The acronym "PEO" stands for "Professional Employer Organization." If you are a small business, becoming part of a PEO can save your company thousands of dollars in health insurance costs, it will save you the time and hassle of doing payroll and other administrative tasks, and could help you avoid the risk of serious financial penalties when it comes to government compliance.
When you sign up with a PEO like Simpeo, your employees are grouped with other businesses' employees under one EIN (Employee Identification Number) to create a larger employer group.
PEOs handle your payroll, file all those confusing compliance forms with the IRS and leverage the larger group size to negotiate extremely affordable rates on health insurance, including medical, dental and vision. You may even have access to other ancillary benefits like 401(k) and HSAs.
Working with a PEO like Simpeo can remove many time-consuming burdens for a small business.
In the world of health insurance, there is something known as the iron triangle.
The iron triangle is a concept that defines the constant struggle between quality healthcare, access to a network and cost. To reduce cost, Small businesses usually sacrifice quality and/or access to achieve it. To improve quality and/or access, small businesses usually have to pay more.
Simpeo breaks the iron triangle by improving quality and access while keeping costs low.
If you have only a few employees in your business, it's impossible to negotiate good rates on health insurance. When you sign up with Simpeo (or any PEO), your small business becomes part of a much larger group of employees. So instead of just a few employees, your business is now part of the PEO's group of thousands of employees. That means that suddenly, your small business has joined a group with the negotiating power of a large corporation. Your access to quality healthcare increases, while your cost goes down compared to what you would pay for a group of your size.
Now your small business can offer your employees the same kind of benefits they might expect to get working for a large corporation, including medical, dental and vision coverage. And with certain Simpeo plans, you can even offer 401(k) and HSAs (Health Savings Accounts). That will help you recruit, reward and retain the best talent – all while saving thousands of dollars.
If you have anywhere from 2 to 1,000 employees, joining a PEO like Simpeo might be a good idea. It might take a little time to adjust to the new way of running your business, but in the long run a PEO will lift the burden of many time-consuming monthly tasks, and allow you to spend that time developing your business. Learn how Simpeo can help.
~ The Simpeo Team