According to the Small Business Administration (SBA), the total cost of federal regulations for small businesses has increased to $10,585 per year -- 36% higher than the regulatory cost facing large firms.  And that is only for federal regulations.  Complying with a growing burden of state and federal laws, regulations, and requirements is a daunting challenge to all small and medium businesses.  

Professional Employer Organizations (PEOs) provide payroll and benefit services and compliance assistance for small- and medium-sized businesses, allowing them to improve productivity and profitability, to focus on their core mission, and to grow.  Through a PEO arrangement, the employees of small to mid-sized businesses can gain access to employee benefits such as 401(k) plans; employment practices liability, health, dental, life, and other insurance; dependent care; and other benefits typically provided by large companies.  For example, according to the SBA, approximately 72% of employees working for small firms reported there was no retirement plan offered where they work while in contrast, the vast majority of PEOs offer retirement benefits to small and medium employers, including 401(k) plans.

Compliance can be strenuous, confusing, and involved.  Increased disability and privacy requirements; complex wage and hour provisions; overlapping military, disability, workers’ compensation, and FMLA leave requirements are just a few of the challenges.  Moreover, non-compliance can be disastrous.   

On top of regulatory compliance, small businesses are facing increasingly complex employee-related matters such as leave questions, termination issues, whistleblowing, unemployment claims, and workers' compensation issues.  Attempting to hire and retain key employees may mean offering a competitive benefits package.   PEOs allow you to offer big business benefits affordably. 

You can find more information about the benefits of a PEO on the website of NAPEO, the association for the PEO industry.  You can find a list of PEOs doing business in your state there as well.