5 Ways PEOs Will Lower Your Company's Risk

People in office at desk

Did you know partnering with a professional employer organization (PEO) can lower your company’s risk?  There are plenty of ways a PEO can take the burden of compliance off your plate to focus on company goals, attracting top talent, and being an employer of choice among competitors. 

Here are some notable benefits of partnering with a PEO. 

Bearing Liability

Doing business in America means one thing for certain—paying taxes. W2’s, I9’s, 1099’s, FICA, FUTA, SUTA, levies, garnishments… things can get daunting quick! Not to mention extensions, fines, and penalties for making a mistake. 

The expert tax and payroll staff at a PEO help alleviate the liability for correctly withholding, filing, and paying the numerous types of business taxes to make sure your business stays compliant. 

The co-employment relationship is a unique business arrangement that allows a PEO to take care of these items on your behalf. When businesses partner with a PEO, they handle day-to-day operations and employee management. Their PEO becomes the employer of record according to the IRS, so they’ll handle the taxes and paperwork in the background. You get to manage your business with an added layer of confidence knowing your paychecks will show up on time, your taxes will be paid, and you will always stay in the good graces of Uncle Sam.

Workers’ Compensation 

Workers’ compensation coverage is a critical part of running your business. It is required by federal and state laws in almost every state, yet is often overlooked because most businesses don’t experience workplace injuries. But a mismanaged injury can be extremely stressful and end up costing you time and money. 

Nextep’s risk team expertly manages hundreds of claims every year, with the goal of minimizing cost and getting the injured worker back to work as quickly as possible. We file the claim, coordinate doctor’s visits and referrals, work with legal counsel if necessary, make sure the process stays compliant with all state and federal regulations and facilitate communication between the worker, employer, and carrier to ensure timely closure. 

 

 

Technology

Many PEOs offer online platforms to keep track of time-sensitive tasks, current regulations, or employee records. When new employees can efficiently sign company handbooks and documents that support a safe and fair workplace, leaders save time and deal with less paperwork. 

Payroll processing is a breeze in a system that offers automated employee pay codes to keep your people paid properly and on time. With a PEO like Nextep, you get a secure online account to report employee injuries from our mobile app or request proof of worker’s compensation coverage. 

Benefits 

You shouldn’t have to think about how you’ll deliver a summary of benefits and coverage or required benefit notices like Medicare Part D. The right PEO will have benefits experts and a strategy for communicating important details to your team.

“Our number one priority is educating our clients, whether it is guiding them to the answers or communicating directly with their employees,” said Tiffany Grayless, Nextep Benefits Manager. “We take the guesswork out of benefits and provide our clients with a clear plan of action.”

Multi-state employers don’t have to worry about keeping track of state-specific medical changes because a PEO will keep you compliant in all states. They’ll monitor and decode laws that impact your business and keep you informed.

Handling the enrollment of multiple benefits can be a pain—why not have a PEO take care of 100% of the benefits administration? 

Our Approach

At Nextep, we manage compliance for our clients that includes workers’ compensation costs and claims, employer practice liability insurance, and government regulations. Inclusion on our master EPLI policy comes free for all clients as an added additional layer of safety to cover legal expenses for employment-related claims. Our experts stay up-to-date with every regulation affecting companies that help our people reduce risk and protect their employees. 

We’d love the opportunity to talk about how Nextep can keep your business prepared for whatever tomorrow brings.

Schedule a meeting today

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