PEO Payroll Processing Services
What is payroll processing?
Payroll is a top priority for any and all businesses. It is a significant concern for business owners wanting to increase efficiency within their companies.
Employees expect their paychecks to be right and on time every single time. And business owners want payroll to be easy and hassle-free, so they can concentrate on what they do best running their business.
To make the payroll process seamless from start to finish you need to calculate the payroll every pay period, and figure out federal, state and local taxes and pay them on time. Also, voluntary deductions like health insurance and 401(k) contributions need to be tracked, prepare and file quarterly reports, and process w-2s at the end of the year.
As your company grows this process may change and you may need more help. There are great payroll companies out there that are standalone. Some like PayCom and Paylocity, there are other more HR-focused companies like Bamboo, and even some very good benefits administration type of companies like PlanSource.
But none of them integrate everything on a single platform except for PEOs.
None of them fully integrate with the health insurance companies, Worker’s Comp. or unemployment plans (and fighting claims).
Some do have the applicant tracking systems and time and attendance and even Onboarding but none have all the HR people behind it including benefits, and real in HR people (not just payroll people) and will also save you a lot on Medical, WC, and SUTA because they are actually the country’s largest corporate buying group with 160,000 fellow company’s leveraging each other.
One of the great things about PEOs is the payroll system. It’s a payroll system of course but it gets deeper than that, it’s a comprehensive employee database and human resource information system from soup to nuts, from hiring to firing, from onboarding to paperless administration.
So, whether you have a Florida payroll service, or, a Texas payroll service, or maybe even multiple states that need efficient and organized payroll services, we’ve got your back! That’s one of the additional ways PEO payroll processing services help – different HR requirements, different payroll requirements, different tax requirements (sound familiar?) and overall just a general headache to set up and manage correctly, on top of all of the other stresses you have to worry about when running a business.
How could you possibly deal with it unless you “sourced” that headache out to someone who is set up to do it every day for millions of people? You can try to sort through the clutter of payroll services and end up realizing years down the line you made a mistake that can cost you your business, or you can feel confident in the fact that ThePEOPeople will connect you with the right people to ensure your employees are happy, paid and working!
So, are PEOs the best payroll providers? Well there are a few pretty good companies like Paylocity, Paycom, and Paycor but they don’t give you the advantage of reduced health insurance & Worker’s Comp. or some of the other savings that you get by combining everything together.
You know how sometimes you get a bundle when you group together more than one service? It can save you time, headaches and lawyer fees, and unless you know the people to help you make the right decision with your PEO payroll services you may end up finding yourself in a heap of trouble.
There are even some very good benefit administrative companies, some of these are mildly combined, but none integrate everything on a single platform except for PEOs.
Sorry, but we say this again – well because although it sounds like the 50 insurance agents that call you every day and say they can save you money (when in fact today because every U.S. market has maybe 4 carriers left and each agent gets the same rates – no insurance agent is really going to save you any money) – BUT PEOs REALLY CAN.
SO HOW do PEOs save you money on benefit programs SIZE DOES MATTER but it more than that.
- They don’t have the same insurance risks and pools (they don’t have to take every group like the plans you get from insurance agents – they can skim off the good risks (10-15% savings)).
- They also get better rates because they are integrated with all the carrier’s systems (enrollment, billing, compliance, and claims) they get better rates (2-5%).
- They get better rates because the carriers don’t have to deal with some many intermediaries like each employer and each agent (3- 5%).
- And the save 5% off the top on broker commissions (that is a lot of money – think about how much your premium is that is how much your broker makes for shopping once a year the few carriers left, taking care of some claims and helping enroll and talk to your employees – the PEO staff- by the way -do all this as well – so you aren’t losing any services except some golf).
And of course, the fact that none of those other companies or your insurance agents have the buying power and clout to save you a tremendous amount of money on your biggest line item other than people and cost of goods – Benefits. It’s always about benefits costs and benefit renewals.
PEOs simply combine the power of buying health insurance and workers comp and at the same time, while integrating and offering you award-winning HRIS systems and Payroll and compliance the rest in one place.
It’s not necessarily that their payroll system is better than the greatest payroll systems out there (although don’t get us wrong, they are still great – they are award-winning after all), but they may not do certain things that some of the greatest payroll systems can do.
However, by giving up some payroll and maybe minor workflow you more than (and when I say more I really mean more than) makeup with the other cost savings and integrations.
That is the big difference in using a PEO.