PSC Blog - Contractor Misclassification Risks and Labor Law Compliance

10 Ways to Save $$$ With PEO Services

 Email Article  

Tweet  

  

  

 delicious  

  

PEO Services Can be a Positive Change for Your Company

The only significant reason to make a change is when you know that it brings substantial benefits to your corporation. Cost savings is top of mind for many companies today although we all understand that savings alone, doesn’t always make the cut.  A considerable amount of benefits along with an abundant amount of savings is the real deal. Below, you will find the top ten benefits you will find when dealing with a PEO that will inevitably result in cost savings for your corporation down the road.

How Does a PEO Service Save Your Company Money?

1. Reduced Legal Expenses- You do not have to pay an external legal firm to establish the appropriate contractor service agreements to be signed by your contractors, if agreements don't already exist. If they are, you need to ensure that the most current and protective agreements are in place to protect all parties involved. A PEO service provides this as part of their core business offering. 
2. Reduced HR Management- Your HR associates can focus on recruiting and on boarding your new permanent employees instead of investing in the processing of your contractor population. This will allow them to focus on the programs in place to help reduce and maintain a low turnover rate for your company workforce. 
3. Reduced Accounts Payable Management- Your AP department does not need to spend the time associated with the opening of vendor files, manipulating incoming invoices, ensuring payments and answering all the affiliated questions from your company's contractor workforce population.
4. Reduced Workforce Misclassification Exposure- A PEO’s specialty of processing your contractor population and accurately classifying them will help reduce the risk of your corporation having to pay extraordinary fines if and when you are audited, and if your contingent workforce has been misclassified.
5. Reduced Co-employment Risk Expense- A PEO serves as the employer of record, creating a necessary barrier between the contractor and your firm. This takes some of the risk out of the engagement of independent and employee contractors resulting in potentially serious co-employment risk and the related fines and penalties.
6. Reduced Spend Management Expenses- A PEO can assist with rate management and spend control with the right technology in place. This will provide you with the essential reports you will need, in order for you  to have a complete view of the number of contractors in place, the average rate of pay, tenure management etc. to save your company time and money.
7. Reduced Contractor Availability and Competitive Risk Costs- A true PEO is not a staffing company; therefore, there is no risk of your valuable contractors not being available, or worse, being placed on a competitor’s site at the end of their contract.
8. Reduced Finance Department Expenses- A PEO will offer you a consolidated invoice. With one detailed electronic invoice you will have a complete view of your contingent workforce spend.
9. Reduced Timekeeping Expenses- A PEO will have an electronic timekeeping, expense processing and request management tool available to you via a web based system that you and your independent contractors can access from any browser with an internet connection, if you do not already have a system in place. This benefit will save you an incredible amount if you do not have one already in place. If you do, the PEO will adopt what you have and make it work to your advantage.
10. Reduced Contingent Workforce Management Expenses- The PEO is there to answer all of the contractor’s questions, provide them with all the information they need to facilitate their accounting and manage them, their expectations etc…

There are those who feel that these benefits and savings are really only appropriate for large companies with many independent contractors. The reality is that these benefits apply to many companies with smaller numbers of contractors. Regardless of the size of your company's contingent workforce, there may be substantial savings opportunities and certainly reduced risks associated with contractor misclassification or co-employment. We're ready to help you today so reach out to PSC  today and let's discuss how we can make these benefits work for you and help your corporation save time and money!

Payment Services Corp. would like to help, contact us today to discuss exactly how we can save you money!