Professional employer organizations (PEO) provide key human resource services to small and medium-sized businesses. There is a lot of room for error when trying to manage all the aspects of payroll, tax filing, regulatory compliance, and employee benefits, so working with a PEO can reduce legal liabilities.
Government regulations demand certain companies to provide health insurance plans for employees, as well as workers’ compensation coverage. With PEO workers comp plans, the PEO secures the policy coverage that extends financial support for injuries sustained during job duties for employees working at the partnered businesses. Because of the co-employment status that exists between the PEO and the company contracting their services, the PEO maintains legal liability for the provision of these services.
Similar to the requirements for Insure My Work Comp clients, filing a claim against workers’ comp insurance requires substantial documentation of the incident. Situations involving injury or death that occur as a result of working are eligible for both medical bill expense coverage as well as employee rehabilitation services and death benefits.
Failing to comply with government regulations opens up a company up to legal liabilities. By outsourcing human resource functions to a PEO, you can mitigate potential risks of non-compliance or ineffective solutions. Your employees will receive beneficial services, and you can have peace of mind over the accuracy and efficiency of the administration.