No business owner likes paperwork. It’s time-consuming, labor-intensive, and a drain on your firm’s resources. According to the Washington Post, small business owners lose over a week of their time every year on tax preparedness paperwork alone! When one considers the forms and filing associated with other critical administrative duties, including payroll, benefits, recruiting, and regulatory compliance, many potentially productive work weeks have simply vanished – never to be seen again.
That’s a big problem for small operations.
Most multinational corporations boast full-service, in-house HR departments staffed with career professionals. In a small business environment, a large share of the burden of bureaucracy falls squarely on the shoulders of the owner. Little wonder over half of small employers cited administrative burdens and paperwork associated with tax season as the greatest perceived threat to their business. And according to the data, their fears aren’t entirely unfounded. A survey by the Small Business Association discovered that small businesses spend an average of $5,000 per year on the administration of federal taxes alone. That’s money better invested in growth, hiring employees, or shoring up critical revenue streams. That’s money that could be used to build infrastructure, pay down debts, or be distributed to employees. That’s money wasted. Gone. Vanished, along with weeks of precious time.
That is why business owners, executives, and entrepreneurs across the nation have turned to PEOs. A PEO, or Professional Employer Organization, provide payroll, benefits, and other HR services to small and medium-sized firms. The PEO assumes much of the responsibility and liability for the business of employment, such as risk management, human resource management, and payroll and employee tax compliance.
For a small business owner, the potential benefits are obvious. Imagine if someone else dealt with all the administrative and bureaucratic red tape – and then managed to save you money in the process? What small-business owner would not happily take a break from meticulously parsing the tiny print on federal tax reporting forms? For a small fee, PEOs can do that for you. They handle the administrative chores so that you can go back to building the business you love.