Professional Employer Organization (PEO) for Small Business: Risk Management

When you started your small business, you probably didn’t count on having to become an HR professional. But the fact is that even if you have just a few employees you’re still assuming the same risks and responsibilities that any industry giant does. Not only is that a little scary, it’s also a big burden. Fortunately, ADP's Professional Employer Organization (PEO) solution, ADP TotalSource® can help significantly reduce the burdens and risks of being an employer.

Increasing Federal Electronic Tax Filing Requirements Place Significant Demands on the Payroll Function

ADP is a global leader in Human Capital Management, with the experience, scale and stability to excel as your small business Professional Employer Organization (PEO). When you partner with us, you can rest assured that your most critical aspects of HR will be managed properly, even as you retain control over the day-to-day management of your workforce.

Video: PEO for HR Management and Employee Benefits

See how a PEO solution helped Jim overcome his challenges and allowed him to focus on his business.

How can a professional employer organization (PEO) benefit your business?

For some business leaders, a PEO is an unfamiliar concept. However, a PEO is simply a relationship in which you select a provider to become your dedicated HR management and benefits administration partner, and deliver a broad range of HR services through a “co-employment” model.

Did you Know?

69% of businesses that migrated from in-house administration to an outsourced model reported favorable results.*

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In a standard PEO, you retain the day-to-day control over how you manage your employees, and your provider handles the HR management and benefits administration, including:

  • Managing certain critical HR service responsibilities such as payroll, benefits and workers’ compensation
  • Shouldering many common employer risks
  • Provide access to high quality health care
  • Providing IT infrastructure for HR management
  • Training your employees in both online and classroom venues

ADP’s PEO solution offers:

  • Efficiency — Refocus on managing and growing your business by letting ADP serve as your HR department. We’ll handle payroll and taxes, HR management and other aspects of workforce management like education and training.
  • Benefits — The ADP TotalSource Health and Welfare Plan provides you and your employees with access to Fortune® 500 caliber benefits, along with full benefits administration.
  • Risk avoidance — Consider this: even one labor-related lawsuit can prove devastating to a small business – and that’s even if you win. We have specialists who keep up with legislative changes and requirements, so you don’t have to.
  • Accountability — As a co-employer, ADP shares certain responsibilities and other risks of being an employer.
  • Infrastructure — With ADP handling the IT-related aspects of HR, you’re free to add employees, benefits and features with minimal investments in and impacts to your own infrastructure.
  • Employee resources — Get training in both online and classroom environments, employee assistance programs and more.

* Source: BlessingWhite 2011 Employee Engagement Report, Hewitt Associates