Everything you need to know about PEO for Small Business
When you’re having a hard time handling all of your HR functions you may be considering a PEO for Small Business. If this is your case, perhaps you’re hesitant about whether to opt for this service or not.
In this article, you’re going to learn everything you need to know about how PEO solutions could be perfect for your organization. In addition, you’re going to understand why a small business like yours could get outstanding benefits with this partnership. Let’s observe:
- Everything you need to know about PEO for Small Business
- Why does a small business need PEO services?
- How does a PEO work?
- What are the benefits of working with a PEO?
- How to know if your small business is ready to work with a PEO?
- How can Connect Resources be your best option for PEO services?
1. Everything you need to know about PEO for Small Business
As an entrepreneur you probably love what you do. However, as your business starts growing you need to take care of several areas that you probably don’t know how to handle. And once you start having employees you can see everything becomes harder.
For this reason, many entrepreneurs opt for a PEO for Small Business that can help them manage a variety of aspects regarding the enterprise. Perhaps you’ve heard that PEO solutions are aimed just for big companies but this is not true.
As a small business owner, you can get a myriad of benefits when working with a service provider. However, you have to understand the work carried out by these providers as well as knowing when is the right time to contact them.
2. Why does a small business need PEO services?
You may be thinking that your organization doesn’t need the work of a PEO for Small Business but you have to consider it very well. There are some cases in which is useful to count on with a service provider.
2.1 Assistance with HR paperwork
One of the hardest parts of managing a small business is to handle HR paperwork. If this is time-consuming and you’re spending valuable time then it’s the right moment to contact a PEO.
A PEO can help you handle the following paperwork:
- Onboarding forms
- Compliance documents
- Benefits information
- Tax forms
Once you have an agency handling all your paperwork you can start focusing on your core activities. In addition, if any of these aren’t handled correctly you may incur in liabilities. For this reason, you need to have experts helping you.
2.2 Solve compliance issues
In the UAE there are several rules and regulations that you must follow. Since you work in a heavily regulated place then compliance should be your norm. However, it’s not something easy to achieve.
A PEO can assist you to ensure compliance in the following areas:
- Employment contracts
- Labor law regulations
- Federal and local regulations
- Compliance with workers’ compensation
- Compliance with hiring
Running a business in the UAE means that you must follow the laws and regulations established by the authorities. One of the most important rules is to hire national workers, and if you need help with this, Connect Resources can assist you with Emiratisation.
2.3 Preparation for HR emergencies
Even if you’re a small business you can still face HR emergencies that can be highly detrimental for your organization. When you decide to use PEO services you enter a co-employment relationship, which can be useful to mitigate risks.
Some of the PEO examples where this partnership can be useful in case of emergency are the following:
- An employee decides to sue you
- A worker decided to file a claim against your business
- Any other legal issue related with your workforce
2.4 Tax preparation
Processing and filing taxes is a crucial task of any business. Sometimes it can be time-consuming, risky and complicated to handle. And when the tax season arrives, as a small business owner you can feel overwhelmed.
For this reason, choosing the outsourcing solution could be the perfect solution for your business. Some of the help you can receive with taxes from a PEO are the following:
- Preparation and filing of tax forms
- Keeping up-to-date with regulations
- Reporting and keeping documents
Even when you opt for a PEO for one employee you can get an outstanding tax preparation.
In the UAE there are many agencies that can help you with several business functions. A PEO can provide assistance with a variety of areas involved in your HR department. You can get excellent results with the management of your workforce and the handling of your payroll.
2.5 Vendor management
Another reason why a small business may need a PEO is to get help with vendor management. As a business owner you have to deal with multiple providers but this may be a time-consuming task. By delegating this responsibility to a PEO, you just have to communicate with the dedicated account manager provider by the agency and you won’t need to worry about anything.
In fact, one of the main reasons why small businesses opt for PEO services is to get everything functioning smoothly when it comes to vendor management.
3. How does a PEO work?
It’s important to understand the work carried by a PEO for Small Business before deciding to enter this business relationship. When you decide to partner with a PEO the steps are as follow:
- You contact the PEO and request their service
- Both parties enter a co-employment relationship
- The PEO handles everything related with your HR tasks
- You can run your business while the PEO handles the functions you delegated to them
It’s important to point out that when you work with a PEO, your employees will also be your PEO’s employees. This is because the co-employment structure works this way. However, you still have complete control of your business while the PEO has authority over your payroll, tax and HR administration.
