When a restaurant considers outsourcing its HR functions, it normally takes into account some estimated employee benefits cost advantages. But many of the advantages go beyond having your employees take advantage of group benefits rates through the PEO company.
By using an outsource, restaurant owners can relieve themselves of the costly administrative burdens of managing:
- Claims management
- Direct Deposits
- Payroll Taxes
- Applying the complex laws governing wages and tips that can make managing restaurant payrolls extremely difficult to manage.
A PEO can help reduce the employee benefits cost and the risk of compliance penalties through:
- Arranging for competitive health coverage.
- Creating a I-9 compliance evaluation, which ensures that all employees are compliant with INS regulations and avoiding penalties.
- Performing a payroll process audit to make recommendations to stay in compliance with Fair Labor Standards Act regulations.
In a recent survey, the National Association of Professional Employer Organizations (NAPEO) found that a small business owner will spend 10 percent more time complying with workplace regulations than they did ten years ago.
Employee benefits cost reduction when firing or laying off staff.
PEOs can help restaurants make informed choices when planning to offer benefits to workers that will be fired or be a part of a layoff. Whether a company has an overworked HR staff in-house or no HR at all, a PEO allows restaurant owners to spend more time focusing on managing their restaurant.
By: Modern Business Associates