5 Reasons Your CPA Will Love Working With a PEO

5 Reasons CPAs Want PEOsHuman resources professionals like to serve employees. Your CPA wants to save money. A professional employer organization can satisfy both desires, and that's why financial pros agree that partnering with a PEO is one of the best decisions you can make for your small business.


The HR Burden

Small business owners need to develop a strategic approach to managing their employees early in the business planning process. The small business innovator approaches everything with a fresh and transforming passion–everything except people, that is. Entrepreneurs, for some reason or another, tend to fall back on traditional approaches when it comes to managing the people who work for them. Many times, that's because they haven't had any training or experience with people management and motivation. It's just not in their skill set.

Any new business will wrestle with numerous tasks and challenges in the first months and years, so it often doesn't make sense for owners to take on the complex human problems of the business when those needs extend beyond their specific strengths and abilities.

That's why so many business owners turn to PEOs. People are a PEO’s job. The PEO provides a variety of human services: time and payroll management, employee benefits negotiation and delivery, tax filing and compliance, workers’ compensation administration and risk management. They also recruit and on-board employees, assess performance and discipline, and manage leave and productivity metrics. Assign real time to each of these tasks, and you see how much time you can save by co-employing staff through a PEO.


The CPA Bargain

PEO clients represent 15% of companies with less than 100 employees, $136 million in payroll, and up to 3.4 million employees across the country and across industry lines. More small and mid-size employers are taking the advice of their financial advisors by outsourcing tasks to PEOs, because partnering with a PEO not only makes the business more efficient and productive, but increases the likelihood of business success by 50%.

 
To the chief financial function, all time is literally money.
 
What the money pros love about PEOs:

  1. The PEO is employer of record and assumes responsibility for compliance before the EEOC, NLRB, Title VII, FLSA, COBRA/ERISA, IRCA, ADA, and the rest of the regulatory alphabet soup.

  2. The PEO administers, pays, and reports IRS, State, FICA, and local payroll related taxes.

  3. The PEO takes advantage of its larger labor pool to negotiate employee benefits and workers’ compensation insurance rates from a position where economies of scale have a real impact.

  4. The PEO takes on the burden of proof on employee filings and compliance requirements.

  5. The PEO boasts a trained staff that is always on top of volatile employment law and practices.
The Controller/CPA/CFO’s best advice to the small business owner is to contract with a PEO. Why? Because PEOs save their clients up to 35% on the cost of HR, while at the same time offering more and better services than the business could afford independently.
 
The most persuasive argument the finance pro can make to the business owner is that working with a PEO will free up his/her time and management resources to focus on the business mission, productivity, market share, and profitability rather than regulations and paperwork.
 
And those are the reasons you hung out your shingle in the first place.
 
 
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