What is co-employment? How does a PEO work? Here’s a simple answer

If you’re a small-to-mid-sized business owner, you’re likely well-accustomed to juggling responsibilities — managing day-to-day operations, hiring and onboarding new employees, dealing with complex employment regulations trying to grow your revenue. These are just a few of the many tasks needed to keep the wheels of your operation spinning. Do you ever wonder how you’re supposed to get it all done?

This is where a PEO comes in. Partnering with a professional employer organization (PEO) can be a lifesaver for business owners — freeing up your valuable time and giving you a chance to focus on your growing company. Co-employment is the term used to describe this business relationship, and it’s gaining popularity among business owners of all sizes. feeling like a number in a que.

According to NAPEO research, 175,000 small and mid-sized businesses utilize PEOs.  Close to 4 million employees across the United States are employed by PEOs. To put it into perspective, that’s the number of employees working for Walmart (U.S. only), Amazon, IBM, FedEx, Starbucks, AT&T, Wells Fargo, Apple, and Google — combined. So, what exactly is so great about co-employment, how does a PEO work, and why are so many businesses getting on board? Let’s find out.

What is a PEO and how does it work?

A PEO that specializes in providing comprehensive human resource (HR) services to businesses of all sizes. Payroll, benefits and benefits administration, tax withholdings and filings, and regulatory compliance are some of the many services PEOs provide to employers.

When a business contracts with a PEO for their services, both the employer and the PEO share employment responsibilities. The PEO handles all the administrative responsibilities and becomes the employer of record with the Internal Revenue Service, which means they assume responsibility and liability for employment taxes to local, state and federal authorities. The client is the legal worksite employer and maintains control over its operations and worksite safety.

What is co-employment?

Co-employment refers to the business arrangement between a business and the PEO where certain employer responsibilities are shared. This partnership allows businesses to outsource certain functions while still retaining control over the day-to-day management of their employees.

In essence, co-employment gives the business owner the benefit of having an extra set of hands on deck to make sure their employees are taken care of. Some PEOs provide co-employees with workers’ compensation and a broad range of benefits programs.

Co-employment is an increasingly popular way to manage employees and provide the tools, resources and support they need to increase job satisfaction and productivity.

Why partner with a PEO?

When a business partners with a PEO, they gain access to valuable services, such as employee benefits, risk management, and compliance with labor laws and regulations.

PEOs aren’t just beneficial for the business owner, either. Co-employees have access to benefits programs, training and HR services that are often only available at larger companies. Job satisfaction and security often increase when co-employees are provided with professional HR services, training, and enhanced benefit programs.

By working with a PEO, employers gain access to HR subject matter experts, best practices, enhanced administrative capabilities, and more. This can be highly beneficial for businesses that need to improve efficiency and lower costs without sacrificing quality or service. Co-employment can be a win-win situation for employers, employees, and the PEO.

How to find a good PEO?

Choosing the right PEO for your business is essential. Do your research to ensure that the company you choose has the best solution for your business. Many PEOs will offer a subset of services instead of a full solution. Some PEOs will advise you what to do but will leave the work up to you. PEOs also differ in what level of services they provide to your and your employees.

Ataraxis PEO offers a complete solution for businesses. As your employment partner, we own all things HR and do the work for you. This allows you to truly focus on running and growing your business. We take the time to understand what you need and will do the work for you, so you have more time to run and grow your business.

Here for you and your employees

Ataraxis PEO makes co-employment easy. Our clients and co-employees have easy access to Ataraxis’ team of HR, payroll, benefits and workers’ compensation experts. You will never have to deal with automated phone systems or chatbots. We get to know your employees by name and are here to help them have a great employee experience.

With our personalized care and support, you and your employees have access to all the resources, tools and services that you would receive from an internal HR department “down the hall”. Co-employment with Ataraxis PEO will help you create a positive workplace culture, increase productivity and job satisfaction with your employees.

A partnership with Ataraxis allows you to focus on growing your business while we take care of the rest. If you’re looking for a way to accomplish more while increasing employee satisfacation, you’ve come to the right place. Contact us today to learn more about how Ataraxis PEO could be the solution you’ve been searching for.

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