Professional Employer Organization Responsibilities
Many businesses are concerned about the responsibilities they will give up and any new ones they will assume when entering into a partnership with a Professional Employer Organization. A Professional Employer Organization takes the responsibilities and liabilities for paying wages. They also ensure compliance with regulations governing the reporting and paying of state, federal and local taxes due on wages that have been paid. The IRS views the Professional Employer Organization as the “employer of record” for income and unemployment taxes, and laws have affirmed that the PEO is responsible for all payroll taxes. For employment tax and benefits, the Professional Employer Organization has the responsibilities of paying state unemployment taxes. Many states see the Professional Employer Organization as the company that is responsible for providing and paying for worker’s compensation coverage.
Professional Employer Organization saves time and money…
As you can see, most, if not all of, the responsibility for paying and reporting all taxes on wages, as well as paying and providing worker’s comp insurance is done by the Professional Employer Organization. Responsibilities are shouldered by them on your behalf. This is a full time job for our trained professionals in the staff leasing business, so imagine how much time you will save by letting PEP take this over for you. The time and resources gained will allow you to get back to the opportunities for growth and expansion you may have missed. Using PEP is a smart way to devote more energy to your company, and less on human resources compliance.
