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Decoding PEOs: Why Small to Mid-sized Businesses are Turning to PEOs for Workers’ Compensation Needs

Multiethnic team of young architects feeling stressed out and frustrated, highlighting the importance of effective payroll management.

The Growing Challenge of Multi-State Payroll

Business owners, CFOs, and HR professionals know how complex the payroll process can be. When your company hires employees that live across multiple states, however, it becomes even more challenging.

 

Varying tax regulations and location-specific wage laws make it difficult to remain compliant. The rise of remote work means these complexities are becoming even more prevalent, ultimately costing companies time and money.

 

The administrative burden of multi-state payroll can lead to costly errors—particularly for small businesses. Professional employer organizations (PEOs) step in to alleviate some of that pressure by handling administrative tasks like payroll management. This means growing companies can stay focused solely on running their business.

 

Let’s take a closer look at multi-state payroll compliance, why traditional payroll may not be the right choice for your company, and how PEOs help simplify the payroll process.

 

Understanding Payroll Compliance Across State Borders

If you’re a small business owner, hiring remote workers means having the ability to access a larger pool of talent beyond your specific area. This can be incredibly beneficial for your business, but it also comes with challenges.

 

One of the biggest challenges companies should consider when hiring talent across state borders is remaining compliant with rules and regulations regarding payroll. Not only do these laws evolve constantly, but they also tend to vary from state-to-state. If your company falls out of compliance, you could be faced with hefty fines and penalties.

 

When hiring workers across multiple states, it’s important to keep in mind that state income tax rates, unemployment insurance requirements, wage and hour laws, and benefits mandates will vary depending on where your new employees are located. Keeping up with those regulations can be especially difficult for smaller businesses or companies without a human resources team.

 

Why Traditional Payroll Systems Fall Short

Traditional payroll systems typically handle one-size-fits-all scenarios. While they may process paychecks efficiently, they may not take multi-state payroll compliance into account.

 

In many cases, generalized payroll processing can lead to miscalculated tax withholdings, late or inaccurate state filings, or noncompliance with state wage laws.

 

How PEOPayGo Makes Multi-State Payroll Easy and Accurate

From streamlining payroll and ensuring compliance to flexible pay-as-you-go programs and expert support at your fingertips, PEOPayGo makes multi-state payroll easy and accurate.

 

1. Payroll Compliance

PEOPayGo specializes in understanding and keeping up with state and federal rules and regulations when it comes to payroll. No matter where in the United States your workers are located, PEOPayGo ensures that your business will remain in compliance with those laws.

 

2. Streamlined Payroll Processes

Beyond remaining compliant with state and federal regulations, a streamlined payroll process is essential to keep employees happy and your company thriving. PEOPayGo’s platform simplifies the entire process, from onboarding new employees and time tracking to tax filings and benefits management. Automating your payroll processes with the help of PEOPayGo also ensures that it’s done accurately and on time.

 

3. Expert Support

The team of experts at PEOPayGo is always available to help with what you need—whether you’re unsure of how to handle an employee moving to another state or you’re trying to understand varying wage laws. When you partner with PEOPayGo, you’ll receive the support you need as a small or medium-sized business.

 

Simplify Payroll with PEOPayGo’s Multi-State Expertise

Managing payroll across multiple states can be complicated, and as a small business owner, you likely have a lot on your plate already. It can be difficult to keep track of varying wage laws by state, especially when rules and regulations are constantly changing.

 

When you work with PEOPayGo, you can rest assured that your business will remain compliant with state and federal regulations when it comes to payroll. Not only will you receive compliance support, but you’ll have streamlined payroll processes to help your organization simplify and thrive.

 

If you’re a business owner or HR manager with multi-state or remote employees, reach out to PEOPayGo today to get the payroll support you need.

 

Contact us today to get the coverage and support you need!

Workers’ compensation is crucial for any organization—no matter the size—and it’s legally required in most states. Workers’ comp insurance helps ensure that your employees are financially covered if they get injured on the job. It also helps protect both your company and you as a business owner from needing to pay out of pocket if an accident occurs.

 

Managing workers’ compensation, however, can be a tedious and time-consuming task. For small and mid-sized businesses, having the manpower necessary to efficiently handle workers’ compensation can be a challenge.

 

What if there was a way to outsource human resource services like workers’ compensation so that you and your employees could focus on your strengths and spend more time growing your business? Partnering with a professional employer organization (PEO) could be a great option for your company. Let’s dive into what PEOs do and why small and mid-sized businesses are turning to them for their workers’ compensation needs.

What are PEOs?

PEOs are organizations that manage human resource services for other companies. When a company works with a PEO, it’s often known as co-employment, though the PEO won’t have the freedom to hire or terminate employees as they choose.

 

By outsourcing things like payroll, benefits, and workers’ compensation to a PEO, businesses have more time and energy to put toward growing their company. Partnering with a PEO can be particularly helpful for small or mid-sized businesses that may not have the resources to handle HR services on their own.

The importance of workers’ compensation

No matter how many employees you have, having worker’s compensation is always a good idea. It safeguards your employees as well as you as a business owner in the event someone gets injured at work or becomes ill as a direct result of their job.

 

Workers’ compensation can help cover the costs of medical expenses and rehabilitation if necessary. It can also provide benefits for anyone who may have sustained a permanent injury and can no longer work. Lost wages during recovery and support throughout reentry into the workforce are also covered by workers’ compensation.

How PEOs can help with workers’ compensation

Workers’ compensation insurance can be both expensive and complex. While larger corporations may be able to handle the cost of workers’ compensation with ease, it can be more challenging for small and mid-sized businesses.

 

PEOs typically offer coverage at reasonable rates, and in some cases even offer pay-as-you-go programs. For businesses that offer mainly short-term contract work, pay-as-you-go options are great because they allow the business to pay only for what it needs, for the amount of time it’s needed. Allowing you to pay solely for what you use can help save drastically in the long run.

 

The complexity of workers’ compensation can be overwhelming. As a business owner, you likely have countless other tasks or projects on your plate to help keep your company thriving, leaving limited time for the essential administrative tasks. When you partner with a PEO, you’re putting an expert in charge of what they do best. They’ll provide coverage and handle any claims as they arise—saving you valuable time and money.

 

PEOs can also help you put safety programs in place for your employees, as well as reentry programs for injured employees as they recover. Effective safety programs mean fewer injuries at work—a benefit both for your employees and for your business. Reentry programs are great for supporting employees as they ease their way back to work, which helps boost morale and employee retention rates.

If you own a mid-sized business, keep these things in mind and consider partnering with a PEO for support with your workers’ compensation needs.

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