A PEO administers payroll functions and assumes responsibility for payroll taxes, unemployment taxes, procuring and administering employee benefits, workers' compensation, and other services. A PEO is a partner that provides a comprehensive set of service designed to make business easier and more profitable.
Frees Up Time
|
PEO
|
Payroll Service
|
Process payroll, prints and distributes checks |
Yes |
Yes |
Calculates and deposits Federal, FICA, FUTA, SUTA and local
taxes |
Yes |
Yes |
Helps administer workers' compensation claims |
Yes |
No |
Procures and administers benefit plans, including 401(K) |
Yes |
No |
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|
|
Provides Employee Benefits
|
|
|
Administers group health insurance, dental coverage, life
insurance |
Yes |
No |
Provides a 401(K) plan |
Yes |
No |
Provides other supplemental voluntary insurance products |
Yes |
No |
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|
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Manages Risks
|
|
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Assumes liability for timely payment of all payroll taxes |
Yes |
No |
Maintains employee personnel files for improved government
compliance |
Yes |
No |
Provides I-9 and W-4 verification and maintenance under
government guidelines |
Yes |
No |
|
|
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Stabilizes Cash Flow
|
|
|
Eliminates penalties associated with late tax payments and
non-compliance |
Yes |
No |
Reduces accounting costs |
Yes |
No |