All you need to know about PEO- Professional Employer Organization

A professional employer organization (PEO) manages human resource services on behalf of its clients. It is a business entity that provides co-employment to small and mid-sized businesses by taking over the responsibilities of an employer, including workers' compensation, payroll taxes, employee benefits, unemployment insurance, employee management, safety programs, and other tasks that are mandatory to code compliance. 

PEOs give small business owners more time to focus on their core business objectives by taking care of the administrative functions of day-to-day operations.

Why use PEO?

1. Small & medium businesses grow faster when they use PEO services (by 7% to 9%).

2. Better compliance: PEOs keep track of all federal and state regulations to ensure that their clients stay compliant.

3. Lower employee turnover PEOs provide a business owner with the ability to hire qualified workers who would otherwise be out of reach for a small company, as PEOs work with a range of skilled professionals and administrative staff.

PEO in Europe

Some PEOs are international companies that have operations in multiple continents. This allows small business owners to work with a company outside their country of residence. This also means the client only has to deal with one entity when hiring employees abroad. This makes it easier to manage an international workforce even when dealing with different local employment requirements in each location.

This is very helpful especially in Europe where the company is expected to have a legal entity (where the employee will be located). A global Employer of Record (EOR), like ADT Solution, can offer the simplest way for companies to grow & manage their international presence.

Guidelines for choosing a PEO

There are different PEO companies that exist. It is important to choose carefully due to the nature of their services. There are two things you should look for in a PEO:

- The PEO's industry focus, which can make it easier to find clients with complementary business types. For example, if your primary business is in construction, your PEO company should have experience in that industry.

- The qualifications of the people who will be managing your business's human resources department. This includes taking care of employees' needs and providing guidance when it comes to tax laws and compliance issues. PEOs act as an extension of you, so make sure their team has the right skills to manage your business's HR department.

- The PEO company should be able to offer you with services that are both beneficial to you and your employees.

Find out more about the qualifications of their client service team, including how many years each employee has worked for the PEO company, what kind of certifications they have.

All about ADT Solution & its services:

ADT Solution focuses on providing a wide range of Global HR solutions, including payroll management, EOR, PEO, insurance, and tax advisory.

At ADT, our global network of legal experts helps businesses run globally.

Since every country has its own legislation, labor rules, and compliances, we are familiar with all possible forms of implementing outsourced employment. We implement the best solution to your requirement according to the local legislation.