How a PEO Can Help Your Business Ensure Compliance


A PEO can offer a variety of benefits for your business, but one of the most important tasks they handle is ensuring compliance with state and federal regulations. Businesses who try to handle HR functions in-house often spend a lot more time and money trying to regulate compliance. One of the biggest problems is having people who aren’t HR specialists do the work, which leads a number of issues such as: 

  • Untrained employees don’t have the right skills, which means they take longer to complete tasks.
  • They’re also more likely to make mistakes, which can cost money.
  • These employees could be more productive if they handled tasks in their area of expertise.
  • These employees may not be satisfied with their jobs, so they might choose to quit. This leads to higher turnover and higher costs.

Working with a PEO means your turning compliance work over to trained experts, giving you and your employees the opportunity to be more productive and focus on growing your business. Let’s look at some of the ways a PEO can help ensure your business stays in compliance with regulations. 

Compliance Monitoring

One of the services a professional employer organization usually offers is compliance monitoring. Compliance is an enormous task for almost any business and there are many  federal regulations HR personnel need to stay on top of such as taxes, payroll, wages and safety in the workplace. The thing is these rules are almost always changing, and new laws create new obligations for employers. The Affordable Care Act is a good example of this, as the law has been in flux every year since it came into effect, and it’s likely to keep changing

A PEO is there to help your company ensure you’re up-to-date with policies that are ever changing as they have a team of experts that use both technology and their expertise to help you stay on top of compliance. They’ll track upcoming changes and review your current HR policies against them. Working with a PEO is a valuable asset to your company as they provide expert advice that can save you time and money. 


Risks of Handling Compliance on Your Own 

In most cases, businesses that try to handle compliance on their own put themselves in the position of some serious risks. The most obvious risk is that they’ll violate a federal or state regulation. Non-compliance can result in penalties, and often they may not even be aware there’s a rule they’ve broken. With so many regulations at different levels, it can be difficult to know which rules actually apply to you and which ones you can ignore. Many small business owners spend a full work week or more on federal compliance alone, and that time represents a cost to your business. 


Reduce Risk 

Working with a PEO can help you navigate the challenges of compliance, and ultimately save you a lot of time and money that you could put towards other aspects of growing your business. 

PEOs can help reduce the costs of compliance to your business in many different ways, such as  helping you avoid missteps and mistakes that can lead to non-compliance penalties. They also reduce the amount of time spent on monitoring. With better knowledge of the regulatory landscape and a more streamlined process, they can identify compliance issues with ease. This means you won’t waste as much time worrying about rules that don’t even apply to you. 

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