During the Pandemic, everyone suffered financial losses. As a business owner, you probably worried if you could stay afloat and continue paying your employees. You no doubt had to make cuts and sacrifices and we’re probably happy to make it to the other side.
A remote working environment is here to stick around for a while. This effect of the Pandemic has truly changed how the workforce is adapting as we have seen companies increasing technology connectivity. It has also brought about the trend for employees to relocate to a state where their employer has not yet established a presence.
Initially, it seems that a remote employee relocation is straightforward, as they can work on a laptop with a cell phone from any location. However, for employers there are payroll tax implications for their employees in these other states. Employers everywhere are feeling the consequences of payroll taxes.
We have all heard the horror stories of a company that is stuck in their Professional Employment Organization (PEO) (or co-employment) contract. PEOs are typically engaged by small businesses for better benefit plans; however, as that company grows, their employees start to feel the negative effects of the PEO.
Initially, a PEO arrangement sounds appealing to an organization that wants to outsource their Human Resources and Payroll. However, a PEO can be extremely complicated as the Employer of Record, running payroll under their tax ID numbers. Additionally, all of the onboarding, employee handbooks and company policies become dictated by the PEO, which unfortunately does not leave the employer any say in how they want to define terms of their own business.
Flex HR had the honor of serving as a sponsor at the Community Bankers Association of Georgia (CBA) Human Resources & Talent Development conference this year in Jekyll Island, GA. CBA was formed “primarily to represent the political interests of the independently-owned banks of Georgia.”
The conference dove into some sensitive HR topics such as people operations, HR as a business driver, HR technology, employee experience, leadership awareness, and the top reasons employees are resigning.
Ever think about getting out of your Professional Employment Organization (PEO)? Managing your daily business operations and processes are a very complex undertaking. The PEO becomes the employer. Human Resources is the most vital component that holds these tasks together, so it’s imperative you have the proper HR expertise on hand. Many companies do not, and so they outsource their HR to a PEO service or an Administrative Services Organization (ASO). An ASO model brings you the next level of HR support, providing strategic HR, an HRIS system to take you into your growth strategy and the flexibility to you to have your own policies and best practices. Continue reading to learn the difference between a PEO vs ASO.
The number one reason employers leave a PEO is the day to day high cost with little to no HR Support. The number 2 reason is to gain control over their staff and make them actual employees of their company.