Why using a Professional Employer Organisation (PEO) can be beneficial to your business

What is a Professional Employer Organisation (PEO)?

A Professional Employer Organisation (PEO) also known as Employer of Record (EOR) works with small to medium sized businesses, providing outsourcing for all tasks and functions typically performed by in-house human resources departments, this includes but is not limited to:

Payroll, benefits, compliance support, additional perks, taxes and other employer related administrative functions necessary to running a business.

A PEO will focus on all of these functions so you can concentrate on growing your business instead of the admin of your business.

Although a PEO will has the ability to take these things off your plate you still retain essential management control over the work performed by the employees.

Some more detailed examples of what you might want a PEO to help you with:


Anything from one-off payments to automated deposits, a PEO can help administer payments to employees, salaried or hourly, paid weekly, fortnightly or monthly. A PEO can also take care of the payroll for vendors or contractors, basically they have to ability to completely take care of all the hassle and intricacies of payroll.


The PEO model typically aggregates the employees of many small and medium sized businesses together this increases they’re buying power, insuring that they will get the best deals, usually reserved for much larger businesses. This means that if you want to provide your employees with benefits such as medical and dental coverage a PEO is much more likely to be able to give a higher quality and more comprehensive coverage at a much lower price. A Professional Employer Organisation can also help with different types of benefits administration such as claims, benefits on boarding and other benefits related paperwork.

Compliance Support

Employer-related compliance can be a very complicated subject and if an employer is not 100% complaint the consequences can be detrimental to your businesses. This is where a PEO comes in, they have the ability and expertise to support all of your employer-employer-related compliance needs for payroll taxes, employee tax form and reporting forms. A PEO can take care of things such as, new hire reporting, workers’ compensation, pension obligations, W-2 and 1099 filings, employment practises liability insurance and unemployment insurance filings.

Additional Perks

Many Professional Employer Organisations also provide additional perks that will vary depending on what PEO you are dealing with. These perks can include but are not limited to access to 401(k), wellness perks, commuter benefits and discounted gym memberships.

A PEO will basically concentrate on any offerings that could encourage a healthy, happy working environment and healthy, happy employees.

How a PEO can be implemented:

There is a practise called co-employment, this enables PEOs to take such responsibilities on from an employer. Co-employment is a contractual allocation and sharing of certain employer responsibilities between PEO and the client. The contract can vary and depends on the employer and the PEO, they must decide between themselves how to distribute the employer responsibilities and what they are both willing to relinquish and take on. Once this contract is in place and agreed to the Professional Employer Organisation will be able to handle payroll administration, tax filing, provide HR support and access to benefits while your company can retain the day to day management of the employees.

Does working with a PEO have real benefits to the bottom line?

I’m sure that we can all agree that a Professional Employer Organisation can seriously help with headaches and the lengthy and complicated administration associated with employing people but does it really help your business financially?

The answer is yes, it is in the data.

Businesses that work with a PEO have been shown to grow up to 9% faster than businesses that do not work with a PEO.

A business that chooses to work with a PEO also has shown to have an employee turnover up to 14% lower than business that do not use a PEO.

Working with a PEO also reduces your chance of going out of business by 50%!

How TopSource can help:

If you think that using a PEO is right for you then we can help. TopSource Global Solutions is a Global Professional Employer Organisation (Employer of Record) and Compliance specialist. Our expertise lies in the employment of skilled temporary/contract workers on behalf of clients across the world, in every continent.

We are constantly up to date of any and all changes in legislation across all territories enabling us to provide the most suitable, tailor made solution per business that works with us.

TopSource IndiaWhy using a Professional Employer Organisation (PEO) can be beneficial to your business