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What is a peo?
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Professional Employer Organizations (PEOs) like PRO Systems enable clients to cost effectively outsource the management of human resources, payroll, benefits, and risk management. PEO clients can then focus on doing what they do best, growing their business!
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Considering your true costs, the Small Business Administration (SBA) and the Society for Human Resources Management estimate that small employers with less than 500 employees spends between 3% to 9% of gross payroll on distractions and lost opportunities.
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With just two employees at $2,000 each per month, this equates to at least $120 all the way up to $360 per month. Way more than the cost of letting PRO Systems do all this work for you.
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Therefore, if you outsource to PRO Systems, you will actually spend less money out of your bottom line profits by outsourcing than by doing it yourself.
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Your True Costs entail all the time and money expended in performing the following:
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• Employer compliance with federal, state & local laws
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• Downtime of office staff
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• Payroll administration and reporting
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• Fines from compliance violations
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• Personnel file maintenance
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• Late fees
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• Shopping for your various insurance requirements
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• Legal fees & time coordinating with legal counsel
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• Employee queries about payroll, insurance, benefits
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• Penalties
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• Associated computer, printer, software & upgrades
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• Employee litigation, etc.
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• Record-keeping of all types
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• W-2’s and W-3’s
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• Tax filings
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• Filing court ordered garnishments & tax liens
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• Trips to the bank and bank per-check fees
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• Procurement of legally required postings
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• Costs of paychecks, envelopes, mailings, etc.
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• Developing employee handbooks
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• Various types of claims
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• Development & implementation of safety programs
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• Audits
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• Costs of turnover, recruiting & training new hires
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• Training bookkeepers and administrators
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• Return to work program development & admin.
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