you might not be aware of.

Most small-business owners have never heard of a Professional Employer Organization. A PEO is a company that provides outsourced employee management. Not only does a PEO handle payroll, benefits, workers’ compensation, and other relevant functions, it actually becomes the employer of record for the IRS. That means the only employee-related responsibility you maintain is managing job performance.

This allows you to stay focused on the core business while someone else handles the boring — but essential — administration. Most small-business owners haven’t caught on to this yet so by being among the first to shed the burden of “boring,” you’ll gain an edge and be at the helm of a more cost-effective business.

As tax and regulatory law becomes more complicated, outsourcing this work to an expert will be essential for small businesses, too. So another question to ask is: “Do I allow that complexity to drain more resources from my business or do I turn it into a competitive advantage?”

You gain an advantage by efficiently managing that complexity with one of many excellent, highly affordable options.

Zenefits offers a free human-resources information-systems platform. (Who can’t afford free?) Until recently, something like this was only available to very large corporations. And, yes, it really is free. Zenefits can afford to do this because they’re also an insurance company that hopes you’ll use them to provide benefits to your company. They’re giving away tremendously powerful software for you to use for life, whether you choose them for insurance or not.

Another powerful way to outsource payroll and benefits is Justworks. It’s one example of an organization that will become a co-employer with you and serve as the employer of record for the IRS. This is as simple as set-it-and-forget-it.

Once your PEO is handling payroll, benefits, and all the corresponding regulatory and tax laws, you only manage your employees in terms of their contribution to your business operations.

The upshot of not doing what bores you is huge savings in headaches, money and time.