If you’ve just started your business, you may not be familiar with all of the terminology associated with running a business, such as PEO payroll services. However, you must be familiar with all of these things because they often refer to legal obligations that business owners have to fulfill, such as paying their employees.
Here is a quick guide to what PEO stands for, and how payroll services can help your businesses.
What Does PEO Stand For?
PEO stands for “professional employer organization.” A PEO is a company that specializes in helping employers manage their obligations towards employees. While large companies have entire departments dedicated to HR and payroll, small and medium-sized businesses don’t have this luxury. Often, payroll is done by one person, usually the business owner who is also in charge of all the other aspects of running a business.
A PEO handles the logistics associated with hiring and managing employees, taking the burden off of employers, but at a lower cost than hiring an entire HR department.
What Are PEO Payroll Services?
Payroll services are just some of the services that a PEO can offer for you. PEO payroll services basically cover all of the logistics associated with paying your employees, such as paying out salaries, paying payroll taxes, and even timekeeping procedures. PEO payroll services can also help you with more complex procedures, such as sharing pay stubs and tax forms with employees and keeping records for audits.
This is a quick primer of this essential service for your business.