Business owners and decision makers understand how to make the most of every dollar to run and grow operations. However, as a business grows, the demands placed on human resources and other facets increase dramatically. To ensure that money isn’t wasted and to get the biggest return to keep things running smoothly, businesses use PEO companies.
What is a PEO company?
A professional employment organization (PEO) handles many HR functions, such as payroll and benefits. This method of contingent staffing puts HR, payroll, benefits, and compliance responsibilities in the hands of a dedicated team, so owners and managers can focus on running their business. Additionally, PEOs can save businesses lots of money compared to those that try to handle everything in-house.
Help with payroll
By working with a PEO, businesses can reduce payroll processing costs along with the accompanying accounting. PEOs can handle withholdings, garnishments, W-2, and even 941 payments. In addition to basic payroll and the related accounting functions, a good PEO can offer access to retirement savings programs, such as 401(k) plans. PEOs will typically provide the materials necessary for you and your employees, as well as the administrative services to manage retirement accounts to help employees reach their goals. This can save businesses a tremendous amount of money, while also offering benefits that increase employee retention.
Workers’ Compensation and Legal Expenses
Good PEO companies can manage insurance claims and premiums. These can often be time-consuming and costly when combined with the requisite audits, certification, compliance, and general paperwork to run these programs. As a co-employer, a PEO also shares the responsibility in legal matters. PEOs keep a team with legal expertise in work-related matters, such as wrongful termination claims and discrimination suits. With a deep understanding of the intricacies of HR, a PEO can not only save your business time and money, but also help avoid any costly legal entanglements.
Meeting payroll expenses through factoring
While not directly related to PEOs, businesses can save enormous amounts of money by optimizing cash flow and accounts receivable. Waiting on customer payments can often make operations costly, even if sales are high. Staggered payment schedules frequently force businesses to resort to short-term loans to correct cash flow issues. Invoice factoring takes unpaid receivables and converts them into cash which is immediately accessible. This boosts cash flow and helps businesses meet payroll for their employees – all without placing debt on the books.
New Century Financial offers the most comprehensive invoice factoring services. Contact our offices today and start optimizing your cash flow for long-term growth and success.