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A commonly asked question we receive from small business owners asks if there are disadvantages to creating a relationship with a PEO. We have decided that this would be a great article to put together; to dispel some of the myths concerning PEO disadvantages. Many of these perceptions, while understandable, are not backed up by any facts.

First off let us review the common PEO services, followed by the ‘disadvantages’ of the Professional employers organization. Today, PEO's provide small businesses access to expertise in human resources J.T. Miller Youth Jersey , payroll, tax management, benefit administration and HR compliance management. In addition, PEO's transfer risk away from the small business by providing assistance in putting together and administering best practices in employment, employment policies and procedures. Some of the methods they use are seemingly simple Mika Zibanejad Youth Jersey , yet they are vital to ensure compliance such as developing employee handbooks, providing a risk assessment, or procedures concerning employment policies. Some PEO companies will also provide access to recruitment, background screening, and discounted drug testing services Mats Zuccarello Youth Jersey , all of which lower the level of risk on your small business. Also, as the shared employer of record, PEOs will take on the burden of handling or fighting unemployment claims and workers' comp payments.

The advantages of using professional employer organizations are not specific to one industry, which is why long term growth projections are expected to continue even during an economic downturn such as the one that started in 2009. Simply put, more business owners are considering using PEOs in their HR departments Henrik Lundqvist Youth Jersey , knowing that these work related issues take up too much time and take them away from their core business. So having our quick review, what are the apparent PEO disadvantages, and why do we believe them to be a myth?

The PEO Disadvantage Myth List

Myth #1 – “I will lose control over my employees.”
Today, this can’t be further from the truth. The PEO client services agreement is executed between both you and the professional employer organization of your choice. The determination of the rights of you as the employer and the PEO as the co-employer are outlined for all to understand. If you find anything that does not appear correct, by all means Ryan McDonagh Youth Jersey , inquire about it. We also recommend a quick review by legal counsel. Losing control is a myth as PEO’s today share the burden of employment, but you may hire, fire,
and give raises without the PEO getting involved.

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