4. What are the benefits of working with a PEO?
Another important aspect when you’re considering using a PEO for Small Business relates to the benefits you can receive with this partnership.
4.1 Saves in benefit costs
The main benefit for a small business that opts for PEO services relates to bringing down benefit costs. You can save money on significant expenses since they offer several options, which otherwise weren’t available for a small business.
If you’re trying to offer health insurance to your employees, a PEO could help you save costs for each worker and you’ll be offering a top benefit to your workforce.
Another great benefit you can get with a PEO is a retirement savings plan for your employees. It’s highly useful because it helps you select the best one.
4.2 Payroll and taxes management
A small business that works with a PEO can get outstanding benefits regarding payroll and taxes management. These are as follows:
- Calculation of each employee’s wages
- Deduction of correct taxes per employee
- Management of state and federal taxes
- Processing of employees’ payments
- Printing of pay stubs
- Taxes reporting
The best part is that a PEO for one employee can handle every payment and taxes related with your business.
4.3 Access to high-quality candidates
As a small business you can’t afford to make bad hires. On the contrary, you need to have outstanding workers that take your business to success. With a PEO you can get assistance to find new high-quality employees.
A PEO can help you in the following aspects:
- Identify and select the top candidates for a specific role
- Develop the job description and understand the requirements for the role
- Access to a vast talent pool
- Assistance to assemble your pipeline of qualified candidates
- Screening of applicants to help you shortlist the top ones
- Interviews and onboarding
4.4 Compensation and unemployment management
Handling workers’ compensation and unemployment is another task that may bother you as a small business owner. For this reason, a PEO can help you stay in compliance with this matter and you won’t have to worry about dealing with all of the regulations and laws.
Keep in mind that when it comes to compensation and unemployment you should follow the rules if you don’t want to incur in any liabilities. A PEO can be your perfect ally since they have experts that are always updated with the latest rules.
4.5 Access to software
If you don’t have enough resources to invest in the latest technology and software for your HR team, it’s advisable to partner with a PEO. With a PEO you get access to several tools such as employee performance tracking software, payroll processing software and many more.
Once you have access to all of these important resources you’ll see how your business will get an outstanding management in every department. You just have to focus on your core strategic activities and boosting your productivity.
When you need support for your business, you may want to find an agency that can help you deal with the most time-consuming tasks. Once you get the service you expect, you may start focusing on additional activities like taking your business from retail to eTail.
5. How to know if your small business is ready to work with a PEO?
When considering a PEO for Small Business you have to ask yourself if you’re ready to enter this type of partnership. There are several signs that can indicate that your business is prepared to work with a PEO.
5.1 Do you hate HR management?
As an entrepreneur you’re running your business because it’s what you want to do. But, dealing with all the HR functions may not be your cup of tea, so this is one of the best PEO examples since this service is aimed to people like you.
There are many challenging aspects related with managing HR such as paperwork and taxes. If you don’t want to deal with any of this, then your business is prepared for working with a PEO.
5.2 Would you like to obtain top candidates?
Finding qualified workers for your business is a difficult task, particularly if you don’t have enough resources and personnel in your in-house HR team. If you have had bad hires and you’re ready to find outstanding staff then a PEO could be your best option.
If you need help with the management of your workforce or any HR task, you need to have experts by your side to assist you. In this regard, Connect Resources can be the best solution for your business to offer you a comprehensive PEO – EOR service to help you have an outstanding company.
6. How can Connect Resources be your best option for PEO services?
If you’re looking for a PEO for Small Business, here in Connect Resources we can help you. We have been providing our comprehensive service for several companies in a variety of industries for the past two decades.
Our team of specialists can easily understand your requirements and provide a customized solution. We can handle all of your HR functions like hiring, recruitment, payroll, compensations, taxes, deductions and more.
Would you like to contact Connect Resources for PEO services? You can call at +971 433 166 88 or send an email to [email protected], and you’ll talk to one of their representatives that will gladly answer all of your questions.